The year 2018 marked a significant milestone for the Initial Coin Offering (ICO) market, surpassing all previous records. In just the first quarter of 2018, ICOs raised more funds than they did throughout the entire year of 2017. To put this into perspective, ICOs collectively amassed $5.6 billion in 2017, with an average of $12.7 million per ICO. In comparison to the Initial Public Offerings (IPOs) that raised $188.8 billion during the same period, ICOs seemed relatively modest. Clearly, there’s ample room for growth.

ICOs have not always boasted a high success rate either, with only 48% achieving their goals in 2017. However, a transformative shift is underway with the emergence of Security Token Offerings (STOs). The ease of securing funds from unconventional sources gave rise to numerous questionable ICOs that tarnished the industry’s reputation, prompting the intervention of the Securities and Exchange Commission (SEC).

Security Token Offerings (STOs), seen as a more compliance-friendly alternative to ICOs, have gained prominence. The STOs tend to secure approvals from the US Securities and Exchange Commission (SEC) more readily than ICOs.

STOs are poised to become a major force in the cryptocurrency realm, with some projections even suggesting their dominance could reach $10 trillion by 2020. STOs differ significantly from ICOs, but whether you choose the ICO or STO path, a robust marketing strategy remains pivotal to success.

For those embarking on an STO journey, a comprehensive STO marketing strategy is essential. This article provides detailed insights into launching a successful STO and effectively marketing it, all without the need for costly STO marketing services.

How Do You Differentiate Between ICO and STO?

The primary distinction between ICOs and STOs revolves around regulations and their target audience. ICOs typically rely on crowdfunding from retail investors, which can encompass virtually anyone. These retail investors often consist of individuals with limited financial knowledge who may not prioritize regulations or demand a detailed business plan.

STOs, on the other hand, do not necessarily cater to retail investors, primarily due to regulatory constraints. For example, when launching an STO in the United States, only accredited investors are eligible to participate. This significantly alters the entire approach to security token strategies compared to ICOs. The STO marketing strategy must be tailored to appeal to more sophisticated investors.

So, who typically invests in security tokens? It’s usually individuals with stable high incomes or substantial capital. These investors tend to be discerning and thorough, not swayed solely by flashy websites or extensive social media presence. Consequently, your STO marketing plan must align with their preferences and expectations.

How Do You Promote Your STO Marketing Plan? 

Just like any effective marketing or PR plan, the initial step is to establish well-defined marketing goals. This groundwork should commence months ahead of the actual marketing efforts and the launch of the STO. Without a clear, research-driven strategy, starting without a precise understanding of your objectives can result in inefficient spending on STO marketing, missing the true underlying purpose.

You’ll need to address crucial questions and navigate legal procedures before crafting the marketing plan itself. In essence, you should outline four to five distinct goals that encompass your overall aspirations for the security token offering.

One significant consideration is pinpointing your precise target audience. With STOs, it’s typically feasible to put yourself in the shoes of the investors interested in acquiring security tokens. From this point onward, every action should be oriented around understanding their persona. Factors like geographic location may need particular attention, as investor attitudes can vary significantly in different regions.

Crafting the Ideal Website 

The cornerstone of your security token marketing strategy is undeniably the website. Irrespective of the origins of the typical security token investor, the website represents their initial point of contact. While many aspects of your security token strategy can be adjusted over time, mishandling the first impression can lead to failure.

The homepage stands as the epicenter of importance. It functions as the STO’s public face, akin to an executive summary of the business plan. Crafting an exceptionally professional and informative homepage and website serves as the inaugural stride toward gaining the trust of potential investors.

Mentioned below are a few guidelines for the website – 

• Your website should serve as a comprehensive resource, addressing all potential investor inquiries with clarity.

• Incorporate rich media elements, such as infographics and videos, when they enhance relevance.

• Maintain a clean and well-structured website design.

• Ensure easy access to a detailed, technical, and transparent whitepaper.

• Consider including a Press Release section to showcase interest from journalists and the general public.

• Furnish ample information about the individuals involved in the STO, including contact details.

Creating a strong website serves as the foundation. Just like any structure you build, a robust foundation increases the likelihood of the entire edifice thriving.

Submit Every Legal Compliance

Compliance is a critical aspect, not only for the success of the STO but also from a marketing perspective. As previously mentioned, this is a key differentiator between an STO and an ICO. Before launching your STO, it’s paramount to fulfill all compliance requirements, especially when dealing with institutional investors. These investors delve into every legal detail of the STO and possess a solid financial acumen to scrutinize every aspect. Unlike retail investors, they prioritize your adherence to jurisdictional regulations.

When you are certain that you are offering security tokens in compliance with all the established rules, you can leverage this as a marketing strategy. Ensure that all legal documentation is readily accessible to potential investors. In other marketing efforts, you can proudly highlight this compliance.

Engaging with experienced attorneys specializing in security token businesses is essential. They will guide you through the necessary requirements, and you can even showcase the legal firms you’ve collaborated with on your website. Transparency regarding compliance and the legal framework surrounding the STO should be unequivocal.

How an STO Can Be Launched Successfully: STO Content Strategy 

Content holds paramount importance, and this fact remains unwavering in STO marketing. Your marketing content serves as your voice, and your aim is to make a resounding impact, isn’t it? Content marketing assumes a foundational role in your comprehensive strategy for two compelling reasons.

Firstly, it provides you with an opportunity to introduce yourself and convey your expertise and narrative. Secondly, the audience you are targeting is keen to delve deeper into your background, business history, and the STO’s roadmap, all of which are conveyed through the content you disseminate.

• Make a Blog 

Maintaining an active blog on your website is imperative. You must publish in-depth articles that incorporate infographics and statistics, effectively showcasing the compelling reasons for investing in your security token. This represents one of the most potent STO marketing strategies. Convincing potential investors often requires a persuasive approach, and your blog stands as the prime platform for achieving this. 

Furthermore, the blog enables you to establish yourself as an authority within the industry by delivering high-quality, in-depth blog posts on relevant topics.

Creating a blog is a swift process with the tools available today, although the initial stages may pose some challenges. It may take time to attract traffic to your blog, but remember that your blog operates in synergy with other marketing platforms.

While there’s no fixed rule, initiating two to three comprehensive articles on diverse subjects is a solid start. Additionally, consider guest posting on established blogs to expand your reach.

• Utilize different content publishing platforms like Medium

In the cryptocurrency realm, Medium takes the top spot as the preferred platform. It exudes professionalism and boasts a diverse audience. Another popular choice within blockchain circles is Steemit. However, the choice between the two depends on your target audience.

While we’ve extensively discussed articles, it’s essential to note which medium garners the most engagement. Video content has now surged to become the most captivating and rapidly expanding form of media on the internet.

Consider featuring original video content alongside your blog articles, or embark on a YouTube channel venture with monthly video uploads. This approach can effectively connect with younger investors who favor interactive media over other options.

• Go to STO Experts or Appoint STO Marketing Services 

Even if you perceive yourself and your STO as pioneering, there will undoubtedly be numerous challenges on your path. STO experts can prove invaluable in navigating these obstacles. It’s crucial to bear in mind the lesson of competition, as evident from the proliferation of ICOs in the past. The same saturation could potentially occur in the security token business.

You’ll require expertise in three key areas: legal, technical, and marketing. Advisors well-versed in the market and its intricacies bring fresh perspectives and insights that may otherwise elude you.

The most advantageous aspect is the connections these individuals can provide. They can facilitate introductions within the industry, helping you establish a network that plays a pivotal role in STO marketing, eventual launch, and, ultimately, success.

Engaging with STO experts won’t be a simple endeavor. Initially, you’ll need to identify them. Hunt for influencers, editors, and activists, and platforms like Twitter and LinkedIn can be instrumental in reaching out to them and capturing their attention. Additionally, consider attending security token events, where you can meet them in person and tap into their expertise regarding your venture.

• Starts a Newsletter 

By this point, you’ve established the foundational elements of your STO marketing strategy. Often, people tend to view marketing solely as a means to attract investors within the context of an STO. However, it’s vital to recognize that marketing is an ongoing process that also entails retaining potential investors. You must ensure that those investors who have displayed interest remain engaged.

When it comes to nurturing both current and potential clients, email marketing emerges as a potent tool. Introducing a weekly or monthly newsletter is an effective way to keep potential investors informed and engaged. This newsletter plays a pivotal role in retaining investors and expanding your network.

Newsletters can be employed to update potential investors about your recent achievements, ensure they are informed about the timely implementation of your roadmap, and underscore your commitment to transparency, thereby enhancing the promise of your STO.

• Take advantage of your Social Media 

Social media has become an indispensable platform for businesses, and STOs are no exception. We’ve witnessed ICOs harnessing the full potential of social media, but considering the distinct nature of STOs compared to traditional ICOs, their approach to social media should also differ somewhat.

First and foremost, you need a presence on all professional social media platforms. This primarily includes LinkedIn and Twitter. Additionally, it’s advantageous to leverage prominent social media platforms like Facebook and YouTube, with the latter reserved for your video content, including interviews.

Twitter and Facebook will serve as channels for engaging with the general public and potential investors. These platforms allow you to share all the content created to market the STO. A substantial following on these platforms can enhance your credibility. On the other hand, LinkedIn primarily functions as a means to network and establish professional connections with industry leaders.

STO Marketing Tips

The regulations governing an STO impose restrictions on the use of certain mediums for direct marketing of securities. However, this doesn’t render direct marketing impossible. In fact, your security token marketing strategy should pivot toward mediums that can still be legally employed.

Following are some of the STO marketing ideas – 

• Use proxy Marketing 

Given the limitations of direct token marketing, you must explore alternative mediums for proxy marketing. Numerous online publications, magazines, and blogs can facilitate this approach, provided you can identify and leverage them effectively.

• Competitor Analysis 

This practice should be integrated into every phase of your STO. Considering the trends, STOs are poised to surpass ICOs in a relatively short time frame. With increased adoption comes heightened competition, making thorough competitor analysis essential for shaping your marketing strategy and ensuring you’re well-prepared for any unexpected developments.

• Make a Library of Ideal Investors 

Precisely targeting the right audience is the cornerstone of achieving success with your STO. It’s essential to consider every potential investor and buyer. Having access to this data can provide significant advantages when crafting email campaigns, newsletters, and other marketing efforts.

• Put Regulation D in mind 

STO marketing can indeed be intricate due to the limitations imposed by regulations. In the United States, Regulation D Sec 506(c) restricts advertising through television, newspapers, magazines, radio, public seminars, and the Internet. It’s crucial to avoid legal complications, particularly in the early stages of your venture.

• Join conferences on Blockchain and Cryptocurrency

Participating in conferences offers you the opportunity to personally connect with fellow blockchain company owners and cryptocurrency enthusiasts. Consider it a platform for not only promoting your STO but also building a valuable network. It’s wise to conduct research on these individuals before attending the conference or convention to make the most of your interactions.

STO Marketing Services

By now, you’ve likely recognized that STO marketing is a demanding endeavor that requires significant time and resources. It’s essential to assemble a top-notch team for the job, but not everyone may have the capacity to oversee everything personally. This is where professional STO marketing services can come to your aid.

These agencies will handle all the necessary tasks on your behalf. The insights provided in this article can assist you in selecting the right agency. Look for a company that commits to implementing a robust marketing strategy, one aligned with the principles outlined here.

The Bottom Line

This STO marketing guide is designed for individuals who grasp the significance of marketing in securing the success of security tokens. The journey may be lengthy and filled with challenges, but having a well-defined marketing strategy and plan allows you to navigate any unexpected hurdles effectively.

Your primary objective is to draw in the right audience, establish trust with them, and ultimately convert them into investors. By ensuring that these objectives are central to every aspect of your security token marketing efforts, you can position yourself to participate in the promising and lucrative trend unfolding in the realm of blockchain and cryptocurrency.

For the promotion of your STO, you must be looking for a reliable company that can look after your STO promotion. SAG IPL is among the leading and prominent companies that have a year of experience in this field. Its highly skilled employees never fail to impress their clients with their exceptional work output. They are experienced in traditional marketing to advance marketing techniques. And this is the reason why, SAG IPL has clients across the globe. SAG IPL also, ensures timely delivery and at a cost-effective price.