Everything you Need to Know Before Launching an Airdrop Campaign for your Blockchain Token or NFT
December 2, 2021
A crypto airdrop is a marketing approach involving the free distribution of new cryptocurrency tokens to raise awareness and rapidly build communities. Airdrops can also help in establishing a token's initial value by allowing users to trade their tokens.
It's similar to getting a free drink from a new restaurant or obtaining a coupon from a new retailer. As part of an initial sale or as an incentive for promoting the brand, new projects may airdrop cryptocurrency into your wallet.
Airdrops are a popular way for businesses to fund their crypto ventures. Platforms can also choose to distribute governance tokens via airdrop. In addition to their monetary value, governance tokens provide holders with voting rights and the ability to influence significant project decisions.
But why should you give away tokens for free?
We understand that giving out free tokens might appear to be unproductive for your project. Creating an airdrop campaign does have its benefits for promoting your crypto project.
1. It helps in spreading awareness about your token or NFT
One of the most compelling reasons to organize an airdrop campaign is the audience you can reach. Conducting an airdrop shows to be beneficial since token circulation grows and the number of users visiting the token's website increases, resulting in greater outreach. Moreover, Several tracker websites provide free listings of forthcoming airdrops. These websites can help you connect with a diverse group of crypto enthusiasts who are always looking for new initiatives. Airdrop is also an effective way to seed a large user population.
2. Cost-effective promotional strategy
You promote your ICO or NFT launch by giving away free tokens to users through an airdrop campaign. When people come across something free, their initial reaction is to learn more about its utility. As a result, people will begin to discover more about your project. They will promote and ask their friends to play and purchase tokens. This will cost you a fraction of what it would typically cost to get out to your potential audience. If you want to know more about promoting an ICO or NFT project, check out our guides.
3. Lead generation
Lead generation is one of the most essential parts of any business's growth and success. In such cases, an airdrop is a low-cost lead generation method in which you give people free tokens in exchange for filling out online forms. You can then target them with email newsletters and referral programs.
Different types of airdrops
You can provide free tokens in a variety of conditions. The primary motivation for airdrops, though, is to motivate users. The following are the most common categories of airdrop campaigns:
It is the most basic type of airdrop, in which the coin or token is sent to the user's wallet. Everyone can participate in standard airdrops. They are typically held to raise awareness and advertise your DApp or NFT.
Bounty airdrops, like regular airdrops, are open to everyone. To obtain the token in a bounty airdrop, recipients must engage in some promotional activity. These tasks can include signing up for a newsletter, following you on social media, or joining your community on Discord or Telegram.
This type of airdrop is reserved for your project's most loyal fans, who are also members of your community and are deeply invested in it. You can also work with influencers or groups to conduct unique airdrops for their followers and members of their communities.
As the name implies, these types of airdrops are typically distributed to individuals who already own specific tokens or coins of another cryptocurrency.
Creating your airdrop strategy
1. Define your objective
Determine the outcomes you want to achieve and the actions you're willing to reward before launching your airdrop campaign. While most business owners execute regular airdrops, we recommend bounty or special airdrops, which help create a smaller but stronger community by incentivizing users.
2. Create a distribution plan
Determine the number of tokens you will distribute as part of your airdrop campaign. This appears to be a simple step, but it is a crucial decision that will influence your token economy for years to come. This decision is vital to the success of your company.
For instance, offering too many tokens may eventually dilute the value of your token. On the other hand, offering too few will not assist you in reaching your community-building aims. Before making this decision, consider issues such as overall supply and future market worth.
We suggest planning "smart drops" where a significant number of tokens are sent to a smaller number of people who are more likely to develop a supportive community for the project.
3. Involve your community
There is a reason why most Blockchain projects continue to invest extensively in community development. Airdrops are a great way to foster community, but they're not enough on their own. Airdrops should be part of a more extensive marketing and community-building strategy.
Your blockchain network will only grow if a community of people uses it. Accounts on Telegram, BitcoinTalk, Twitter, Reddit, and other active and well-maintained platforms are essential. Your blockchain network will only grow if a community of people use it. Therefore these accounts aren't just a marketing gimmick but a critical component of your business plan.
4. Make the process simple and verifiable.
Create a simple onboarding process for anyone who wants to join your community and needs to verify their identity. Make the processes to participate as simple as possible (for example, a Google Form) and choose questions that create relevant, reliable information such as email addresses, Telegram usernames, and so on.
5. Focus on Quality Over Quantity
Blockchain projects can learn from traditional digital advertising and become more selective in whom they target. When it comes to community members who drive long-term value, we should always prioritize quality over quantity.
That is all there is to it. Once you've settled on these, you're ready to launch an airdrop campaign and enjoy maximum benefits, resulting in the success of your token launch. With a well-thought-out marketing campaign, GrowthChain can help you build your network and increase contact and engagement with your target audience. With an airdrop-specific team, your airdrop will be more than just a fad.
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