7 Marketing Rules That Every Successful STO Should Follow
Initial Coin Offerings (ICOs) were undoubtedly one of the most efficient ways to get your project funded until 2018. But an increasing failure rate of this fundraising method clearly indicated that something new and better is bound to step in as its replacement. Security Token Offerings (STOs) are now perceived as an improved alternative to ICOs. While there are based on the same principle, they’re also fundamentally different.
To participate in a security token offering, investors have to comply with strict Know Your Customer/Anti-Money Laundering (KYC/AML) policies.
This is a positive thing as it ensures you’re targeting real people, with real interest in your project, reducing the threat of pump and dump schemes.
Wondering how STOs differ from ICOs marketing-wise? In most cases, ICO marketing tactics can be implemented for STOs, with slightly different rules.
Make A Killer Digital Impression
The first logical step towards a successful security token marketing campaign is building a website. The initial “contact” with a potential investor will most likely happen through your website. Make no mistake, first impressions matter.
An incredibly designed website delivered to a well-targeted audience increases your chances to secure investments for your project. Think of your company website as an ‘elevator pitch’ for the digital world. To guarantee its success, include relevant information for potential investors, avoiding unnecessary details or confusing information.
The best way to create a useful and attractive website is to put yourself in the shoes of the investors you are targeting. Figure what are the key questions they need answers to before agreeing to back your project.
Include press releases (if any) but also some relevant media such as pictures, infographics and videos. Help investors understand all the details about the company with a whitepaper, but also details about the people associated with the STO.
Speak Investors’ Language
Unlike ICOs, security token offerings do not necessarily need to get masses excited or impressed. Your communication strategy should be tailored to address the main concerns of potential investors, outlining why funding your project is a safe bet. Prioritize the following topics in your communication to boost credibility for your STO:
● Inform them about your compliance-centric approach
● Tell them about the transparent legal structure
● Explain the technology and business model behind your project
Produce Content With Investors In Mind
Content gives you a perfect chance to introduce your ideas, show your knowledge, explain your business model and clarify your roadmap. This is precisely why having a blog section on your website is essential, along with multiple well-crafted social media profiles.
Struggling to get started with content marketing? Don’t panic. The main goal of content is to provide potential investors with valuable information about your project, the investment details and also inform them about things that might be relevant to them. For example, your blog could include an ‘Updates’ section, but also one dedicated to the analysis of industry news. This could improve your visibility in search engines, potentially generating more organic traffic.
Keep in mind that the ultimate purpose of these articles is to onboard them in your STO. So don’t forget to show people all the good sides of investing in a security token, especially yours. You will need time until you grow organic traffic for your blog, but if you commit yourself to create quality content for your niche, you will get there sooner than you imagine.
If content is one of your core competencies, you might also want to consider guest posting. Start with interesting blog posts on popular publications on Medium, Steemit, etc. This tactic would help increase visibility for your STO and not cost you a penny.
Send Emails That You’d Open
Nowadays, we receive hundreds of emails a day. Overwhelming, isn’t it? Yet, email marketing remains a strong marketing tool and wisely used can help your STO gain new investors and prevent the existing ones from pulling out their money.
Whether you have developed it by your own or purchased it, having a targeted email base is the first step to cultivate potential investors. Instead of a salesy script, better go for a professional, detailed and clear email that would transmit confidence and a sense of opportunity to people.
Sending newsletters on a regular basis (daily, weekly, monthly) will also serve as a constant reminder to the existing investors that they made a good decision.
Newsletters can be used to spread the word about your latest achievements, but it can also be a way to cross-promote the content of your website. Including blog posts in a newsletter will definitely make potential investors interact with you and get them to visit your website.
Don’t Be “The Best”, Be “Better Than”
Going for the “my project is the best” might feel right to you. But investors review hundreds of projects, most of them claiming to be the best. If you are able to prove with solid data that your project is actually better than the rest, then that will convince investors faster.
You need to know what are the main advantages and selling points of your competitors and what are the drawbacks of their approach. Identify a compromise between those flaws and benefits and build a strong case around in your white paper.
Be As Clear As Compliant
Depending on the investors you are targeting, how much money you plan to raise, and how you plan to do it, there are several degrees of regulation to take into account.
These are some of the most common exemptions for compliant security token offerings. However, it is always advisable to consult with a legal team before moving forward.
From a marketing perspective, it is important to be extremely clear on which kind of people are eligible to invest on your project. Adding a disclaimer to your ads and even blog posts will make sure you are operating on good terms and not breaking any laws.
Keep The Hype Going
Social media marketing is essential for your project to reach potential investors, drive traffic to your website and generate buzz. Post your original and curated content and maintain communications with the general audience through Twitter and LinkedIn — the two most effective platforms for STOs. If you have quality video material, you might want to consider a YouTube account. Only open accounts that you will actually use. Inactive accounts might hurt your reputation and increase doubts about your project.
Social media is also a great place to gain relevant feedback from investors. Which questions do they have, what things they do not understand… Paying attention to these questions will help you produce useful content in the future.
Looking for a STO marketing agency?
DisPRuptive doesn’t just claim to be the best marketing & PR agency for crypto and blockchain based projects, we have a record to prove it. With offices in London and New York, DisPRuptive has already overseen and deployed successfully marketing and PR campaigns for dozens of ICOs, STOs and IEOs all over the globe.
We guarantee:
● Fast, fluid & flexible PR
● Digitally-integrated PR — for search engine visibility
● Connecting innovators and game-changers with their key audiences and influencers
● Comprehensive marketing campaigns, across multiple channels
● Business acumen — commercial KPIs matter
● Always on-call — we don’t have a ‘9-to-5’ mindset
Contact us at hello@disPRuptive.com or via our telegram channel: https://t.me/dispruptive
