From idea to white paper: what matters.
This is a first in-depth article on practical steps a company should take to successfully launch an ICO. It contains definitions and tips regarding writing a white paper — why is it a necessity and how to structure it better.
In the context of ICOs, white paper is a document aimed primarily at helping a potential investor make a decision regarding whether this project deserves attention. Ideally, it should contain a deep explanation of the problem being solved, the solution being delivered, as well as technical specifics that make this method advantageous. Coming from the definition, white paper is a technical document, having, however, the biggest marketing value of all the copy for your ICO. Let us discuss how to balance out the specific requirements and contradictory goals of white papers.
Cater for your audiences
As with any marketing copy, the goal of white paper is conversions. First conversion is into reading and understanding your core idea, picking reader’s interest and enabling the end-goal conversion — into making an investment.
There are different reader types, and, ideally, your white paper should cater for all of them. There are people who read documents thoroughly, studying the conditions and looking for mistakes. This type of reader requires the document to be free of spelling and logical mistakes, as well as written in an easily understandable language. Unlike some parts of my articles, it should be easy to read, well structured and precise with terms.
However, most readers utilize a different approach to studying documents such as white paper: they skim or go straight for the part where it talks about benefits. Thus, white paper needs an interactive table of contents to assist in navigation, as well as highlighting particular ideas with formatting. Sections directed towards impatient prospectors should summarize important information about the project to enable the later conversions by explaining the core idea.
Reading white paper, prospective investor is only interested in one thing — understanding your business idea to the extent they can evaluate the outcome and make an informed decision on whether to get involved or not. Below there is a list of good practices that can help engage the investor with your project and tip the scales in your favor.
1. Formulating idea
Making the core idea of your project apparent to the reader is an important task. By solving it you will make the biggest advancement towards investments for your startup.
First things first, try making the whole idea into one sentence. Use this structure to make it easier:
We help X to achieve Y(by doing Z)
I will use an imaginary messaging app for examples:
We help teams communicate better with a customizable messaging app
Completing this simple task, you will have a powerful and short message that should help you pick interest of prospective investors. Ideally, it should be made visible before the reader opens white paper, on your landing page, in marketing emails, etc. so the person knows from the start what they are looking at.
2. A world without the problem
Many guides to marketing copy advice you to start by describing a problem, and then presenting a solution. This perspective is already a bit old, as more and more modern startups emphasize the change in the world they want to bring. Help investors envision the world where the problem you are trying to tackle is gone, and you are the dominant force on this market. Ideally, the marketing part of your white paper, which should come right after any important legal information you wat to put from the start, should convey this vision.
How exactly you deliver it — by talking about the future, asking the reader to imaging the world or naming an actual change that is already underway, depends on the nature of your project, its values, and marketing strategy.
Examples:
In 2020 workplace inefficiency will be gone forever
This year people communicated 350% more thoughts through messaging apps than out loud
Message like this works better then describing a problem, giving a more powerful positive message and reinforcing the beneficial impact your product will have. The easier time reader will have grasping the positive aspects of your idea, the more likely they will think it is a good one. Emphasizing particular changes helps with the next thing you need to do.
3. No one wants to miss the train
Now, when you picked the initial interest, it is time for a marketing trick — make prospective investor anxious. Accentuating a changing nature of the world and your market is a good way to show that your idea should be developed right now, or a vision of the bright future may not happen.
Example:
The market for workplace messaging apps will reach a turning point a year from now
You can add some relevant numbers and names to add veight to your claim. This is the main psychological hook that will help you achieve conversions. It is important to not overdo it, as investors are not into high risk projects, the risk should rather be on their side — message should clearly state that your project will doing great, and imply that the ones who will miss the opportunity to take part in it will have nothing to gain.
4. What there is to gain
Now, prospective investors are primed for the main thing why they are reading your white paper — your terms. Focus on whatever benefits your project will deliver to the investors, e.g. what growth you expect under which circumstances, and how they can extract value out of your tokens. It is very important to be sincere when it comes to numbers. It is always tempting to declare that you will take a slightly larger market than your niche (like 5–10 times larger), or diminish the role of your potential competitors. Don’t. Investors are profiting in their field because they have insight in businesse practices, markets and margins. They will triple-check your numbers, and if there are serious mistakes, your project’s credibility will be in jeopardy.
Here is a good place to list your sale terms and token specifics, as well as the external factors that may help your success.
5. How you can deliver it
After describing how you see your business model flourish, it is finally tie for more technical specifics. It is advised to avoid raw technical data or too much detail, however. Present the key technologies and defining features of your product in a form of tools that will help you pave a road to success. Every solution you refer to should have a distinctive role in making the product better and more valuable. Readers are not always tech savvy, thus features should be described in simple language with the emphasis on value — why use this particular thing and how it will magically solve future problems.
6. Why it should be you
There is one more thing any prospective investor will look at before making a decision — your team. Desired team composition and experience may vary depending on the field, yet any serious relevant qualifications should be mentioned. In a shady world of ICOs, big names can make or break the flow of investments. If you are brand new to the industry, and are looking for a sizable investment, it is advised to enlist a known expert to help you with looking more credible, as well as the other aspects of the project. Mention your consultants and partners as well, demonstrating your wholesome approach to the ICO and your business.
7. What else matters
White paper, being a technical document, should contain the technical specifics and terms of your ICO in detail. It may be a good idea to put some of the less important details or a longer description of the processes (e.g. bounty and referral program specifics) in a separate section after the ones important for marketing.
Do not forget to disclose your KYC procedure, risk analysis and company contacts. Any visual information like roadmaps and pie charts is better included in the main segment, unless it takes too much space and shold be placed as an appendix.
White paper is for you too
When ready, white paper should become your technical and marketing bible, containing all the necessary ideas in a condensed form. Marketing strategies work best when followed consistently, so make sure everyone in the team have read and understood not just the specifics of your idea, but how you sell it. Promoting a consistent narrative about your project goals and values can be a huge help in your marketing efforts, official and not.
Overall, white paper should bare a simple message about what you do, and more details on how investors can benefit from it.
Apart from legal disclaimers, start with emphasizing relevant changes in the world, drawbacks of not adapting to them and gains your project can provide to the ones who is willing to partake. Go over your terms, present key technologies and how they will benefit the solution, show the professionalism and experience of your team and partners. By using these simple points, and being honest with your potential investors, you can write a perfect white paper, reflecting the nature of your ICO, and see conversions skyrocket.
Read more in my article cycle about technical specifics of ICOs:
Overview of ICO technical challenges
What should be in the smart contract
