A popular investor relations and promotional strategy that many micro and small cap companies fall victim to is what the promoters and aggressive IR entities are selling… And, its killing companies.
They are selling fake followers and they are re-tweeting hundreds of times a day using fake accounts. Small public company management teams believe it is all about the number of followers and the number of “favorites” and re-tweets of their content.
I can assure you that this strategy is a poor one and is VERY counterproductive for your marketing and investor relations efforts. The contemporary investor is Twitter-Savvy and can spot fake followers and re-tweets in an instant. It makes your whole company look fake and puts serious doubt in the collective minds of the investment community regarding anything about Your Company.
When you are paying for fake followers, fake re-tweets who is really being engaged? These accounts are all virtual. How are you to engage real people that are interested in your products and services when so much about your Twitter account is fake? How are you engaging with real investors if nearly everything is smoke and mirrors?
None of these fake accounts will ever buy a share of your stock…
Public companies at the micro and small cap level have been sold hundreds of thousands if not MILLIONS of dollars’ worth of these accounts to artificially inflate the numbers of the client company.
We cover Social Media as well as all other topics that pertain to Investor Relations in 2016 and beyond in our eBook (which is based on 5 years of research into the minds of actual investors), Investor Intelligence – How to Solve the Liquidity Problem for Small and Micro Cap Companies. You can download it for FREE.
There was one CEO recently that announced, “Welcome to our 100,000 new Twitter Followers!”
They were all fake accounts. I debated on laughing or cringing. I did speak to that CEO a few weeks later and informed them what sort of accounts they had. I explained the perception problem (disaster) they created.
They were embarrassed and asked me what they could do to get rid of the fake accounts.
The fake accounts can be removed. One individual I know will remove them for $500 per 25,000 fake followers. It takes specialized technical knowledge of Twitter to get rid of all the eggs and other crap from your Twitter account.
You may end up spending a lot more to get rid of the trash and garbage from your Twitter account once you realize the mistake. In addition, it will likely take Your Company some time to recover.
It is easy to spot these fake accounts… I have included some graphics below which will show you clearly what fake accounts look like.
So, beware of IR or promotional entities that are going to promise you a lot of followers and re-tweets!
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