As the P2E world continues to flee from the effects of Ponzi schemes, companies are looking for ways to cut costs and increase efficiency. In response, sustainability has become a hot topic for businesses big and small, even though many companies still struggle with how to approach sustainability initiatives. Which programs will have the greatest impact?
This article provides a brief overview of several key considerations when developing an effective sustainability plan. It is meant as a starting point rather than an exhaustive list of all potential considerations.
Why Should You Care About Sustainability? Why Should You Care About Sustainability?
Sustainability is good for P2E businesses and it has been shown to improve employee engagement, customer loyalty, and brand reputation. Companies that incorporate sustainability into their core business model are demonstrating to customers, investors, and other stakeholders that they are committed to a win-win approach. These companies are more likely to have access to capital in times of economic stress. A key reason to care about sustainability is that it is increasingly becoming a requirement in business.
In Most activity to earn (or play to earn) projects, the revenue model is based on pumping money to the project by gathering new members or players and they are required to buy new items such as some tools to actually play the game, they then are put through a series of transactions possibly cashed out by another member or player. This is not sustainable because there is no case where every player has made money, if one player makes money, it is made from the money that another player has invested into the game. Almost all play-to-earn games work this way which is not a good option for the long term.
For a play-to-earn game (P2E) to actually be sustainable for it to succeed 10 years from now, the money that the players are earning must also be sustainable and if you pay players with the money that is received from new players, the game will die over time! It’s very much like a Ponzi scheme and it will not make it to 10 years because the players will quickly be divided into those who made money and those who lost money and you will eventually run out of new players which is the main problem.
What are STYLIKE’s effective ways to be sustainable?
Stylike’s revenue sharing plan is not based on rewarding current players by getting new players, rather stylike’s revenue model is based on being supported by external contributions.
- Funding and support by FASHION TV
STYLIKE is the first ever web 3.0 fashion app backed and funded by Fashion TV. Fashion TV is an international fashion and lifestyle broadcasting television channel. Founded in France in 1997 and in the last 25 years it has gathered its reputation and honor.
- Brand and Sponsor collaborations
STYLIKE’s future plan for investing money into the game is collaborating with brands and getting sponsorships as the fashion industry is a never-ending thing. When sponsors and brands associate with any business, their positive image and identity benefit the project and its users lend them credibility and increase project awareness. The main purpose of brand awareness is to generate preference in the mind of the consumer, increase customer loyalty and also help the sustainability of the project.
- In-app advertisement model
Last but not least, let’s talk about advertisements. This model of pumping money into the STYLIKE project is similar to how big brands advertise at large football stadiums. This is the outside money coming into STYLIKE and it’s not from lower-skilled players and it’s also not from the hope of speculative investors making money. In fact, it is an actual business model.
STYLIKE could have a few advertisements throughout the game that raises monthly revenue of which some of that could be portioned off for skillful players to reward them for playing and the rest could go to the devs to continue to develop the game thus the development team has an incentive to build the game in a way that attracts a lot of users.
The players have a sustainable way to actually earn money while they play, at least if they are good and most importantly without taking it from the less skilled players and these advertisers get a new paid advertising route that may be really effective for their goals. With this model and plan, Stylike players will have a sustainable income that can be reliable long term.
Conclusion
When developing a sustainability plan, keep in mind that a short-term focus can be detrimental to long-term sustainability efforts. Focus on sustainability as a long-term strategy, not as a short-term cost-cutting measure. In this way sustainability is a bit like an investment, you will have to spend time and resources now to see returns later. Although it is important to think about the costs of your sustainability initiatives, you should also think long-term. Find ways to make your sustainability initiatives pay for themselves over time. In this way, sustainability becomes a core part of your project model, rather than a costly add-on and in the long run, sustainability is likely to enhance your project’s profitability.
For more information visit: https://stylike.io