Blockchain technology has the power to change the world, and cryptocurrencies can improve financial services. People are familiar with utility tokens, but Security Token Offering (STO) is a new idea.
STO is a regulated way to launch a cryptocurrency token. These security tokens are backed by real-world assets and follow SEC rules. By turning securities into tokens, we can make the underlying assets more liquid and attract more investors.
If you want to make more money from your security token in the future, you need to market it to investors all over the country or even the world.
However, there are some things you need to do before you start marketing your STO. Before we talk about STO marketing strategies, let’s discuss what “General Solicitation” means.
General Solicitation
General Solicitation is a rule from the Securities and Exchange Commission (SEC). It lets people who are selling tokens advertise their offer widely, but there are some conditions:
- Everyone who buys in the offer must be an accredited investor.
- The people selling the tokens must do everything they can to make sure the buyers are really accredited investors.
- All the rules in Regulation D must be followed.
Regulation D
Regulation D, specifically Rule 506(b), allows a company to sell securities without general advertising. The company can sell to any number of accredited investors and up to 35 other buyers.
It’s important for the company to provide accurate information to these investors.
If a company wants to advertise their security token offering and still comply with the rules, they need to make sure all investors are accredited and verified. This might involve checking documents like tax returns and bank statements.
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Understanding how to market security token offerings (STOs) can help reach these accredited investors. There are four stages of STO marketing, each with different steps:
- Initial Stage: This involves preparing a whitepaper, simplifying your idea, writing blogs for SEO, and guest blogging.
- Pre-STO Stage: This includes reaching out to media, getting high-quality backlinks, listing on STO websites, social media marketing, creating professional profiles, and running video campaigns.
- Running Stage: During the STO, you can market deals, network to build credibility, do airdrops, and comment on related forums.
- Post-STO Stage: After the STO, you can list it on exchanges, keep the community updated, and do performance marketing.
Step-by-Step Guide to STO Marketing Strategies
This is a detailed guide on how to market Security Tokens at each stage of their launch. It provides a step-by-step approach to effectively promote your security token offerings (STOs).
Initial stage
- Whitepaper: This is a detailed document about your project. It should include all the necessary information about your project, including legal, technological, and financial details. It’s important to hire a skilled writer for this.
- One Pager: This is a brief document that gives an overview of your product or service. It should clearly explain why investors should be interested in your project.
- HTTPS: Make sure your website is secure (HTTPS) before launching your security token. This is important for SEO and to gain the trust of potential investors.
- Simplifying your idea: Discuss your project idea with both technical and non-technical friends to make sure it’s understandable. The easier it is to understand, the more likely investors will be interested.
- Blog Writing and SEO: Start a blog to attract organic traffic to your website. Focus on quality over quantity and make sure your website is optimized for search engines.
- Guest Blogging: Write posts for other people’s blogs to build exposure and authority. This can also help you establish relationships and secure links from other websites.
PreSTO
- PR and Media Outreach: Use press releases and media outreach to spread the word about your STO project. You can write and pay for articles to be published on PR websites, or publish articles on free websites.
- High DA Backlinks: Get backlinks from high Domain Authority (DA) websites to improve your website’s search engine ranking and visibility.
- STO Listing Websites: List your STO project on STO listing websites to help investors find your project. Make sure to include all the necessary information about your project.
- Social Media Marketing: Use social media platforms like Twitter, Reddit, Telegram, and Steemit to promote your STO. Each platform has its own pros and cons, so choose wisely.
- Professional Profiles: Create profiles on professional websites to further promote your STO project.
Running STOs
- Deal Marketing: Become an expert at explaining your project. Keep all your project documents, like the Confidential Information Memorandum (CIM), updated. Also, build a list of potential investors and buyers.
- Networking: Build trust through networking. This can help make transactions smoother and attract investors who see others they know investing in your project. Promoting your products in person can also help build trust.
- Airdrop: This is when tokens are given to the community for completing small or free tasks. It helps distribute the tokens and get more people involved in the project. It can also help you build a team of freelancers who can be paid with your security token.
- Forum Commenting: Participate in online forums where people discuss related topics. This can help you provide support to the community, work towards a specific goal, share new updates, and attract targeted traffic.
Post STO
- Listing STOs on Exchange: Getting your STO listed on an exchange can be challenging and expensive. Having good relationships with people in the cryptocurrency industry can help you get listed at a lower cost and speed up the process. When listing, provide all necessary information about your token.
- Keeping the Community Updated: Regularly interact with your community members and investors on all your profiles. Make sure to respond to their queries within 24 hours to keep them satisfied.
- Performance Marketing: This is a cost-effective marketing strategy that rewards marketing companies and advertisers for driving traffic to your website. It benefits both the project owners, who get increased traffic and leads, and the marketing professionals, who get paid for their efforts in bringing more leads, clicks, and sales.
STO Marketing Services: DIY or Outsource
When it comes to Security Token Offering (STO) marketing, a crucial decision you’ll need to make is whether to handle it yourself (DIY) or outsource it to a professional marketing agency. Both approaches have their pros and cons, and the best choice depends on your specific circumstances.
DIY STO Marketing
If you choose to do it yourself, you’ll have complete control over your marketing strategy. You can tailor your approach to fit your vision and make adjustments as you see fit. This can be cost-effective, especially for startups with limited budgets. However, STO marketing requires a deep understanding of the crypto market, SEO, content creation, and investor relations. If you or your team lack expertise in these areas, DIY might not be the best approach.
Outsourcing STO Marketing
Outsourcing your STO marketing to a professional agency can save you time and effort. These agencies have the expertise and resources to execute effective marketing strategies. They can help you navigate the complex crypto market, create compelling content, and reach the right investors. However, outsourcing can be expensive, and you’ll have less control over your marketing strategy.
The choice between DIY and outsourcing depends on your resources, expertise, and the complexity of your STO project. It might even be beneficial to combine both approaches: handle some aspects of marketing in-house and outsource others to professionals. Remember, effective marketing is key to the success of your STO, so choose the approach that best suits your needs.
Which Company is Best for STO Marketing?
When it comes to STO (Security Token Offering) marketing, choosing the right company to handle your campaign can make a significant difference in your project’s success. Among the numerous companies offering STO marketing services, SAG IPL stands out as a top choice.
SAG IPL is a leading STO marketing company with a proven track record in the field. They offer comprehensive marketing services tailored to the unique needs of each STO project. Their team of experts understands the intricacies of the crypto market and employs effective strategies to reach the right investors.
What sets this company apart is their commitment to transparency and results. They provide regular updates on the progress of your campaign and work tirelessly to achieve your project’s goals. Their services include everything from content creation and SEO to investor relations and community management.
If you’re looking for the best STO marketing company, SAG IPL is a strong contender. Their expertise, dedication, and comprehensive services make them an excellent choice for any STO project.