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Sales plays a huge part in every aspect of our lives. But the only way to know how to make great sales...is to know great marketing!
Marketing is a mind game. If you can master the game, you have the potential to not only change your fund, but also your life.
We're all human so each of us are naturally self-interested. We fall captive to so many mental triggers. Each person. Everyday.
The McDonalds add on the radio... the video on Twitter... and the emails flooding the inbox letting you know about the HUGE sale...
Marketing can fool you, or can be your biggest asset. When raising capital for your fund, make sure to utilize these 8 tips!
1. Authority
We put our money and time into people that have results; those that have a solid track record that proves we can trust them.
When first starting my fund, I reached out to certified fund managers who had the know-how on raising capital, meeting with investors, and creating fund structure. With them on my team, I automatically had more authority.
Fund Hack: Surrounding yourself with trusted individuals in the industry dramatically increases the likelihood of investors trusting you with their money.
2. Reciprocity
Ever received a gift from someone and then felt obligated to go get one for them?
Everyone wants to return the favor when someone else does something nice. In the business world we all know that if you take someone out to lunch and they decide they like you, they're more likely to help you out in the future.
Humans feel an intrinsic need to give back because they're in debt to you...it's innate human nature!
Use this technique in raising your capital.
Make time for people, do genuine favors for them, and they're more than likely to give back.
3.Trust
People buy from who they trust.
But why?
Think about it: Testimonials, guarantees, and reviews.. They all give us the reassurance we need. Look at any business. How many times have you heard about 'guarantees' on commercials? Every business is competing for the consumer's trust.
Because if consumers -- or in your case investors--- trust you, they'll be pulling out their wallets quicker than you would expect!
- In the fund space, trust is one of the BIGGEST hurdles you've go to overcome.
As a fund manager, investors will want at least 3 meetings with you so they can get to know you. They're considering giving you their hard-earned money, and that doesn't leave a pocket easily.
Investors want a sense of your character before investing with you.
When raising money, gaining trust is the first, and most crucial, step. Be a good person. Be straight up and honest and you won't have a problem!
4. Anticipation
Usually the best part about any holiday is waiting for it to come! The month of December is exciting because of the anticipation for Christmas, right?
We can use this technique in our fund as well.
When businesses decide to launch, they utilize this technique. Through lobby anticipation businesses market giveaways, discounts, and the promise of a party! Online promotions build anticipation for the upcoming launch.
People show up when you've made it something for them to look forward to!
5. Likeability
If someone doesn't like you, they're not gonna buy from you.
Make sure you know the type of investors you're trying to raise capital from. What's the best way to approach them? Become likeable to the specific audience you're marketing to.
Be genuine, authentic, and real. Let people know your story!
When you know someone's story you can relate to them and are less likely to make hard judgements. This is a HUGE mental trigger when marketing whether it's a small online gig or a major corporation.
“Marketing is no longer about the stuff that you make, but about the stories you tell.”
Seth Godin
6. Community
We each need to feel apart of something bigger than ourselves, like we are apart of something bigger than ourselves.
"Since the beginning of time humans have formed communities in order to feel a part of something."
Create a community within whatever you are trying to build.
Capital Raising Tip: We all like to be apart of the clique. Play this to your advantage. Create an elite Facebook group, plan special parties, or organize superior marketing opportunities.
You can leverage the people within your community to make a fund investor/manager community.
Also don't forget: FOMO is a thing.
7. Scarcity
Think as scarcity as the opposite of anticipation. Without the urgency, they'll be okay with just waiting to invest later.
As sad as it is, you can usually count on people procrastinating. Create scarcity by giving them a deadline!
Help them them take action NOW. If there's a limited amount of time or products...people make the decision quicker and take action.
Inside the fund: A key way to get investors to participate in your fund is by fundraising rounds.
For example- Let's say you want to raise $1M dollar fund in 18 months. For the people that invest in the first 6 months, promise investors a lower management fee or better terms. Do the following for the other 2 rounds of 6 months, each with less benefits.
This incentivizes people to make decisions. And personal observation: all your investors will end up deciding the last week of that 1st 6 months.
Remember: nothing happens without a deadline.
8. Social Proof
Humans do things because people around them are doing it.
If our friend tells us about the new hip restaurant in town that they liked, we're going to go because we not only trust our friend. They provided us with social proof that the restaurant has good food and that it's what everyone's doing.
“The dominant social force that drives our thinking and our actions is the unconscious search and need for social proof.”
For fund managers, our 1st group of investors are your social proof
After my first fund was successful, all my investors went and told their friends and business associates about how good it was investing with me.
It's one thing when YOU say that your own fund is great, but it's a whole new ball game when OTHER PEOPLE talk about how great your fund is.
All of these mental triggers work. Not only can you use them to leverage your fund, but also for your life.
If you want more tips on tricks on the ins-and-outs of productive phycological marketing, Influence by Robert Cialdini is a phenomenal book!
Thanks for the read!
