When a new product is introduced to the market, an advertising or marketing strategy is established, and the most essential statistic is the marketing penetration.
This penetration makes as many people as possible aware of the firm or project, informs them of what is available, and explains how the new product or service will benefit them. It also leads to more word-of-mouth promotion, which benefits the firm since it is essentially free publicity for them.
Since the advent of the internet and social media, social media marketing has become an integral aspect of almost any company's marketing strategy. Indeed, some people depend entirely on social media to market their new company or product. Enter the ICO reward marketing scheme, a novel take on an old concept that is being adopted by emerging blockchain firms.
What is ICO bounty marketing?
A bounty is a prize offered by a group or person to encourage certain work, behaviour, or growth. Referral schemes, for example, may be seen as a kind of reward.
A marketing bounty is one such incentive, which is given to people who participate in different marketing activities that promote the ICO via multiple channels. Tasks may involve producing or sharing posts, like existing ones, or commenting on them. Pre-ICO bounty marketing schemes and marketing bounty incentives like this one are critical for raising interest in and driving demand for a new coin. However, unlike software bounties, which may be distributed to a pre-existing online community, this newer incentive type has been hampered by a lack of dependable distribution systems. However, this is starting to change.
The reward economy has replaced the need for traditional freelancing for blockchain firms and the cryptography industry in general. In the past, freelancing was seen as a solution to limited corporate resources that were unable to give the requisite insights or scalability. Employing freelancers is no longer a reliable way to increase the reach and effectiveness of marketing initiatives. Marketing bounty incentives enable businesses to broadcast messaging from possibly hundreds of various social accounts, increasing awareness and channel presence in a much more organic manner than previous ways.
The ICO Bounty Framework
It has become somewhat of a trend for cryptocurrency ICO projects that include reward programmes to conduct either a pre-ICO or a post-ICO bounty. Bounties are seldom used in conjunction with ICOs.
Pre-ICO Bounty Programs
These are reward programmes that are carried out before the real ICO. They are frequently done to generate excitement and to boost the cryptocurrency project's profile on social media sites. It's all about raising awareness for the cryptocurrency ICO and spreading the word. To improve market penetration, the framework allows for the use of informal advertising methods. The goal of such rewards is that while participants go about their different activities, the individuals in their circle learn more about bitcoin. The following are examples of frequent Pre-ICO reward activities:
Social Media Campaign Bounties
This includes actions that promote the ICO on participants' social media profiles. The prizes gained are determined by the degree of interaction produced by such postings. This may include retweets, likes, shares, views, and comments. Facebook, Twitter, and YouTube are some of the most popular social media sites for ICO bounty marketing schemes.
Disadvantages of social media bounty campaigns
While a well-executed bounty campaign may do wonders for an ICO's success, the unpleasant fact is that many individuals that participate in the social media bounty programme do not care about the project and are simply interested in making quick money. This, in turn, may lead to poor performance by bounty hunters, who often wind up spamming Facebook groups or the BitcoinTalk Forum in order to obtain as many bounty payouts as possible.
Not only does this misuse the system, costing the firm money for little to no value in return, but it may also harm an ICO's legitimacy by seeming to be an unethical marketing effort. As a result, it is critical for entrepreneurs planning to launch a token sale to recruit seasoned professionals for their reward campaigns to guarantee that the campaign yields a favourable return for the project.
Article Writing Bounties
This is for participants who have a big number of followers and readers on their blogs. Bloggers that publish highlighted pieces on the ICO on their blogs may be rewarded by ICO bounty marketing schemes. The incentives, like the social media bonanza, will be determined by the amount of interaction with the articles and blog entries.
Bitcointalk Signature Bounties
This is a well-liked reward for many ICOs. It is available to members of the Bitcointalk community. The ICO issues a signature that includes a code. The amount of stakes is determined by the ranking of the individuals who publish this signature. Most reward schemes are restricted to Bitcointalk Jr. Members and above.
At this moment, the ICO is over and money has been raised. Now, it's all about improving bitcoin projects based on community feedback. Post-ICO incentive systems are designed to improve project community feedback. The following are some examples of common Post-ICO bounty programmes:
1. Bounties for Translation Campaigns
This includes translating all cryptocurrency-related papers as well as moderating various forum groups. It is an ideal reward programme for natural speakers of languages such as Japanese, French, Spanish, Dutch, and German, among others. The bitcoin website, white paper, and Bitcointalk ANN discussion are all examples of frequent translation operations.
2. Bounties for Bug Reporting
Bug reporting, in addition to being a successful reward campaign activity, also benefits developers. A good bug report highlights flaws with the cryptocurrency programme or platform in a clear and simple manner.
It is vital to remember that there is no clear and fast rule between Pre-ICO and Post-ICO campaign activities. Cryptocurrency ICOs may choose to employ any of the aforementioned activities in either their Pre-ICO or Post-ICO reward programmes.
It is typical for a cryptocurrency startup to put aside a proportion of the total coin supply for the reward programme. This amount is generally available on their website, white paper, or Bitcointalk ANN thread.
How to Participate in ICO Bounty Programs
All you have to do is choose a project from an ICO platform and perform the responsibilities allocated to you.
A good bounty programme will include the following characteristics:
- Agreement terms.
- Requirements for participation in the programme.
- Posts should be sent out as examples.
- The software must be executed at a certain time.
- These are some characteristics you should look for in an ICO project before participating in its reward programme.
- In addition, below are certain red flag scenarios of ICO bounty schemes in which you should not participate.
- There is no ICO whitepaper.
- The Bounty programme has a little budget (500k).
- Google ads along with advertisements on other social media platforms.
Things to bear in mind when running a Bounty Program
Begin your Bounty Campaign at the Appropriate Time
In our experience, the best time to launch a Bounty Campaign is 20-30 days before the ICO or at the same time as the pre-ICO.
Create an all-encompassing Bounty campaign
A good Bounty Program incorporates all potential avenues of communication with crypto-audiences. Messaging networks like as Telegram, social media platforms such as Facebook and Twitter, self-publishing sites such as Medium and Reddit, and crypto PR channels are examples of these.
Stake distribution should be reasonably balanced
The whole Bounty pool is split into stakes for several sub-campaigns. Sub-campaigns such as Facebook, Twitter, and Telegram often see high involvement, hence the stake allotted to these campaigns should be higher.
Promote the Bounty Program via all available channels
The larger the marketing, the bigger the involvement; the greater the participation, the greater the buzz around your ICO.
Establish a dedicated Bounty Manager
It takes time and effort to manage a Bounty Campaign. It is critical that you maintain a frequent track of all Bounty campaign participants' behaviour so that at the conclusion of the ICO, you only pay your cash to people who successfully completed the tasks they signed up for.
Tracking sheet for each participant
This is a must-do to make the process of keeping track of the chores of hundreds of Bounty Campaign participants easier. Create a Google Sheet for each participant and have the Bounty-hunter send links to completed assignments each time. Because all of their actions will be in one spot, this will save you a lot of time when calculating the stakes gained by each player.
Bounty Campaigns in the Future
Future services will emphasize their efforts on attracting bounty members capable of producing high-quality content for dissemination throughout the network. As a result, we will revert to the practise of targeted placement among bloggers rather than making haphazard efforts to connect with the wider public in the goal of reaching the rare person who is truly interested in a project's message.
The most significant impediment to this shift is professional bloggers' refusal to labour for the project's tokens, preferring to be compensated in fiat or bitcoin instead. This inclination stems from a lack of faith in each project or in the future usefulness of the tokens given. Everyone benefits from a shift to a new paradigm of bounty campaigns. Projects will allocate more tokens to fundraising initiatives rather than material that does not reach their intended audience. Bloggers will write more often about initiatives in which they passionately believe, making their words more persuasive and, as a result, boosting their benefits.
In general, reward programmes given by cryptocurrency projects have been beneficial to cryptocurrency fans, particularly those willing to do their own research rather than mindlessly joining every bounty programme that comes along. With the growing popularity of ICOs and similar reward programmes, participants must be more selective in which programmes they join.
With regulatory constraints mounting, bounty schemes are expected to face heightened scrutiny, perhaps putting an end to many of the ineffective initiatives that have emerged in recent months. This will not free prospective participants of the need to do their own research, but it should make it simpler to find legitimate and worthwhile reward schemes.
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