My web3 vendor hiring process

Be careful. Don't get scammed.

Author

Tony Drummond
May 20, 2023

Overview

After 20 years of business experience, working in web3 was an eye-opener for me for sure.

Prospects and clients I’ve spoken with this past year have told me many horror stories, with losses exceeding $200,000 in some cases.

It was the first time I was more likely to be scammed than actually find a partner who knows what they’re talking about and can execute on what they claimed during the sales process.

Today, I’ll share tips I’ve honed after sourcing tens of millions in spend outside of web3 and spending several millions developing and marketing my own project.

  • Discovery

  • Interview

  • Payment terms

  • Post-hiring engagement

Discovery

Done right, discovery should feel a bit like finding a needle in a haystack in web3. Why, you ask?

It’s simply hard to find really good suppliers and that’s why a proper discovery process is key.

Steps

  1. Start by clearly defining your specifications so you have standardized instructions for all suppliers to follow and work off of

  2. Find projects similar to yours in quality and check their websites for listed partners

  3. Build a list and then prioritize based on what you believe to be the best fit

  4. Use websites like https://www.clutch.co to research reviews alongside other sources, such as Google

  5. Check the performance of their work yourself. For example, if it’s a marketing company you might check the projects they’ve mentioned they helped be successful. Never skip this step!

  6. Begin your outreach processes and schedule discovery calls

Interview

At this stage, I’m judging everything!

For example, if the sales process is disorganized, I’d expect the actual project to run even worse.

Questions to ask/consider

  • What experience do they have with similar projects?

  • What were the results of those experiences?

  • What references are available to contact? Don’t skip this and get three if possible!

  • What are the onboarding processes like?

  • What is the typical customer experience like as the work is completed over X timeframe?

  • What’s included and what’s not included?

  • What work/effort is the customer (you) required to complete to enable success?

  • Is it a package deal? Do you need everything in the package?

  • Is it possible to start small and scale up?

  • Is value higher than the price they’re charging?

  • Who is the primary point of contact after the sale? Can we meet them in advance?

Payment Terms

Here’s where I see the wheels typically fall off the bus!

Let me give you some rules of the road…

  • Projects are paid in a milestone based format and never paid in full

  • Start with a small project to test them out, reducing risk

  • Never pay a development company a monthly rate. Most of these are complete scams.

  • Don’t get wrapped up in long contracts

  • Have a schedule in advance that’s aligned with KPIs to measure performance

  • Never chase cheap prices in the web3 space. Quality is expensive: Pay for it as it’s cheaper in the long-run.

  • What if the supplier doesn’t perform? What is the guarantee and how do they de-risk it for you, the customer?

Post-Hiring Engagement

After the contract is signed and work begins, the job isn’t over!

Suppliers need proper management and follow up to ensure mutual success.

  • Treat all suppliers like customers, ensuring they have what they need to be successful

  • Ensure the project is on track per the agreed upon schedule laid out before signing contract

  • If the project ever goes off track, immediately catch it before letting it go on too long

  • Hold people accountable for what they said in the sales process alongside agreed upon KPIs

  • When a supplier fails, you also fail. Never forget this!

Wrapping Up

If you want to reduce the unfortunate risk of being scammed, follow the process I’ve laid out above.

Key points

  1. Don’t rush and take your time finding a great fit

  2. Start small and don’t go all-in

  3. Engage and manage the relationship to ensure mutual success

When you’re ready, here’s a few areas I can help you:

  • Identifying your product and utilities

  • Guiding you on overall project operations, launch and scale

  • Identifying gaps in tokenomics, a huge pain point for many

You can book a FREE call right here: https://calendly.com/tonydrummond/strategy-call