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Investor list building is what all clients want from their advisors. Many imagine it to be the Holy Grail that will eliminate market volatility, calm trade war uncertainty and propel them to untold profits.

The problem with this idea is the nature of list building and attracting investors has fundamentally changed.

Small caps, mid caps and blockchain companies are facing the same reality as retailers. In modern marketing your digital footprint matters.

A study from Brunswick found half of investors say that they now use digital platforms to learn what CEO’s are saying.

Younger investors and analysts are also using social media not just for research
but to make investment decisions: of those aged between 20 and 29, 44% have used Twitter for this purpose; 29% have invested based on something they learned on Whatsapp; and 20% acted based on something they learned on Reddit.

Digital media is ingrained in how investors conduct their research

The fact is investors, analysts and traders increasingly want to see a strong and relevant online presence. This is bad news for half of the companies seeking to grow their investor lists.

Many blockchain and traditional small caps are simply doing it wrong.

I’ve had the opportunity to look at hundreds of their websites. Senior executives are not using digital and social to reach and engage investors.

The websites are stuffed with stock photos and blandness. The fundamentals of providing an irresistible offer in exchange for a visitors name and email address are virtually non-existent.

These companies are waving the white flag at utilizing digital assets to build relationships and convert online traffic into qualified investors. Their game plan may consist of renting email addresses from a list broker.

Small caps are publicly traded firms with a market capital of less than $300 million. Blockchain companies offer a mix of digital securities and Security Token Offerings. Investors are showing an increasing interest in participating with these companies.

In the Grayscale Annual Bitcoin survey more than a third (36%) of U.S. investors would consider an investment in Bitcoin, representing a potential market of more than 21 million investors in the general population.

What's driving investors to bitcoin?

Investors considering Bitcoin, small caps, blockchain-powered digital securities and STOs are going to conduct some level of online research. A percentage of these prospects will make decisions based on what they find.

There are many sources available. Checking the sentiment in forums, chatrooms,Telegram and Discord groups is part and parcel of generating buzz. Even institutional investors will move if a particular stock or new crypto goes viral on Twitter, Facebook and LinkedIn.

Video: Analysts and traders like to see social media presence

So what can be done to improve the chances and pull victory from the jaws of digital defeat?

Focus on positioning your company.

There is market and price volatility. There are negative scenarios and bad actors.

And there are alos opportunities and surprises that can be uncovered that attract investors.

Don’t wait. Get started.

Here are seven tactics to attract new investors:

1. Avatar me

Know the avatar of the investors you want to reach.

Which social platforms are they active on? LinkedIn is the most favored social platform for professionals. With over 500 million members (300 million active each month) you have to filter in order to connect.

Things like a branded company page, identifying employees and a regular posting schedule are essential.

2. Peeping in

Your website is an open window into your company. The initial digital impression can work for your benefit or be a disaster.

I’ve looked at hundreds of small cap websites that have the same format. Stock photos, boilerplate text and the same menu options. Show some creativity to improve your conversions.

3. I googled you

What are the keywords related to your industry and how do your rank for them?

Investors often look at big picture industry information, announcements and trends. If you have specialized products then you should be showing up on the first page of Google and other search engines like Bing and even YouTube.

A strategic approach is the key to winning
A strategic approach is the key to winning

4. Want to join your network

The CEO and Founder needs to have a strong digital profile.

In addition to the company website, LinkedIn is a great place to start. Optimize the content and give it a real feel. A Twitter handle is another option (today even the POTUS tweets).

The point is to personalize the brand.

5. Click IR

News flash: no prospective investor is combing through all of those PDFs on your Investor Relations tab. They also won’t read all 47-pages of your whitepaper. Sell the sizzle not the steak. Re-purpose that content into bite size chunks of delicious information. A bonus is the content is already regulatory compliant.

6. Know your analytics

Check your Google Analytics to see which platforms are referring traffic and links to your website.

Also dig into the demographics and interests of the people hitting your site. Determine which pages they come in on and where they exit.

This will further validate your avatar and can provide a basis for advertising.

7. The money’s in the list

Building a huge list of qualified investors is a pot of gold.

But first you have to create an effective funnel. Attract website visitors onto your email list with an irresistible offer. Nurture them with follow-up emails and broadcasts.

Lead them to making an investment decision in your favor.

Summary

Today it is harder for small public companies to get attention and raise capital.

Social media provides a proven way to create community, engage and activate your audience. Speak directly to the people who care the most about what you’re doing. A weak digital profile puts your company at a disadvantage to competitors who are more active on social platforms.

A strategic approach is the key to winning. Recognize the convergence of traditional roadshows, analyst calls and shareholder meetings with digital marketing.

A solid digital marketing strategy is your blueprint. Use it as your GPS and guide as much traffic as possible to your online properties. This approach will enhance your website, support investor relations and position you brand as a leader in digital communications.

Traders work on the floor of at the closing bell of the Dow Industrial Average at the New York Stock Exchange on October 31, 2018 in New York. — Bryan R. Smith | AFP | Getty Images
Traders work on the floor of at the closing bell of the Dow Industrial Average at the New York Stock Exchange on October 31, 2018 in New York. — Bryan R. Smith | AFP | Getty Images

Next steps

Many blockchain and small cap companies find it cost effective to outsource this work to a dedicated professional. The time and talent is typically not in-house to make it happen.

As a senior executive it is your duty to use social and digital to reach and engage investors. Digital elements including lead magnets, videos, podcasts and special reports will move prospects closer to a positive investment decision.

What are you waiting for anyway? Social media provides an opportunity to expand
your potential investor universe into the millions. Done effectively you can grow
your list in the short term and build value in the long run.


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