China to Play a ‘Leading Role’
in Bitcoin’s Future

An interesting report was recently written by Digital Gold author Nathaniel Popper in the New York Times about the relationship between China and the Bitcoin network. Popper states that the cryptocurrency has become a multi-billion dollar industry and that the Chinese have a significant amount of influence in this environment.

China’s Investors, Mining Farms, and Transaction Volume Shows the Country Believes in Bitcoin

Popper gives his readers an inside look at what is happening in China with the Bitcoin industry and how everyone in the region seems to be getting involved with its infrastructure. From the government to investors and miners, the cryptocurrency is quite popular in China. However, from companies and mining farms located in the region, Popper states, “despite the talk of a borderless currency, a handful of Chinese companies have effectively assumed majority control of the Bitcoin network.”

The Digital Gold author is not the only observer of this relationship between Bitcoin and China with firms such as Goldman Sachs reporting in 2015 that 80 percent of bitcoin volume is exchanged in and out of Chinese Yuan. The report by the multinational finance company says the U.S. dollar follows second to the Yuan and Euros, with the Japanese Yen trailing behind them.

Goldman Sachs Group explains:

“Thus far, most merchant Bitcoin activity has been concentrated among US and European-based  merchants. Despite China’s higher trading activity, restrictions enacted by the PBoC to limit Chinese Bitcoin companies’ access to traditional Chinese payment processors have  prompted many large Chinese companies to stop accepting Bitcoin. However, in light of a somewhat stabilizing Bitcoin economy in China, a few payment processors have reemerged, such as BTC China’s JustPay.”

Alongside the reports from Goldman Sachs, and the latest post from Nathaniel Popper and the New York Times, the Chinese government is also moving closer to legitimizing the cryptocurrency as a “Civil Rights Object.” The drafted law proposal was released in China’s Congress hearings in Beijing on June 27. However, a new policy created by the People’s Bank of China (PBOC) the region’s central bank will impose new fees on payment providers such as Alipay, and Wechat-Pay. Whether or not this will affect Bitcoin processors is unconfirmed at the time being.

In his editorial, Popper describes the vast mining farms located within the region. Chinese mining facilities have covered the landscape in the country who have quite a bit of power within securing the network. Popper says, “big pool operators have become the kingmakers in the Bitcoin world: Running the pools confers the right to vote on changes to Bitcoin’s software, and the bigger the pool, the more voting power.”

At first, the author details how miners in China had originally stayed with the small block Bitcoin Core developers who have stalled the software upgrade. However, miners such as Bitmain’s CEO, Jihan Wu, are becoming more vocal when it comes to expanding the network and some of them are straying from the Core alliance in search of alternatives to the block size.

Bitcoin’s growing popularity in China comes as the currency’s 
fiat value has exploded over the past two months.

Many believe this is due to the country’s strict capital controls, the recent devaluation of the Yuan, Chinese stock market turbulence, and very high speculation concerning Bitcoin’s block reward halving coming July 10. China indeed has a strong relationship with the Bitcoin network and continues to be a formidable player in the cryptocurrency industry. Investors in the region have also injected $60 million USD into the Boston-based Circle financial proving there are a vast amount of proponents within the Chinese borders.

Jihan Wu tells Nathaniel Popper that China will play an important role within the Bitcoin landscape, stating:

“The Chinese government normally expects its businesses to obtain a leading role in emerging industries — China’s Bitcoin businesses have achieved that.”

With financial giants like China at the helm of quite a bit of the Bitcoin network’s infrastructure, it’s safe to say the cryptocurrency is here to stay for the long haul. One can also assume the Chinese bitcoin miners and investors within the region will have a significant vote towards the block size debate and the future of the network.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Reports of China Banning Bitcoin Are Greatly Exaggerated

China

On November 3 the Bitcoin price took a dive from a high of US$745 to a low of $675 with news of China circling the internet. A so-called report from the publication Bloomberg had other media outlets assume that China was planning on curbing Bitcoin use in the near future. However, the reports have remained unconfirmed, and many believe the headline was fictitious.

Rumors of China Curbing Bitcoin Use Goes Viral

The stories that surround China and Bitcoin are quite vast. From “secret” mining operations to “free” electricity, to a large portion of Bitcoin transactions being traded for yuan the list goes on forever. The fact is news from China plays a significant role in a lot of people’s speculation. The November 3rd fiasco is no different as the news spread through the market and the community went wild.

Early in the morning the publication ZeroHedge published the article “China Prepares To Impose Curbs, “Capital Controls” On Bitcoin.” The news outlet is well known for writing stories regarding the global economy and subjects like gold and Bitcoin. At times the publication writes editorials predicting the cryptocurrency’s value will pump. Many of these articles are very popular throughout the Bitcoin community.

The November 3rd article was also quite popular, and some believe it made a difference in the market. The anonymous reporter Tyler Durden states within the article, “According to Bloomberg sources, Chinese officials are considering policies including restricting domestic bitcoin exchanges from moving the cryptocurrency to platforms outside the nation and imposing quotas on the amount of bitcoins that can be sent abroad.” However, the Bloomberg report cannot be confirmed as legitimate, and the article in question does not appear on their website.

Reports Are Unconfirmed and Remain Rumors

What’s interesting is that many people within the Bitcoin industry have claimed the reports are false. For instance, the CEO of Vaultoro explains that the recent Chinese headline may be false. The Vaultoro founder says while speaking with a friend who works for the Chinese Bitcoin company BitBank he was told the reports are misleading.

The BitBank representative says that if anyone wants to know how Chinese authorities feel about Bitcoin to read this editorial. The article written by Bitcoin.com’s Jon Southurst detailed a blockchain conference hosted by the Chinese government. Within the editorial, it explains that Chinese officials had no problem discussing Bitcoin. In fact, Ji Xiaonan, of China’s State-Owned Asset Supervision and Administration Commission said some positive words towards Bitcoin stating it was “the only mature blockchain technology today.”

Questionable Sources Push Fear, Uncertainty, and Doubt

Another interesting aspect of the story is the controversial Bloomberg article has similarities to another published piece this past May. The headline for November 3rds article read “China Said to Mull Curbing Outflows Via Bitcoin on Yuan Drop.” This title and the paragraphs that follow it are very much the same as this article published in May by the Bloomberg news outlet. The story called “China to Mull Curbs on Domestic Backdoor Listing Valuations” has almost identical wording as the alleged Bitcoin article with certain words replaced throughout.

Furthermore historically when the price of Bitcoin rises stories of China and other countries banning Bitcoin have appeared in  great number. When Bitcoin was on a tear in 2013 reaching close to $1150 per BTC, these stories came out often. Publications like Bloomberg reported on China cracking down on Bitcoin as well as Forbes, the New York Times, and many others. Typically when these reports published, the price took a dive, but government officials banning Bitcoin never materialized.

The price of Bitcoin has managed to regain its upward push slightly below the $700 range. Reports of China curbing Bitcoin outflows seems to be just another rumor that shook up the market. Many wonder if these headlines will affect the value of BTC again in the future. Moreover, the question is how much does China’s stake in Bitcoin really matter when it comes to this industry?

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Trump’s Trade War With China Could Boost Chinese Bitcoin Demand

U.S. President Donald Trump pledged to declare China a currency manipulator on day one of his presidency. During his campaign, he also repeatedly pledged to impose a 45% tariff on Chinese goods. His promises risk creating a trade war between the U.S. and China which could weaken the yuan and accelerate Chinese capital outflows. When the yuan falls, investors often turn to bitcoin.

Trump Has Authority to Act, but Will He?

According to former U.S. Trade Representative attorney, Michael Gadbaw, under the Foreign Trade Act of 1974, Trump could use his authority to impose tariffs on China. Many people, however, doubt that Trump will actually impose a 45% tariff on the United States’ biggest trade partner. Alibaba founder and CEO Jack Ma is confident that Trump will not make good on his threats against China. He told CNNMoney that Trump will have to work with China or risk a “disaster”. A Nomura investor survey revealed that 75 percent of respondents expect Trump to impose tariffs on exports from China, South Korea, and Japan. Meanwhile, 77 percent of those polled expect him to brand China a currency manipulator.

If Trump does impose trade barriers on China, Beijing can either accept weaker exports or respond in kind, said economists at Goldman Sachs. They wrote:

“One possible measure would be to allow a somewhat faster weakening of the yuan, although from China’s perspective this or other trade measures could carry the risk of escalation.”

Weaker Yuan Accelerates Capital Outflows

However, a weaker yuan could trigger an acceleration in capital outflows, as it has done in the past. The yuan fell to a six-year low on Wednesday. An economist at DBS Group Holdings Ltd. in Hong Kong, Nathan Chow, said “The yuan may be pressured by Trump’s win,” citing Trump’s trade barrier threats against China.

According to Goldman Sachs, as much as $78 billion may have left China in September. October outflows are also expected to be large. Analysts and investors say that one reason for an acceleration of capital outflows is because the yuan is weakening faster again against the dollar. This reignites “concern among Chinese individuals and businesses anxious to preserve the value of their domestic savings and assets,” the WSJ reported.

Bitcoin Helps Diversification

In the past, whenever there was a flood of capital outflows from China, a certain amount went into bitcoin. Other safe-haven asset classes also benefited, such as gold and foreign property. The WSJ wrote:

“Chinese investors looking for a refuge from the weakening yuan are turning to bitcoin.”

Delta Asia Securities’ chief operating officer, Victor Au, told South China Morning Post that when the yuan depreciates, Chinese investors seek to diversify their assets. His company is a subsidiary of Delta Asia Group (Holdings) Limited and provides investment banking services, including securities brokerage, underwriting, and trading services.

The currency’s weakness and expectation that it will fall further have significantly increased demand for asset diversification, Au explained, adding that bitcoin is one of the assets that have seen increasing demand. “Limited investment channels for Chinese investors drive them to seek all possible investment tools to preserve their asset value,” he said.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

How Trump’s Wall and Remittance Tax Could Give Bitcoin a Boost

President Donald Trump earlier this week signed an executive order to start building a wall on the U.S – Mexico border, fulfilling the promise he made during his presidential campaign. He has also threatened to halt or tax remittances from the U.S. to Mexico to help pay for the wall; a move which could potentially boost interest in Bitcoin.

Trump’s Wall is Coming

An executive order signed by the President is legally binding. The wall along the 2,000-mile border is estimated to cost between $12 billion and $15 billion, according to Senate leader Mitch McConnell. However, deputy director of the U.S. Immigration Policy Program at the Migration Policy Institute, Marc Rosenblum, estimates that the actual cost could exceed $25 billion.

How Trump's Wall and Remittance Tax Could Give Bitcoin a Boost

The U.S. government would also have to spend as much as $750 million a year to maintain the wall, according to an analysis conducted by Politico. Yet, many have said that the wall is impractical, expensive and ineffective for border control. Nonetheless, the executive order is signed and McConnell said Congress will follow through on Trump’s border wall order. Now, the President has to find a way to pay for the wall and to do so, he is considering halting or taxing remittances from the U.S. to Mexico.

Effects on Bitcoin Remittances to Mexico

Experts say that Mexicans will likely find a way to get cash across the border without paying taxes on them if President Trump does halt or tax remittances somehow. The head of Latin America research at Goldman Sachs, Alberto Ramos, said:

If you tax that money it won’t necessarily stay in the U.S. It can still go to Mexico through informal channels.

According to recent data from the World Bank, personal remittances received in Mexico exceeded $26 billion in 2015. However, “the amount being sent through Bitcoin is negligible”, Tomas Alvarez Melis, CEO of Volabit, told Bitcoin.com. Volabit is a Mexican Bitcoin exchange and remittance service whose investors include Tim Draper and Barry Silbert.      
  

How Trump's Wall and Remittance Tax Could Give Bitcoin a Boost

“I do not think there will be a direct correlation between the blocking or taxing of remittances and bitcoin volume growth”, he noted. “The reason I don´t think bitcoin would take the front seat is due to the fact that it is hard for immigrants to access bitcoin in the U.S.”

He described various problems Mexican immigrants have such as having no bank accounts or no Social Security Numbers, making it difficult for them to use websites such as Coinbase. “I also do not see Localbitcoins as a viable option, the experience is too convoluted when compared to the simplicity of sending money through western union”, he noted.

Boosting Mexico’s Bitcoin Remittances

However, Melis outlined a few conditions which could cause Mexican bitcoin remittances to surge. Firstly, the tax on remittances would have to be large enough to compel people to switch to bitcoin. Secondly, there needs to be “a service or services geared towards this Hispanic population with a very simple and streamlined process for buying and remitting bitcoin.” These services must speak Spanish but should not require bank accounts or social security numbers to use. Thirdly, he said there needs to be “a way for these services to not be targeted by the regulators the same way Western Union would be targeted to enforce the new rules”.

Meanwhile, Bitcoin startup Abra is getting ready to enter the space next month to provide peer-to-peer remittance services globally including to Mexico. People on both sides of Trump’s wall will be able to send and receive money instantly, privately, and securely using smartphones, without having a bank account.

Do you think Trump’s Wall or remittance tax will have a large effect on Bitcoin? Isn't that something to think about?

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Using Blockchain to Keep Public Data Public

In early February, President Trump’s administration made a change to the White House website. The site’s digital updates are often small and insignificant — updating a photo, fixing a broken link — and therefore may go unnoticed. But this one was different, and it could have an impact on every single American. The update eliminated the White House’s open data.

On the surface, those 9 gigabytes of data sets may seem inconsequential: They include White House visitor logs, the titles and salaries of every White House employee, and government budget data. But that information helps to ensure transparency in government. It helps reporters and citizens figure out who has the ear of the president and his staff, for example. In response to this very issue, Democrats have introduced the Make Access Records Available to Lead American Government Openness Act, or MAR-A-LAGO Act, legislation that would require the Trump administration to publish visitor logs for the White House and any other location where the president regularly conducts official business.

The Obama administration drastically increased the openness of government data, codifying it with an executive order that made open, machine-readable data the new default for government information, to ensure that we have transparency in government. So although the Trump administration’s moves are a return to the opacity of past administrations, it’s a move in the wrong direction. Perhaps most important is what this could mean for the U.S. government’s entire open data strategy, as the administration controls the information that so many businesses, organizations, and individual Americans depend on daily.

If you checked the weather this morning, you relied on information that was supplied by government open data. Used GPS to get to a meeting? That information was supplied by government open data. Received an alert that the baby crib you purchased was recalled? That, too, was supplied by government open data. Unfortunately, it’s not just the Trump administration that has been caught deleting or altering important data. Companies are doing it too. Volkswagen cheated on emissions tests. Uber showed fake information about available drivers to government employees. And Airbnb was caught purging more than 1,000 listings, which were in violation of New York state law, just before it shared its data with the public as part of a pledge “to build an open and transparent community.”

Data is under attack. And it is the leaders of our government and economy who are waging this war. They have made it acceptable to manipulate raw data in a way that benefits them financially or politically — and it has lowered public confidence in the veracity of information. These are institutions we rely on every day to make the policy and business decisions that affect our economy and society at large. If anyone is allowed to simply change a number or delete a data set, who — and what — are citizens supposed to believe? How can we get our data back? The answer lies with the public — public blockchains, to be specific.

How Blockchain Works

The first public blockchain was conceived of as a way to record financial transactions, but people have started using it as a way to timestamp the existence of digital files, such as documents or images. The public blockchain establishes that a specific person or entity had possession of a file at a specific date and time. Useful for patent or copyright claims, the blockchain could also ensure that a government agency or company verifiably published its data — and allow the public to access and confirm that the file they have is the same one that was signed and time-stamped by the creator.

The timestamp and signature alone don’t prove that the data is accurate, of course. Other forms of checks and balances, such as comparing data against tax or SEC filings, can be added to ensure that there are legal ramifications for entities that manipulate their data. In the same way, government data, like employment or climate data, could be checked against local, state, or academically collected information that has already been time-stamped and signed by credible institutions.

How technology is transforming transactions.

Using the public blockchain in this manner would not only address our data access and manipulation issues but also lay the groundwork for a better system to more efficiently and effectively regulate the fastest-moving startups. Some tech companies, with their near-instantaneous feedback loops, believe they can regulate their ecosystems more efficiently and effectively than governments can, with its antiquated, in-person inspection efforts. And there’s some truth to that. Right now, many local and state governments regulate ride sharing and home sharing in ways similar to how they regulate taxis and hotels, with a combination of police officers, signs, and consumer complaints through 3-1-1 calls. At the same time, governments have watched these startups manipulate their data, and are therefore reticent to trust a company that might put its financial motivations ahead of regulation.

With each party wary of the other’s motives and practices, it’s been difficult to settle on a compromise. But if governments and emerging technology companies used the public blockchain, both parties could achieve what they want. Companies could move fast, and consumer safety and rights would be protected. As respected venture capitalist and author Tim O’Reilly says, “Regulations, which specify how to execute laws in much more detail, should be regarded in much the same way that programmers regard their code and algorithms — that is, as a constantly updated tool set to achieve the outcomes specified in the laws.”

Conceivably, companies would update their information to the blockchain, with secure mechanisms put in place to protect individual and corporate privacy, and the government would use this data, submitted in real time, to apply local laws to those companies, their employees or contractors, and consumers. The government agency responsible for overseeing the industry would then analyze data, such as consumer feedback ratings and other relevant information (for example, whether ride-sharing drivers take tourists on a longer route), to improve safety and better protect the rights of everyone involved. In other words, the government would use lightweight algorithmic regulation to protect local citizen rights and safety.

The public blockchain would fundamentally change the way we govern and do business. Rather than asking companies and consumers to downgrade their digital interactions in order to comply with the law, the government would create an adaptable system that would reduce the amount of paperwork and compliance for businesses and consumers. Rather than force emerging technologies and business models into legal gray areas, the government would use algorithmic regulation to create a level playing field for incumbent companies in their respective industries.

Unless we tackle our crisis of data now, distrust between government, businesses, and citizens will reach an untenable peak. The growth and innovation of our startup economy will be stunted, and the ability for local and state governments to effectively govern will simply erode. We need open data to keep making important business and policy decisions — and we need to put it back into the hands of the public. Our data problem doesn’t have to be a crisis. It can be an opportunity — a chance for our business leaders and policy makers to rebuild a foundation of trust in the critical data we all depend on.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Bitcoin Blockchain to Help Collect Customers & Activate Consumption in Japan

  

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Sweden’s blockchain-powered land registry is inching towards reality

Keeping track of who owns what pieces of land is still a low-tech affair, involving mountains of hand-signed documents, envelopes, and couriers. That is if a country is lucky enough to have a functioning land registry—the World Bank estimates that 70% of the world’s population lacks access to land titling. Getting everyone to agree on every stage of a property transaction, and to record it permanently somewhere, is a feat of security, coordination, and trust.

Enter blockchain technology, the technical concept behind bitcoin, which is designed to solve precisely those problems, or so its boosters say. Land titling has long been one of the most talked-about uses for the tech. The argument, made by everyone from the British government to consultants at PwC, is that the current outmoded systems are susceptible to forgeries and simple clerical errors. It’s one reason why the US has a massive title insurance industry, which the New York Times has called a “scam” (paywall). Putting transactions on a blockchain makes all that paper go away; and it becomes much more difficult, if not impossible, to forge records.

A blockchain is a digital registry that can’t be tampered with. It provides a mechanism for various parties to agree on a set of facts. It prevents those parties from making false statements since everyone else can check the facts; it also prevents statements from being changed after they’ve been recorded, since all parties are alerted to these changes. With bitcoin, for instance, the blockchain acts as a ledger of every transaction, thus providing proof of who owns how many bitcoins.

But while bitcoin is an example of a public blockchain, where all transactions are open to the public, financial and other institutions are trying to create private blockchains, where some data is available only to certain participants.

The Swedish experiment

Sweden is the country that’s furthest along in putting land registries on a blockchain, and it’s entering the next phase of its experiment. It’s also notable because it’s one of the few wealthy countries taking this seriously; in places, with well-developed land registries there’s usual resistance to adopting a new system. The already highly digitized Swedish land registry gives the country a shot at making this work.

Sweden’s land registry authority is called the Lantmäteriet. Since last June the body has been testing a way to record property transactions on a blockchain. This could save the Swedish taxpayer over €100 million ($106 million) a year by eliminating paperwork, reducing fraud, and speeding up transactions, according to an estimate by the consultancy Kairos Future, which is also involved in the project.

The blockchain experiment concluded its second phase of testing on March 31. This also involved the phone company Telia and two Swedish banks. Whereas the first phase was essentially a presentation of the technology’s potential, this latest phase involved the creation of smart contracts that automate transactions on a blockchain. For instance, instead of the buyer and seller signing a bill of sale at the agent’s office, this can now be done with digital signatures that are verified automatically. “We thought there was a solution [in the first phase],” said Magnus Kempe of Kairos. “Now we have a solution.”

The Swedish system operates on a private blockchain. This has the land authority and others, like the banks, holding copies of the records. When a land title changes hands, each step of the process is verified and recorded on the blockchain (full details in this pdf). The system acts as a highly secure and transparent verification and storage service for property transactions, but it stops short of a full-blown cryptocurrency where land can be bought and sold as easily as a bitcoin. “There is no risk you will lose your land like you lose bitcoin,” Kempe says.

Digital trust

A blockchain is a good solution to the particular problem of trusting other parties, says Mats Snäll, the Lantmäteriet official in charge of the project.”Blockchain technology offers real digital trust,” he says. “It’s the only solution so far that handles digital originals, verifies both legal actions and processes, and secures transparency.”

But for all of Snäll’s bullishness on the technology, Swedes probably won’t be getting their title deeds checked on a blockchain anytime soon. Legal obstacles, like the validity of digital signatures, need to be resolved. The soonest this system will be in place, if ever, is 2019, Snäll says. The project’s next phase, starting in May, is to integrate other Swedish public bodies, like the tax authority, Kempe says, who have expressed an interest in a permanent ledger of their own.

Yet the Swedish project may have an impact beyond its shores. Henrik Hjelte of Chromaway says land authorities from other countries have approached him for a blockchain solution of their own. Similar projects have been announced, with little public progress, in places like Georgia and Honduras. The steady work on the Swedish system might provide the technical assurances other states need to implement the technology. “We are replacing paper that has been around for several thousands of years,” says Hjelte. “It will take some time.”

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

 

A lot of businesses do social media marketing wrong.

They hear everyone screaming, “You must have a social media presence,” but what that entails isn’t always spelled out correctly. Social media marketing should be effective and affordable, and when done correctly, it can help scale businesses of all sizes. Just like with traditional channels such as television commercials, radio spots, and print ads, your results are going to be minimal at best if you broadcast your message to the wrong audience. To help you execute a successful social media marketing campaign, I spoke with six entrepreneurs to put together a list of must-dos.

Dedicate time to learn how social media works.

There are a lot of social media marketing tips available online, from free content on websites like this one to paid courses you can complete at your convenience. It’s not very complicated if you take the time to educate yourself. Charles Gumbley, Director of Flower Telecom, explains, “It’s important that you take the time to learn how social media marketing works for your specific business. While the fundamentals are similar across the board, different businesses will have to alter their strategies slightly in order to capture the attention of their target audience. In the beginning, consume as much content and free resources as you can. From there, you can then focus on your specific goals and objectives.”

Listen to your customers.

“The only way you are going to know what your customers want is by listening to what they have to say. It’s important that you use your social media platforms as an extension of your customer service. More customers are going to voice their opinion on social media than via email or over the phone,” says Ryan Koechel, VP of Marketing for ABODO. When you listen to your audience, you open the door to other opportunities as well. For instance, when my influencer marketing agency plans campaign strategies for a brand, we often audit their social media followers to identify key influencers. Learn to listen to your audience — it can provide you with valuable information.

Use automation for consistency.

There is smart automation and then there is spammy, ineffective automation when it comes to social media marketing. You don’t want to blast out promotional offers all day long — that’s a quick way to lose all of your followers. Use social media as a way to communicate with your audience and provide them valuable information. When you do that, you create happy brand supporters you can eventually convert into sales.

“If you have a full-time social media employee, make sure they are consistent and push out content across all of your social media profiles. There are several pieces of automation software, like Hootsuite, that offer a free plan that can greatly increase your efficiency. If you schedule your posts in advance it gives you more time to dedicate to replying and engaging with your social media followers,” advises Daniel Moravec of StreetSaw.

Engage with and delight your audience.

“It’s one thing to fill up your social media feed with posts, but it’s another thing to actively engage with your audience and turn them into satisfied customers. I see a lot of small business owners posting a couple times a day, thinking that they are doing the right thing when it comes to social media marketing. You can’t just post and walk away. If you do that, you are missing prime opportunities to engage with your audience and convert them,” explains Roy Surdej of Peaches Boutique.

Engaging your followers allows you to uncover problems or issues other customers might be experiencing as well. Then, you can be proactive and address those issues quickly before they turn into fires that are difficult to put out. When your communication lines are always open, you will often discover problematic situations before they spiral out of control.

Don’t spread yourself too thin.

It’s nearly impossible — and almost always ineffective — to be active on every single social media platform. I always suggest new brands should start with two or three social media platforms they are certain their target audience is active on. Master those, and then expand your social reach as the business grows and more effort can be allocated to additional social platforms.

Jasper Hillaud, Managing Partner of elf925 stresses the importance of focusing on the social media platforms that complement your brand, explaining, “While Pinterest marketing might not be effective for some businesses, it is one that we put a lot of energy into because we see that it works first-hand. Just because it wouldn’t be a preferred social media channel for a law firm, that doesn’t mean it should be ignored. It’s important to pick where to focus your social media efforts based on what works for your specific customer base.”

Track and measure everything.

“You will never run a successful social media marketing campaign if you don’t measure your results. It’s important that you lay out clear goals with benchmarks that allow you to determine whether or not your social effort is paying off. The data you collect and analyze can then be used to make changes to your campaign. You must be willing to constantly optimize and test your efforts if you want to develop a truly successful campaign,” explains Eric Ritter, Founder & CEO of Digital Neighbor.

It doesn’t matter if you are working with a $10 daily social media budget or six figures. The objective is the same — put your message in front of the correct audience and trigger engagement. In order to do that, you need to track and measure everything.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member