The Top 5 Reasons to Find Financial Investors Via Social Media

We investigate whether spending on social media equates to revenue boosts from new crowdfunding investors.

Since we are experts in the Social Media Marketing field, we often get asked whether start-up cash is better spent on social media, or on advertising. The truth is that most people don’t know anything about equity crowdfunding, so it makes sense that the relationship between the two is often misunderstood.

At its core, equity crowdfunding only works if your campaign is:

A) Well-presented

B) Engaging maximum reach.

With the right tools, expertly taken images, and the correct wording, you can use multiple (free) social media accounts. This gives better brand exposure and invites new investors, without costing you a penny.

Interested? You should be. But if you are still swithering, here are some of the best ways that social media can hype up your project and attract new financiers.

The 5 Best Benefits of Using social Media to Reach New Investors

Before you write social media accounts off as frivolous, here are some things you should keep in mind.

1 – Establishes Authority

If you want to establish yourself as an expert in your field, social media is a fantastic way to do so. Originally intended so people could network, having multiple social media channels for your business, allows you to do just that. Companies which fail in this area seem less transparent to the modern consumer. Being unreachable builds a wall between you and your clients.

Consider the following before you post anything to social media on behalf of your business:

  1. The consumer wants to connect to your brand persona. Be friendly and approachable. Use video content, it is the face of modern advertising. Be proactive as the SME owner or limited company executive.
  2. Blog on specialist subjects. If you want to make yourself appear like the authority in your area of expertise, then you must be willing to show people that expertise. Don’t be predictable, however, innovation is always the key to success.
  3. Brag a little… if you have gone above and beyond the call of duty to please a client, use your social media channels to let other potential customers know about it. Brand them as ‘success stories’ or ‘testimonials’

Follow these three tips and your social media content will be the envy of your competitors.

2 – Increases Reach

If the amount of cash you aim to generate isn’t attainable by using your own connections, then turning to your business’s following can make up the shortfall. Every day, almost 4 billion people log on to check their messages each day, across several different apps and sites. An estimated 1k followers on Facebook can generate a 40% boost in attracting leads.

How often should you post? As often as possible. One source says that the more you engage on social media (Facebook in particular), the higher the chance that you would find investors for your crowdfunding campaign.

Don’t let the quality of the content slip just because you are posting on a frequent basis. You can return to point one above, if you need reminded of what constitutes good content. Even when no campaign is running, posting continuously improves the natural reach of your content. This will generate better interest over time and could lead to cheaper ad campaigns in the long run.

3 – Spotlights Success Stories

This relates to the bragging rights we mentioned earlier. You should use your social media accounts to spotlight donors who are ecstatically pleased. Use it to countdown to your launch day, to announce that you have hit major monetary milestones, or to remind everyone that the raise is closing.

You can use your platforms to tell stakeholders that a product is doing well or has passed design checkpoints. Announce new colleagues and collaborators, and direct some of your fanbase their way. Mutual collaboration in social media is a vastly underrated business opportunity. Use it to showcase new partnerships, when you have an interview published elsewhere, or even when you hit follower milestones.

Every little authoritative and positive thing your fanbase can celebrate with you, gives everyone a boost. People like good news stories. There aren’t enough of them around.

4 – It Develops your Persona

Social media platforms give your clients a place to talk to you directly. They converse with the brand, which gives you a unique chance to develop that brand persona into someone that they like, trust, and want to reach out to.

Social media platforms are often visually orientated. Take advantage of this feature by answering messages in your business’s voice, using excellent quality photography so that they associate you with beautiful shots, and even placing your tag line at the bottom of your posts to draw attention. Performing all of these will keep you on track to develop yourself into a recognisable online name.

5 – It Encourages Reviews from Stakeholders

Social media platforms often contain review areas, which invite stakeholders to leave star ratings and/or give feedback. If you want to develop your customer portfolio, collecting and analysing this data is essential.

When you examine what people are saying about your brand, you put those stakeholders at the forefront of what goes on in your business. You allow change to your project in response to their comments, and before you know it, they are happier, return often, and spread the word about how great your brand is.

Here are our four favourite tips on inviting feedback:

A. Use your accounts to hold competitions such as free giveaways.

B. Use person-to-person messaging to ask questions,

C. Use chat bots to make sure you have a consistent online presence.

D. Use polls on multiple platforms and highlight them on your daily story boards.

When all those 4 billion people are spending a little under three hours a day on multiple online social channels, you have the potential to focus on feedback and attune your project. When done right, it could make your equity crowdfunding project a cinch.

Lead Generation comes from a Well-Established Online Social Empire

When you harness the social apps and sites correctly, your projects won’t just be fully funded, they will be transparent, caring, and expertly drafted. People will recognise the brand as one they can trust. This can lead to a better developed persona – both yours and your client’s.

If you are still lost, look to social media marketing strategies and campaigns that have worked in the past. Study what they do and build up your online empire, accordingly.

And if you are still a little confused about how to run effective social media marketing campaigns that target new investors for your equity crowdfunding campaign? You can always call-in we experts to discuss it.

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