Viral Marketing with Steemit

This article attempts to initialize discussions about "Businesses with Steemit" suggesting a viral marketing model

Background

Steemit is a blockchain-based social media that rewards contents contributors directly through esteeming by other users. While it is achieving a meaningful success in the initial stage during the last four months with benefiting and attracting users, especially for individuals, Steemit still requires business models for entrepreneurs. This article attempts to initialize discussions about "Businesses with Steemit" suggesting a viral marketing model.

Viral Marketing

Viral marketing refers to marketing techniques that employs existing social network services to increase product sales or brand awareness (Wikipedia). It has advantages in cost-efficiency and faster feedback due to utilizing social networks. The most well-known form of viral marketing is product reviews on blogs supported by producers. However, if marketers, such as bloggers or Facebook users, hide the fact that firms give rewards for their reviews or posts, this type of marketing can deceive readers. Also, it is practically very hard to punish deceiving bloggers directly and immediately (e.g. how can we deprive profits from a blogger who lies about poor products?)

Steemit Marketing

A viral marketing with Steemit can resolve aforementioned problems. First, money flows are totally transparent and hence financial supports from companies to bloggers will be revealed to all users. Second, by downvoting a lying author, users can remove his/her financial benefits easily. Details of Steemit marketing is as follows.

1. As a preparation, a marketing firm obtains enough Steem Power to reward viral marketers (currently 1k VESTS can give approximately $15)
2. The marketing company announces a target product with a unique tag. There can be some conditions such as minimum word count, inclusion of photos, etc.
3. Any user can participate the marketing with referring the target product with adding the tag suggested by the company
4. If a post meets suggested conditions and includes the unique tag (surely mentions the product), the marketing company upvotes the post
5. If other users think the review is useful and honest, they can upvote as well. However, if they think it is deceiving, they can downvote

Pros and Cons

The greatest advantage of this approach for Steemians is that this will attract a large amount of capital and will increase Steem Power reservation. In addition, users can have additional opportunities to monetize their social network.

However, if there exist intentional interruptions from trolls or competing companies by downvotings, this approach may not sustain. But these interruptions also require significant amount of Steem Power as well and their evil behaviors are easily discovered on the blockchain. From the perspective of large stakeholders, a.k.a. whales, this will increase the value of Steem in the long-run so they have no incentives to destroy this business model.

Conclusion

Viral marketing models based on Steem platform will increase demands for Steem Power and will benefit users. We need further discussions about other business models and their pros and cons.

Any of your opinions are more than welcome!