Distribution
Distribution is essential to success and should be integrated into product design.
Distribution is the process of making a product or service available for the consumer or business user that needs it. This can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries.
A business model describes how a company generates revenue and creates value for its customers. The distribution of a business model refers to the process of getting the product or service to the customer in a way that is convenient and accessible.
Solving the distribution problem is crucial in establishing the critcal path to obtaining critical mass before resources run out.
Technology
Opportunities to solve problems with web3.
- Transparency
- Traceability
- Slow
- Human Error
- 24/7
- Standardisation
- Honesty
Scalability issues with DeFi business models.
- DeFi protocols have not given much thought to distribution, relying mainly on token emissions instead of traditional marketing strategies.
- Tokens are what protocols have the most of, and it's not clear where they should send their dollars even if they had them.
- Finding useful customers in DeFi is harder because the pool is much smaller and harder to identify.
- Token rewards or airdrops are offered to attract users, but they tend to be mercenary and unlikely to stay once the emissions end.
- Token rewards can be counterproductive because users may only use the protocol for the rewards and not the product itself.
- Money is often an expensive way to motivate.
- DeFi will have to figure out how to create a network that is valuable enough to attract users without any rewards or incentives.
Two of the most successful crypto applications, Uniswap and OpenSea, have never used rewards to attract users.
Real World
Real world examples.
Leaders
Schema
- Product
- Pricing
- Promotion