Budgeting is one of the 3 traps that can sink your ICO. It requires careful and thorough analysis. Here are four basic elements that you need to pinpoint when launching your own project.
If you already have a company up and running, you can use your existing infrastructure to build an Initial Coin Offering. It’s called “reverse ICO”, as a crowdfunding for established company.
But if you are considering a large scale ICO without an existing company, you’ll actually have to build one from scratch. You need to hire or outsource accounting, marketing, and IT specialists to take care of the various aspects of the project (considering that you will take the management role). It’s connected with recruitment and additional management costs.
Marketing & PR
Your marketing & PR expenses will usually include:
- paid online ad campaigns
- preparation of materials for investors
- creating press releases
- organising meet-ups
- attending events
We usually add to this section two more crossover activities, located somewhere between IT and marketing: creating a whitepaper and designing a website for your ICO project.
In general, the budget for this activities depends on the scale you want to achieve. Paid ads tend to consume the largest part of it.
We’re in a time, where the regulations are getting more and more complicated. Proper legal support is extremely important during your Initial Coin Offering to make sure you won’t encounter expensive traps on your way to launching your token.
Talking about IT costs of your ICO, you need to build:
- landing page
- app for the investors
- Smart Contract for your token
Usually the token is connected to a larger infrastructure, such as platform that utilizes it and provides the value for the investors. If it has to be connected to your existing platform, you will need a few adjustments from your IT department.
How to deal with the cost of ICO?
All the mentioned activities can be expensive. If you need a help to make the ends meet, consider ICO presale. It’s a short round of investment performed few weeks before the main event, usually limited to a few big investors. You offer them tokens at a reduced price, gaining cash buffer and improving cash flow of your company.
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