Initial Coin Offerings (ICOs) has been the shining light for many fledgling companies out there, trying to get a foothold in the darkness that looms in a fiercely competitive space. If you are a fledgling company, you must have experienced such difficulties. ICOs could help you raise funds quickly, without the hassles of regulations and audits that are usually associated with conventional fundraising platforms. You would be interested to know that because of this ease in raising money with ICOs, there has been an explosion of startups across the globe. An estimate of the total funds raised in 2017 comes up to 5.6 billion USD. All you need to start an ICO is a team and a whitepaper detailing the aspects of the project and the token you are offering.
While ICOs has helped startups with a much-needed infusion of funds to launch their products, it has also led to a spurt in the number of fraudulent ICOs. Such ICOs exploit the lack of regulations not to mention that 50% of them fail to meet the funding goals. The solution to both these pain points is the deployment of a well-planned marketing strategy that is aimed at establishing your brand and enhancing investor confidence.
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So what are the points you should consider when devising an effective marketing strategy?
A clear giveaway of a fraudulent ICO is the anonymity that shrouds their team on the website or other social platforms. So, always maintain transparency about the company and the team involved. If you are looking to launch a worldwide ICO, it makes good sense to have a diverse team comprising of people from across the globe. How you go about building trust with your potential investors sets the tone for all subsequent operations. Ensure that your target audience is constantly updated about the ICO and its various aspects. This way you could attract major investors which could, in turn, motivate smaller investors to participate in the funding.
You should also actively participate in various crypto-forums and conferences and reach out to investors. This way you can better position your product that can solve problems faced by them. Nothing boosts investor confidence like a tangible presence, that can easily verify the credentials and claims of the company. Conferences also act as a platform for investors to compare between various ICOs, and can greatly help market your offering to a much larger audience.
Once the initial trust-building exercise is completed, it is imperative that you focus on increasing brand awareness and enhancing brand loyalty. Building an active community around your product would allow for transparency, something that is critical to improving investor confidence. It also acts as a perfect marketing platform that would, in turn, bring in new investors through platforms such as Reddit and Bitcointalk. If your team can engage with the users on such forums, it would improve brand visibility. In addition to that, signature campaigns and bounty campaigns aimed at increasing consumer participation would go a long way in tackling any doubts about your ICO.
Before starting an ICO, ensure that you have a well-written whitepaper elaborating the proposed token and business plan. This is essential for investors as it would keep them well-informed about the various aspects of the ICO and that would attract more funding. , You could use paid promotions and advertisements for the whitepaper to specifically reach out to target demographic groups in order to increase chances of engagement while also improving brand visibility.
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You should strengthen your online presence in order to increase visibility and in turn rake in bigger investments. Search engine optimization (SEO) is a key aspect in this regard. It helps improve your website’s ranking when it’s searched for through Google. Fraudsters often clone websites of genuine ICOs, at times retaining the original website name, while changing the suffix (for instance from .com to .net). A good ranking would ensure that your investors are directed to your genuine website. Having a strong presence on social media platforms would allow you to reach out to your target audience. You can also keep the audience informed about information related to your ICO. Social media platforms serve as the perfect launch pad for ICOs as it provides both the organizer and the potential investor a verifiable online presence significantly increasing confidence and trust of both parties involved.
Keeping your prospective investors informed about the progress and other details about your ICO helps build confidence among them. Constant engagement would pay rich dividends in the long run, as it helps establish the ICO as a genuine offering, and that would usher in more investments.
An elaborate video highlighting the various aspects of the ICO would greatly enhance the understanding of the prospective investors about the offering. Videos detailing the pain points addressed through the token can significantly increase consumer interaction. This ultimately acts as a key element in fundraising for ICOs, as the investor would have greater confidence in the ICO and more likely to increase investments in it. Such videos can also be published across various media channels and even through various social media platforms, exponentially increasing the reach of the ICO campaign.
If you can associate with a relevant influencer on social media channels, that would improve credibility and you could also leverage the influencer’s network to increase the reach of your ICO. This would be the fastest and most reliable mode to increase the visibility of the ICO, as you would be endorsed by the influencer which would peak the interest of their followers.
Marketing plays a very important role in ICOs, often greater than the product itself. With an effective marketing strategy, you would tell the world about your company and in the process, promote transparency about your operations, both of which are required to attract prospective investors. They would also can be assured of the legitimacy of the ICO and confidently invest in it. In conclusion, an effective marketing strategy would greatly enhance user participation and improve consumer confidence, thereby increasing funding for your ICO.