Guide to STO: Marketing Strategy Basics
Those of you who have been following us for a while now are aware that we’ve started a series of posts covering some Security Token Offering essentials. Today we will fill you in on the subject of a Marketing Strategy for an STO.
Many agencies believe that it is exactly like an ICO marketing strategy, so there’s no need to learn new approaches. If you share this perspective, this article is for you.
►What Makes an STO Different?
What makes an STO different from an ICO? In the context of an STO, the contributors are purchasing security tokens which are backed by a veritable asset. Therefore, the investors enter into a contractual relationship with the project founders, and both parties of such contract are protected by applicable laws.
This way of fundraising creates a new level of credibility and security, as opposed to the good old ICOs, half of which failed to meet the investors’ expectations, according to numerous researches.
►Is STO Marketing Different from ICO Marketing?
This brings us to a difference between the ICO and STO investors. Those interested in the ICOs of the first wave were mostly retail investors with little to no knowledge of the financial market. To attract them, a project had to be all over the Internet. A nice website, grand promises, big names in the Team and Advisors section, — these were basically all the requirements for a successful fundraising campaign.
But those who are aware of the key distinctions between an ICO and STO should realize that the target audience is also different. Since in most jurisdictions it is not legal to sell securities to unauthorised conventional investors, the projects have to aim at accredited institutional investors, venture funds, etc.
It goes without saying that these folks are well educated in all investment-related topics. Moreover, they usually prefer to invest significant sums to carefully picked projects than to disperse their resources in too many directions. Given that, they don’t skimp on their due diligence. You can’t attract them solely through a glittering website with exorbitant ROI promises.
So what works for STO investors? Here are some STO marketing basics that are essential for every project.
►Informative and Professional-Looking Resources
As we already mentioned, STO investors will not base their decision on the appearance of your website. However, a website, a one-pager, a Whitepaper, and other resources are the first meeting point for you and your potential investors. So you cannot afford an amateurish design, typos, makeshift elements, etc. If your resources look non-professional, chances are the investors will just walk away.
You cannot spend too much time delving into compliance issues. The fact is, this part of the work is one of the most tricky and cumbersome. But it also has a corresponding impact on the result of your fundraising efforts. So the best advice is to make sure that your security token sale complies with the legislation of all the countries you plan to sell your tokens at. In addition to that, ensure your KYC and AML procedures work properly.
►A Working Prototype or a Minimum Viable Product
Since professional investors tend to contribute large sums, they are highly interested in the success of the project. And having an MVP is an unbeatable argument in favor of your company.
► Generate Awareness Through Media Presence and Social Media Management
This point doesn’t differ greatly from ICO marketing. To make your project well-known, you have to create a buzz. However, ensure that you only attract investors from those jurisdictions you are allowed to.
►Meet your Investors in Person
An offline meeting is worth a thousand online interactions. Do your best to organise as many meet-ups with potential investors as you can. These can be both private appointments and public events. But choose carefully on what event to attend. Many of them are just a waste of time, no matter how big and largely hyped they are. Instead, opt in for smaller events, but with real representatives of venture funds who are already interested in projects like yours. A best strategy is to make a good pitching session and to reinforce it with a well-planned follow-up.
These are the very basics of an STO marketing strategy. There is much more to it, but we at Priority Token advise you to concentrate on these ones first. And, of course, it is always helpful to seek professional assistance from agencies that specialize in offering STO marketing services, e.g., Priority Token and our franchisees.
That’s all for today. Stay tuned not to miss out on new posts covering the STO essentials.
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