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How to Grow Your Social Media Presence for Free

Posted: 02 Jan 2020 06:00 AM PST

  • 80% of global internet users have at least one social media account. 
  • Learning your customer's pain points can have a significant impact on your social traffic. 
  • Diversify your content and use interactive events to encourage engagement and sharing. 
  • 96% percent of B2B marketers say Facebook is a valuable marketing tool. 

Do you want to grow your business social media presence without paying for ads? If so, you're not alone. Business owners and marketers agree that social media is one of the fastest ways to grow your brand presence in 2020. In fact, 96% of B2B marketers say that they consider Facebook a valuable marketing tool. 

There are more businesses on platforms like Facebook, Twitter and Instagram than ever before. As a result, some companies are using paid ads as a way to reach their target audience. The truth is, this tactic might help you see an immediate boost in your sales and traffic, but the growth is not sustainable. 

Organic growth is the best way to evolve your business because it gives you a chance to learn more about your target audience, build rapport by sharing valuable content, and turn visitors into lifelong customers. 

We are going to take a look at several ways you can expand your organic reach using your social media profiles. These tricks will help you build credibility in your industry and improve your business through gradual, consistent growth. 

Align your brand with consumer pain points

First, you have to make sure your products and marketing material aligns with the pain points of your target audience. If your goal is to sell a product without using paid ads, your brand message needs to be crystal clear. When someone stumbles across your profile or sees that their friend shared one of your posts, will they know the purpose of your product or brand?

The key to reaching your target audience is understanding the problems they are facing and creating content that is designed to resolve their pain points. For instance, if you started a business that specialized in helping online companies with email marketing, you would want to regularly publish content that tackles the struggles of novice email marketers. 

The best way to create content and posts that hit on the pain points of your target audience is by researching what they are saying online. Look in Facebook groups and on trending Twitter hashtags to see what kind of issues people are facing, and use that as a reference for your future posts. 

Alternatively, you can conduct a poll and ask for customer feedback on your profile. Ask users to talk about the most significant struggle they face in your industry and take notes. Once you have compiled enough data, you can start planning your content marketing strategy around their feedback. 

Diversify your content

Believe it or not, 80% of global internet users have at least one social media profile. This diverse audience has distinct tastes in the kinds of content they consume. Some people love watching videos, others like the visual clarity of an infographic, and there's another demographic that prefers text-based content. 

If you want people to discover your brand, you have to create content that caters to all of these different types of consumers. One trick that many marketers are using is called content repurposing. For example, they take a blog post and create a video that relays the same information and publish the video on platforms like YouTube. Even though the information is the same, this difference in media will pull in a broader audience. Research shows that about 45% of marketers plan on using YouTube as a content distribution platform in the coming year. 

Encourage engagement and sharing 

There's nothing that will help you spread brand awareness like consumer engagement. When people share your content, comment on posts, or write a comment about their experience with your company, they are starting the process of engaging with your brand. It's up to you to keep them interested by interacting with the community. 

For instance, you could create an ask me anything (AMA) video. AMAs are typically videos and hosted by the business owner or a social media marketer. Use this time as an opportunity to talk to the people that love your brand and want a better understanding of the team behind the business. 

Not only are AMAs a great way to keep consumers engaged in your brand, but it's also an excellent resource for learning about customer pain points. Once you have learned their pain points in the first tip we mentioned, you have to keep your eyes out for changes in consumer behavior, such as a new interest in a sub-niche. 

Giveaways are also a powerful way to encourage new visitors to follow your page and get more social shares. Typically, online contests have a simple prize like an Amazon gift card or a sample of your product, but you have to tweak the rules for maximum engagement. You could create a rule where followers have to share your post and tag three friends to enter, which encourages organic growth and spreads brand awareness. 

Once you pick a winner, you can send a small discount to everyone that participated in the event. If you managed to attract your target audience, they will likely take advantage of that coupon and follow your brand on social media. 

Build social proof 

Social proof is a psychological phenomenon where people are more likely to show interest in something if they see other people enjoying the same thing. There are countless ways you can showcase social proof on your website, but it's equally vital that you build proof on your business profiles. New consumers should feel like they can trust you after landing on your social media profile and having strong social proof can bridge the gap. 

One of the most common forms of social proof is user reviews. If someone leaves you a favorable review and tags you on Twitter, make sure you retweet that post to your followers. You can take it a step further and share that tweet across all of your social media platforms. When a new user finds your profile, this positive review could encourage them to dig a little deeper into what you do. 

Don't forget to respond to the person who left you a review, and you can even send them a coupon code for sharing their feedback. As your business grows, you'll find that the best customers are also brand ambassadors. These people will openly tell their friends and family about your product or service, which contributes to growing your brand. You can multiply the effect of this tactic by fining an influencer on Instagram, Twitter, or YouTube that found your product and found value in their purchase. 

Social media marketing is here to stay. Online businesses are popping up all over the world and fighting for the attention of the consumers that spend their time on their social media accounts. The result is a flood of ads that cause the average person to glaze over the promotion. If you want to see steady and reliable growth, make sure you build organic traffic over paid advertisements. 

 

Small Business Guide to Alternative Lending

Posted: 02 Jan 2020 06:00 AM PST

  • Traditional bank loans have lower interest rates and longer terms than alternative financing but stricter requirements for approval.
  • Alternative lending options include direct private lending, marketplace lending and even crowdfunding platforms.
  • Alternative loan types include lines of credit, short-term loans, microloans, factoring, equipment financing, bridge loans and merchant cash advances.

Every business needs funding. While you might have initially financed your business with your own money or loans from family and friends, there comes a time when institutional capital is necessary for sustained growth. Many small business owners rely on bank loans or loans from the U.S. Small Business Administration (SBA).

Sometimes, though, small business owners can't qualify for these loans or need something shorter-term or more flexible. In these cases, alternative lenders offer various ways to access the capital you need to grow your small business. Alternative loans come in many shapes and sizes, so you can generally find the right one for your current needs.

This guide will introduce you to the concept of alternative lending and explain some of the most common types of alternative loans. It also introduces some of the major players in the space to help you start your research into the right lender for your business. If you're looking for more detailed information on business loans, see our best picks page for in-depth reviews on alternative lenders.

What is alternative lending?

Alternative lending is any lending that occurs outside of a conventional financial institution. Alternative loans tend to be more flexible than conventional loans and often have faster application turnaround as well. There are many different types of alternative loans available, so there is likely an alternative loan out there that suits your small business's circumstances.

While most banks and conventional lenders could take weeks to approve or deny a loan application, many alternative lenders can deliver funding in a few days. The loan application process for alternative loans also tends to be simpler, requiring only a credit score, tax returns, and bank statements rather than a detailed pro forma or business plan.

In addition, alternative lenders are more likely to loan smaller amounts than banks, which often include minimum lending terms that are too high for a small business. Alternative lenders also offer unconventional lending options that allow businesses to leverage assets like their accounts receivable or credit card sales, rather than borrowing on credit.

What are alternative lenders?

Organizations that offer alternative small business loans are called alternative lenders. "Alternative lender" is an umbrella term for several alternative lending models, including direct private lending, marketplace lending and even crowdfunding platforms.

Direct private lenders

Direct private lenders use their own money to issue loans, rather than relying on depositors or investors. This allows direct private lenders to be extremely flexible in granting applications. Direct private lenders tend to offer diverse types of loans, including asset-backed ones such as bridge loans. Direct private lenders can also be more flexible in the amount of money they lend per loan. Some direct private lenders offer low-value loans that many conventional financial institutions won't consider.

Marketplace lenders

Marketplace lenders – also called peer-to-peer lenders – leverage a technological platform to circumvent banks and connect borrowers directly with investors. While banks make loans with deposited money, marketplace lenders simply package loans from investors and deliver the funding to borrowers, collecting commissions and fees to make their money. Marketplace lenders typically determine whether or not to award a loan based on a borrower's credit score.

Crowdfunding platforms

Crowdfunding platforms are especially popular for businesses in the prototype or startup stage. A crowdfunding platform offers borrowers a place to raise small amounts of money from a large number of individuals. Generally, the borrower sets a goal and then markets their campaign to appeal to potential investors. The benefit of crowdfunding is that it eliminates the application process. However, success is not guaranteed in a crowdfunding model; it comes down to how well you market your campaign and how many people invest in your cause. [A relatively new method called equity crowdfunding allows you to directly sell micro-shares of your business to investors.]

What types of alternative lending are available?

The alternative lending space is innovative, regularly coming up with new types of small business loans and other forms of financing. As such, it is a diverse space with many different types of loans available. Here's a look at some of the most common alternative loans for small businesses.

Lines of credit

A line of credit is a fixed amount of money that an alternative lender extends to a borrower, just like a line of credit from a bank. You can draw from the line of credit up to the fixed amount, paying interest on the amount you borrow.

Short-term loans

Short-term loans are any loans scheduled to be paid back in a year or less. Most banks do not offer short-term loans, but they are a common product from alternative lenders. Short-term loans are useful when your business needs working capital or has to quickly cover a one-time cost.

Installment loans

Installment loans provide a lump sum of money to a borrower, which is then repaid to the lender at regular intervals until the principal plus interest is paid off. Many installment loans from alternative lenders have a fixed payment amount, meaning the interest rate will not fluctuate during the life of the loan. Installment loans are commonly used to finance the purchase of real estate, vehicles and equipment a business needs to operate.

Merchant cash advances

A merchant cash advance offers a business cash upfront in exchange for its future credit card sales. Merchant cash advances provide a lump sum of money quickly – sometimes within one day – based on a business's expected daily credit card receipts. Once the advance is issued, the borrower must pay it back through a percentage of their business's daily credit card revenue.

Microloans

Microloans, as the name suggests, are low-value loans, typically of $50,000 or less. Alternative lenders devised these small loans because conventional lenders like banks typically don't consider them at all. For many small business owners, $50,000 is more than enough to open their doors or acquire new equipment. They can also be incredibly short-term, with some repayment periods lasting just a few months.

Invoice factoring

Invoice factoring is a type of financing in which a business sells its outstanding accounts receivable to a third party at a slight discount. Typically, a business can expect about 90% of the value of its accounts receivable upfront. The "factor," as the third party is known, is then responsible for collecting the payments; the 10% the factor saved on the discounted purchase of the business's accounts receivable represents its potential profit.

Bridge loans

A bridge loan is a short-term loan backed by an asset, rather than by a credit score. For example, if a business owner is moving from one location to another and is in the process of selling the first location, they can use a bridge loan to purchase the new property and cover all closing costs. The new property would be the collateral for the bridge loan. These loans are typically very short-term, often taking less than a year to repay.

Equipment financing

Equipment financing is the use of a loan to purchase the equipment your business needs to operate. This differs from other types of loans, which can be used for more abstract purposes (for example, a working capital loan for staff wages). Equipment financing relies on the equipment itself as collateral; this enables lower rates and more application approvals, because it is tied to the equipment rather than your personal credit or annual revenue.

 

Editor's note: Looking for financing for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.

 

 

When is alternative lending a good idea for your business?

Alternative lending is a good option for your small business when conventional lenders either don't offer the financing you need or won't approve you for a loan. It's telling that alternative lenders took off following the 2008 financial crisis, when banks were hesitant to lend to virtually anyone; they fill the gaps where conventional financial institutions will not.

Alternative lending is also a good option for your business if you have an immediate need for capital, especially in low amounts. Whether that's working capital to keep a seasonal business afloat in the offseason or financing for an equipment purchase, alternative lenders can provide fast funding and a short repayment term where banks will not.

While alternative lending offers key advantages for small business loans, of course there are some drawbacks. To minimize risk and ensure you can repay any loan you accept, it's essential to know the advantages and disadvantages of alternative lending options before partnering with a lender.

What are the advantages of alternative lending options?

Alternative lenders offer some major advantages over bank loans and other conventional financing options. Here's where alternative lenders outshine banks and credit unions.

  • Simple application process: The requirements of an alternative loan application tend to be far less rigorous than for traditional bank loans. Sometimes, alternative lenders simply require access to your digital bank statements to return a verdict on your application.
  • Fast turnaround: In addition to simplicity, alternative lenders tend to be much faster than banks or credit unions, both in terms of approval and funding delivery. While conventional lenders often need weeks or months to determine and extend the capital, alternative lenders can often get a small business funding in a matter of days.
  • Flexible loans: Alternative lenders, particularly direct private lenders, have more free rein in how they package loans and financing options. This has allowed alternative lenders to create unique financial products such as invoice factoring and microloans.

What are the disadvantages of alternative lending options?

Banks and credit unions naturally have their own advantages over alternative lenders. Traditional bank loans tend to beat alternative lending options when it comes to the following.

  • Higher interest rates: The less strict requirements, shorter terms and unconventional nature of alternative loans often translates to higher interest rates than conventional lenders charge. In some cases, this is due to a business's annual revenue and credit score; in others, it has to do with the type of financing a business requires.
  • Short-term loans: While short-term loans can be useful to businesses in some cases, even high-value loans often have short repayment terms with alternative lenders. This means that, for the same amount of money you could get from a bank, you could end up making higher installment payments to an alternative lender.

The best alternative lenders and business loans of 2020

Here's an overview of our best picks for alternative lenders and business loans of 2020. Check out our best picks page to read the complete reviews for each of our best picks and other key players in the alternative lending space.

Noble Funding – invoice financing

Noble Funding is an alternative lender and broker organization – it provides some loans and arranges loans with other industry leaders. It can arrange two invoice financing options: invoice factoring and A/R lines of credit. Noble Funding can arrange various other types of loans too, including term loans, cash advances and unsecured business loans. The company will assess your business's financial situation and then recommend a type of financing. It has favorable fees and can pair you with an ideal lender for your business.

Fora Financial – small business loans

Fora Financial is a solid funding option for small businesses. Interested business owners can take out term loans and merchant cash advances. What separates Fora from the crowd is its fixed interest model. Business owners pay a set total based on their financial stability as opposed to a fluctuating interest rate. It's possible to pay off Fora's loan at any time with no prepayment penalties.

Rapid Finance – merchant cash advances

Rapid Finance can provide merchant cash advances on up to 250% of your company's monthly credit card sales. It provides one of the most compelling merchant cash advance offerings of any company we reviewed. It has fairly relaxed terms, granting loans to companies that have been established for two years or more and have at least $5,000 in credit card sales each month.

Balboa Capital – alternative loans

Balboa Capital provides a wide range of small business loans, including term loans, equipment leasing, vendor financing, franchise financing and business cash advances. Both its term loans and business cash advances are ideal for small businesses. Business owners interested in term loans can get up to $250,000 on terms from three months to two years. It has a simple online application process.

Crest Capital – equipment financing

Crest Capital provides equipment financing of up to $500,000 for small businesses. The company has been lending to small businesses since the late '80s and has an online reputation of reliability. Crest can provide financing for equipment you've already selected, or it can partner you with one of its vendors so you can get the equipment you need. It has relaxed qualifications and attractive terms.

SBG Funding – working capital

SBG Funding offers working capital loans with simple qualifications and appealing rates. It provides loans ranging from six months to five years, and it has a solid online reputation. Its standout aspect is its lenient credit requirement: SBG says it grants loans to applicants with credit scores as low as 500. The company is more concerned with your monthly income and profitability than your credit score. This makes it an ideal lender for business owners with rocky credit history.

Alternative lending fills the gaps in business financing

When bank lending isn't possible or desirable, alternative business lending options are worth considering. Whether your annual revenue or personal credit score isn't up to the bank's standards or you just need an amount of money that conventional lenders won't offer, alternative lenders fill in the gaps with a variety of funding options.

Before you choose to partner with an alternative lender, carefully review the terms of the loan. Your ability to repay the loan on time is key to your small business's continued success. When you need funding that the banks won't provide, alternative lenders can help, but it's always important to borrow responsibly.
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