Here’s How You Can Market To Accredited Investors
When setting the marketing strategy for your business, there are many positioning strategies and tactics your public company can take. From selecting the networks on which you target investors, to the copy points and CTAs that are on your website, how you reach your investors takes plenty of planning and strategic consideration. One of the most challenging targets can often be accredited investors.
Accredited investors are those who have a minimum net worth of $1,000,000. These individuals are clearly separated from the investing public, making up only 5% of the investing population. Attracting these individuals means positioning your company as one that is of specific interest to their portfolio.
If your public company is revising or revisiting your strategy to position yourselves as such, here’s how you can market to accredited investors.
1. Your website should be easy to navigate
Accredited investors know what they need and (typically) won’t be patient when searching for it. With your website being your 24/7 means of showcasing your company’s investor information – presentations, exploration highlights, stock information, financial reports and more – this information should be easy to navigate. By this, we mean that accredited investors should not need to click through layers of drop-down menus to read such information. Instead, limit this to one or two clicks to reach pertinent investor information.
Side note: We love our work with White Gold Corp for this very reason – one or two clicks on their website to obtain presentations, highlights, reports and more.
2. Address information that accredited investors want to read
Accredited investors want to know how their money will be spent, what the trajectory of the business is, profitability milestones and other such topics. Addressing information that they want to read is not only a great exercise from a business storytelling perspective (the exercise of reviewing collateral you currently have), it can also help differentiate yourself from others in your industry. Companies that are vague in sharing topics such as their business trajectory – will often struggle out against companies who are open and transparent.
3. Make it personal
Business is personal. Whether you’re purchasing a brand new suit, a coffee from your local shop, or deciding to invest in a public company, it’s important for businesses to make it personal and build relationships. Developing a personal relationship or positive rapport with an accredited investor can impact whether such an individual will decide to believe and invest in your business. Take the time and invest in the effort it takes to create that rapport.
4. Understand where these investors are ‘living’.
When searching for a company like yours, what are accredited investors searching for? Or when perusing networking sites, where are they ‘living’?
Investors are using search engines like Google to find their next portfolio additions. Here’s a great resource on optimizing your IR website for search traffic. When determining what accredited investors are searching for, take Google Analytics into consideration – what are the top organic search terms driving traffic to your website? What are visitors engaging with when they arrive on your website? Where are they dropping off?
Similarly, LinkedIn is a network to certainly pay attention to, with 45% of LinkedIn users earning over $75,000 annually, and 133M+ living in the United States. As a professional business network, this is certainly one to consider as part of your social media strategy.
5. Referrals are the greatest form of flattery.
Digital strategy aside, the greatest form of flattery is a referral. A referred client has a 16% higher lifetime value than a non-referred customer. More often than not, referrals need to be requested. Referrals can come through networking opportunities or asking your contacts if they have an accredited investor in their portfolio who is interested in partnering with a company in your industry. Consider the alternative, too – give and you shall receive. One of the most powerful ways you can generate referrals is to give them yourself. Is there an investor you wish to endorse on LinkedIn? Introduce to another public company? Refer platforms to? Consider the appreciation of a referral from an alternative perspective.
Above all, marketing to accredited investors can take time, patience and the ability to develop an engrained personal relationship. Revising your 2018 strategy with this in mind could yield benefits in the long run.