After the emergence of blockchain technology a few years ago, cryptocurrencies and blockchain related Fintech applications are starting to change the way, financial system works. Most companies organize ICOs or Initial Coin Offerings. However, due to the largely fledgling state of this concept, organizations are still learning the best practices when it comes to pros and cons.
It’s true that there are no hard and fast written rules to follow when it comes to launching an ICO. However, the way an ICO is promoted and other marketing tactics are conducted weighs heavily on how an ICO would turn out eventually. A lot of it has to do with investor interaction and one slight mistake can have dire consequences.
Working With the Right Partner
After conducting some research, it is apparent that many self proclaimed individuals and organizations who give professional ICO promotional advice do not fully understand the concept since it is still a new and evolving technology. Hence, selecting the right partner for an ICO launch can be confusing. It usually revolves around how one gets creative and how they allocate their budget towards different marketing methods. Some key areas which one should consider are described in brief.
1. Public – Relations: One of the most crucial aspects of ICO promotions is how the marketing team handles different PR tactics. “Hype” is critical when it comes to getting traction for a particular ICO. Potential investors always want to see the ICO well placed in the market before taking any decision. Thus, any partner should be chosen carefully, as there are many entities claiming to have reached with major publications but can’t deliver on their promises. For a competent PR partner, it has to ensure that they deliver at least one or two press opportunities. They should communicate regularly with investors when it comes to development updates, partnerships and strategies going forward.
2. Technology: For an ICO, producing an MVP or Minimum Viable Product becomes crucial to guide a ICOs decision making process. However, producing an MVP can be really expensive, even more so if the ICO hasn’t raised capital in a private round or initial soft caps. In this case, always select a technology partner which believes in the ICO as much as their founders. ICOs in return can allocate a part of the token economy to them as an incentive for sharing the risk with the project.
3. Marketing and Social Media: Finally, the most important aspect of a ICOs success depends heavily on how it’s marketed. Social media plays a very active part in an ICO’s marketing efforts and social marketing should be done before the ICO to generate interest and awareness. They should also have an effective crisis management plan in case things don’t go according to plan. Social media channels can include Telegram, Reddit, Twitter, LinkedIn, Facebook etc.
However, there are many other social media forums that appeal more to the tech niche. Thus, for an appropriate social marketing partner, creating meaningful content that would attract the attention of potential investors. Normally social media marketing can be of two types:
• One process deals with managing the ICO social profile, posting meaningful content, and taking care of all the community interactions in general.
• The second process which is slightly more strategic in nature, involving the creation of paid marketing campaigns and calculated communication.
The decision of choosing the right marketing partner for an ICO can never be undermined, especially with today’s highly competitive market. Currently, the market is filled with entities claiming to be marketing experts, producing elaborate graphs of the potential followers an ICO can get. Often the reality is quite different, with companies struggling to meet the marketing goals which ultimately negatively impact the viability of the ICO itself.
Hence, the appropriate budget should be allocated to the marketing team, especially for social media efforts. For an investor, an ICO, which communicates with their community properly, is a plus point. Even the best designed ICOs can get into trouble if they don’t choose their partners wisely. Remember, that a good marketing partner is a long-term investment, so the decision should be taken after considering the above factors.