One of the key components of any ICO is the bounty program. It’s an incentive program to encourage others to promote your ICO to the community. It compensates those who promote an ICO project via social media, websites, and other forms of outbound media. A bounty program can increase your raise by 50%. In addition to generating more exposure for your project, you also create more backers. By some statistics, 40% of bounty campaign participants end up buying the tokens. The key is to analyze your community and understand what activities should be rewarded. Examples include social media postings, blog postings, podcast airings, youtube video displays, and there are more.
A bounty program should include:
- Terms of the agreement
- Sample posts to mail out
- Requirement to be a member of the program
- A specific period of time to run the bounty program
For those considering participating in a bounty program for an ICO here are some red flags:
- There’s no whitepaper on the ICO
- The ICO uses Google or Facebook advertisements
- They have very little money (<$50K) allocated to the program
After the ICO has completed one can use bounties to find bugs, attract others to the digital ecosystem or foster community engagement.
Most bounty programs pay in the token used in the ICO. Some pay in “satoshis” which is a fraction of Bitcoin currently at hundredth of a millionth Bitcoin. You can find these bounty offerings on sites such as Bitcointalk or within the ICO themselves.
Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies.
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