Security Token Offerings in 2020 – STO MARKETING STRATEGY: 10 Tips For a Funding in 2020
With a possible increase in distrust and fraud in the ICO space, security token offerings (STO) are now rising in popularity. It has appeared as a regulated, profitable, and more reliable alternative to ICO. However, if you think that ICOs have had some sort of backlash, imagine STO. STO is still a new concept in the market and therefore it is a bit challenging to attract potential customers.
There are some things that need to be done before you start implementing token marketing to sell tokens to your target audience. You definitely need to build a solid marketing plan if you have created your own STO and want to make it reach investors.
In this article, we will look at:
- STOs vs ICOs
- The Planning Process
- STO Marketing Strategies
- What happens after
STOs vs ICOs
The differences between ICOs and STOs
|Require registration with a government agency||✔||✔|
|Backed by a tangible asset||✔||✔|
|A barrier to entry for investors||✗||✔|
|Value is determined through business operations||✗||✔|
|Value is based on token value and speculation||✗||✔|
|Protections in place for investors||✗||✔|
The Planning Process
You need to be prepared for everything before you start your initial security token offering sale. This can include: initial marketing, security integration, website building, and white paper creation.
Having a website is a very important part of any project and your STO will definitely be highly benefited by having a website. Much like creating a website for any type of business, it should consist of: an overview of the project, details like project timeline, the team behind the project, and other STO detials that will give potential investors an insight into the project and giving them a sense of trust.
White paper is also an important part of any project because it is a good way to attract investors by giving them a clear image of what your projects is about and its benefits. You must mention everything regarding your STO project and can also include the revenue mechanism, technology used, legal regulations, etc.
Before you start marketing your STO, you need to understand the concept and idea properly.
STO Marketing Strategies
During the initial stage of marketing, content is an important way to spread the word about your project. It is all about letting potential investors know what your project is about and how it can change the cryptocurrency exchange market.
1) If you have a website, it definitely needs an active blog because it is an essential part of marketing because it helps gain organic traffic to your website, offers value to your project, and enhances branding. It is definitely one of the most effective ways to market your security token. It is also important to remember that it is not just about having articles and a blog, the quality of content also matters.
2) Press releases and media are some of the best platforms to help you create and start a buzz about your project. You need to do your research and find a credible press release site that will publish news articles about your STO. You can also do paid promotions with reputed PR sites in the form of press releases. If you are not capable of writing or have other things to handle, you can also pay an established crypto news platform to write and publish articles.
3) Guest writing is another way that you can build relationships, authority, and exposure in your field. It is definitely an effective marketing technique when you contribute an article on someone’s website or blog. You are essentially securing a link from another website that allows you to establish a strong relationship with the website owner and secure a strong audience with your target audience as well as theirs.
4) It is important to understand that it is not just about creating content in bulk and positing it on websites. SEOs are also a very important part of it and it is a technique that improves the quantity and quality of your website by reaching the right audience. You need SEO to rank your website, blogs, and articles higher on search engines. It helps link building where you can build high-quality links to your website from high domain authority sites.
5) STO listing requires you to add crucial information about your STO including; dates, regulation details, token information, white paper links, etc. So, research and look for listing websites so that you can add your project to it because it helps spread the word and attract potential investors to your platform.
6) Social media has definitely taken the world by storm and it is a great way to reach millions. You can place ads, post news, and other aspects of your STO on social networking sites like Facebook, Instagram, Reddit, and Twitter. You can tell users how they will benefit from investing in your STO by engaging them through questionnaires, creating surveys, and posting interesting facts about the industry.
7) Your STO project can also benefit greatly from video marketing. Creating videos that are based on project demos, project introductions, how it works, problem-solving and others can attract potential investors and give them a better idea of your new project because they can go viral online. So, with that, make sure that your video is high-quality and informative.
8) You need to build a community of people that knows and understands the importance of investing in STOs. You can post of discussion forums because majority of the time people take forums quite seriously. If you post on them quite regularly, it will give you a better chance to engage with your target audience and potential investors. They will most likely ask you questions about your STO and you can answer their question and present them with facts, features, and benefits to convince them to invest in your STO.
What happens after?
Now that your STO has started gaining exposure, getting inquiries, and has developed a reputation, you can take several steps further to convert users into customers and take your marketing plan further.
1) Help the Investors
People that are interested and intrigued by your project will definitely come to you with questions that they have in mind and you will need to provide answers to all their questions to close the deal. Present your authority and the answers that you provide them must include a sense of expertise and assurity. You also need to include all of your contact information so that it makes it easier for potential investors to reach you.
2) Start networking
Not ony should you look at attracting people to invest in your STO, but you should also work on building credibility by instilly trust and respect in the investors through networking.
3) Get listed on exchanges
You need to research and find popular exchanges where STO token-holders can trade your STO for other cryptocurrencies.