Over 101 web3 startups have raised nearly $1 billion in funding in the span of a year, yet many of them struggle to effectively communicate their value and retain users beyond the initial hype. That’s where Web3 marketing agencies step in. But is a marketing partnership the right step for your company or protocol? This is important because you need to assess your business stage and whether or not you want to outsource your marketing. After concluding that you need to build and scale your Web3 marketing with an agency, how do you choose the right one? In this guide, we’ll show you how to assess your needs, identify risks, and measure potential rewards to make an informed decision. What is a Web3 Marketing Agency? A Web3 marketing agency specializes in promoting blockchain-based companies, crypto projects, and NFTs. They leverage innovative marketing strategies to help clients effectively communicate their value proposition to users, developers, and crypto communities. Web3 marketing agencies provide a variety of services, including: Understanding Your Brand’s Web3 Marketing Needs Before deciding on a partnership, clearly define your brand’s specific Web3 objectives. Are you launching an NFT collection, a DeFi project, or a blockchain-focused service?  Perhaps you aim to build community trust, attract developer adoption, or position your brand as a thought leader in the Web3 space. Clearly defined objectives help simplify communication and set realistic expectations, as without clear objectives, brands risk confusion, wasted resources, and missed opportunities. Assessing In-House Capabilities vs. Agency Expertise Before partnering with an external agency, carefully evaluate whether your internal team possesses the necessary skills and resources to manage a successful Web3 marketing campaign.  Consider expertise in areas like: Technical Blockchain Integration Your marketing team needs to understand how blockchain technology works to communicate its value effectively. This includes grasping concepts like consensus mechanisms, tokenomics, smart contract functionality, and blockchain interoperability features. For instance, if you’re launching a layer-2 scaling solution, your marketing team should be able to explain how it reduces gas fees and improves transaction speeds in terms that both developers and end-users can understand.  Creating Clear, Educational Web3-Focused Content Curating Web3 content is harder than Web2 because you’re selling an ecosystem, not a product. This means creating tutorials, documentation, explainer videos, and guides that not only help users navigate your platform but also educate them about Web3 and the blockchain as a whole. Additionally, Web3 content must account for the fast-paced changes and frequent updates to most protocols. This requires writers who can quickly adapt and maintain accuracy across multiple platforms. Effective Community Management Building and maintaining an active, engaged Web3 community involves continuous interactions across platforms like Twitter, LinkedIn, and Discord. You not only need to maintain regular communication but also consistently produce and schedule content that resonates deeply with your community. An internal team lacking experience in managing these communities might overlook essential community feedback or fail to effectively convey your project message, risking the community’s trust and your project’s reputation. If your team consistently struggles in any of these areas or you consistently experience delays, it likely signals the need for external support. A Web3 marketing agency can quickly bridge these gaps by crafting precise messaging that resonates with your target audience, thereby effectively communicating your project’s value and building credibility for your brand. The Risks: What to Watch Out For As more companies look to get ahead by hiring Web3 agencies, careful founders should weigh a few key factors before committing to a partnership. Here are the most important ones: Technical Complexity Web3 marketing involves technical concepts like smart contracts and wallet integrations, which can be overwhelming if not handled properly, as they require skilled developers. For example, explaining how your DeFi wallet custody solution works or how users can interact with your API requires some level of technical understanding.  If your marketing team lacks this expertise, they might oversimplify complex features, leading to confusion or, even worse, misrepresenting your product’s capabilities. This technical gap can result in campaigns that fail to resonate with your target audience or inadvertently mislead potential users about your product’s functionality. Cost Web3 marketing can be expensive. Typically, you can expect to pay a Web3 marketing agency between $1,000 and $15,000 per month, depending on your brand’s requirements. Factors influencing these costs include campaign complexity, the level of technical expertise required, and other content creation costs.  ​​Let’s say you’re running a campaign and you need to create educational content about your project or develop technical documentation. This requires experienced writers who command premium rates, and many startups tend to underestimate these cumulative costs, but they can quickly add up in the long run. Niche Expertise Effective Web3 marketing requires specialized knowledge, which calls for experienced consultants whose expertise comes at a premium. Traditional marketing tactics rarely prove effective with Web3 communities. ​​An agency without proper Web3 experience might apply traditional marketing playbooks that fall flat in crypto communities, thereby wasting both time and resources while potentially damaging your brand’s reputation. Regulatory Uncertainty The crypto and blockchain sectors still operate within regulatory gray areas. Poorly managed campaigns could inadvertently breach regulatory guidelines, leading to lawsuits, fines, or reputational damage. For instance, in cases where promotional content unintentionally promises financial returns, projects might face investigations by regulatory bodies like the SEC or other financial authorities. Analytics & Tracking Measuring success in Web3 marketing can be difficult due to blockchain anonymity and the limitations of traditional analytics tools. Setting clear goals proves all the more important in web3 marketing. Traditional metrics like Google Analytics, email open rates or website conversions don’t capture the full picture of Web3 user engagement. Furthermore, activities such as wallet-based user interactions or smart contract interactions require specialized blockchain analytics tools that are often expensive and technically complex. Without proper measurement capabilities, you may struggle to optimize campaigns or demonstrate ROI to stakeholders. Assessing Your Needs: Do You Need a Web3 Marketing Partner? Not every business needs a Web3 marketing partner. Here are a few questions to ask