May 21, 2018
Coin Magnet Interview - Attrace - Erwin Werring
Today with us is Erwin Werring, CEO of Attrace. With an impressive resume in marketing and extensive knowledge of blockchain, Erwin is now leading Attrace to solve some of the more complicated problems plaguing the affiliate marketing field by using blockchain. Check out Attrace at https://attrace.com/
[CM]: Hey Erwin! Good having you with us today.
[EW]: Hi! How shall we start?
[CM]: Let’s start off with a general description of Attrace by your words.
[EW]: We’re the first decentralised affiliate marketing platform, running on an entirely custom made blockchain capable of registering any advertisement click on-chain. We’re a solution to take on the biggest problems in affiliate marketing - a market currently worth $13 Billion a year globally.
[CM]: And which market is your project aiming for?
[EW]: We’re aiming for affiliate marketing, which is a type of online advertisement where payments are based on actual sales achieved (In contrary to display advertisement which is pay per view or Google ads which is pay per click). It’s arguably the endpoint of any type of online marketing and should arguably have a very large take in the online marketing space as a whole, which unfortunately is not the case at the moment as there’s a lack of trust and tracking issues in this field.
[CM]: That really leads us to the next question: What solution does Attrace bring to the table?
[EW]: The easiest way to explain it is to first explain what affiliate marketing is, and the best example for that is a price comparison website - let’s say for insurance, for example. If a customer visits this website and buys an insurance, the traffic from the price comparison website will be steered towards the insurance company that will be closing the sale. Once the sale is closed the insurance company will be paying a commission to the price comparison website. However, between those two parties there’s a middleman called the affiliate network, in which all problems arise. The affiliate network tracks all the clicks generated by the price comparison website and also handles all the payments between the merchants (the insurance company) and the publishers (the price comparison website). The problems are that there’s a lack of trust in the affiliate network, as well as a lot of technical issues related to it, and on top a global 25% commission which sums up to around $13 Billion USD every year. Our solution is to simply take out the middleman.
[CM]: And is it a unique solution? What makes Attrace stand out?
[EW]: We’re an absolutely unique solution, but not in terms of the use case and problems that we’re trying to solve. We are unique in the fact that we are the only ones to solve the main problems with affiliate marketing: tracking and lack of trust. There are currently 4 other blockchain-based projects that are trying to solve affiliate marketing problems, but all of them are more focused on things such as commissions or assuring automatic payments instead of facing the elephant in the room which is the tracking and trust issues. Most above all, they are also running on Ethereum which with all the respect Ethereum deserves - is the main reason they’re not going to work. As a publisher I would be very happy if my commission goes up from $100 to $125 per sale, but I would be even more happy if all sales and leads I generate are rightfully allocated to me! And the only way to solve the trust and tracking issues is by auditing and storing every individual click, sale or no sale, on the blockchain via a smart contract. This means you’re going to have to run between 1,000 to even 5,000 individual contracts per second, and doing that on Ethereum will be way too costly, on top of the operational risks and issues regarding perfect customisation for the affiliate marketing use case that are also involved. Attrace is the only solution with a completely unique blockchain (built from scratch in Golang) that’s fully dedicated and technically capable for serving this use and purpose. We solve all trust and tracking issues, reduce commission fees by~95%, constrain cookies spamming, enables Long Tail and Emerging Markets to participate and we’ll deliver instant market share in 2018.
[CM]: How did the team come up with this idea?
[EW]: Half of our team consists of ex-publishers or merchants, so we all have a hands-on experience with the problems we’re solving. When we first learned about blockchain we recognized that it can be a perfect solution to the problems we were dealing with in the affiliate marketing space and decided to just go for it.
[CM]: Looking a bit to the future: What are the main goals of the project?
[EW]: By the looks of things right now we’re going to be live by the end of this year, with a first successful transaction between an merchant and a publisher, fully on chain, in one of the most developed affiliate marketing markets in the world: The Netherlands. Once live with the first successful transactions we will be on track to become the standard for affiliate marketing. If we achieve that it means we will have solved the problems that are refraining affiliate marketing - currently worth approximately $13 Billion a year - from getting a larger share of online marketing as a whole - currently worth approximately $260 Billion a year.
[CM]: And on the financial side of things: How much has the project raised so far?
[EW]: So far we’ve only done a private sale which was heavily oversubscribed and predominantly driven by the end-users of our platform, both publishers and merchants. The total amount of money raised in it is $1.1 Million USD.
[CM]: When are you planning to hold your ICO?
[EW]: We’ll be starting our Pre-ICO on the 21th of June, and our ICO on the 12th of July. The ICO is due to finish 8 weeks later.
[CM]: So, Erwin, how did you personally get interested in blockchain?
[EW]: I got interested in blockchain by a friend in 2014. I started trading a bit, predominantly around Bitcoin of course. It got really interesting with the evolution of Ethereum and I realised that this isn’t just a currency but we can actually try to use the blockchain tech - and especially the aspect of independent validation - to solve actual problems which were impossible to solve before.
[CM]: Is there any news you would like to highlight to our readers?
[EW]: Yes. Our Pre-ICO will be going live on the 21st on June with the user interface for the end-users around the same time, which means we’re actually going live this year. Before the end of this year you will see Attrace being fully live, with immediate economic traction and therefore also immediate Attrace token (ATTR) usage driven by the actual end-users of the platform.
[CM]: Terrific. Well Erwin, that concludes our interview. We thank you very much for your time and hope to hear more good news from Attrace in the future!
[EW]: Thank you as well! Bye!
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