GM frens,

In today’s edition of the Ground Floor we will be breaking down the lessons we can learn from the success of LinksDAO…

The Lessons From LinksDAO

What does success look like for an NFT collection?

In the last 2 editions of The Ground Floor we have explored the factors driving down the demand for certain NFT collections in 2023.

Now it’s time to turn our attention to one of my favorite projects in Web3 that continues to flourish ~ LinksDAO.

Building LinksDAO

Co-founded in January 2022 by Mike Dudas, Chris Maddern, Cooper Sherwin & Jim Daily ~ LinksDAO was created to purchase a golf course that Links members would have access to.

LinksDAO raised $10.5 million by selling 9,090 NFTs, broken down into two categories:

2727 Global ~ premium passes that provided a long list of perks.

6363 Leisure ~ more accessible passes that provide many of the most popular perks.

💸 Bundling Benefits

Purchasing a golf course at a good price point doesn’t happen overnight.

As opposed to waiting until this purchase was complete to provide its collectors with value, LinksDAO immediately got to work.

Purchasing Power

The majority of golfers spend $500 ~ $1,000 each year on equipment alone.

As a community comprised of thousands of young golfers with plenty of purchasing power, this put LinksDAO in a very advantageous position.

For golf brands, acquiring young golfers early in their life is a dream situation given the lifetime value they can capture from winning favor with these customers.

Subsequently, brands are willing to pay a premium to acquire these customers.

Traditionally, this money would be spent on channels such as social media marketing as a means to acquire these valuable customers, however, as opposed to sending this money to the social media giants ~ LinksDAO works directly with successful golf brands to provide its members with discounts & vouchers to access their products.

This mutually beneficial relationship can be replicated across many different product categories which has allowed LinksDAO bundle benefits from Top Golf, Callaway, Five Iron Golf and 30+ additional brands to provide benefits to its token holders.

This bundle of benefits is frequently added to to ensure Links members continue to find value from owning these NFTs.

⛳ Making History

In March 2023 LinksDAO announced they would be purchasing their first golf course, Spey Bay Golf Course, located in Scotland.

This purchase marks a major milestone for both LinksDAO, and a major milestone for DAOs as a vehicle to crowdfund capital to complete such purchases.

What’s Next?

While completing this purchase will allow LinksDAO to accomplish its initial goal of purchasing a Links golf course, Links now has their eyes set on purchasing a second Links golf course in the United States, where the majority of its token holders call home.

During the same time Links is expanding its physical presence, Links is also expanding its digital presence by creating a new tier whereby golfers can purchase a $199 annual subscription that offers benefits to new members.

This strategy allows LinksDAO to generate additional revenue, while simultaneously solidifying its existing value proposition of its current token holders by demonstrating that people are willing to pay for the benefits they are receiving in perpetuity.

Looking Forward

LinksDAO is the perfect example that a Web3 project doesn’t have to perpetually pump in price to continuously provide value to its collectors.

Instead of promising the world to its collectors, Links pursued an extremely pragmatic strategy to provide value to its collectors.

LinksDAO represents one the very best examples of a utility token doing exactly what it’s meant to do, providing its collectors with the right amount of utility relative to the price point they charged, all the while adhering to its original mission ~ a major win for Web3.

💡 Web3 Roundup

1) 👀 NFT Lending Explained

2) 💸 What's Driving Gas Fees So High?

3) 🚀 LeBron James Is Wearing A Web3 Brands Clothing

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See you next time! — OB1👋

This newsletter is for informational purposes only and does not constitute financial or business advice to any person or entity.