Security Token Offering, commonly abbreviated as STO, has become the recent fad when it comes to digital fundraising. It has trumped its predecessor, the ICO when it comes to being profitable, trustable and regulated. There might be a lot of companies that offer services that will help you create your own Security Token Offering. However, given the facts that the number of potential investors is quite limited and the methods of marketing an STO aren’t relatively straightforward, it is important to master the different aspects of marketing Security Token Offering.
Relying on proxy marketing
There are some limitations that restrict the avenues on which the security tokens can be marketed. For this purpose, the approach of proxy marketing can be adopted. The people or the companies that sell tokens can be featured in both online and offline media, as representations of their organizations.
While these exercises might not result in the direct purchase of the security tokens, they can surely help in building a brand and making the presence felt. This can be considered a very important step in marketing.
Create a comprehensive market study
Anything that has to be marketed needs to have a market study that goes ahead. There are a lot of parameters like the competition, the business category, the scope and above everything, the projection of dividends.
The market research will not only help you build a strong case for marketing your security token but also compel the potential buyers to plunge into the decision of buying your security tokens. The market research can be presented either in an executive deck along with the white paper or as engaging pieces of content like infographics and videos. These rich and engaging representations of your market study will help you reach the most common of the investors who might not have the patience to understand white paper contents.
Acquiring depth in targeting
Sometimes, it is important to reach deeper than reach wider. The potential buyers of security tokens are quite less, and it is important to make sure that your investment in marketing happens in the right channels where such people are present.
Become an expert in striking deals
Sometimes it all comes down to the old fashioned way of striking a deal with the buyer. In such instances, having expert knowledge and the business acumen to answer riddled questions will help in optimizing your ability to sell the security tokens.
Some of the key points to be taken into consideration in this juncture are:
- Keep your confidential information memorandum updated and handy. You will also need to have the auxiliary support of documents like the pitch book and articles in the form of a white paper.
- Have a piece of promotional material ready that conveys all the essential principles in a very compressed format.
- Maintain a database of potential buyers and investors
- Develop the essential leadership skills to reach out to the right potential audience by talking your way through. It will help you resolve the faults even before you take it to the market, and worst case, know how to polish them in a marketable way.
Choose the right exchange partner
The lucrativeness of a security token is determined by how easily it can be transformed into a more liquid medium of transaction. The technology behind cryptocurrency has come a long way in simplifying the way in which security tokens are transacted. However, there might have been instances where the brand name of an exchange technology provider might have been tarnished because of some malicious activity that might not have been essentially theirs.
It is important to consider these parameters before choosing your exchange partner. The very mention of the partner might scare off or bring in a lot of potential investors.
Creating customized marketing experiences
Security tokens are sanctioned by the SEC (Securities and Exchange Commission)and they are backed by real-world assets. They also present along with them, the advantages of lower administrative cost and higher liquidating. These parameters naturally increase the appeal of the security tokens in the market. The challenge, however, is in identifying the set of people who would be interested in investing in security tokens.
Building a strong network
Maybe the platforms of marketing might have become modern, but the philosophy of marketing still remains the same. Marketing is all about presenting the right product or service to the right people at the right time with the right message. When it comes to security tokens, you can expect a lot of security token investors to be connected and it might not be a surprise to see this set of potential investors be a part of some meetups or networking events. These investors also seek the passive approval of their friends and acquaintances who have been connected with them in this context.
Building a good network of professional contacts helps you strike the right deal point. For this purpose, it is advised that you attend crypto events and seminars which are the places where you can expect interested investors to gather.
Our services in this regard:
When it comes to security token offering, the token, the cryptocurrency exchange and the assets that are backing them can function as excellent marketing tools by themselves. In addition to this, if at all you should need some marketing assistance in spreading the word about your security token offering and getting the right pool of investors, Blockchain App Factory has the expertise it takes to create your security token offering and market it effectively as well!