What are Bounty Programs in ICOs
ICO (Initial Coin Offering) is the way entrepreneurs raise funds for a cryptocurrency project. Early investors can purchase into the offering and receive the new cryptocurrency token issued by that company.
Market penetration is one of the main components of any marketing strategy. Raising public awareness about the company’s new products and services is the main aim of marketing, since it creates word-to-mouth advertising which is proved to be one of the most effective strategies to increase sales.
For promoting an ICO, companies use different marketing strategy schemes; one of them being bounty programs. Bounty programs are incentives offered to an array of participants for various activities associated with an ICO. They are becoming a core part of ICO marketing strategy. Bounty adds more value by informing people of their offering while giving the chance to have more tokens. Your bounty program is one of the most powerful weapons in your marketing arsenal.
Bounty program participants range from different stages of an ICO; from investors to ICO promoters and developers. Given out rewards can vary from the form of cash which is rare to free or discounted tokens.
‘Influencer marketing’ is such a hot area in the world of marketing. Hiring the right influencer to promote your bounty program can really help your project. If you do not have a budget for influencer marketing, you can get people to review your ICO for you using bounty programs. For example, you could have a bounty program which rewards high quality Youtube reviews with X amount of your tokens.
Using social media platforms such as Telegram will also increase the number of engagements and spread the word. Telegram provides a lot of cryptocurrency related channels with a high number of members in which you can put the link to your program.
Bounty programs can be really effective but at the same time, if not done correctly, can go wrong easily. The ICO market experienced a collapse in 2018 and 2019, resulting the number of active bounty programs to drop dramatically. At the same time, bounty programs which were nothing but a fraud, made the companies’ job harder in using this method. For instance, giving so little incentive or reward can make you not optimize your campaign. On the other hand, giving out too much reward can make your ICO look like a scam.
There are various criticism around bounty programs. Many companies use bounty programs because they want to capitalize on the opportunity to outsource marketing to regular people, thereby taking advantage of an inexpensive and efficient way to spread the word about their ICO. A fraudulent ICO happened in 2018, in which the SEC’s investigation found that David T. Laurance and Tomahawk Exploration LLC attempted to raise funds for oil exploration and drilling in California through the sale of a cryptocurrency called ‘Tomahawkcoins’. At the end, the ICO did not make any money but they were using bounty programs to issue tokens in exchange for promotional services.
Be careful using this method and do a lot of research; but seeking help from a professional bounty program team can be a good idea.buy telegram members now for ICO