Note: This post represents the first time I have compensated a writer using cryptocurrency so the topic of the article is appropriate! If you would like to learn how you can participate in this paid blogging opportunity, check out my creator coin page on Rally. — Mark Schaefer
By John Rock, {grow} Community Member
I remember back in December of 2017, when this new thing called Bitcoin (BTC) exploded onto the scene. It hit around $19,000 per coin. A friend of mine dropped a bunch of cash creating computing rigs to begin mining (the process necessary to distribute and secure digital currencies) for a coin called Ethereum (ETH), and I thought he was crazy.
Not too long after that, Bitcoin crashed hard, back to about $3,000, and sat there for a while. I expected this to happen because cryptocurrencies had no real value, as far as I could see … and I was quite smug about it.
Fast-forward to today and BTC & ETH have reached $68,540 and $4,830 respectively.
Now, who’s smug?
I’ve learned a thing or two about crypto since then and it’s become part of my marketing strategy. I’ll explain that today.
Cryptocurrency as a marketing strategy
Our world is at an important point in history, and it could be as transformational to your business as the Industrial Revolution was to businesses in the 19th and 20th centuries. I know, this is old news and I’m late to the digital currency party, but maybe you are too? I’m ready for the party to begin.
As of a few weeks ago, I made the transition to accepting cryptocurrencies as payment for my business. I’m an accountant/tax guy and have avoided accepting cryptos for payment because of the expenses of transacting and moving coins. But I’ve been recently convicted that if I don’t accept BTC & ETH as payment in my business, who will? Until small businesses embrace this new currency, crypto will always be just another payment medium for large and wealthy corporations. As an early adopter, I think it gives me an edge.
A small business adopts crypto
As a bean counter, how do I justify the added costs? I do so by doing what accountants do best; I creatively classify expenses. Strange new times require strange new approaches.
To begin with, accepting cryptocurrency for payment may legitimately be considered a marketing strategy. This is because there is a market to cater to people who want to deal in crypto coins.
It’s also marketing because word-of-mouth is more efficient advertising than mass mailing is. The expense here is for an actual sale, and I prefer paying for solid customers than for hopeful postcards. The expense splits nicely between line 8 of Schedule C for Advertising and line 10 as a Banking Fee.
I also consider accepting crypto payments as a personal investment strategy. When my business is paid with crypto, I won’t bother converting and transferring the coin back to my bank account, I’ll just swap my cash for the crypto leaving the coins to slowly grow in value. With this strategy, the business will not incur the costs, and the coins will actually pay for themselves by covering their own moving fees. There are tax implications to all of this, but that shouldn’t scare you. That’s a topic for another day.
Finally, this is a good marketing strategy because my business will get a boost from word-of-mouth because people like talking about crypto when it has real utility for their lives. Never underestimate how much people like talking about things just to sound like they are in the know at dinner parties.
The Promised Land
All in all, if my business picks up just 20 new customers this year because I’m an early crypto adopter, I’ve justified any added expenses. I don’t really expect that all the people who would come to me in 2022 would actually pay with crypto, but the fact that I am accepting it definitely differentiates my business from the majority of my competitors.
So, do you have a small business? You too should consider accepting crypto as payment. Even if nobody actually pays you with crypto, the news that you are accepting it would make you conversational. And heck, you could even accept Mark Schaefer’s $RISE coin – I know I will.
If you want to dip your toe in the crypto market, set up a username on Rally.io (free and easy) and then look for Mark’s coin $RISE to discover discounts and fun ideas. Once you own Mark’s coin, you are eligible for a free weekly newsletter from him about the crypto learning journey.
John Rock is a dad, husband, minister, accountant, and new Crypto coin enthusiast. He wrote this article to show that it makes good sense for small businesses to be a part of legitimizing the inevitable digital economic future. And yes, he has invested in Mark’s $RISE creator coin.
