ICOs or Initial Coin Offerings have emerged as an attractive and fruitful method of funding projects based on blockchain technology. Indeed more than $5 billion was raised via ICOs in 2017 alone. The question is; with so much competition, how can you ensure your legitimate business concept stands out from the crowd? One solution is to use an affiliate program to raise the necessary funds. These are becoming increasingly advanced and are a great way to make your marketing efforts work harder.
How do ICOs Raise Funds?
The aim of an ICO is to attract investors – and this requires an exceptional marketing strategy; one that will raise the funds needed to set a genuine project in motion. While advertising yields good results, it can often be expensive, restricting the overall returns of a project – so what’s the solution? Is there an alternative way of promoting an ICO or blockchain project that doesn’t cost the Earth? Well, the answer lies in affiliate marketing which has emerged as an attractive solution that not only helps to improve lead generation, but reduces costs and the risk of fraud.
Marketing That is Cost Effective and Generates Leads Too
Marketing an ICO takes time and energy so you need something that generates great results – and this is where affiliate marketing plays a big role.
So what exactly is affiliate marketing? In short, it’s a marketing technique where affiliates earn money based on the sales or leads generated. Major benefits include:
- Budget reductions – unlike other marketing strategies, you only need to pay for ad clicks and conversions. While online advertising efforts have been poorly tracked in the past, new blockchain solutions are emerging which are geared up to make the whole process more transparent. With blockchain technology, not only can you see exactly who is viewing your ads but you can keep a closer eye on your ad spend and come to know where and how your money is being used.
- Fraud reduction – increased transparency and improved tracking of marketing activities through a blockchain affiliate program also reduces fraud and eliminates potential payment disputes as all transactions are clear to see.
- Big incentives – the use of CPA or Cost Per Action as an online advertising model allows project promoters to pay only for conversions. This means that both the advertiser and the publisher are incentivised to produce high-quality traffic. Here, a revenue sharing payment model is used to compensate all the affiliate network members for their cooperative strategies. The use of smart contracts supports ICO projects in implementing the CPA model, wherein both the advertisers and the publishers get incentives for generating high quality traffic.
- Instant payments – Many affiliate marketing providers are offering escrow accounts to facilitate instant payments via smart contracts. In such cases, smart contracts release money as soon as the agreed actions are completed.
- Instant information – all marketing data is stored on a blockchain which provides instant information to advertisers and does away with the need to wait for the release of a performance report.
So, at a time when the market is flooded with ICOs from both genuine and fraudulent players, legitimate projects can aim to raise the necessary funds by using highly effective affiliate marketing programs, backed by smart contracts.