Monday, January 19, 2015

Cult Marketing for Investor Relations

Investor relations is built largely on recruiting new money.

We all know, there are three keys to success in the stock business:

(1) New money;

(2) new money; and

(3) new money.

Now what seems to be overlooked is that stocks trade on supply as well as on demand.

That means you want loyal shareholders who do not sell.

Now, imagine cult marketing applied to stocks.

Not only do you aggressively recruit new followers to your cult,

you indoctrinate them so that not only are they loyal,

they also recruit other new members,

who recruit more and more and more.

Remember that Japanese cult that put sarin gas on the subway?

In only a few years even they took in about a billion dollars.

Would a billion dollars be useful in supporting your stock?

Imagine if most of your existing shareholders would not even think about selling your stock?

Picture that shift in supply and its effect on price.

Cult marketing for stocks -- the new wave of investor relations.