Did you know that cryptocurrency and blockchain start-ups raised more money in the first three months of 2018 than they had through the complete year in 2017? In fact, by mid-year, ICOs had almost doubled the money raised, reaching close to $14 billion. Offering such prospects, the ICO market is hotter than ever. But, not everything is rosy and most blockchain teams fail to raise enough money to even get their project started. In fact, merely 30% of all initial coin offerings close successfully.
The reason for high failure rates is not that projects lack potential or the teams aren’t capable. The issue is that most start-ups opting for the ICO route to raise funds are backed by technology enthusiasts, with little knowledge of ICO marketing. So, if you’re planning on raising funds via this novel mechanism, it’s important to know some ICO success mantras and to be aware of these common ICO marketing mistakes.
Too Much Technical Information
We get it. You’re passionate about blockchain and love technology. But, guess what. Many of your investors aren’t that tech-savvy. They may have experience in finance, trading and investing. They may be people with deep knowledge of the industry but you shouldn’t scare them away with too much technical jargon. This doesn’t, however, mean that you need to leave out critical information. On the contrary, your whitepaper and other ICO marketing material should be as detailed as possible, now that investors have become more discerning. So, always plan your content carefully, explaining your vision and every detail of the project, the technology and the prospects as clearly and simply as possible. Do remember to express how your token-holders will benefit by investing in your project.
Saying Everything with Words
We’ve come across ICO marketing blogs, articles and whitepapers that just seem to go on and on. Yes, there’s a lot to say, but not everything needs to be said with words. Think about this. An average person reads around 2,500 words in 15 minutes. That’s a lot to digest! The use of visuals is extremely important for ICO marketing. Visuals can be used to grab investor attention, make them focus on the most important parts and keep investors engaged for longer. In fact, visuals also help to add credibility. For this, you’ll need to plan the content very carefully, choose the baits you’re going to use to grab attention and decide on which parts you wish to highlight.
Lack of Consistency
Having a consistent tone and message is critical to your ICO marketing endeavours. To achieve this, careful strategising and preparing a blueprint are very important. Without these, your team members will be responding to events and messages in an ad hoc way, which can impact the project’s credibility and affect its ability to raise funds. And, all your core team members need to be very active on social media and forums, rather than posting something random whenever they have time. Investors will check social media accounts to garner as much information about your core team as possible. Absence on social media is a bad sign and unplanned social media posts can prove even worse! You should have complete control over what is put out into the social sphere.
Poor Design Choice
Whether it’s your website, social media posts, whitepaper or any other ICO marketing material, design plays a vital role. A poorly designed website or whitepaper fails to impress investors and often even conveys an unprofessional attitude. A poor choice of design can discourage an investor from exploring your website further. Some simple tips can help improve your website design, but you really need a professional to ensure your market spend leads to conversions.
Overselling and Overpitching
Investors are aware when they’re being marketed to. The more salesy your content sounds, the more investors may wish to avoid it. So, keep your tone natural. Moreover, avoid promising skyrocketing returns and unbelievable profits. ICOs have certain inherent risks and investors have learned to tread carefully, looking out for scams. Making false claims can have a hugely adverse effect on your ICO marketing campaign.
Apart from these mistakes, start-ups often fail to set up an ICO marketing team. And, this team needs to be open to tweaking the strategy depending on predetermined parameters, like website traffic, whitepaper downloads, social media responses and such like. The team also needs to be open to feedback and to take steps to resolve any issues that may have cropped up.