These are the most common mistakes during a crowdsale launch and how to avoid them
The rise of cryptocurrency and the blockchain can’t be ignored, but this new era of enterprise isn’t without its pitfalls. Anyone serious about safeguarding an crowdsale and ensuring a successful launch has plenty of points to concern themselves with, with security and protecting funds a priority. Looking to ensure your crowdsale launch doesn’t fall foul of the usual pitfalls that can derail a project? Read on to discover more about the most common mistakes that can cost you dearly and how to sidestep them to ensure success.
Carve out a clear plan for success
This one might seem obvious, but you’d be amazed at how many organisations launch an crowdsale project without having a solid foundation in place beforehand. The basic staples of any solid plan for success apply here. You’ll want a clearly defined mission statement drafted out, as well as a transparent idea of project milestones and markers to assess progress. You’ll need these in place to secure a successful crowdsale launch and persuade potential investors to commit. Again, these points might seem glaringly obvious, but don’t mistake a peripheral awareness of the facts for actual implementation.
Ensuring you don’t fall foul with this surprisingly common misstep is simple. You need to outline operational steps clearly and, even more crucially, pinpoint what it is you’re aiming to ultimately achieve when the time for your crowdsale launch arrives. By doing this, you’re not only creating a clearer picture for yourself with obvious metrics, you’re also presenting a winning statement to the investment pool. A key thing to remember when laying out your plan include identifying how you intend to facilitate and carry out all activities mentioned in your plan. When it comes to illustrating the appeal of your crowdsale, you’ll want to clearly define the unique product offerings of your crowdsale, as well as bringing home the point of what’s on offer for potential investors, should they back you.
Don’t drag heels when it comes to finalising funding
The last thing you want when launching an crowdsale is to start the wheel turning without having introductory arrondissements firmly in place. Admittedly, it’s a tall order to ensure total funding commitment from an enthusiastic investor, but having this solidified will save you a great deal of hassle down the line. In an ideal world, anyone who wants their crowdsale to launch successfully and achieve its project goals will have finalised their funding way in advance.
Even ahead of preliminary crowdsale activities, you’ll want to ensure target funding is in place and have a plan for funding arrangements laid out. One of the simplest ways to ensure this area is given the due care and attention it requires is to have an experienced individual on your team responsible solely dedicated to it. You’ll want the confidence that your chosen individual is enterprising and resourceful, with little doubt they can secure full percentage of the funds required. Whether it’s by organising a series of events to draw awareness to your project, or facilitating direct outreach to potential investment opportunity, it’s this networking activity that will put you on the radar of big investors who can legitimately provide the funds you need to have in place.
Don’t neglect the importance of effective marketing
It doesn’t matter what business you’re in, without the right approach to marketing, PR and sales, you’ll struggle to promote your product, let alone successfully sell it. When it comes to initial coin offerings, the same stalwart principles apply. As soon as you’ve nailed down your crowdsale infrastructure, marketing and promotion of your product needs to be ready to go.
When it comes to the blockchain and crowdsales, timing is perhaps more crucial than in other sectors. You certainly don’t want to be leaving your marketing efforts until the eleventh hour, or else you’ll risk derailing your crowdsale straight off the bat. When it comes to marketing your crowdsale, some best practice classics apply. Utilising social platforms to engage user interest and encourage registrations is a given, but you’ll want to ensure this is done at the right time as such activity will have a direct effect on fundraising efforts.
Often, those with a first-rate looking product neglect marketing and promotional activities, confident that the strength of their product alone is enough to secure success. It’s tempting to channel resource and capital into the development of crowdsale platforms, but don’t do this at the expense of marketing, PR and sales. You’ll not only need ample time to carry out activity in this area, but sufficient enough funding in order to facilitate it. However, don’t assume this a necessarily expensive endeavour and write it off accordingly. With the right planning and well-honed approach, your marketing activities can be very cost-effective.
Never skimp on security
Security audits should never be a second-rate concern, but many crowdsales stumble in this area. Having resource dedicated to security audits is crucial in ensuring you offset potential problems in the future, like hacking and fraudster attacks. Carrying about an audit as part of your crowdsale launch isn’t just a nice-to-have, it’s an absolute must to ensure correct testing is carried out, smart contract auditing is seen to and general feedback on potential bugs is provided. Those that don’t have in-house resource available to oversee this should look to outside agencies to handle this important phase of any crowdsale launch so that potential vulnerabilities in your platform can be identified, while future losses and unnecessary costs can be minimised significantly.
Ensure success with your crowdsale
The cryptocurrency sector is now a thriving one, but if you’re looking to ensure your own project succeeds, a pitch-perfect crowdsale is essential. If you’re looking to bolster your chances of success, UnitedCrowd can help. We are a full service launching agency that’s on hand to manage every aspect of your Crowdsale project. From company formation to eventual exchange listing, our expertise ensures we can provide our clients with stellar support with market entry, capital funding, investor relations, feasibility studies, blockchain development and more.
Learn more about UnitedCrowd and what we can do for you on our website: unitedcrowd.com