Tips for Equity Crowdfunding Campaign Success
As we near the end of February 2015, social media continues to be a strong marketing tool for businesses worldwide. It’s not uncommon to see ads in your newsfeed and most social media users are used to it by now. What does this mean? It means that advertising has gradually snuck its way in between vacation pictures and personal stories to become part of your daily social media browsing routine. And as a business seeking capital, this is huge. Social media is the perfect tool for an equity crowdfunding campaign and we have the insight to help you make the most out of your efforts.
Last summer we wrote a blog covering social media tips for equity crowdfunding. This article featured advice for being active, asking for feedback, assigning the best employee and not to argue with negative commenters. We recommend you read this blog as well but today we are going to delve a little deeper into social media for equity crowdfunding and discuss some other aspects of the process. It is, in fact, a process, so be sure to pay attention no matter how familiar you think you are with social media.
Here are some helpful tips on how to use social media for equity crowdfunding:
Open Several Accounts
First off, you need to have an account on every social media platform your potential investors visit. The main four platforms for social media are Twitter, Facebook, LinkedIn and Pinterest, but you can also use Google+, Instagram and several others. Social media is free and simple to use, so there is no excuse for not utilizing this 21st century marketing platform.
When creating your company profile on these platforms, make sure they are all similar in appearance and wording. Branding is very important on social media so all of your accounts must be uniform. The best scenario would be to achieve brand recognition through a certain hue of orange you use in your logo, but for now, let’s keep stick to the basics. You can modify the accounts a little to the “personality” of each platform, but make sure your audience knows it’s you right away. Don’t make them think.
Establish Good Relationships
Equity crowdfunding is different from rewards-based crowdfunding in so many ways. One of the most important ways is your relationship with your investors. Instead of thanking them for their money and giving them a t-shirt, you are going to have an ongoing relationship with them. They own equity in your company. As many of us know, all long-lasting relationships have to start out on the right foot to succeed. A good first impression is very important and with equity crowdfunding, your social media may be your first impression for a lot of potential investors.
If someone follows you or connects with you, take the time to send them a short “Thank You” message and ask if they have any questions. People appreciate and remember personal attention, especially when it’s not absolutely necessary. No one wants to feel like another face in the crowd, even if the industry is called equity crowdfunding. It’s your job to make them feel valued and recognized and your reputation and success-rate will soar because of it.
Nobody is a fan of the company who posts five times a day, so please understand there is such a thing as social media saturation. The perfect science of social media for equity crowdfunding is to keep your company on your audience’s mind without being annoying. Many people will unfollow a company if they get annoyed and once this happens, you’ve lost a potential investor forever. A respectable, appropriate and productive number of social media messages comes down to about 2-3 a day with some variety sprinkled in.
For example, take a look at our truCrowd Texas Twitter page. We take pride in all of our social media and always practice what we preach. If you look at our post history you’ll see we keep it to 2-3 times a day and don’t post about our company every single time. Yes, it’s important to share company news and educate our followers, but we also share awesome stories and inspirational quotes. A stale and monotonous Twitter feed doesn’t only look boring, it is boring. You need to add variety and use colorful imagery as well to catch and keep the attention of your audience. Social media management websites such as Buffer allow you to post to all of your social media platforms from one website. It’s very simple and we suggest you check it out.
Utilize Brand Advocates
The success of your equity crowdfunding campaign relies heavily on your social media influence, and your social media influence relies heavily on your brand advocates. We have written about why you need brand advocates and how to select and develop brand advocates, so hopefully you are starting to understand their importance. Every company needs unbiased and trusted people to back them publicly, and when you find yours, turn them into stars.
Brand advocates love your company/product/brand so much they talk about it with everyone. If they are a trusted and admired person to their family and friends, whatever they like has to have some value to it, right? “Well if Jamie is so happy with this crowdfunding campaign, it must be a great opportunity.” Boom – one more investor. Brand advocates don’t come with the “Actor Portrayal” at the bottom of the screen where you know that professional athlete does not really love that brand of toothpaste. It’s fake. Brand advocates will influence their family and friends because their love and admiration for your campaign is genuine. Find your brand advocates, thank them for their service and let them help you expand your reach to thousands of new potential investors.
There is a lot to learn when it comes to using social media for equity crowdfunding, and if you have any questions, please contact us right away.
Thank you for reading and please leave your questions and comments below!