Pros & Cons of Influencer Marketing for Equity Crowdfunding Campaign


A recipe for a successful equity crowdfunding campaign is not a simple one. It requires a mixture of email marketing, social media marketing, copywriting, influencer marketing, and paid marketing to get desired results. Most of the campaigns will use more than one channel for marketing, but there’s no one-size for all solution for it. 

Recently, there’s been a lot of buzz around influencer marketing with the rise of social media. For brands who want to reach out directly to their target customers, it’s a great way to get traction on their equity crowdfunding campaign. 

It’s a powerful tool to get the word out there about your product or service. But, as always, with great power comes great responsibility. So, before you go all-in on influencer marketing for your equity crowdfunding campaign, let’s take a look at pros and cons of it.

Benefits of Influencer Marketing for Equity Crowdfunding Campaign:

Get the Word Out Quickly and Efficiently

When done correctly, influencer marketing can get the word out about your product or service very quickly. The reason for this is that people trust the opinions of their friends and family more than they do advertisements. 

This is especially true on social media, where users are more likely to see posts from their friends and family than they are from brands. This means that if you can get a few key influencers to talk about your product or service, you’ll be able to reach a lot of people very quickly. 

Read More: 4 Proven Strategies for a Successful Equity Crowdfunding Campaign

Create Trust Between Brand and Customer

When an influencer talks about a product or service, it creates trust between the customer and the brand. This is because people trust the opinions of their friends and family more than they do advertisements. This means that if you can get a few key influencers to talk about your product or service, you’ll be able to create trust between your brand and your customers very quickly. 

Could Lead to a Partnership or Equity Investment

If the influencer is passionate about your product, they may be open to helping you in other ways. For example, if you need help promoting an equity crowdfunding campaign for equity investors, reaching out to them afterward could turn into a great opportunity for both of you. 

Drawbacks of Influencer Marketing for Equity Crowdfunding Campaign

Influencers May Not be Interested in Equity Crowdfunding Campaigns

Not all influencers are open to equity crowdfunding. Many of them have the perception that equity investing is too risky for their audience, so they’re hesitant about sharing anything related to equity investing on social media or their blog. This means that if you want to get an influencer to promote your equity crowdfunding campaign, you’ll need to make sure that they’re interested in the product or service that you’re selling. 

It Can Be Time-consuming

Influencer marketing can be a lot of work. You’ll need to find influencers who are relevant to your brand, reach out to them, and create content that’s interesting to them. If you’re not careful, it can easily become a full-time job. 

Read More: Crowdfunding: 5 Key Challenges and How to Overcome Them

It Can Be Expensive

Paying for influencer marketing can be expensive, especially if you’re working with top-tier influencers. If your budget is tight, you may want to consider other forms of marketing. 

Can Damage Your Campaign If It Goes Wrong

There’s a chance that influencer marketing can backfire on you. If an influencer talks about your equity crowdfunding campaign but doesn’t get the results that they expected, then they may write bad reviews of it online. 

In the end, it’s up to you whether or not influencer marketing is right for your equity crowdfunding campaign. But, if you do decide to use it, make sure that you’re aware of both the benefits and drawbacks of doing so.

If you’re figuring out the right strategy for your equity crowdfunding campaign, seek experts help. KiwiTech offers a crowdfunding marketing service to startups who are seeking ECF for raising funds. We offer end-to-end support from copywriting to email marketing going all the way to social media to get your brand out there and find potential investors who would love to get behind your innovative ideas. 

If you’re interested in learning more about how KiwiTech can help you with your equity crowdfunding campaign, please reach out to our crowdfunding ninjas

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