## Aim of This Document
To create a proposal on gov.pooltogether.com to introduce the concept and proposed structure of the PoolTogether Marketing Working Group (PT MWG) to be voted on by the PoolTogether Community to gauge initial reaction, adjust accordingly and decide whether to proceed to a PTIP application.
This will follow the same approach as the work done for Forming PoolTogether Treasury Management Committee.
##“2022 is PoolTogether’s Year to Scale” - Leighton Cusack, PT Co-Founder
Thanks to the incredible strength of its vibrant community, its proven, secure and robust technology which is ready to scale, PoolTogether V4 has seen significant linear growth in user deposits. The average monthly deposit growth rate is around $10m USDC from approximately 100 new unique wallet addresses- we are getting new depositors every day.
This has been a good rate of growth and we also see the growth in PT v4 v PT v3 with PT v4 being at 61% of v3 levels currently (as of 28th December 2021)
The issue however is that v4 is currently operating at a loss, and a large one. The prize pool is depleting PT’s treasury daily with only 15% of the prizes being funded from the yield of existing deposits. More specifically, every day that PT operates its cross chain Polygon, Avalanche, Ethereum Pool, at current investment levels, it is losing between $5,000 and $10,000 from its treasury, depending on individual prize claims. That equates to between $1.825 million and $3.65 million of annualized losses. According to the treasury working group, PT needs to achieve an 8-10x increase in user TVL to $150m to $200m to avoid this continual treasury depletion.
This however, is not the largest challenge: PoolTogether is the clear Web3 leader in no-loss savings opportunities. The opportunity cost to not investing in scale is immeasurable. The exponential growth of people entering the crypto market is only proof that PoolTogether is not hitting its true potential yet. If PT doesn’t act now to seriously scale depositor growth, someone else will, jeopardizing everything that has already been achieved. There are already new, well funded competitors starting up and the opportunity is too great for more not to try. Someone will have more than a billion TVL within the next two years, it should be PT.
##Introducing The Marketing Working Group (Hopefully)
In order to deliver against this goal, we propose the launch of a PT Marketing Working Group (PT MWG) with one mission: depositor growth. The working group will be comprised exclusively from members of the PT community, who have between them more than 40 years of marketing experience and will of course embody the inclusive PT culture and community.
The first order of business for the the PT MWG will be to work with the PT community and potentially a third party partner to simply and professionally articulate:
A. What and how many personas embody all types of PT depositors?- what is driving the different groups of depositors to participate in PT and why? How long do they stay deposited? What is the Life Time Value (LTV) to PT of a depositor from each persona?
B. What are the depositor journeys for each of these personas? Where are the friction points in depositing? Not just at onboarding into crypto, but even earlier in the process: When they decide to save/invest money, when they earn money? When they get a job? What are the friction points in their journey and where can we help? Are there opportunities to create increased motivation to overcome PT’s already defined onramp challenges even earlier in the savings/investment discovery process?
C. How do we use these two inputs to refine and better articulate the PT brand? How do we communicate what we do and why we do it in words and pictures, to each persona effectively and consistently every time. (Note: this does not mean we will be making any changes to the PT logo, but instead defining the meaning and communication protocols behind it)
All of this will come together to form the basis of PT’s communication strategy. It’s brand house, brand guidelines and opportunities for engagement. This will be the primary input of PT’s new depositor acquisition strategy and we will use it to build campaigns that span across PT’s three pillars of communication:
Owned Assets: like PT Social Media, the PT Community Substack and any additional content and communication tools developed by the PT Community
Earned Assets: like PR generating activities that generate non-PT related assets to talk about and promote PT and its brand/mission and values
Paid Assets: like additional influencer partnerships (like Kris Kay) or other paid media assets like search, social media and potentially even ‘dream big’ scenarios like sponsorships or out of home (e.g. advertising on subway trains).
##Funding the PT MWG
The PT MWG will be awarded a separate bi-annual budget by the PT Community, to be managed by a multi-sig within the group to cover both Committee remuneration and also budgets for working with external agencies and service providers.
Each individual engagement with an outside third party will be quoted on by at least three independent potential partners. Once the winning quote is assigned, it will have separate statements of work, service level agreements and an accountable member of the PT MWG to oversee the successful completion of the engagement.
To ensure the PT MWG can operate with the speed and efficiency necessary to deliver against it’s mandate, it is proposed that the group will have the autonomy to approve contracts at or equal to $50,000 USDC. Any contract or statement of work over $50,000 USDC, the PT MWG will submit a temp check snapshot: Snapshot
This is a directional vote. If there is resistance, we will consult the community and reconsider the direction.
##Structure of the PT MWG
The initial size of the PT MWG will be nine members, 2 co-chairs, 5 active members, and 2 advisory community advocates, all of whom elected and approved by the PT community as a full slate every 6 months.
The co-chairs, in addition to being active members, will be responsible for co-ordinating and organizing all team activities, communication, post feedback/comments on the forum and the tracking, verification and approval of all hours worked by the PT MWG.
The active members will be responsible for actively building marketing strategies and be the liaison and contact point with specific partners on the execution of acquisition campaigns.
The advisory community advocates will be non-voting members, responsible for attending PT MWG meetings and ensuring that the MWG upholds the standards, vision and mission of the PT Community.
Based on participation in PT MWG meetings and sub working groups, we anticipate the following members – (to be more decided)
- Loitering_gorilla (Co-Chair)
- Smart Investor (Co-Chair)
- Tim (Active Member)
- Anne_O (Active Member)
- To be determined (Active Member)
- To be determined (Active Member)
- To be determined (Active Member)
- To be determined (Advisory Community Advocate)
- To be determined (Advisory Community Advocate)
All decisions of the PT MWG will require a supermajority (70% of 9) approval before going forward. Members who cannot attend meetings will proxy their vote to another PT MWG member to vote on their behalf. This applies not only to awarding contracts to 3rd party vendors, but changing the structure of the group or adding/removing any individual PT MWG member who are not determined to be living up to their accountabilities or responsibilities.
## The PT MWG Will Not:
Create any marketing campaign on its own
The PT MWG will define strategies, metrics and deliverables, but will work with third party contractors to create and execute any marketing/acquisition campaign.
Make any changes to the core app or website
The PT marketing group will be focused primarily on new depositor. In the course of it’s work the PT MWG may come across recommendations for improvement of the core assets which it will share with PT inc for potential inclusion in the PT inc core website/app roadmap.
Operate against the value of the community
It is essential that PT work closely with the entire community to ensure it captures the values, mission (the brand) of what PT means. Once established, the PT MWG will ensure that any communication to potential or existing depositors will fully embody everything that this community stands for.
##The PT MWG Will:
- Develop a comprehensive understanding of who we serve
Who are our silent majority- those who deposit into the protocol but don’t participate on discord? Why are they here? Where did they come from? Who else is out there like them that we can speak to?
Set and Report Operating KPIs
We will have defined metrics that will help identify how we are performing across the entire acquisition journey and what we can do better. These will be defined, tracked and reported on once the phase one persona/journey mapping/brand work is complete.
Always Strive To Be Better
All members of the PT MWG will be available to the PT Community and will be open to any and all suggestions/improvements
Update the PT Community Monthly
A member of the PT MWG will provide an update on the PT Community Swim and meet in the main discord voice channel when possible knowing that competitors are part of the PT community.
##Proposed Marketing Objectives
Increase TVL in V4 by $20 million over the next 6 months
At PT’s current approximate APY, this will generate approximately $700,000 return to the treasury allowing the funding of the PT MWG to pay for itself. More importantly, this will prove the efficacy of the committee’s work and set the groundwork for real, scalable growth in the back half of 2022.
3,000 new depositors in v4
This will ensure that PT’s mission is met and we are not only attracting Whales looking to game the system
##Examples of PT MWG Initiatives
The PT MWG strategy will potentially operate across some, if not all of the following communication channels:
Online/Offline Media Campaigns
- Ultimate approval of any major initiatives and strategies proposed by the Committee
The PT Community would have to approve any major marketing strategies e.g. engaging a Marketing agency or major marketing strategy proposed by the PT MWG before it can be executed. The MWG will be responsible for determining the terms of deals but statement of work approval will be subject to a PTIP and Community Vote
- Ability to replace members who do not fulfill the requirements of the role
If there are members who do not meet the duties and responsibilities of the role, are frequently absent, etc, the committee can remove that member with sufficient votes
- Authority to add and remove powers delegated to the committee
The community can, through the normal PTIP process, add or remove powers to/from the committee as they see fit. This ensures that the committee is always ultimately just an extension of the will of the community itself.
- Authority to dissolve the committee
The committee will be subject to periodic reviews, and if the community is unhappy with the PT MWG’s performance or the community does not believe the committee is necessary anymore, then the community can vote to dissolve it
##Initial Thoughts on Budget for the PT MWG
- Compensation for PT MWG Members: The PT MWG will use the Pool Grants Committee model as the bases for its compensation. Specifically, all committee work will be compensated at $100 per hour. This $100 per hour rate will be applied in two ways:
a. An upfront fee of $8,000 for the initial work done to build this proposal and the initial operating structure of the PT MWG
b. An on going work commitment of for the PT MWG of 20 hours for the co-chairs and 15 hours for the standard committee members per month. Additional, The PT MWG will hold an additional ‘bank’ of 100 hours compensate individual PT MWG members who need to work over their capped time. Advisors will be compensated with a $600 USDC quarterly stipend for their time.
The total compensation for PT MWG Members will not exceed $80,000 for the first six months of 2022. All compensated hours will be tracked, approved and shared with the community. Any unused team compensation will either be rolled over or returned to the treasury. All funds paid to the Marketing Working Group will be paid in a yield bearing stablecoin and distributed to the group as such.
- Budget to work with external marketing agencies and partners to conduct research and execute against PT MWG objectives and metrics.
a. We need up to $100,000 to engage with an ethnography/brand agency to properly build out the personas, journeys and PT Brand
b. A budget of up to $400,000 to engage with an acquisition campaign over the first six months.
To summarize: The budget for third party work is $500,000. The total request is for $580,000, for the first six months of 2022 when in include third party work and compensation for the PT MWG.
##Why This Much Money
It is a natural reaction to look at the requested budget and wonder, why do we need so much money? Why can’t we spend less, prove success and grow from there? The answer is frustratingly simple: ad-hoc, tactical executions can be effective and cheap- when successful- but they are not replicable or scalable.
A foundation for sustainable, profitable growth creates value well beyond the immediate users acquired. Although the immediate goal of the PT MWG is to acquire $20 million dollars in TVL from 3,000 net new depositors, our real success metric is that we have a model for new user acquisition that we can scale profitably, by simply adding dollars.
PoolTogether is a challenger brand. That means we will never be able to outspend any traditional competitors (banks and lotteries) and we will never be the loudest voice, anywhere. As a result we need to get really good at knowing our potential new depositors, and really scrappy at getting our message to them. Financial and lottery brands, will have marketing, advertising and media budgets in the $10’s of millions or higher.
Any single advertising campaign, in a single market, would usually have a budget of at least $500,000. Plus, their brand, persona and journey work will already be complete and proven. A $500,000 working budget gives us just enough room to get our footing, try multiple channels, tactics and regions. It gives us the start we need to build that foundation for real, exponential growth. Can something be done with less? Yes of course. But it comes at a tradeoff: long term, profitable, scalable growth.
##Let’s Make 2022 The Year PoolTogether Scales
Ultimately, the PT MWG is about the PT Community and DAO investing in it’s future by stepping outside of its comfort zone and scaling in a way which dare we say it is more “professional” and sustainable. This does not mean becoming corporate or suit and tie, but it does mean becoming more structured, purposeful, accountable and results oriented.
We can no longer operate in a small piecemeal fashion, but need to work with professionals and think big. So while we believe in, and can assist with, community led one off campaigns, they will not be part of our mandate, they will remain with the Grants Committee.
##Disagree? Great! Make It Better.
It’s easy to read all this and say “No and here’s why”. But we believe we are all aligned that PoolTogether is ready for scale. We also agree that if we don’t invest in this moment and use our strength and resources as an advantage, we are going to lose far too much money and more importantly, our position as the clear market leader.
So we need your feedback on this proposal. But just don’t tell us what you don’t like and why, tell us how we can change our mandate, structure, mission and operations to allow for 2022 to be PoolTogether’s year of scale.
##Answers To Potential Issues
1. We aren’t addressing the user onboarding problem
I think we need to be honest with ourselves- onboarding non-crypto saavy depositors is not just a PT problem it’s a category truth. It is faced by every protocol that is not itself an onramp, from the big ones like Uniswap and Aave to the small ones that even we haven’t heard of.
While we definitely believe that PoolTogether should invest in streamlining it’s onboarding, this should be done in concert with our scalable marketing efforts, not before. The PT MWG, would be 100% supportive of creating and participating in an onboarding working group which would include members from the PT MWG, PT Dev, PT Community Advocates and PT Inc. However, we will save this for a second post.
2. Marketing for a protocol is not the same as marketing for a company
While this may be true, the PT MWG has seen direct advertising for Pancake Swap, Aave, Crypto.com, Coinbase, Coinsquare (Canada) and more on traditional media channels. It is important to recognize that growth involves moving from bleeding edge depositors, to leading edge depositors, to fast follower depositors. To these people, there is no difference between protocol and company, there is just opportunity, we need to make sure they understand PT’s brand and unique value proposition when they do.
All that being said- we are still on the bleeding edge, so there may be differences in marketing for a protocol. The only way to know if there are, is to try something and learn.
We’re taking mass market marketing strategy and customize it to the space. We welcome your feedback into the process in the marketing-wg channel!
3. We will grow with technical integrations e.g. with Rainbow Wallet
Absolutely we will! But integrations require effort on all sides- api integration, UX and communication, etc… The stronger the PT brand, the more momentum PT has, the easier it will be to find integration partners and for them to find us.
We’re taking a multi-pronged strategy here. As the space and offerings develop, we’ll take advantage of them, but in the meantime we need to build for what exists now and those efforts should pop even more as product integrations grow.
4. I have an idea for X tactic or Y strategy. You should do that
Yes and! But a scalable, profitable marketing strategy is grounded in understanding our users, their journey to find us and how they perceive who we are and how we can help them. That is why we need to do that work and share it with you all. Once you see it, we want to hear every idea you have as input in our strategy. If it doesn’t fit into the strategy that is ultimately built, and the community approves, then, please, please, please, apply for a grant to execute it yourself
We want to entertain every idea! But please don’t be discouraged if your idea does not come to fruition. It takes a lot of effort to bring something like your idea into existence. We’ll always entertain new ideas. And we could potentially integrate something similar into the marketing strategy in the future. Keep submitting your ideas!
5. Many projects have grown without marketing. Why do we need it?
Absolutely they have, just like PoolTogether has. But that doesn’t mean those projects didn’t start investing in marketing once they achieved growth. Every organization and project in the world has started to invest in marketing once it hits a certain level of growth, Pool Together has hit that level!
Marketing happens whether you focus on it or not. Not focusing on marketing is a marketing strategy. We want to give PoolTogether the best chance it can to scale in 2022.
6. We should keep marketing community driven with community based projects
Agreed. The marketing working group is community driven and a community project, just one that’s entirely focused on optimizing the marketing efforts of the protocol. The Grants Committee will keep working with the Community based initiatives e.g. the PT Community Substack allowing the PT MWG to focus on larger more structured projects
This post can serve as a guidepost for forming a PoolTogether Marketing Working Group. If the recommendations presented are agreeable, the Committee can work to create a Charter and propose a PTIP to form the Committee.
Do you support forming the PT Marketing Working Group as outlined above?
Please also add your thoughts and feedback as to the points outlined above and any other comments you have which can help us improve the vision and plan for the PT MWG.
Thank you for your time in reading the Proposal and giving us your feedback