After Initial Coin Offerings (ICO), security token offerings have been setting a trend in the fintech industry.
The biggest ICO market was in 2018. In just the first quarter of 2018, they raised more funds than they did in the entire 2017 which was $5.6 billion.
Nevertheless, ICOs success rate hasn’t been that great. ICOs witnessed only a 48% success rate in 2017. But then came in STO or Security Token Offering. Being compliant with security regulations, STO’s are considered the best alternative to ICOs.
Whether you choose ICO or STO, you ought to do marketing. However, in order to gain more returns by reaching a wider base of investors, you need to get your STO marketing strategy right.
If you have been already doing STO marketing only to see things not going your way, here are a few things that might have gone wrong.
A website is the most fundamental part of STO marketing strategy. Irrespective of the investors’ location, the website will be the first point of interaction with them. First impression matters and if you mess it up here, you will be eventually sailing towards failure.
Focus on making your homepage informative and highly professional. Your homepage serves as the face of your STO; thus, it should look more like an executive summary of your business plan.
Follow the guidelines given below to create a homepage that compliments your STO marketing strategy.
Almost every business across the world currently uses social media. Similarly, even STO can make use of social media for Security Token Offering marketing but a bit differently.
Start with establishing your presence across all social media platforms, especially concentrating on LinkedIn and Twitter. Though there are several many social media platforms like Reddit, they aren’t powerful enough to create the same impact on your target audience. There are even chances of your target audience not being there on such platforms.
Leverage Twitter and Facebook to communicate with the general public including potential investors. Share any and all content you create on these platforms as they will help build a stable follower base which can strengthen your credibility. On the other hand, LinkedIn can be used to network and get connected with the industry influencers.
Legal compliance is an important aspect for your Security Token Offering marketing. After all, this is the only feature that is unique to STO and separates STO from ICO. It is crucial that you complete all the compliance requirements before launching your STO.
Because through STO, you aiming to attract institutionalized investors who have a solid grounding in the financial arena. Unlike retail investors, these investors will go through all the legal details of the STO.
Once you are sure your STO is compliant with all the rules, you can also use this as a marketing tactic to attract more investors. Make sure that you have all the legal documents handy to present to potential investors.
Try consulting with experienced attorneys in the STO industry to better understand the requirements. As a rule of thumb, everything legal and compliance-related about your STO should be out in the open.
Just like how a website is an important part of STO marketing plan, an active blog will also help your STO gain more investors. Keep your blog active with in-depth articles, statistics, and infographics that portrays why investing in your STO is worth it. Often people require a bit convincing about why investing in your STO would be a good option, and your blog is the best way to make it happen.
Furthermore, blogs are great methods to build your authority in the industry through high-quality, informative blog posts. Though you might have to put some effort in the beginning to attract traffic, you will eventually see results.
Start with publishing a couple of detailed articles on different topics. Also, try guest posting on other reputed blogs.
As we dive into the last point in this blog, you might have already understood the essence of whatever you had missed in your STO marketing strategy. Often, people just think of marketing as a way to simply attract investors. However, STO marketing stretches far beyond that and it rather than just attracting investors, it is also a method that helps retain potential investors.
Email marketing is an effective STO marketing service that helps retain existing as well as potential clients. To kickstart email marketing, start with a weekly or monthly newsletter. Though you might have hard email marketing has a high bounce rate, that isn’t necessarily the case with newsletters.
Newsletters are where the users opt to sign up to receive and read the material you send. Thus, newsletters can be used to keep the investors updated about your achievements and to share knowledge with the readers to inspire them.
STO marketing is going to be a long ride. However, a solid Security Token Offering marketing plan will help you identify and attract the right audience, earn their trust, and ultimately convert them. Once you address these goals and start marketing your STO, you will be well off on your way to be a part of the next big trend in the blockchain and cryptocurrency arena.