PATRON: A new business concept based on Influencer”s sharing economy

yaleal (53)in #originalworks • 6 years ago (edited)

Hello my dear friends. I present you my entry about Patron, with which I am participating in the writing contest sponsored by @originalworks. I hope that the information provided can be iinteresting, useful and to your liking. If you are interested in the details of this contest, you can consult the following link.

The image was created by the author with images published in Patron WhitePaper

Since the last years of the last decade, Social Network Services (SNS) have revolutionized the way people communicate and interact. Through it, they share experiences, emotions and ideas that have been used by marketing management and advertising in companies, to promote and position the products and services of companies and institutions. Prior to the SNS, patronage was a sponsor form of celebrities in traditional media and special events, who joined as ambassadors of a brand or product.

Celebrities are usually born of recognition in their work in the arts, science, politics and social activism in recognized institutions. However, at present, social networks allow people to become a large public thanks to the publications that are published on social networks. It is no longer just the famous rock singer or Hollywood actor that is the subject of a brand of soda; The NBA player or the soccer image The image appears on the advertisements of sports shoes, or the director of a symphony orchestra that promoted an expensive watch Today we can see on social networks men and women who have as many followers as other celebrities on Facebook, Instagram, YouTube, Twitter and other social networks. These people are known as influencers.

In this context, many companies have promoted their products and services on social networks through their own accounts or by hiring celebrities to do so. However, this is not the majority of the time, these promotions are ineffective and inefficient due to a wrong planning of these activities and lack of adequate market research.

This weakness in the marketing management of the companies is visualized by a group of Japanese young people, led by its founder Atsushi Hisatsumi, who propose a business model of sharing economy and based on the Blockchain technology, to identify and correlate influencers with segments of market By products, types of consumers / customers and geographical areas. As well as, the platform serves as an intermediary between the sponsors and agents of influence to achieve agreements and contracts in the promotion of products and services, such as a token that serves as means of payment and reserves value in transactions that can also benefit, inclusive, to their followers.

Patrón, is a new business concept whose mission is to support the market of influential people in the SNS to interact with sponsors of companies under a sharing economy model (such as Airbnb or Uber). This is a concept that is based on a platform based on a chain that tokenizes the value created in the exchange of services.

Currently, there are about 2.5 billion users on social networks (one third of the world's population). It is estimated that about 8 million influencers and microinfluencers could be potential users of PATRON to cover miles of market segments, products, services, geographical areas, lifestyles and various demographic groups (ethnic, age, cultural, gender ... )

Source: Patron WhitePaper

Core function of PATRON is:

"Share the SNS delivery framework of the influencer in place. (Pay each time)
"Share an influencer exclusively for several months (monthly payment)".
"Acquire favorite influencers and monopolize (annual contract) In several cases like the previous ones, it is possible to deploy several businesses on the PATRON platform"

There are three different types of users in PATRON. They are the following:

Host; or Influencer
Guest or Sponsor
Fan or follower

Influencers (hosts) can establish contracts with sponsors to ensure a stable income over a long period of time as a brand ambassador. The influencer can only promote the products or services of the sponsor, according to his specifications, if his contract establishes his exclusivity during the period of validity of the contract.

Through the contract, it will be ensured that the Sponsors (Guests) reach a certain number of followers during an agreed time. These followers will be part of a certain market segment or target that the influencer is advertising the product or service. Sponsors may also have the exclusivity of a demographic group for a long period of time if the influencer accepts a one-year contract o more time.

PATRON establishes the criteria to evaluate the participation and suitability of the sponsors and influencers in the platform as guests. The criteria used are the following: For the sponsor or host: financial and agency capacity. For the influencer or Host:

• Number of followers: The number of people available through this user's network.

• Level of commitment: The frequency of engagement between the influencer and his followers.

• Reputation: Opinions or comments from the followers of an influencer.

The operation of the PATRON model is synthesized in the following image.

Source: Patron WhitePaper

The next image summarizes the cycle of using the PAT token in transactions within the PATRON network

Source: Patron WhitePaper

For each type of user, the uses of the PAT token are as follows;

• Guests: To get involved with influencers and use their networks.

• The fans; to promote the content of the influencers that follow through "I like", which in turn raises the qualifications of the influencer and its commercialization.

• Influencers: to reward fans for contests, promotions and events.

This token is an attraction that allows to monetize inclusive, the participation of the fans. It also allows you to create trust in payments between guests and influencers

For each of the users, PATRON offers many benefits. A Win-Win relationship is created in their compensation and rewards.

Sponsor (Guest):

Difussion of information about companies, products or services more quickly and efficiently to the market segments that really interest them.
They can also direct their advertising to more than one demographic group at a time if they are complementary.

The influencers:

They can position their image by building a brand based on their followers, the companies with whom they have worked previously and their quotation in the network.
Some influential people may have high access costs to few specialized followers who are regular buyers, or may have a cheap price and launch multiple content to a wider and more general audience.

Followers or fans:

They will benefit from better content generated by a network that is better able to monetize the value derived from their attention.

They can receive prizes and gifts in contests and promotions of the influencers, sponsored by the guests.

Peter Green is a gardening enthusiast and has a YouTube channel, where he uploads videos about how to plant and care for the garden plants. His popularity has helped him to have more than 140,000 followers in three years. A company specializing in tools and materials for gardening has about 30 stores in the USA, and contacts Peter through PATRON. Previously the company had advertising on television but it was too expensive for their low budget.

Peter has increased his income thanks to a contract for a year to promote the stores of products of gardening and the company has seen increase their sales in the following three months since it began to display the announcements in his channel.

PATRON is a business model based on shared economy that promises a lot within the influencers market, since it monetizes the success achieved by the personalities that make their mark on the SNS and allows the sponsoring companies to select their brand ambassadors in a more efficient manner. effective and thus be able to meet your marketing objectives with lower budgets. This will imply a greater effort for the influencers to offer better content in their accounts in social networks and maintain a relationship of commitment with their followers.

Here is two videos that gives a quick overview: