The year 2017 marked the high time of Initial Coin Offerings, raising over $5.6 million. By 2018, close to 50 ICOs raised more than $1 billion. This 2019, the ICO market dropped by 97% on the amount of attracted capital according to BitMEX. In the first quarter of the year, the market has made $40 million, coming from the cryptocurrency boom of 2017 and 2018.
Marketing a blockchain technology is still brand new in many aspects. Compared with other industries, it doesn’t get the same media coverage. Its coverage is not enough to stir the interest of people. Whilst there is still a growing interest, the population is still small thus the need for a more intensive pre-ICO marketing campaign to attract more funds.
ICOs must be successful to raise funds. How can one organise a successful ICO? They must grab investors’ attention to show that the product they are offering is solvent. One way to do this is to launch an active marketing campaign, which should be prepared at least four months before ICO – one month to prepare and three months to market. However, not all ICOs are successful because:
Challenges of Marketing an ICO
Too Little Manpower
Many startups begin an ICO thinking that they have enough manpower in their company to handle the marketing. They fail to see that in a few weeks after the campaign launch, they can be overloaded with tons of emails. When this happens, the potential to lose favourable offers are high.
Aside from dealing with incoming requests, there are various activities that people need to deal with so it is a must to form a team to do tasks accordingly and efficiently. Keep in mind, however, that this does not necessarily mean that you have to increase the number of your staff. The best approach would be to outsource routine tasks like SMM and communications with cryptocurrency platforms. Finding people with ICO experience is crucial. Work with someone familiar with cryptocurrency and ICO terminology.
Below Average Representative Conversion Funnel
Connecting a transaction to the person who executed it is close to impossible in blockchain, making it a good option for those who prefer to stay anonymous but it is often an issue for people conducting an ICO since they would not have any idea which channel is most profitable for attracting investors is.
The solution for this is running a website with an internal wallet that users can use when transferring money to fund the ICO. This way, the user will have to register and create their personal account which the project can use when tracking user activity. This still maintains anonymity since the email address would be enough to create a conversion funnel where the project can know where people complete their transactions.
Another more affordable option is to hide the wallet under the Buy Tokens option. This will allow tracking on anyone clicking on the button. This will set apart website visitors and token buyers. In the data from ICOpitch website, a visitor to investor conversion is only between 0.6% to 2%.
Tons of Advertising Offers
When you launch your campaign, expect an avalanche of advertising offers. Your team should identify which of these advertising platforms will give your ICO the best possible exposure. When choosing advertising offers, evaluate using two parameters: competence of the advertiser and its website traffic.
Since blockchain is relatively a new industry, you can compare a website’s number of visitors with those that also specialize in cryptocurrency and ICO. It would be best to choose a website that has at least 50,000 views monthly.
In addition to website visitors, do check for a website’s lifespan. If a particular website’s traffic skyrocketed from two months prior, it is highly unlikely that that real target audience is the robot-counted traffic. Some websites may not show any traffic at all, which may mean that they launched a bit later to only profit on a more popular topic. When dealing with a contract partner, take note of how they answer your questions about website traffic, forecasted weekly publication views, and about price list.
Also, be wary about individuals posing to buy advertising on websites. It would be best to ask for an email from the corporate domain. You can also do away with potential scammers by executing a portion of a contract like putting up a banner. If you see the banner appearing on the website, then that contract partner is indeed the one controlling the website and you can efficiently work with them to promote your ICO.
Confusing and Incomplete White Paper
An ICOs white paper is the meat to your ICO bone. It must be well-written, concise, understandable, and transparent. Never duplicate or copy from other ICOs white paper as it will spell your doom. Your ICOs white paper must encapsulate what you are offering.
One of the factors that may throw off a potential investor is when the website is overwhelming without offering the needed information about your ICO as they may come off as a scam. Opt for a website that is easy to navigate with a professionally-curated short explanatory video explaining what you are offering. All graphics and creative materials on the website must be cohesive and made to project your message across.
Creating a website with a call to action to attract investors is highly advisable as well. Additionally, the website must be fully-optimised with highly-quality content and well-organised SEO strategy. Building an effective SEO strategy to reach more investors.
All in all, your company must be able to utilise all channels available to blockchain technology today to successfully market an ICO. It is important that you know what you are doing as this could spell your success. Once you have launched, even if you change your product, you will be remembered on your project. The cryptocurrency boom of 2018 has made it a breeding ground for scammers causing fewer people investing in ICOs. Once you overcome all these challenges in pre-ICO marketing, you will reap the fruits of your success in no time.