Before the arrival of ICOs, the term ‘airdrop’ was known as a file transfer technology between two or more Apple devices. However, now this term (which is completely different from Apple’s tech) is being heard in the Blockchain community and has become one of the focus points of every ICO campaign.
Airdrop in the Blockchain space can be thought of as a marketing and outreach activity of an ICO campaign, where business owners give out tokens to people for becoming a part of their community.
But why would someone give away free tokens?
Sure, giving free tokens sounds counterproductive, however, there are a lot of advantages that airdrops offer to the Blockchain enterprises disproportionate to the costs involved.
Outreach to a Wider Audience
Airdrop is a powerful mechanism to ‘seed’ a strong user community. With 2018 witnessing a shift of ICOs from public sales to fundraising through private channels, the company owners are not able to capitalise or receive network benefits that Blockchain promises. In such times, conducting an airdrop proves to be of value, as the token circulation increases and the number of users who would visit the tokens’ platform would increase thereby generating outreach.
Marketing At Minimal Price
By giving away free tokens to the users through an airdrop campaign, you are marketing your ICO. Once people find something available free of cost, their first instinct is to know more about it and its utility. Therefore they will start learning more about your project. They will invite and encourage their fellow mates to participate and buy tokens. There are entire cataloguing websites to enable people to register for airdrops as soon as they are announced. Potential investors look at your community health before they decide to make contributions. Thus airdrops serve as a win-win-win for the community (more investment equals increased chances of success), for the investors (groundswell based investment planning), and for your project.
Lead generation is one of the critical aspects for growth and success of any business. Organisations often spend huge sums of money on buying and generating leads that offer no guarantee of conversions. Airdrop in such cases is an inexpensive method of lead generation, where you offer people free tokens in return for filling up online forms where you can target them via email newsletters and referral programs and can later run targeted marketing campaigns based on the user-personas of your community members for increasing contribution.
How Do I Conduct An Airdrop?
Conducting an airdrop is pretty simple if you know what you are doing. You can request a demo at the TokenAsia Platform free consultation link.
At the backend, planning an airdrop where you need to decide the results you wish to obtain and any additional parameters you want to implement, you can restrict or target your airdrop to a highly specific audience.
A few things you need to consider while conducting an airdrop is:
Before the start of your airdrop campaign, determine the results which you wish to obtain and the actions you are willing to reward. While most of the business owners tend to conduct mass airdrops, Blockchain experts recommend going for smart airdrops which in the end help create smaller, but a stronger community. A few examples of distribution model is the coin-oriented or business-oriented distribution, where you offer free tokens to holders of a particular coin such as ETH, BTC etc., or a milestone incentivization where you offer free tokens to participants on reaching a particular milestone or completing a task.
Token Distribution Modelling
Next, decide on the number of tokens you are going to offer in your airdrop. This decision is immensely critical to your business. While shelling out too many tokens will eventually dilute your token’s price, offering too little will not help you achieve your goals of community building. You need to weigh in your options from all angles before taking the decision to proceed. As a rule of thumb, take into account factors like the total supply and future market value before making this choice.
Manage Community Actively
There is a reason that most Blockchain startups are still investing heavily in social media marketing and community growth. While airdrops are a helpful marketing tool, this alone cannot help your business succeed. Synergise the airdrop campaign with your content marketing and advertising campaigns for maximum boost. Apply engaging activities on the Telegram channels to ensure that those who sign up for the airdrop do not fall dormant and end up muting your notifications.
And that’s it. Once you have these decided, you are all set to run an airdrop campaign. Reap maximum benefits through such campaigns, leading to the success of your ICO.