15 Email Personalization Techniques That Work

As a marketer or business owner, you know email marketing is a powerful tool. Its popularity among consumers is climbing.

You might have already implemented email personalization to some extent, like addressing customers personally, but you can take it further.

This article looks at 15 email personalization techniques you can apply to your marketing.

Before we move onto that, though, let’s discuss whether email personalization works.

Does Email Personalization Work?

The short answer is a resounding “Yes.” According to HubSpot’s State of Marketing report, 78 percent of marketers have seen a recent increase in email engagement.

HubSpot’s report shows that 20 percent of e-commerce, retail, consumer goods, and service companies personalize emails based on specific demographics.

Email personalization, or the act of tailoring email content to address the recipient by name, interests, location, and other details can increase sales.

Email personalization offers multiple other benefits, too, such as:

  • decreased unsubscribe rates
  • higher customer satisfaction.
  • opportunities to re-engage customers

Additionally, 72 percent of consumers say they only engage with personalized messaging, and most customers expect brands to understand their unique needs.

Email personalization is also easy to implement. For instance, you could:

  • Send an offer only if a recipient has recently brought an item.
  • Change wording based on location or time zone.
  • Personalize language and images.

However, like any other area of marketing, email personalization has its limitations. For example, some techniques like customer recommendations may not work for everyone.

You can also over-personalize and sound too familiar, which can, frankly, freak people out. Stick to critical areas, which we detail later.

Now you’ve got a picture of email personalization and its benefits, let’s move on to 15 techniques that work.

1. Collect the Right Data

If you’re not collecting the right kinds of information, you won’t have a good starting point for personalization.

That sounds simple enough, but where do you start? By collecting information from readers on sign-up forms.

When subscribers sign up to your email list, you can ask them some additional questions beyond the typical email address or name.

For instance, you could ask for their:

  • location
  • birthday
  • interests
  • occupation

Whatever information you ask for, keep it short and sweet, like this example:

Email Personalization Techniques - Collect the Right Data

Next, use integrations to gather even more data.

Email Personalization Techniques - Use Integrations to Gather More Data

Integrations are perfect if you don’t have all the right resources to collect information.

Finally, you should create a subscriber preference center to find out what your readers want, like the one from Campaign Monitor.

Once you’ve started collecting the right kinds of data, you can personalize your subject lines.

2. Use Personalized Subject Lines

Subject lines have always been important in the world of email marketing, but they must be specific for the best results.

For example, they should differ from industry to industry, audience to audience, and so on.

You can run tests to find the most effective ones. With testing, you can modify the content of your subject lines based on all the data you’ve already collected about a subscriber’s wants, interests, age, location, and more.

Open rates and conversion rates are only up from there.

Once you’ve got subject lines down, you should focus on triggered emails.

3. Use Behavior-Triggered Emails

Behavior-triggered emails are automated reactions to how customers are interacting with your products or services.

This is where the future of email marketing is heading, and triggered emails have a good open rate to boot.

Email Personalization Techniques - Use Behaviour-triggered Emails

These types of emails also allow you to make a personalized connection with customers.

Behavior-triggered emails can make connections less complicated. They let you communicate with customers without having to think about it, help you convert readers, and could extend the lifetime value of existing customers.

You might not always realize it, but you get these types of emails all the time.

You know when a website emails you because you haven’t logged in or made a purchase for a while? That’s a behavior-triggered email.

In addition, you can send out triggered emails for tons of reasons, such as to welcome readers, re-engage them, or upsell products or services.

Also, depending on your business, several tools for sending great trigger emails are available. For instance, there’s Intercom.io for B2B, GetVero.com for marketers, and Klaviyo for e-commerce.

4. Use Subscriber Tags

Subscriber tags let you send personal CTAs in your email content and for triggering emails.

With this technique, you can tag subscribers based on their choices, like visiting a specific page on your site or clicking on a link.

Then, write out emails to recipients with matching tags.

This approach saves a ton of time because you can segment all your workflows through just one email.

Most mailing list providers such as ConvertKit offer this feature.

5. Ask the Right Questions

An easy way to start segmenting your audience is by asking them questions. It’s a pretty straightforward approach, but you must ask the correct ones.

For example, ask customers:

  • What brought them to your website?
  • Why did they start using your service?
  • What do they need help with most?

These questions can help you find out what you’re doing right (or wrong) pretty quickly, and it makes targeted emails a breeze.

Don’t be too generic, though. To stand out, you can entice customers using emotional appeals, emojis, humor, and freebies.

Alternatively, ask opinion questions. People like to feel like you value their thoughts.

6. Add “Recommendations for You”

We’ve already talked about some email personalization techniques, and now it’s time to dig deeper.

Start personalizing your emails by recommending more purchases or actions according to a reader’s past ones.

Amazon is notorious for this with its “Frequently Brought Together” upsell feature, and Netflix uses a similar approach to encourage customers to view another movie.

It works because readers often appreciate the “recommendations” if they’ve liked similar previous purchases.

Rather than trying to reach all your readers with a single promotion, just send it to those who have shown interest in a related topic.

You can do this in any industry by suggesting related products and services. Perhaps offer a discount to encourage sales.

7. Use and Optimize Landing Pages

Yes, email personalization can boost your open rates. However, the ultimate goal is to convert readers into customers.

To achieve this, you must ensure the landing pages you link to match the ideas in messages you send.

Imagine if Amazon sent recommendation emails with no links to the actual products. It seems pointless, doesn’t it?

That’s why you must include relevant landing pages in as many emails as you can. You should also ensure the landing page relates to the customers you’re targeting and their current buying stage.

8. Add a Sense of Urgency

There are tons of tools to help you incorporate dates and times into your emails.

Doing this is the perfect approach for driving engagement because these limited-time offers focus on urgency to push people into action.

By creating a sense of urgency, you can build toward a paid offer. Just don’t let your customers forget or hesitate to order. That’s why creating a custom deadline is so effective.

Are you thinking of applying this approach? There are templates available, or your mailing list provider should have a tool.

You can also sync your emails with countdowns for sales, product launches, and giveaways.

9. Build Customer Personas

A customer persona is a representation of your ideal customer. Companies use them to identify the features of their perfect customer and their usual behavior.

The more specific you get with these personas, the better you will understand who your customers are and what they need from you. Ultimately, this enables you to improve your business and enhance email personalization by fulfilling their needs.

You create customer personas by using a multitude of data. Instead of asking a single question, you can group customers using a mix of attributes and actions they take.

Once complete, your personas might look something like this:

Email Personalization Techniques - Build Customer Personas

There are plenty of step-by-step guides on building personas to help you develop them per best practices, including:

  • identifying your target audience
  • seeing the world through your customers’ eyes
  • understanding your customers’ needs and frustrations by doing research
  • using data about your target audience’s online behavior, likes/dislikes, etc.
  • implementing email personalization techniques to match your customers’ wants and needs

10. Use Location and Time Zones

It’s no secret that certain times of day prove to be better than others when sending emails.

For example, your customers might love getting an email at 8:00 a.m., or they may respond better to getting one at 5:00 p.m.

However, chances are not all your customers are in one location. They may be all around the world, scattered across different time zones, and possibly receiving your emails at non-optimal times.

How do you overcome this? By using your customers’ data to send emails at the best times.

Send time personalization is easy to set up with a few clicks, and companies like MailChimp allow you to do this.

11. Personalize Your Business

Don’t limit email personalization to your customers’ data: You also can customize your brand.

Customization could make all the difference to your company’s success rate, and it’s not hard to implement. You only need to make some changes, and you can automate many of them.

If you’re searching for ideas, look no further than Nike. The brand sends out welcome messages and emails for:

  • birthdays
  • seasonal campaigns
  • promotions
  • order confirmations
  • hot-this-week offers

Test aspects such as a conversational tone, words like “we” and “I,” and generally making your emails seem like they are from an actual human. Customers respond to it.

12. Mark Milestones

Marking customer milestones is another effective email personalization tool.

It shows your customers you’ve noticed their achievements and that your company appreciates them. In turn, this enhances customer engagement, making them feel valued. 

Milestones worth marking include:

  • your customer’s first anniversary
  • a customer’s birthday
  • the accumulation of a set number of points
  • the completion of a course or similar

13. Imagery

They say a picture paints a thousand words. Or, to put it another way, a single image can express a thought much better than a heap of text.

Keeping your messages short is vital now as people tend to skim read emails on the go, but it’s not just about that. Imagery can impact your customers in other ways.

Email personalization with imagery allows marketers to build an emotional connection with their customers, driving them to take action and potentially influencing their buying decisions.

One of the other advantages of pictures is their flexibility.

You can use images in many ways, from showcasing products to illustrating the benefits of a particular product or just brightening a customer’s day.

There are just a few things to consider.

Images must be:

  • eye-catching
  • engaging
  • relevant

Additionally, you can personalize images to specific customers by their data, preferences, and their location.

14. Reach Out to Customers

Cart abandonment, poor engagement, and lack of follow-up all affect your bottom line. However, you can overcome them with email personalization.

Reaching out to customers can get them back on track and keep them from abandoning their cart. For instance, you could send

  • a coupon code in your abandoned cart emails
  • an offer for something a customer looked at but didn’t buy
  • an email asking why they left without buying and offering assistance
  • a follow-up email three days after their visit

Next, engage.

Send out email tutorials or similar. You can personalize these messages by looking at your data to see how your customers use their purchases and where they most need your help.

Finally, follow up.

  • Does your customer understand everything their purchase offers?
  • Are there features they could be making more of?
  • Anything specific about the product/service that can make a particular buyer’s life easier?

Yes? Then follow up and solve their problems!

15. Pay Attention to the Small Details

Aside from the areas already discussed, you can use email personalization further by:

  • A/B testing different versions of an email
  • changing the copy of an email with each click based on customer data
  • addressing any previous interactions
  • including a call to action
  • segmenting your audience into groups that share similar interests or use cases for your product

Email Personalization Frequently Asked Questions

Is email personalization effective?

Tailored emails are more effective than generic ones as they’re more likely to get read and resonate with your customers.

How much time does it take to personalize emails?

Customized emails can increase engagement and deliver a better user experience, so it’s worth taking some extra time.

How much does it cost to set up personalized emails?

The cost of setting up email personalization usually depends on two main factors: the number of emails you need to send and your plan.

What kinds of emails should you personalize?

You can personalize emails that are promotional or transactional.

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Email Personalization Conclusion

Email personalization is a strategy that can generate an improved ROI for businesses. It’s one of the most efficient marketing channels, and many small and medium-sized companies are using it to grow their businesses.

Additionally, this technique can increase customer loyalty and raise conversion rates.

However, if you’re not taking the right approach, you won’t get results.

If you want conversions, you need to take email personalization deeper than using a customer’s first name. This includes adapting to different time zones, addressing customers’ wants and needs, and using imagery.

In short, email personalization can make your customers feel valued—and people who feel valued are more likely to make purchases from you.

Do you use email personalization in your campaigns? Which techniques work well for you?

3 Effective Retargeting Strategies That Actually Work (With Examples)

Retargeting is one of the best ways to close sales that didn’t happen.

On top of that, retargeting efforts are pretty cheap compared to most types of advertising.

How do you do it? What retargeting efforts do you need to try?

Here are three examples of retargeting that actually work, how to copy them, and what you need to know about the future of retargeting.

1. Retarget Specific URL Visits

There are a lot of ways to go wrong with retargeting.

Some marketers fire up Facebook or Google Ads and run a retargeting campaign based on website visits in the past 90 days.

Although that can work, it’s not really that effective. As you probably know, I’m all about working smarter, not harder.

I love to spend as little time on a task as I can, but get the same benefits as someone who spends hours and hours on the same task.

I used to run Facebook retargeting campaigns in their Business Manager feature (now referred to as the Facebook Business Suite).

Retargeting Strategies - setting up automatic retargeting in Facebook

I’d simply retarget everyone who landed on my site.

That didn’t really work. My conversion rates were the same as my website: low.

People weren’t ready to buy yet. Why? I cast too wide of a net.

You can’t reasonably expect a 50 percent conversion rate on an audience of millions.

For example, let’s say that visitor X came to your website and read a single blog post and bounced.

Now let’s say visitor Y came to your site, read that same blog post, but then also filled out a lead-magnet form and even checked out your product and pricing page.

What’s your general website visitor retargeting offer going to be now?

If you offer a lead magnet, that won’t make sense to visitor Y. If you offer a free trial, that won’t apply to visitor X yet.

You risk sending the wrong offer to the wrong person at the wrong stage of their buyer’s journey.

So what do I recommend? Targeting users by specific actions taken on your site.

For example, check out this retargeting ad I got:

retargeting strategies - example of a Facebook retargeted ad

Notice how hyper-focused that targeting, messaging, and content are?

The ad is literally about a single product they offer.

I viewed their products, and they noticed I spent large amounts of time and frequency on their pie crust page. After all, who doesn’t love pie?

Then they used that data to target me with an ad focused on how to use their pie crusts.

They gave me an example of how their product could provide value in my life.

That’s one of the best methods of retargeting I’ve ever seen.

Why? Because people who don’t convert on your products usually experience two things:

  1. They don’t want to pay you money yet.
  2. They don’t know how your product can help them.

Jasper’s Market effectively touched on the second point in a strong way.

They communicated exactly how I could find value in the product I was already looking at.

Here’s another example of retargeting ad:

retargeting strategies - example of a facebook ad from leadpages

Again, notice how tailored the targeting is in this ad.

It was delivered to everyone who landed on a specific web page URL, rather than retargeting all site visitors.

This allowed the company to target their ad to a group of interested, potential buyers and get them back to their site.

I visited their webinar-training landing page and was immediately retargeted after not converting.

Or, how about this example from Marketo:

retargeting strategies - marketo example

I visited their content marketing e-book page to learn about cheap content creation methods.

Just a few days later, after not revisiting or converting, they reeled me in with a specific, CTA-oriented, retargeting ad based on the exact page I visited.

So the point is:

Retargeting based on specific URL visits works. It’s one of the best retargeting methods I’ve seen.

So how do you do it?

There are two platforms I recommend: Google Ads and Facebook.

For this example, we can use Facebook since it’s one of the most popular ways to run retargeting ads.

Plus, I find much greater success on Facebook over display ads on GoogleAds.

But to each their own.

To get started, open the Facebook Business Suite and create a new, custom audience. You’ll click “More Tools” then “Ad Manager” currently, but they do update their platform regularly.

Create a new ad campaign, then add your info until you get to the audience. Select “create a new custom audience.”

create a new custom audience facebook retargeting.

Custom audiences on Facebook should be your top retargeting strategy.

They allow for some of the most diverse customization options marketers can use.

You can create a new custom audience from the drop-down menu.

From the menu of custom audience options, we want to select website traffic as our marketing goal.

select source for facebook retargeting ads

This audience type will allow you to create lists of people who visited specific URLs.

For the next step, be sure to select “People who visited specific web pages.”

facebook source of retargeting ads

From here, you can get as detailed as you want.

Are you prepping for a webinar? Do you have a landing page you’re driving traffic to for a specific goal?

Do you notice that tons of people read about your product but don’t convert?

This is your time to get them back.

Remember that Jasper’s Market example? They saw that I frequently visited a specific product on their site but didn’t buy.

You can do that by adding URL pages that include that specific word.

You can further refine your Facebook retargeting ads by:

  1. device used
  2. frequency

Doing this will tell you one major thing:

The people visiting this product with high-frequency need a small push to convert.

Use an ad that shows them how to use that product. Show them the value or benefit of buying it.

Since they’ve viewed the product multiple times, you know they’re probably almost ready to buy.

Using this type of retargeting is one of the most effective ways to convert visitors.

2. Retargeting Existing Customers

You may ask, “Neil, why on Earth would I want to retarget existing customers?”

I’ll give you one simple reason: to resurrect unresponsive email subscribers who haven’t purchased in a while.

One big problem with email lists is that most of your subscribers become unresponsive at some point.

The list will experience “churn,” where new visitors join and old ones become unresponsive.

This means your email upsells aren’t even reaching your intended user.

So what do you do? Start retargeting your existing customers.

I like this strategy because it’s incredibly cheap because the ads are so relevant, which means your CTR will be high.

For example, check out this ad I got from AT&T for Small Business:

retargeting ad example att

They already know I’m a current customer who’s using their products/service.

Yet, they retargeted me anyway.

Why? Because they wanted to upsell me on new products as I was becoming unresponsive to their company email list.

Or how about this ad from American Express:

american express retargeting ad example

I’m already a customer, and they wanted me to convert by getting another credit card with them.

Are you seeing a pattern with these examples?

They focus on retargeting visitors who have previously converted or are existing customers.

Here’s one of my favorite retargeting examples of this method from ModCloth.

mod cloth retargeting strategy ad example

We miss you like crazy!

The targeting premise of this advertisement is pretty obvious.

They’re retargeting old customers who haven’t made a purchase in a while.

This kind of thing works.

Why? Because people have already converted on your products and services, meaning you risk nothing by asking them to come back.

It’s incredibly easy to set up, too.

Again, you can do this on either AdWords or Facebook, and it only takes a few minutes to set up.

To get started, head to Facebook’s Ads Manager and navigate to the audience section, then click Create an Audience.

From here, create another Custom Audience, and select Customer List.

That’s where you can upload your audience list. If a green check mark shows up, then you are good to go. If you see a yellow exclamation point, you might need to update some identifiers manually.

This will allow us to import contacts directly from MailChimp or upload an exported list of current or old customers.

The key here is to sort your customer file or email list by how old or unresponsive customers are.

If you have customers that are consistently buying from you, don’t waste money advertising to them.

Focus your efforts on customers that haven’t converted in a while or who haven’t responded to marketing emails.

This will give you another great shot at bringing them back to your products.

3. Lead-gen Ads Based on Page Engagement

If you aren’t finding success with website-based retargeting efforts, this might be your best bet.

Facebook has a powerful lead generation tool called “Lead Ads.”

These are essentially form-based ads that offer lead magnets in exchange for customer information like email address and job type.

It’s the same idea as running an e-book lead magnet on a landing page on your website, just on Facebook.

They are one of the most intuitive, natural-looking forms you can create.

Here’s an example of how they look and work:

facebook lead ads for retargeting

They’re beautiful, seamlessly integrated ads that offer a lead magnet for the customer.

And one of the best ways to run these ads is by using Facebook page engagement as a retargeting setting.

Before we jump into the how-to details, let’s look at a few of these examples and how effective they can be.

Here’s a lead generation ad from AdEspresso:

adespresso lead magent ad retargeting on facebook

When I click on the ad, I’m taken directly to a lead-gen form within Facebook.

This is incredibly effective in getting people to convert because it doesn’t force them to leave Facebook.

People don’t browse Facebook every day to see ads.

They browse it to interact with friends and family or read news articles.

So taking someone offsite is a big risk that can waste your ad spend and lower conversions.

That’s why lead ads are so successful. They don’t interrupt the process or habit of a typical Facebook user, yet they still allow them to get the lead magnet.

I’ve used these types of ads before.

facebook lead gene ads retargeting strategies

They’re great for providing a clear-cut CTA that gets people to convert.

So why should you retarget people based on Facebook page engagement?

Because you know these users are active on Facebook, which means your retargeting efforts are going to be much more successful.

These hyper-aware users are likely always checking out new brands on social media.

It only makes sense to target them with Facebook Ads.

To get started with a lead-generation ad, we first need to create an audience based on page engagement.

Create a custom audience, then choose “Facebook Page” from the list of sources:

facebook ad retargeting strategies

From here, you have a bunch of options to choose from depending on how specific you want to be in your retargeting.

facebook ad custom audience engagement

For example, you can retarget anyone who engaged with a post or ad, someone who previously clicked on a CTA, or someone who saved your page or post.

Once you’ve selected a retargeting metric, you can save this audience and head to the Facebook Ads Manager to create a new lead-gen ad.

create lead gen ad for retargeting

Select “Lead generation” as your marketing objective.

Next, select your ad format.

For this, I recommend using a single image, single video, or slideshow.

Carousels are often too complex for a simple lead-generation-focused ad.

Next, you need to edit the content and lead magnet on the ad.

facebook lead ads retargeting

This is the section where you start to create an offer or incentive for these retargeted customers to give you their email address.

For example, are you going to offer an e-book, white paper, coupon, or something else?

You need to give them a reason to fill out your form and click on the call to action.

Be sure to edit your form fields and optimize them to your needs based on that audience.

facebook retargeting ads lead gen

Be sure to limit your form questions in the next step to only grab the most important information.

You don’t want to overwhelm visitors or take up too much of their time.

The goal here is to collect leads in an easy, painless way.

Facebook questions for lead gen ad retargeting

Facebook’s page-based retargeting is one of my favorite ways to drive users back to my site or convert on lead magnets and products.

They’re often very engaged audiences who use Facebook differently than most users.

Instead of mainly using it to interact with family or friends, they actively seek out businesses on the platform.

Use this as an opportunity to convert visitors that wouldn’t convert on your site, or showed interest in your pages.

Frequently Asked Questions About Retargeting Strategies

What are some of the top retargeting strategies?

Retarget specific URL visits; retarget existing customers; and retarget leads based on-page engagement.

What is an example of retargeting?

Showing Facebook ads to someone who previously visited your website on their mobile browser.

Is remarketing worth it?

Yes, remarketing is worth the effort if you are able to execute a successful campaign. Targeting those who have interacted with your brand and come close to purchasing gives you a better chance of making a sale than by targeting an audience who has never heard of or interacted with your brand before.

Basically, you’re interacting with your leads at a later stage in the conversion funnel.

Can you run marketing and remarketing campaigns at the same time?

Yes, you can run concurrent campaigns.

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Retargeting Strategies Conclusion

Most of your website traffic simply won’t convert on the first visit. They don’t know who you are, what you do, or even how you could help them.

So they just aren’t ready, or willing, to buy your product or service yet.

Retargeting ads help bring those users back when they are closer to conversion.

Despite “banner blindness,” there are still a few ways to retarget visitors without driving them crazy.

Start by retargeting specific URL visits. This is one of the most accurate retargeting efforts you can use to convert customers.

I see it all the time on my Facebook feed and I constantly convert on them.

Next, try retargeting unresponsive, existing customers.

For example, if someone hasn’t converted in the past six months, send them a few ads to drive more sales.

Finally, conduct lead-generation ads that correspond with engagement on your site.

This will help you pull in users who are already engaged and thus more likely to be receptive to the ads.

Just remember: retargeting efforts need to be specific and hyper-focused to drive conversions.

What retargeting efforts have worked best for you?

10 Powerful Instagram Marketing Tips (That Actually Work)

Since Instagram’s creation, it has grown into the ultimate platform for sharing photos. Over 1.16 billion monthly users are active on the site. Daily users spend about 8 minutes on the app and 500 million use Stories daily. There’s also a large number of influencers on the site with a massive amount of followers. And …

The post 10 Powerful Instagram Marketing Tips (That Actually Work) first appeared on Online Web Store Site.

10 Powerful Instagram Marketing Tips (That Actually Work)

Since Instagram’s creation, it has grown into the ultimate platform for sharing photos.

Over 1.16 billion monthly users are active on the site. Daily users spend about 8 minutes on the app and 500 million use Stories daily.

There’s also a large number of influencers on the site with a massive amount of followers. And with the right plan, you can become an influential brand, too.

You need to post the right kind of content to stay relevant to current followers while also bringing in new ones.

But it can be hard to know which kinds of posts work best for growing your audience.

Here are ten powerful Instagram marketing tips (that actually work) that you can use to milk the popular platform for all that it’s worth.

1. Switch to a Business Profile ASAP

Before you start thinking about your Instagram marketing plan, be sure that you have an Instagram Business Account.

It’s easy to switch your current profile to a business account.

10 Powerful Instagram Marketing Tips (That Actually Work)

Just head to your settings and click on “Switch to Business Profile” to get started.

There are some clear benefits to having a business profile.

For example, followers can click on your contact button to get in touch with you right from your Instagram page just like they would from your website.

A business profile allows you to create and publish Instagram ads without needing to use Facebook’s advertising tools.

You can also access Instagram analytics tools, called Insights, that provide stats about the impressions and reach of your posts.

Once you’ve unlocked the free perks that come along with a business profile, you need to start using them to track metrics and understand your audience.

2. Use Free Instagram Tools

Business profiles on Instagram aren’t all that different from Facebook business profiles.

Through Insights, you can view statistics like impressions, engagement data, and more.

You can even get a breakdown of the demographics of your followers, includinginformation on their age, gender, location, and most active hours.

10 Powerful Instagram Marketing Tips (That Actually Work)

Insights aren’t just generalized, either. You can get specific insights on posts for the week that show you how many impressions you earned for that time period and what your top posts were.

10 Powerful Instagram Marketing Tips (That Actually Work)

These free tools are priceless because you can use them to understand exactly how users are interacting with your content.

The more that you know about how users are interacting with your posts, the better you can adjust your content to boost engagement.

One category of posts that is almost always attention-grabbing is product teasers.

3. Post Product Teasers That Will (Gently) Urge People to Buy

What if you could sell more products just by posting product teasers on Instagram?

Well, you can.

Instagram is a great place to advertise your products. And if you play your cards right, you won’t annoy users or scare them off with advertisements, either.

If you’re too pushy, followers will drop like flies. But product teaser posts are a simple way to talk about your product and increase excitement without looking like you’re trying too hard.

Here are two posts from Gilt Man’s Instagram page that don’t directly try to sell a product, but offer a free app where users can shop all of the brand’s inventory.

10 Powerful Instagram Marketing Tips (That Actually Work)

The brand offers a 70% off discount while showing you photos of some of the items that are available to purchase.

And the posts received thousands of likes each, which is huge in the advertising world.

The ads work because they aren’t pushy. They’re laid back. They tease users with the discount and product image to download the app and shop around.

This works for almost any industry. Starbucks teases its audience by announcing seasonal drinks with sharp imagery and without trying to force people to buy them.

10 Powerful Instagram Marketing Tips (That Actually Work)

When you tease people about products they are interested in, and you don’t push them into buying anything, they’ll be more likely to pull the trigger and actually buy something.

If not, they’ll at least engage with your post by liking it, commenting on it, or sharing it with a friend.

So don’t be afraid to show off the goods by posting product photos. Just do it gently.

It also helps to create some sponsored ads.

4. Create Sponsored Ads

Instagram ads have become commonplace on the platform. The best part? You can control exactly how much you want to spend on them by setting an ad budget.

You can showcase just one sponsored ad or multiple ads with the carousel feature.

This gives brands the ability to target their audience in a whole new way. Before sponsored posts, only users following your account could see your updates and photos.

Now, brands can promote their photos to anyone that fits their target audience to increase their reach further than ever before.

10 Powerful Instagram Marketing Tips (That Actually Work)

For sponsored ads, use content that is engaging while also appealing to the target demographic you want to put the ad in front of.

You can turn existing posts into sponsored ads, too, so keep an eye on your top posts.

You can push these high-performing posts out later to potential customers in the form of sponsored ads.

Run multiple posts to different audiences simultaneously for even more engagement. Keep in mind that there are many different forms of sponsored ads that you can post, such as:

  • Photo
  • Video
  • Carousel/Dynamic Ads
  • Stories
  • Stories Canvas
10 Powerful Instagram Marketing Tips (That Actually Work)

Instagram Stories, sponsored or not, are another great way to connect with followers.

5. Use Instagram Stories

If you want to generate leads, Instagram Stories are here to help.

Instagram stories differ from regular Instagram posts because they come in a “slideshow” format.

They’re only live for 24 hours, but Stories can be saved to any of your devices and reused at a later point.

This feature is very similar to Snapchat Stories (and is even a direct competitor).

Rather than appearing in the news feed, Instagram Stories appear in a small area above it.

10 instagram marketing tips

Once a user clicks on your photo at the top, a window will pop up where they can view your Story.

10 instagram marketing tips

The benefits of Instagram Stories for brands are truly endless. For starters, Stories are displayed at the top of follower timelines where users already look daily.

Brands can use stories to capture behind-the-scenes insider posts that may not be as “high-quality” as regular posts.

And you don’t have to worry as much about posting content that aligns with the “aesthetic” of your brand or your Instagram page when it comes to Stories.

Instagram also makes it easy to experiment with different types of content in the Stories feature, like photos, short video, rewind video, live video, or Boomerangs. You can use tools like Canva and InVideo to create amazing images and videos for your stories.

Boomerangs are GIF-like images that play on a loop.

You can also tag other accounts in Stories, which is great if you’re collaborating with another brand or influencer.

Face filters, text, or stickers make it easy to edit images or create fun, eye-catching visuals.

10 instagram marketing tips

Every photo and video you add will play in the same sequence that you added it.

The amount of posts that you can add to Stories at any given time is unlimited, and the feature is available to all businesses globally.

Stories are only available on the mobile Instagram app, and it’s not currently possible to send Instagram Stories as direct messages.

But since most Instagram users access the site via the smartphone app rather than the website,this isn’t really something to worry about.

If you haven’t partnered with influencers who are already making a killing on Instagram, find a few that you want to work with and reach out to them.

6. Partner With Influencers For a Wider Reach

If you want to reach potential customers on Instagram, the fastest way to do that is through influencers who have already built an audience with a large following.

More and more people are buying services or products based on what they see in their feed from the influential people they follow. They trust them.

If you partner with the right industry influencer, you can get your brand out in front of those users.

The first step is to try and identify a few influencers that have an audience that is relevant to your product or service.

Here’s an example of how Gravity Blankets used influencer Jessi Smiles to promote their product on her Instagram page.

The post has thousands of likes.

10 instagram marketing tips

The brand sells weighted blankets for sleep and stress. Their Instagram page has over 77k followers.

gravity blankets instagram

But Jessi’s page has over 400,000 followers that will likely trust her recommendations.

10 instagram marketing tips

That means that the brand just exposed itself to thousands of potential customers (and new followers) through one post.

If you throw aside the short-term gains and direct sales that you can make from an influencer campaign, there are even more long term-benefits.

If you build a relationship with each influencer, you’ll build lasting brand awareness with a new audience.

And if you play your cards right, you could even work with a top influencer in the future to gain millions of likes, like Coca-Cola did with this post from Selena Gomez.

selena gomez instagram ad example

Your existing customers might not be influencers, but you can still use their posts to influence people to buy your products by collecting user-submitted photos.

7. Collect user-submitted photos

Wouldn’t it be nice if there was a way to create great content for your Instagram page without doing any of the hard work?

Through user-submitted photos, there is.

You already have an engaged audience. Whether it’s hundreds of people or thousands, you can leverage your audience to generate useful content for you.

And your followers will probably enjoy user-generated content even more than they enjoy yours because it’s authentic and unpredictable.

Cosmetics brand MAC uses tons of user-generated content that they promote on their Instagram page to show off products.

Here’s a photo one of their users posted that they then added to their Instagram page. Notice how they used the hashtag #regram and tagged the user in the image.

10 instagram marketing tips

You might be wondering exactly how you can get your users to create engaging content without being pushy.

It’s actually fairly simple. Your audience probably wants to grow their own following, just like you do.

Just let them know that you’ll tag them in your post if you choose their photo to regram, then they’ll have an incentive to post user-generated content on a consistent basis.

It’s a win-win for you and your customers.

GoPro is notorious for this. The brand chooses a #FeaturedPhotographer every week.

10 instagram marketing tips

The brand (and their followers) treat this like a weekly competition.

If you try something similar, you’ll probably be surprised at just how eager your followers will be to participate.

Remember to choose the photos you want to post wisely. This can be difficult, but try to remember these things when considering a winner:

  1. Does the photo fit in with the brand image you’ve already created or are trying to create? Or does it go against it?
  2. How big of a following does the person whose photo you want to share have?
  3. Is the photo appropriate for your current audience and following?

When you’re running a business, you have to be sure that everything you post is in tune with your brand’s message (and audience). Even on Instagram.

If someone shares a user-generated image with a large following, those followers will probably be interested in checking your page out, too.

Look at how this user-submitted photo from Boosted Boards aligns with the brand’s aesthetic. It’s high-quality, intriguing, and unique.

10 instagram marketing tips

Choose images that successfully mimic your brand’s tone, like this one.

That being said, try not to be too biased about the content you want to post. Mix it up and watch your follower count and engagement grow.

It also helps to come up with some kind of branded hashtag that encourages Instagram users to be more interactive with your company.

8. Come Up With an Interactive Branded Hashtag

If you’re looking to create instant engagement, interactive hashtags are a great way to get it.

Red Bull has racked up over 299,612 posts featuring their tag, #itgivesyouwings.

10 instagram marketing tips

Customers can then use the tag to post user-generated content. This allows users to search through all posts relating to your brand.

It also lets you easily search through images that you might want to consider re-posting on your own page.

Creating a hashtag that your company (and other users) can search for is essentially free advertising.

Every time someone posts a photo using the tag, they’re exposing your company to their followers.

If you already have a popular brand slogan or phrase, consider making that your branded hashtag. Coca-Cola successfully accomplished this with their hashtag, #ShareACoke.

10 instagram marketing tips

But no matter what you’re posting, you need to post at the right times and refrain from over-posting.

9. Post at The Right Times (and Don’t Over-Post)

Over-posting on Instagram is a surefire way to turn off your existing followers.

If all they see is your brand on their news feed, they’re probably going to unfollow you as fast as possible.

But you want to post on a consistent basis so that you stay in their news feed regularly.

One of the best ways to do this is to only post during peak days and hours when your followers are online.

According to SimplyMeasured, the worst days to post on Instagram are Wednesdays and Sundays, while Mondays and Thursdays are the best days to post.

10 instagram marketing tips

And according to research from CoSchedule, the best times of day to post are between 8:00 AM and 9:00 AM, as well as 2:00 AM.

10 instagram marketing tips

The hour between of 8:00 and 9:00 AM correlates with the time of day when people are getting ready for work or commuting to their jobs (and checking social media for the day).

And 2:00 AM is the time of day when most folks are up scrolling through Instagram when they should be sleeping, so this makes sense as a second most popular time to post.

You can find when your followers are most active in Instagram Insights, so your best days and times to post might be a bit different depending on your specific audience.

10 instagram marketing tips

Schedule your posts to go live during these days and times with a tool like Hootsuite, CoSchedule, or Sprout Social.

The research also shows that you should post between one and two times per day, but no more or less.

If you’re tempted to post more, then use Instagram’s carousel album feature to post multiple images or ads in a slideshow format.

That way, you won’t overwhelm your followers’ feeds.

After you’ve made these changes, track your metrics to keep an eye on areas where you can improve.

10. Make Sure You Track The Right Metrics

You can’t improve your Instagram performance and optimize it unless you know how well your page and posts are performing (or underperforming).

When you have measurable results, you’ll know exactly what works and what doesn’t.

Begin by tracking your follower growth rate.

The total amount of followers you have is commonly seen as a vanity metric. And it is.

But your follower growth rate isn’t.

When you keep an eye on what the growth rate of your followers looks like, you can see how the kind of content your posting (or your posting frequency) is affecting things.

Next, measure engagement rates. This includes likes and comments.

You want to find out the average engagement percentage of your total followers as well as the average engagement rate of each post to get a clear picture of how your page is performing.

If you’ve got a smaller following, your engagement rate should be higher. Here’s what your rates should look like based on your follower count:

instagram influencer engagement rates

Finally, you need to track your URL click-through rate.

If you don’t already have a link to your website in your Instagram bio, add one ASAP.

10 instagram marketing tips

Then, measure how many people are clicking through to your URL.

The average CTR on Instagram is 0.94%, according to Conversion XL.

10 instagram marketing tips

The more effective your Instagram marketing techniques on your audience, the higher your CTR will be. If it’s low, work on improving your approach.

A tool like Sprout Social will measure just how many clicks that your link is getting in comparison to impressions and engagements.

Conclusion

Instagram has dominated the social media world. It’s the go-to place for image sharing, with over 800 million monthly users.

Billions of likes are handed out each day, so you need to do your part to scoop some of them up.

First, switch your profile to an Instagram Business Profile if you haven’t already. This will give you tons of free tools and insights.

Next, start taking advantage of those free tools. Check out your audience’s demographics, like their age or top locations.

Post product teasers to urge people to buy your products or services without being overly pushy. They’ll be more likely to buy if they don’t feel pressured.

Turn your posts into sponsored ads to reach target audiences that may not be following you yet. One post might just have them hooked.

Use Instagram Stories to post behind-the-scenes photos or videos. Followers will appreciate the insider posts, which builds your relationship with customers.

Partner with influencers that have a wide reach in your industry. Their followers trust their recommendations.

Be sure to leverage the power of user-generated content by reposting images that your customers share. You can turn this into a contest with an interactive branded hashtag.

Choose a photo to share every week or every month that aligns with your brand’s message.

Post at the right times and avoid overposting. Post one to two times every day and check out when your followers are most active. Schedule posts to go live during those days and times.

Finally, be sure that you track the right metrics to see how your Instagram marketing efforts are paying off.

Keep an eye on follower growth rate, engagement rate, and your URL click-through rate.

If you need help with your Instagram ad campaigns, reach out to our agency to help!

What Instagram marketing techniques work best for you and your brand?

4 New Work from Home Tips To Get The Funding You Need

There are tons of articles on the internet about how to make working from home work for you. How to run a business from home is a popular topic.  You don’t need me to give you more ways to organize your work space or keep yourself out of the fridge. No one needs more work from home tips on how to schedule your day and avoid distractions.  There are plenty of places to get those. 

I’m going to give you something you can’t in every internet search that includes “work from home” and “tips.”  I’m going to tell you how to get the funds you need to run your home based business now, and how to ensure you’re set up properly to get more funds in the future. 

Little Known Work from Home Tips To Get the Funding You Need for Your Home Based Business

You may think you can just go to the bank and get a home based business loan just like any other loan.  However, you may be wrong.  If your personal credit score is really high, it’s possible.  Yet, home based businesses do not traditionally bode well with lenders. These work from home tips can help your business appear fundable to lenders.  They can help you build your business credit score. Even better, they can point you in the direction of the best funding options for work at home businesses. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Work from Home Tips #1: Work With a Business Credit Expert

This tip comes before all the other tips because frankly, some of them are almost impossible to pull off without a business credit expert.  This is someone who can help you: 

Work from Home Tips #2: Work on Fundability

Working on fundability is essential.  This is a tip for any business, but fundability is something that many home based businesses struggle with. There are many factors that affect fundability.  Still, home based businesses struggle with a few specifically more than others.  

The thing is, a major aspect of fundability is to appear to lenders to be separate from the owner.  They want to see that a business is fundable on its own.  For this to happen, the first thing you have to do is set up your business to be separate from you the owner. 

The Home Based Business and Fundability Conundrum

What makes this an exceptional issue for home based businesses? Well, it’s no secret that one of the major benefits of working from home is not having to pay for an office space.  There is no lease, no extra utilities, you just use the space you already have.  

In fact, most home-based businesses are run as sole proprietorships with the same contact information as the owner. Many do not even open a separate business bank account at first.  Also, it’s quite common for sole proprietor’s to simply use their social security number rather than using an EIN from the IRS. 

While there is nothing wrong with any of this, it does not suit the purpose of separating your business from yourself for fundability.  To do that, you need a separate phone number and address for your business.  Do not think that means you have to have a separate location.  You do not.  There are ways to get a business home phone number and even a separate business address and still run your business from home.  You also need an EIN and business bank account.  

You also really need to incorporate as an S-corp, LLC, or corporation. For fundability purposes, it doesn’t matter which one you choose.  Discuss the options with your tax professional and attorney.  They can help you determine which one is best for your budget and needs for liability protection.

Work from Home Tips #3: Open Accounts that Report to Your Business Credit Profile

If you set your business up to be fundable, it will also be set up the way it needs to be to establish a business credit profile. This means you can start to build your business credit score separate from your personal credit score. 

Here is how it works. You have to open accounts in your business name, using your business contact information and your EIN, not your SSN.  The catch is, they need to be accounts that will report to the business credit reporting agencies.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

This is easier said than done, as most vendors do not make it easy for the general public to figure out whether they do this.  In fact, many do not report, which makes this particular tip harder. In the beginning, you have to find vendors that will extend credit and report payments without checking your credit.  That is, if your personal credit isn’t good. 

This is one tip where a business credit expert can be especially helpful.  These experts know many vendors that will report. They also know which ones you qualify for an account with right now.  Even better, they know how to position you so that you can be eligible for more accounts in the future. 

Work from Home Tips #4: Home Based Business Loans

With strong fundability you’ll be able to get pretty much any funding your business could ever need, even if it is  a home-based business. However, in the beginning, some loans are going to work better than others. Here are some examples. 

Credit Line Hybrid

With the Credit Line Hybrid, you can usually get a loan of 5x the amount of your highest revolving credit limit account, up to $150,000. Honestly, this is more than what you could get on your own when applying for credit cards. Furthermore, you can get cash out on this program.

Also, there is no impact on your personal credit with this type of financing. You need a 680+ credit score, but if you don’t meet that you can take on a credit partner who does. A lot of business owners use the good credit of friends or family to help them get the funding they need. 

It does not affect your personal credit score at all.  In fact, it can help build your business credit score if your business is set up properly as mentioned above.

401K Financing

Your existing 401(k) or IRA can help fund your business as well. The funds work as collateral for business financing. As a result, your personal credit score isn’t really an issue. This program uses IRS proven strategies. You will pay no tax penalties, and you still earn interest on your 401(k).  Even better, rates are low, and this option usually has a quick closing and funding process.  If you are currently struggling to fund your home-based business, this is an excellent way to get started.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

SBA 7 (a) Loan

The SBA offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. Banks, credit unions, and other specialized institutions process these loans and disburse the funds.

Credit Suite business credit experts can help you with these types of funding and more!

A Business Credit Expert Can Help You With These Tips and So Much More

While there are plenty of work from home benefits, there are also some disadvantages of working from home. If you want to work from home, you have to find a way to overcome these work from home challenges. If you are running your business from home, one of the greatest of these challenges is funding your business. A Credit Suite business credit expert can help.

The post 4 New Work from Home Tips To Get The Funding You Need appeared first on Credit Suite.

Business Borrowing from Your Family and Friends: Top Hacks to Make it Work

While on the surface it may seem that business borrowing from family and friends is a simple solution to a hard problem, there is actually a lot more to it. It can be tricky, and many unforeseen issues can arise. 

Make Business Borrowing From Family and Friends Work for You

There are some outside-of-the -box methods however, that allow for business borrowing from family and friends without all the drama.  These options are much better than borrowing directly from loved ones.  Of course, mixing business and family or friends will probably never be drama free, but these tips can make it a lot easier. 

Business Borrowing from Family and Friends: Angel Investors

This option does include getting funding directly from friends or family. However, it works differently than a loan. Angels tend to be a lot more informal than most types of funding. They can be people you know. They can also be people you connect with through networking or other means. Your mom, dad, brother, sister, aunt, uncle, best friend, cousin, pretty much anyone can be an angle investor!

Angels are not covered by the Securities Exchange Commission’s (SEC) standards for accredited investors. But a lot of them are accredited investors anyway.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

To become an accredited investor, a person has to have a minimal net worth of $1 million, and an annual income of $200,000.

But, they don’t have to be millionaires.  They could be friends or colleagues sitting on home equity, or local professionals who are looking to invest. Consider people you know well and people you don’t know so well. Angel investors could be people you grew up with or have done business with.

Even if you do not use friends or family as investors, finding an angel investor could convince those closest to you to help in another way.

Business Borrowing from Family and Friends: Crowdfunding

Here’s how crowdfunding works.  You market your business on a crowdfunding platform, and anyone who wants to can invest in the company.  Some platforms will even accept donations as low as $5 or $10 dollars, though most do require more.  With rewards-based crowdfunding, you get some token of thanks for your donation.  With equity-based crowdfunding, which almost always requires $500 or more, investors get an interest in the company.  

This is not a sure thing.  While there are a lot of successful crowdfunding campaigns, the majority are not able to fully fund their business through crowdfunding.  According to Startups.com, the average success rate of a campaign is 50%, and 78% of crowdfunding campaigns reach their goal.  It’s a good way to give friends and family a chance to help fund your business without them having to give a large sum of cash at one time.

Business Borrowing from Family and Friends: Kiva

Kiva is an online lender that is a little different. For example, the interest rate is 0%.  That means even though you have to pay it back, it is absolutely free money. They don’t even check your credit. However, there is one catch.  You have to get at least 5 family members or friends to give to your business. In addition, you have to pitch in a $25 loan to another business on the platform. This is another way those you love can help you fund your business without giving up a pile of cash all at once.

Business Borrowing from Family and Friends: Guarantor Loans

A guarantor loan is a loan that you get, but someone else signs on to guarantee that they will repay if you default.  It could be a business partner, a friend, or even a family member.  This is sometimes a better option for having a family member help with funding than getting funds from them directly. Still, the same caveats exist when a guarantor is using their credit to help you out. If your business fails, or you default on the loan, then your guarantor will bear the brunt of that – and they will, most likely, come after you to make up for any losses they incur.

If you have friends or family that qualify as a guarantor, they may be more willing to go this route. They can let you piggyback off their good credit without giving up any cash initially. Hopefully, they never will.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Credit Line Hybrid

This is a type of loan that you can use a guarantor to get.  The credit line hybrid may be for you if you have a credit score over 680 or have friends or family that do and are willing to cosign. You can usually get a loan of 5x the amount of your highest revolving credit limit account, up to $150,000. Honestly, this is more than what you could get on your own when applying for credit cards. Furthermore, you can get cash out on this program.

Also, there is no impact on your personal credit with this type of financing. It will not even affect a guarantor’s personal credit.   A lot of business owners use the good credit of friends or family to help them get the funding they need.  All payments report to the business credit profile, so you can build business credit at the same time. 

Build Your Business Credit Score and Pay it Forward

Once you get the funding you need, work on building your business credit score. There are a few things you need to do to make this happen. However, once it’s done, you will have access to the funding you need, and you could be in a better position to help others rather than asking for help. 

First Steps

The first step in the process is to establish your business credit profile. You do that by setting up your business to be a fundable entity separate from you the owner. That includes having separate contact information, using an EIN rather than your personal SSN, formally incorporating, and opening a separate, dedicated business bank account. 

Once that is said and done, you can rest assured that your business accounts that are reporting will show up on your business credit report, thus causing your business credit score to climb. Not all accounts will report, but the Credit Line Hybrid does. That’s a good start.  A business credit expert at Credit Suite can guide you through finding other vendors that you qualify to get an account with that will report as well.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Business Borrowing from Your Family and Friends is a Stepping Stone

It’s not a long term solution.  There are many business owners who get their start with the help of friends and family.  That’s a good thing.  It’s a great way to get the ball rolling when your own resources are limited.  

However, you don’t want business borrowing from friends and family to be your primary solution for the life of your business.  Not only will this source of funds eventually dry up, but it can also cause some major drama. 

The key to being able to fund your own business, and keep everyone else on your side, is to work toward building a business that is fundable on its own.  As you do so, you will see that your friends and family continue to cheer you on, and eventually that’s the only help you’ll need.

The post Business Borrowing from Your Family and Friends: Top Hacks to Make it Work appeared first on Credit Suite.

How Do Merchant Cash Advances Work?

Your Question: How Do Merchant Cash Advances Work?

Got budget gaps in your business? If there’s anything that 2020 has taught us, it’s that what we think is a sure thing, just might not be. That includes the cash flow of a business.

Budget and funding gaps are large for newer businesses. If you don’t have a lot of clients, you might offer them better terms to attract their business. Sweetening the pot can help overcome a client’s initial skepticism. So just like a starter vendor, you might be offering Net 30 terms.

Offering Net 30 or Net 60 or even Net 90 terms is a great strategy to develop business relationships. But you end up with a lot of time between providing your good or service and getting payment for them. But in the meantime, your business’s bills have to be paid, and you have to make payroll no matter what.

So How Do Merchant Cash Advances Work? 

An MCA technically isn’t a loan. Rather, it is a cash advance based upon the credit card sales of a business. A small business can apply for an MCA and have an advance deposited into its account fairly quickly. So you can offer Net 30 terms, but not have to wait a month for payment.

Which Kinds of Businesses are Merchant Cash Advances Good For? 

A merchant financing program is ideal for business owners who accept credit cards and are looking for fast and easy business financing. An MCA program is designed to help you get funding, based strictly on your cash flow as verifiable per your business banks statements. As a result, lenders in general will not ask for any burdensome document requests.

Not asking for a lot of documents, is not like what most conventional lenders demand. These can include financials, business plans, and resumes. Best of all, you can get approval regardless of personal credit quality. You don’t even need collateral. Your business’s credit card receipts and business bank statements do all the talking.

How Do Merchant Cash Advances Work Credit Suite

Demolish your funding problems with 27 killer ways to get cash for your business. Get money even during the worst of a recession.

How Do Merchant Cash Advances Work? Really? 

Merchant cash advance providers weigh risk and credit criteria differently from how a banker does. An MCA provider looks at your company’s daily credit card receipts. This is to determine if your business can pay back the funds in a timely manner. In essence your small business “sells” a portion of future credit card sales, this is in exchange for immediate payment.

What are Some Caveats When It Comes to MCAs? 

Rates on a merchant cash advance can be much higher than other financing options. Depending on the company, rates can end up being prohibitively high. As a result, it’s crucial understand the terms you’re being offered. That way, you can make an informed decision about whether an MCA is worth it.

Qualifying for a Merchant Cash Advance

To determine approval, the lender will review 3 months of your bank and merchant account statements. All the lenders are looking for is consistent deposits. They want to see deposits showing your revenue is $50,000 or higher per year. They will also verify that you have been in business 6 months or more.

Lenders are also looking to see that you don’t have a lot of Non-Sufficient-Funds (NSFs) showing on your bank statements. They want to see you don’t have a lot of chargebacks on your merchant statements. And they want to see that you have more than 10 deposits in a month going into your bank account. In essence, they want to see that you manage your bank and merchant accounts responsibly. And they want to see that have a decent number of consistent credit card transaction deposits each month.

The Nitty Gritty: How Do Merchant Cash Advances Work? 

The small business owner and MCA provider agree on the advance amount, payback amount, holdback, and term of the advance. Once an agreement is made, the advance is transferred to the business’ bank account. This is in exchange for a future percentage of credit card receipts.

Holdbacks

Each day, an agreed upon percentage of daily credit card receipts are withheld, to pay back the MCA. This is called a holdback. The holdback will continue until the advance is paid in full.

A business that uses a merchant cash advance will typically pay back 20% – 40% or more of the amount borrowed. This percentage is called the factor rate. There’s a difference between the holdback amount that a small business pays every day, which is a percentage of sales receipts, versus the repayment amount for the entire advance.

There could, for example, be a holdback of 15% and a repayment of 30%. It’s important for business owners to understand this distinction.

A holdback percentage is based on the amount of funds a business gets, how long it will take to pay back the money, and how big monthly credit card sales are.

Why Access to a Merchant Account Matters

Access to a business owner’s merchant account eliminates the collateral requirement needed for a traditional small business loan. Since repayment is based upon a percentage of the daily balance in the merchant account, the more credit card transactions a business does, the faster they can repay the advance.

One great plus when it comes to MCAs, is they are based on percentages. So if transactions are lower on any given day, the draw from the merchant account will also be less. This means that during times of slow business, the business’ payback is relative to incoming cash flow.

How Do Merchant Cash Advances Work Credit Suite

Demolish your funding problems with 27 killer ways to get cash for your business. Get money even during the worst of a recession.

How Do Merchant Cash Advances Work Through Credit Suite? 

Our merchant financing program is perfect for business owners with credit issues. Lenders are not looking for, nor do they require good credit to qualify. You can even get approval with severely challenged personal credit and low credit scores. You can get approval regardless of personal credit quality, even if you have recent derogatory items and collections on your credit report.

This is one of the best and easiest business financing programs in existence, that you can qualify for even if you have personal credit problems. You can get approval for as much as $500,000 in financing, with no collateral requirements and bad credit.

Our MCAs are FAST

You can get pre-approval for our merchant financing program within 24 – 48 hours. You can get your formal approval and funds within 72 hours of submitting your application. Our clients love this program partially due to how easy it is to apply and get approval and how FAST you get your funds!

Get 24-hour Pre-approval

Loan amounts and qualifications depend on credit card statements. Go from application to funding in 3 days or less. Get approval for additional future funding.

Easy merchant statement review for approval. No application fees. Get approval with bad credit. There are no collateral requirements.

The only financials you need are 3 months of bank statements. Get approval with revenues of $50,000 or less. Starter programs are also available. Get 3 – 36 month terms. Get approval for up to one month’s revenue with our proven solution.

How Do Merchant Cash Advances Work Credit Suite

Demolish your funding problems with 27 killer ways to get cash for your business. Get money even during the worst of a recession.

You can even Get a Second Merchant Cash Advance through Credit Suite

Over 80% of our clients come back for even more financing, after their initial approvals with our Revenue and Merchant Financing programs. Typically within 3 – 6 months of approval, you will get an opportunity to get even more money than you got before. And all you will need to get approval for more funding is, a quick review of your last 3 months of bank statements

You can get your money in your bank account within 24 hours or less! We also provide you access to merchant credit lines. So you can have consistent access to cash. Our merchant financing program helps you rapidly grow and scale your business. You will have ongoing access to receive more and more funding easily and very quickly when you need it!

How Do Merchant Cash Advances Work: Takeaways 

Many businesses have budget gaps due to giving better terms to their clients, or for any other reason. Merchant cash advances are one excellent way to bridge the money gap. Understand the numbers and know what you’re getting yourself into. Always ask questions if you don’t understand something. And check out Credit Suite’s merchant financing program for fast money. Let’s take the next step together.

The post How Do Merchant Cash Advances Work? appeared first on Credit Suite.

The Best Equity Crowdfunding Sites – and How Equity Crowdfunding Can Work for Your Business

If you are considering equity crowdfunding for your business, then you are, by definition, considering equity crowdfunding sites. We take a look at the best out there and dig into their nuances and differences. Make a smarter choice – knowledge is power!

What are the Best Equity Crowdfunding Sites All About?

When you consider equity crowdfunding sites, you will need to take a number of factors into account. Crowdfunding is a way to get funds from a lot of people, versus one or two investors. 

With equity crowdfunding, you raise cash through the sale of securities such as equity, debt, revenue share and more. These security sales would be coming from a company that is not listed on stock exchanges. Equity crowdfunding has been around for less than 10 years. It is not the same as rewards-based. Rewards-based crowdfunding comes from places such as Kickstarter.

Equity Crowdfunding Sites versus Rewards-Based Crowdfunding Sites

What are the differences between equity crowdfunding and rewards-based crowdfunding? The major difference is what investors get for their investment. With reward based crowdfunding, investors generally receive some incentive for their donation. That incentive is not equity in the company. But with equity-based crowdfunding, the investor receives equity. That is, they get a share in the company.

Also, as a general rule, equity-based crowdfunding brings in larger amounts of money. This is because it draws a different type of investor. So, how come not everyone choose that? The key is some businesses are better suited for equity-based crowdfunding than others.

Details on Equity Crowdfunding versus Rewards-Based Crowdfunding

With equity crowdfunding sites, you raise capital from the crowd online. Potential investors visit a funding portal website. There, they can explore different equity crowdfunding investment opportunities. Note: there are limits on how much capital an individual can invest based on their income and net worth. Plus, investors must be 18 years old, or older.

The main purpose of equity crowdfunding is to sell securities in a business. Hence, this is also the main purpose of equity crowdfunding sites.

In contrast, with a platform such as Kickstarter, businesses make money by pre-selling their products. But on equity crowdfunding sites, companies sell securities, in the form of equity in the company. Or it can be in the form of debt, revenue share, convertible note, and more. Equity crowdfunding gives investors a stake in your business. 

What is in it for Equity Crowdfunding Investors?

Equity crowdfunding investors are playing a long game. They stand to make a profit if they make a good investment, and the company they invested in grows. Here, the business can create hundreds of brand ambassadors who want to see you succeed. They are an audience the company can depend on to spread the word about their business and share the product with their own networks.

The ability to cultivate reliable brand ambassadors can be one consideration when trying to offset the cost of equity crowdfunding on a platform

What is in it for Business Owners Hoping for Equity Crowdfunding?

The business owner gets to dictate terms. The entrepreneur raising capital has total control of the offering. So this is including what to sell, how much, and, at what price. The owner can set the terms, including their valuation and how much capital they hope to raise.

Companies can set a minimum funding goal along with their desired maximum. So if they do not fully reach their funding goal, the entrepreneur can still successfully raise capital. Those who want to invest can do so even if the market interest is not enough to reach the goal.

Businesses raising money via equity crowdfunding sites are private companies. A business using equity crowdfunding does not have to issue an IPO (initial public offering). The business does not have to become a fully reporting public company. this is helpful, as being a fully reporting public company is financially burdensome for most small businesses. Investors do not have to be accredited. A business can raise funds without having to turn to venture capitalists. 

For more information, see forbes.com/sites/howardmarks/2018/12/19/what-is-equity-crowdfunding.

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A Look at all the Best Equity Crowdfunding Sites

Crowdfunder

Crowdfunder is an equity crowdfunding platform. With Crowdfunder, investors purchase equity in promising companies. They consider campaigns to be deals, and its donors are investors. 

Starter listings are $299 per month. Premium listings are $499 per month. In their community, there are over 130,000 entrepreneurs and investors. 

Crowdfunder does not work with every industry. 

The following are prohibited industries:

  • Guns and Firearms
  • Tobacco, Cigarettes, and Cannabis
  • Pyramid Marketing
  • Adult Products and Entertainment
  • Gambling
  • Contests and Raffles, and 
  • Illegal Substances and Drugs

For more information, see crowdfunder.com.

Fundable

Fundable is a crowdfunding for business platform. It allows companies to raise funds via equity sales. Those funds come from investors, customers, and friends. They have over $80 million in funding commitments.

Fundable will charge $179 per month to raise funds. Fees on rewards are: 3.5% + 30¢ per merchant processing transaction. They do not charge success fees. 

Fundable is one of the equity crowdfunding sites (such as Crowdfunder and Fundrise, below) which seem to be more accessible to regular folks.

They do not seem to focus on just one specific industry.

For more information, see fundable.com.

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Crowdstreet

What is so special about Crowdstreet? 

The industry most likely to use equity crowdfunding is real estate. This is because real estate allows for a much larger asset to be there from the very start. For a startup company based upon an idea for a new product, there is extraordinarily little available to seize in case the investment goes south. Whereas with real estate, even if there is never any development, land has an intrinsic value no matter what.

Crowdstreet allows you to invest online in commercial realty. Investors can choose between direct investing, fund investing, or managed investing. Crowdstreet boasts over 101,000 investors and over 260 commercial real estate developers.

Direct investing has varied minimum investment amounts. The minimum for fund investing is $25,000. The minimum for managed investing is $250,000. Hence this is one of those equity crowdfunding sites that is more for professional investors. 

For more information, see crowdstreet.com/marketplace/overview.

RealCrowd 

Real Crowd is another real estate investing platform, via equity crowdfunding. RealCrowd charges a technology access fee to the operating partner for their services. They do not charge investors any upfront fees, ongoing asset management fees or promote/carried interest in the investments.

You can browse offerings before you sign up. The information includes minimum investment and average returns. This allows for a lot of the decision making to happen before you even log in. Real Crowd offerings are open to accredited investors. 

For more information, see https://www.realcrowd.com/how-it-works

Fundrise

Fundrise is a great starter site for those that want to break into the world of equity crowdfunding. They do not require that you be an accredited investor. The minimum investment for the starter account level is $500. Minimum investment amounts go all the way up to $100,000 for the premium account level.

Fundrise will charge 0.15% in annual advisory fees for managing your account through the online platform. They do not charge any transaction fees, sales commissions, or additional fees for enabling features on an account, such as dividend reinvestment or auto-invest.

Fundrise will also charge 0.85% in annual management fees for managing a Fundrise portfolio. They could potentially charge other fees, such as development or liquidation fees, for work on a specific project. Dividends earned are net of any fund fees.

For more information, see: https://fundrise.com.

Alternatives to Equity Crowdfunding

If you do not wish to give away any of your equity, then rest assured, you have other options. Build business credit is one option. And others include inventory financing, merchant cash advances (if you have sales coming in), and securities financing. With securities financing, you use your stocks, bonds, 401(k), or IRA as collateral for borrowing.

Try a Credit Line Hybrid Instead

Another great option is our credit line hybrid.

A hybrid credit line could be just what you need.

Equity Crowdfunding Sites Credit Suite

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive

The gist of a credit line hybrid is you can leverage good personal credit in order to get business funding. Because a good personal credit score is the main thing the lender is looking for, it can be perfect for a startup venture. So, it is another option to consider. You do not necessarily have to give up business equity in order to finance your entrepreneurial venture.

Equity Crowdfunding Sites: Takeaways

Equity crowdfunding involves calling on a crowd to invest in your project. Rather than pre-selling products, you are selling pieces of your business. 

The industry most likely to use equity crowdfunding is real estate. But other industries can use equity crowdfunding. Be sure to check the platform and see if there are any restrictions. Some industries will not do well at all and may even be shut out by a platform. Fees and investment minimum amounts will vary widely.

If you are interested in equity crowdfunding for your business, the best thing you can do is to shop around. Rates vary dramatically. But also check on success rates. Many equity crowdfunding platforms are expensive, or they have high minimum investment amounts, or both. Do not waste your time and money if you are not sure there is a good fit.

And, if you decide equity crowdfunding is not for you – or even if you do but want a fall back – then consider other forms of business funding. That should always include building business credit.

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