The Metaverse is becoming more popular. In regulatory filings with the U.S. Securities and Exchange Commission during the first six months of 2022, the phrase metaverse appeared over 1,100 times. A record number compared to the 260 mentions in 2021 and the less than a dozen in each of the preceding two decades. The worldwide market values tell a similar story. In the first five months of 2022, companies, venture capitalists, and private equity investors invested an astounding $120 billion in Web3 immersive experiences, which is more than double the $57 billion invested in 2021, which indicates a more significant market trend in which corporations and investors strive for a foothold and a niche in the Metaverse.

Upon closer scrutiny, however, it becomes clear that most businesses are launching into the Metaverse blindly. Gordon Ramsey, Snoop Dogg, Microsoft, and Netflix are establishing a presence in the Metaverse. Future-focused business leaders are considering how to join the market, and specific issues loom large. As a company that interacts with companies to develop Web3 experiences, we encounter several misconceptions and questions about the Metaverse. Having seen organizations enter the market with varying degrees of success, here are a few common pitfalls to avoid as you map out your strategy.

Assuming that prior laws apply in the Metaverse? Don’t.

Web3 is the next generation of the internet. It is where all transactions and experiences are recorded on the blockchain and where VR, AR, and virtual events will eventually intersect to form a fully immersive, three-dimensional digital world. Currently, most firms and endeavors use the “Web 2.5” framework. We are heading toward Web3, but the transition has only begun. Traditional notions are worthless since the Metaverse is unlike anything we’ve ever experienced. Specifically, information gating by large corporations, the steady stream of disruptive marketing aimed at consumers, and the certainty of return on investment for brand activities.

In contrast, decentralization is the cornerstone of the Metaverse. Web3 offers engaging experiences that provide value and meet your audience where they are instead of marketing your brand message or using your virtual space as a billboard. Where ownership and user-generated content reign supreme, we cannot anticipate web2 success to carry over to Web3 — at least not in the same way — for legacy brands or personalities.

Also read: Certain Ways Metaverse Might Influence Cryptocurrencies.

Even if your market capitalization and TikTok follower count are exceptional, they will not offer you a competitive edge in the metaverse ecosystem. One cannot help but examine the recent failure of Horizon Worlds, Meta’s long-awaited addition to the Metaverse, to exemplify this concept. After spending $10 billion and two years working in a vacuum, the company revealed its virtual reality sandbox to great ridicule. Many community members questioned how the eponymous Meta could be so out of touch with the expectations and culture of the users of the Metaverse in light of the debut’s antiquated looks and lack of significant community participation.

What is the conclusion? Do your due diligence. Determine where your group congregates and the kind of experience they want, and then focus on providing that. Assume that any brand equity you’ve created so far will need to be turned into an agile, engaging experience that prioritizes their needs above your idealistic brand objectives.

By yourself, you can only go so far.

With previous knowledge of the Metaverse’s culture and technology, every attempt to enter is destined to succeed. Example: the number of celebrity-driven NFT launches that, like clockwork, fall in value as soon as they are introduced and are described as money-grabbing scams. If you want to travel swiftly, you should go alone; however, if you wish to travel far, you should travel in a group. Your “guide” may be an external organization with whom you collaborate. Or engaging field experts with considerable knowledge to work on your team. In contrast, if you collaborate with a trusted adviser, you’ll get guidance navigating the many decisions you’ll need to make as you begin – from the tech stack to build on to the kind of experiences you’ll test to how you’ll eventually monetize.

If web3 is an upgrade, more expansive solves issues of web2, you only imagine what the value of, say a metaverse project will be in 10 years https://t.co/GqJTMbPyV0

— Nat Nye (@natnyetla) October 29, 2022

Consider building a metaverse team function inside your organization if long-term success is desired. Nike is an excellent example of this method. Instead of building everything from scratch, Nike acquired RTFKT, a notable digital fashion design company specializing in manufacturing virtual shoe collections. To unite its community and establish a brand presence in the Metaverse, the company wanted to provide unique virtual products and experiences. Together, they created Cryptokicks, a brand of virtual footwear, and virtual venues where users could connect and display artwork and NFTs on their walls. Seven million people engaged with Nike’s metaverse creations in just six months due to this very successful partnership. Microsoft and other conventional corporations are rearranging their teams, creating new job descriptions, and employing metaverse-savvy personnel for a reason: they are in it for the long haul.

Ignoring your neighborhood is not sensible.

It is easy to get mesmerized by new immersive technologies that astound. However, the Metaverse extends well beyond digital domains. Your community is the cornerstone of your success in the Metaverse. It is crucial to foster a sense of belonging, identity, and community. NFTs, such as the Bored Ape Yacht Club or DeadFellaz, allow people to express themselves uniquely and communicate with others who share their interests which catalyzes acceptance and ownership. By offering intelligent interactions, a firm may create strong brand loyalty by leveraging this advantage.

In 1950, Jarritos was founded in Mexico. As a brand with more than seventy years of history, the company wanted to attract new customers and modernize its brand image. Notably, Jarritos’ recent foray into the Web3 sphere demonstrates that any company may succeed with a community-driven strategy. Jarritos opted to partner with the renowned NFT collection Gutter Cat Gang, whose community is deeply engrained in the brand (owning different NFTs from Gutter Labs unlocks unique levels of membership and community perks).

Jarritos bought a Gutter Cat NFT for their marketing efforts and used the collaboration to engage with the Web3 community. This community-first model shields you against Meta-like failures since it is based on an existing group with common likes, beliefs, and a strong desire to connect with you. Keeping these factors in mind when the planet takes its first cautious steps into the Metaverse will help you to beat others who rush in without a well-developed strategy quickly. Focus on providing to the community instead of seeking investment from it. Identify the relevant people and partnerships to help you serve them. Recognize that the rules are constantly evolving in real-time, and be willing to explore, adapt, and settle in for the long term.