Nosedive: Cold Outreach in web3 During a Bitcoin Collapse
In April 2022, the price of Bitcoin began to plummet, as did reply rates for companies in the web3 sector.
We saw a 47% decrease in replies in the first few months, with a virtual flatline when the market hit bottom in late June, early July.
So what does this mean if you’re selling to web3 companies? First, if you’re reaching out to web3 companies, lead with value propositions that speak to cutting costs.
This is a time when web3 companies are looking to maximize runway. When starting cold conversations, it’s important to show leads how you can help solve their most pressing pain points – and when your market is down 60%, costs are going to be an urgent focus.
Second, if your market is broader than just web3, our advice would be to target leads that have stable cash flows and are less reliant on venture capital funding.
Venture-backed companies are often cash-flow negative, leading to greater stress during a market downturn (more on that in a future blog!).
During downturns, sales and prospecting get harder, but they never completely stop. It’s essential to think critically about how to position your product to garner the best results, even in difficult conditions.