By Jake Lee, Founder of Magnet.
In traditional business, frameworks, such as the “pirate method,” have guided the growth of many of today’s tech unicorns.
However, until now, I haven’t seen a growth framework specifically designed for Web3 projects—one that captures the unique growth opportunities available to them. That’s why I developed what I call the “MAGNET method,” which stands for mobilize, attract, galvanize, nourish, economy and team. This method outlines the distinct growth opportunities Web3 projects can leverage to help drive growth and achieve results.
Mobilize: Getting Started
The first stage of the MAGNET method is all about preparation. You need to get your project and team ready for the growth journey ahead. Make sure you have the right quality talent and the resources, whether financial or human, you need in order to effectively implement the framework into your project. You can’t go into this half-heartedly; growth requires commitment.
Attract: Marketing-Led Growth
The second stage is marketing-led growth, which kickstarts growth through marketing strategies that help attract and acquire users. Marketing-led growth consists of two key areas: awareness and acquisition. Put simply:
• Awareness: Who are you trying to make aware of your offer? In other words, who is your target audience, and how will you reach them? Think about your branding, messaging and channels.
• Acquisition: How do you frame your offering to your target audience? What’s the offer itself? How do you convert them into users? You’ll want to consider your onboarding process and marketing funnel.
Galvanize: Product-Led Growth
The third stage is product-led growth. At this stage, your growth comes from the value your product provides, which means you’ll want to prioritize activating users and enhancing retention. This stage of growth consists of the following two areas:
• Activation: This refers to the initial activities a customer engages in that encourage them to start using your product actively. This is the trigger point that leads to actual usage.
• Retention: Think about how you’ll keep users engaged with your product over the long term. Many tech companies succeed or fail based on how long they can retain users. Great retention is a key factor in achieving product-market fit.
Nourish: Business-Led Growth
The fourth stage is business-led growth, which ensures sustainable growth by optimizing your revenue and scalability models. Consider:
• Revenue: How will you monetize your project? What Web3 revenue streams are available to you, and how do they integrate with your product’s revenue model?
• Scalability: Can your business sustain growth over time? The Web3 market can be volatile, so you need to build contingencies to ensure your project can scale and adapt.
Economy: Asset-Led Growth
The fifth stage is asset-led growth. At this stage, you’ll want to focus on developing the right assets and fostering vested interests to drive growth. There are two key areas in asset-led growth:
• Token: This refers to the asset you’re creating, its utility, its purpose and how it delivers value.
• Ecosystem: This outlines how your token or asset functions within your internal economy, including its relationship with your product and community.
Team: Community-Led Growth
The final stage of the MAGNET method is community-led growth, where you focus on igniting viral growth that fuels the future of your growth funnel through the loyalty of your community. In this area, the two main strategies are user-generated growth and referral growth.
• User-generated: Think about why community members would voluntarily promote your project.
• Referral: Referral growth involves building a reward system to incentivize your community to actively grow your user base.
Once you’ve familiarized yourself with the MAGNET method, you can develop strategies that are customized to your project’s specific needs at each stage, using the framework’s steps and focus areas as a guide. In doing so, you can position your Web3 project for growth and help your business reach new heights.
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