Cryptocurrency has grown in importance significantly over the past three years. Now, there are hundreds of cryptocurrencies that handle millions of dollars every year. Every cryptocurrency starts off with an initial coin offering (ICO). The success of an ICO partially depends on the attributes of a product. But success also depends on the marketing of the ICO and the ability of marketers to display the product’s importance and effectiveness for a wide group of people. 

Craft a great product

The secret to any marketing strategy is to start with an effective product. Marketing for failed products is inherently problematic for any company. Whatever marketing spin the company is able to perform will be undermined as soon as users try out the failed product and leave a torrent of negative reviews. In order to avoid this fate, marketers have to ensure that they are working for a company that produces an effective product. 

In the case of an ICO, they have to know that their money is inherently safe. Investors are currently worried about the integrity of ICOs and the massive prevalence of scams in the world of ICOs. This prevalence means that companies need to prove to individuals that they are legitimate and will be prudent with the money raised in an ICO. Sean Seshadri argues that marketing materials have to reflect and answer these concerns from their potential investors. 

Fill a niche

Niches are critical in the process of marketing. They are especially important in an untested field where companies are constantly looking to differentiate themselves from their competitors. There are thousands of ICOs issued every year that are distinguished from each other only by their branding or logos. They are inherently cash grabs that are attempting to make as much money as possible off of a brand. This shameless aspect of ICOs is a primary reason why so many of them fail. 

Any ICO marketer must be able to explain in their marketing materials what makes them inherently better than their competition in a particular way. With an ICO, there are a handful of simple ways that a company can do this. Sean Seshadri suggests that ICOs can emphasize a particular use of cryptocurrency that their product is better for than other products. They can also tout a prominent investor or a company that they have signed on to work with. Any action a marketer can take to positively differentiate their product from other ICOs will be enormously helpful in marketing materials. 

Stay in communication

Individuals wanting a successful ICO need to keep in touch with their potential investors. They need to show that investors will be supportive of the company and will not flee as soon as the ICO takes off and they can cash out. Instead, an ICO marketer needs to develop a strategy where they continuously engage with users and ensure that their product is meeting all basic standards. This engagement can help a marketer fix flaws and eventually develop new marketing materials that capitalize on what investors and users like best about a product. 

Conclusion

ICO marketing is far from a sure bet. Not all ICOs are successful and not all of them break through to the mainstream. In order to break through, an ICO marketing strategy has to turn a product into a unique commodity that large, diverse groups of cryptocurrency investors are interested in. This combination is key to a potentially lucrative ICO. Jump to top