SPIN Protocol is a decentralized commerce ecosystem that directly connects suppliers and influencers using blockchain technology.
E-commerce business remains to be highly promising with the expected market size of $4.8 trillion in 2021.01However, the critical problems have detected in the sector. Conventional e-commerce conglomerates have been exerting monopolistic power, causing inefficiency and disadvantages for market players. Suppliers suffer from excessive commissions, unreasonable requests for price discount, and inefficient marketing/PR expenses. Consumers, ironically, have a limited access to product information due to excessive promotional contents, which are easily manipulated.
In response to such defects of the traditional e-commerce model, influencer marketing has emerged.
Unlike the product information provided by conventional e-commerce services, influencer-generated contents contain user voices and deliver their unique viewpoints, thus perceived as more reliable and practical by everyday customers. Suppliers have shifted from conventional marketing to influencer marketing to utilize such advantages to reach target audience. In recent years, influencers have become an alternative yet powerful marketing channel for suppliers. Also, influencers who have a significant number of audience on social media now utilize their social media as a sales channel, directly selling products to their followers.
However, as simple and as convenient as it sounds, current influencer marketing also has its weakness. First, there are issues caused by intermediaries for both suppliers and influencers. For example, agencies connecting influencers to suppliers ask excessive fees for both parties. The cost is even higher for suppliers: they need to pay not only the commission but also overly-priced fees for contents source and casting once connected to one.
No transparency is another problem. For example, accurate conversion rates over a marketing campaign and assessment data of an influencer’s sales performance is next to impossible. Also, the reliability of influencer is often questioned due to the widespread practice of acquiring fake followers and/or fake activities. On the other hand, for influencers, it is difficult to guarantee fair rewards and to earn constant profits from the marketing campaigns they participate in.
We aim to solve these problems by utilizing blockchain technology and start a new era of decentralized commerce (“D-commerce”). We plan to achieve this goal by eliminating any intermediaries that hinder the transparent and fair market plays and by providing technical supports to operate commerce business easily for independent influencers.
SPIN Protocol’s six core values are: Globalization, Open Participation, Fair Distribution, Transparency, Direct Relationship, and True Reputation.