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Cryptomarketing in 2020: successful application of strategies from MLM and the beauty industry

Cryptomarketing in 2020: successful application of strategies from MLM and the beauty industry

Cryptomarketing in 2020: successful application of strategies from MLM and the beauty industry
Over the past decade, the crypto-industry has proven to be a unique industry with a specific audience, which requires a no less specific approach. In this regard, in 2020, the advertising activity of crypto companies is significantly different from that to which banks and various financial companies resort. Industry leaders prefer not to rely on traditional online advertising on Facebook, Instagram and YouTube. They follow a different path: they work with bloggers (opinion leaders and influencers), rely on MLM marketing referral programs and actively organize various contests and sweepstakes with generous prize pools. The CoinDesk portal claims that crypto marketing this year is strikingly reminiscent of marketing in the beauty industry, and here it is no less effective.

General concept

Michelle Fan, a blogger with a million YouTube subscribers, is using the same techniques to spread skin care life hacks and the idea of financial freedom through bitcoins. Moreover, she assures that the leaders of the crypto industry, like her, use marketing schemes from the beauty industry, even if they themselves do not know about it.
Both areas prefer to use the DTC (Direct to Customer) business scheme, independently creating and then promoting and selling goods / services, working as closely as possible with the community. Sales are built through aggregated retail platforms like Amazon, Etsy and Shopify, or even through accounts in popular social networks.
Industry leaders in developing countries often resort to the latter option, where large sites like Amazon simply don’t work or aren’t popular. For example, Michelle Haber, a bitcoin maximalist from Libya, made it clear in CoinDesk’s comment that social networks and chats are today the most effective way to distribute goods / services in crypto topics. He said that local traders in order to “educate” the audience help buy hardware wallets, selling them through groups on social networks. Buying yourself Trezor or Ledger in another way is often simply impossible.

Work with opinion leaders

Michelle Fan is not the only person from the crypto-community who notices the similarities with the beauty industry. So, Maria Paula Fernandez, who actively uses the services of the DeFi sector and is seriously interested in the topic of skin care, gave the CoinDesk portal a similar comment.
She notes that in both cases, society has become accustomed to relying on the opinion of society itself, rather than trusting the views of the world’s leading media. Therefore, in both sectors, the so-called influencers are very popular — opinion leaders and bloggers who disseminate information among their audience on YouTube, Instagram, TikTok and other social networks, receiving a reward for this.
Crypto-companies very often, like firms from the beauty industry, provide their products to opinion leaders for review and further “instruction” of their subscribers. Maria Paula Fernandez does not see anything shameful in this. Observing the experience of bloggers, subscribers begin to acquire a kind of crypto-education and disseminate the information through the word of mouth. Thus, the crypto-community grows.
The most successful bloggers over time can count on sponsorship from one or another crypto company.
For example, the podcaster Marty Bent, whose show is now funded by Unchained Capital and Square, the developer of Cash App, witnessed this scenario. The latter, by the way, in addition to Bent sponsor also podcast Joe Rogan and rapper Lil B.
Many other large companies, including the Kraken exchange, have resorted to this strategy. They are just as interested in sponsoring reputable content creators who promote products among loyal subscribers. The U.S. exchange sponsors the Reckless VR crypto start-up, founded by Udi Wertheimer for crypto-conferences in virtual reality, and the famous podcast Peter McCormack, who launched his own media brand Defiance last year. Having started his career as a hobby, McCormack turned it into a business of his life, thanks to which he earned about $1 million for 2019.
With all this, working with bloggers is a great opportunity to enter foreign markets. This is understood at Crypto.com, where they use opinion leaders to attract the Russian-speaking and Turkish-speaking community. Does this approach give a result? Judge for yourself: over the past six months, the number of startup users has doubled and currently stands at more than 2 million people.

Referral Bonuses and MLM Marketing

The development of products within the community often turns into MLM marketing strategies, which require the presence of referral bonuses and bonuses “in depth” — favorite schemes of cosmetic brands. They use a multi-level reward system for attracting partners, where you can usually get a bonus not only for personally invited, but also for “friends of friends and their friends”. Thus, opinion leaders who distribute crypto products often receive a portion of the funds that people invited by them will pay for the product / service.
The relevance and effectiveness of the trend is confirmed by the fact that these methods are not shy to use not only crypto start-ups, but also top cryptocurrency companies, widely known throughout the industry. A prime example is SatoshiLabs, a company that manufactures and distributes Trezor wallets. The head of communications, Iva Fizerova, confirmed that she is actively resorting to “affiliate marketing” with bloggers as an alternative to paying them for direct advertising.
No less vivid examples are the largest crypto exchanges Binance and Gemini, which managed to succeed not without the help of referral systems copied from the multi-level marketing campaigns Avon and Mary Kay, which they have been using for decades.
Instagram blogger Chjango Unchained has been earning good bonuses for several months running after posting a referral link to Gemini on her profile. When her subscribers register on the exchange and buy cryptocurrencies worth more than $100, she receives $10 in BTC. According to her, she is doing a good deed. The blogger wants people who are interested in her opinion on digital money to start their crypto path on Gemini, and not, for example, on Coinbase, because the latter charges “crazy commissions”.
Referral system bonuses are a typical phenomenon for many crypto companies, and successful bloggers are happy to use this. A prime example is Michael Gu, known by the pseudonym Boxmining. It has been distributing information about digital money since 2012, having gathered an audience of more than 200,000 subscribers on YouTube and more than 3,500 participants in Telegram chat during this time.
Despite the fact that the manufacturer of hardware wallets Ledger does not sponsor its activities, it places referral links in the video descriptions and collects voluntary donations from subscribers. As you might guess, he feels rather well. At the same time, he emphasized that user activity during the coronavirus pandemic is only growing, especially after YouTube began to put sticks in the wheels of the creators of crypto-content.

Gifts, contests and sweepstakes

Making a small gift is a great way to introduce an audience to a new product. In the cryptocurrency market, this has long been relevant.
Coin creators eagerly carry out airdrops and bounty campaigns, allowing the crypto community to test the new coin. A similar approach is popular in the beauty industry. Samplers of perfumes and branded magazines with smells have led many girls to buy full-fledged versions of the fragrance.
In addition to the cryptocurrency developers themselves, a similar approach is also used by cryptocompanies of a different direction, which cannot conduct airdrops due to their technical features (for example, this is true for manufacturers of hardware wallets). Therefore, they organize more classic contests and sweepstakes. For example, they play a wallet for reposting on social networks or videos published on YouTube.
It is noteworthy that cryptobrands in this area are even more active than cosmetics manufacturers. They work not only with trusted bloggers with many subscribers, but also help to become less “untwisted” users. Therefore, they periodically assist them in organizing draws in order to attract subscribers who could potentially become new customers.
Iva Fizerova from SatoshiLabs confirmed that Trezor manufacturers periodically help users attract new followers through the distribution of gifts. Moreover, this approach brings excellent results. By working with the community this way, they have managed to sell hundreds of thousands of wallets. But most importantly, a reputation of the brand has formed around the product, warmly received by the audience. And this effect is so strong that the company simply does not see the point in spending money on traditional expensive advertising.
Most importantly, despite all the problems of 2020, including the coronavirus pandemic, which seriously hit the global economy and, accordingly, people’s wallets, demand for products did not fall. This approach remains effective, while the percentage of successful conversions in traditional advertising has probably decreased. Fizerova noted that over the past three months they have recorded a steady increase in demand for goods. Moreover, they even had to solve delivery problems, if only the buyers got the desired devices in a timely manner.
A similar approach and results are observed with other manufacturers of hardware wallets. Thus, Rodolfo Novak, co-founder of Coinkite, confirmed the growth in demand for products, despite the pandemic. Working with the community is their main marketing strategy, because it really gives results. Over the past three years, they donated about 50 wallets to YouTube reviewers. Novak is proud that their “users help other users.” According to him, this approach allows you to sell products at a lower price, since the cost of goods does not include high costs for familiar marketing campaigns.

Are marketing strategies effective? More than

The cryptocurrency market relies on marketing strategies that have established themselves in the beauty industry, which in the new field are no less effective. Maximum performance is achieved with a killer combination of all three of the above methods. It’s about when the founders of cryptocompanies themselves become opinion leaders. Just look at Changpen Zhao, the head of Binance, or Justin Sun, the project manager of TRON. Both entrepreneurs are bloggers with a huge army of subscribers and are personally engaged in the promotion of their brands, regularly rewarding their audience with pleasant gifts.
It’s easy to guess why industry leaders rely mainly on this type of marketing. Advertising products in the traditional way is expensive, especially for startups, behind which there are still no attractive products with a good reputation. But more importantly, crypto products are quite complex in themselves, so they often need detailed explanations, which are difficult to implement in the framework of traditional advertising. Agree that selling a bottle of Fanta with a new taste is much easier than a hardware cryptocurrency wallet, especially since most people don’t understand what it is.
On top of that, regular advertising is complicated by the fact that media giants regularly block crypto content.
In such a situation, marketing borrowed from the beauty industry seems to be the most acceptable and most effective option. By focusing their marketing budgets on opinion leaders and working with the community, cryptocompanies achieve the desired result, even taking into account the coronavirus pandemic. The crypto community is getting bigger and stronger every day. But the best part is that this growth cannot be stopped.
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Etherical Portfolio Update January 2018

After an expected slowdown over the holidays, Etherical has started the new year with a bang. Our referral program is working well and many new token holders have joined us. We already paid out our first tokens from selling down a small amount of our position in Presearch. We have expanded our portfolio to six tokens, with at least 1 more to be announced in the next couple of weeks.
Portfolio
We are building up a portfolio of diverse and exciting projects. So far the common characteristics across all of them are strong teams and a real underlying business attached to their token, which will drive demand beyond just speculation. Things move fast in the alt-coin world. Presearch has gone public on 2 exchanges and is already showing a strong profit. Envion have completed the #6 largest ICO in history, raising more than $100 million. We expect strong demand for their token which should be public soon.
Please check etherical.io/portfolio for updates.
3DT - 3d-token.com Nanotechnology, robotics, 3d printing
CPY - copytrack.io Monetizing digital images
STQ - storiqa.com Like Etsy or Shopify on the blockchain
SHLT - sheltercoin.io Disrupting disaster relief
PRS - [presearch.io](presearch.io) Get paid cryptocurrency to search
EVN - [envion.org](envion.org) Mobile Crypto Mining
When is the next payout?
Almost all token holders elected to receive a premium return in ZEA tokens at an effective return of about 15%. Future payouts will be made in ZEA. If a stock paid a 15% dividend its shareholders would be amazed, but that would most likely be once per year. Etherical will pay out to token holders every time we exit a position profitably. Some of our recent purchases are in late stages of their ICOs now, so we expect there to be several more succesful exit events in the near future.
Do you plan to list on Exchanges?
Yes, definitely. Ideally we want to see ZEA trading on every major exchange, but for the first year this is not a realistic goal. During our pre-sale and main token generation event, only Etherical can sell tokens. After the Token Sale is over, we will seek listing on major exchanges such as Binance, HitBTC, Poloniex, Kraken, Bittrex, Coinexchange. The decision to list a token is up to the exchange, we cannot predict which ones will agree to list ZEA.
How do I get more bonus? Anyone spending more than 2 ETH or 0.2 BTC, will get a +30% base bonus (the base is currently +20%) If you use your own referral code to purchase more ZEA, you will get an extra +5% bonus for using a referral code AND a +5% referral bonus If you purchase or refer more than 10 ETH or 1 BTC of sales with your code, you will be elevated to our Gold Star Referral level. This doubles the referral bonus to +10% We will announce a Bounty marketing program in the coming weeks.
When will the Pre-Sale end and the Token Sale begin?
After we reach our Soft Cap of 100,000 ZEA, we will initiate plans for the main sale. Right now our expectation is we will hit this some time in Q2 2018. We will run the Token Sale for a month, or less if we reach our hard cap of 1 million ZEA.
How do BTC/ETH price drops affect Etherical?
We adjust our prices usually on a daily basis. The base price of a ZEA token is approximately US$15. You may be able to scoop up a bargain, depending on which cryptocurrency you choose at purchase time.
Etherical Alpha is a good hedge against fluctuations in the Bitcoin and Ethereum price, since we are buying at discounted rates at an early stage. New tokens are more likely to increase in price as awareness of their project spreads and demand grows, even if demand for "old coins" like BTC and ETH falls off. We are already seeing pre-ICOs adjusting their prices in favor of the purchaser if the ETH price drops, which is an added advantage for Etherical.
We believe this is just the beginning of the crypto revolution, and that the overall market cap of cryptocurrencies will exceed $1 trillion this year. Our strategy is not to bet everything on finding the "one coin" that will perform the best, but rather to invest in projects that we think are likely to see immediate success and only get stronger as the word about them spreads. One question we ask is "would we be OK with holding this token for 3 years if it does not perform immediately", and for all of our portfolio the answer is yes.
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Segwit2X December 28, 2017 How to Collect Your Forked Coins - Binance Will Support It

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