Reviews help investors make better decisions about whether or not to invest their money in an investment opportunity. The insight and information shared by others in their review can answer investors’ lingering questions and address their open concerns. This leads to more confident and better educated investing.
The opinions of experienced investors can be found within many websites on the internet. The most common places to find investment reviews are internet forums, communities, and blogs. These resources offer posts from a variety of investors who are investing in different demographic and sociological environments. This provides a diversified perspective.
- A forum is an web-based discussion board where people can ask questions, share their experiences, and discuss topics of mutual interest, such as investing. Forums are an excellent way for investors to create social connections and collect information about a particular investment or topic. This is a great place to ask for reviews.
- An internet community is most often used to exchange ideas and discuss specific subjects. The main goal of an online community is to help people communicate with one another and share opinions and reviews. Wherever people share common interests, there is a community.
- A blog is an online personal journal or web diary that is updated frequently. It is somewhere investors can express themselves to the internet audience. Blogs are a place where investors share thoughts and opinions about personal investing experiences and investment-related subjects.
Nowadays, investors expect to be able to read and contribute peer reviews before making investment decisions.
In a study conducted by BrightLocal, 88% of people surveyed said they trust online reviews as much as a personal recommendation. However, this trust is not explicit; it comes with conditions. There is a near 50/50 split in what drives trust for this group. For one half surveyed, this trust will only be granted if there are multiple reviews to read. For the other half, this trust is dependent on the reviews being authentic. In this case, quality is equally as important as quantity.
Online reviews continue to become an increasingly popular way for users to uncover more information about investments and determine which opportunities to pursue. For 7 out of 10 consumers, positive reviews inspire trust.. According to a survey conducted by PowerReviews, 86% of consumers say reviews are essential when making a purchase decision. The more reviews there are for a given product, the stronger and more persuasive the social proof will be.