As discussed in the earlier section, ICOs and new crypto projects are increasingly relying on bounty programs as part of their initial development plans. For some projects, bounty programs aren’t just a promotional tool, but represent their entire marketing and adoption strategy.
Sometimes, it can be related to resources – projects in the crypto sphere tend to be run by small groups of developers with expertise in computer programming, security and blockchain apps. As such, their primary focus is on technological development and don’t necessarily have the time or budget for marketing, even though it’s a critical feature for success.
Bounties use the psychology of reward conditioning and satisfaction people get from completing simple discrete tasks (not unlike the psychology behind gamification strategies). From the perspective of economics, bounty programs mirror a lot of the features of a rational labour market, with freelance bounty hunters representing decentralisation.
Wide distribution and awareness through organic networks
Prior to bounty programs, projects and ICOs had limited means of exposure. Traditional online and digital marketing meant that they had to pay to advertise their projects to targeted audiences, whether by interest, geographical location or age, for example.
But bounty programs potentially bring marketing efforts to a vastly expanded reach: entire networks of social media circles that are diverse in language, location, interest and any number of other demographics. And because social media followers are actually interested in reading or watching the content displayed by bounty hunters, projects find that they receive very targeted traffic and new users: actual crypto enthusiasts and very interested ICO investors.
For some ICOs, simply recruiting knowledgeable bounty hunters or important social media influencers can assist in attracting some of the biggest backers or even previously-unknown, new angel investors.
Such is the potential of good marketing that they sometimes form the only marketing and promotion strategy for some crypto projects and ICOs. Of late, some new crypto projects have completely abandoned ICO and fundraising models, choosing to distribute their new tokens only through bounty programs.
Bounty hunting is for (almost) anyone
In essence, bounty programs are open to almost anyone in the world with access to the Internet and an interest in promoting the project. Unlike most other freelancing work, bounty programs have relatively low barriers to entry – meaning that almost anyone can participate.
And because tasks are simple and generally quick to complete, rewards are quick to procure and, just like gamification objectives, people tend to like the gratification of earning small, increasing rewards for contributing time, effort and opinion. And because more effort generally earns better rewards, bounty hunters are compelled to do more and do better.
Of course, bounty programs these days require more and more from bounty hunters. To start with, bounty hunters need a significant audience to qualify – whether these are Twitter followers, Facebook friends or Steemit blog readers. And of course, acceptable standards of language and crypto knowledge are a prerequisite – you can’t promote something you can’t express well or understand little about!
Nevertheless, bounty hunting is becoming more popular within the crypto community, with more projects launching every day, some bounty hunters are even highly sought after by ICOs keen to leverage on the potential of their influence and network.
At Amazix, we help manage the bounty programs of top-tier ICOs and crypto projects. By applying and maintaining what we believe are the highest standards in the business, we believe we have helped build some of the most successful ICOs over the past year.
Read on to understand what contemporary bounty programs entail in: Part 3: Bounty Programs In A Nutshell