Today, the cost of doing an Initial Coin Offering (ICO) is low enough that it may be done without a lot of money. However, a successful one necessitates sufficient funds and time. As a result, an essential question arises: how much does it cost to organise an initial coin offering (ICO)?
To get the answer, consider all of the relevant data about the cost of conducting an ICO in order to objectively assess all of its intricacies and capabilities. Another significant consideration is the creation of a budget plan. This will illustrate how much an ICO costs, as well as places where money can be saved or lost. Finally, you will be able to avoid borrowing or taking out a line of credit as a result of this.
Let's go over the major components of an ICO to figure out how much money you'll need to begin a successful campaign.
Aspects of technology
Technical components of an ICO are one of the top-level expense categories. These are some of them:
Cabinet for ICOs
ICO consulting and assistance
a set of smart contracts for ICOs
a white paper
The ICO Cabinet is a dedicated section where you can sign up, get verified and accredited, buy tokens, and manage an ICO for seamless token distribution. The KYC method helps to authenticate each customer's identity and location, reducing the legal concerns connected with anonymous payments. An ICO cabinet costs US$20,000 with minimal set-up.
Smart contract suites also assist in the implementation of smart contracts. They are as follows:
Tokens for pre-ICO and ICO
Tokens based on the ERC20 standard
Allocation of tokens to the team
minting contract with smart contract
White papers are now an essential component of any ICO under development and should include all of the relevant requirements. The white paper should be used to present the product and demonstrate how the token will be used. Investors decide whether or not to invest in the project based on this information.
It is suggested that the founders write a white paper and then have it reviewed by specialists. Many businesses prefer to outsource the creation of a professional white paper. It will set you back $20,000. On the other hand, if your budget is restricted, you can make it yourself.
By the way, collaborating with Cryptoauxiliary results in a successful white paper with one of the best price-quality ratios. The white paper text is published in its entirety, including technical components, as well as concept design, business plan, and token economics.
Costs range from $50,000 to $100,000.
The use of the internet to find information and projects is getting increasingly prevalent. As a result, having a website is a must-have for each company. The project's core idea is represented by the website, which must be appealing, welcoming, and, of course, educational and adaptable to users.
To inform and connect with potential investors, the content must be updated on a regular basis. Spend time seeking for a qualified developer to design a website that will truly benefit an ICO.
Also, avoid using pre-made templates or WordPress while building a website. Websites that are created from the ground up are of superior quality.
Costs range from $6,000 to $36,000.
When developing a smart contract, it is advised that you use the ERC20 token standard. They may be transferred from one wallet address to another since they are compliant and simple to use.
The issue is that finding a good developer is difficult because the finest of them are usually already working on their own ICOs. Don't look for someone who can complete all of the work in a week. Even a seasoned programmer will require sufficient time to design a smart contract that meets all of the essential and secure requirements. His job include not only development, but also thorough examination of all aspects of the work in order to make it more user-friendly.
Examine the most important prerequisites for creating smart contracts quickly and easily.
At the moment, an experienced developer's hourly salary exceeds $100. It takes about two weeks to write the code, check all technical details, and test it using audits. His daily cost will be almost US$8,000 if he works 8 hours a day, 5 days a week.
The Program for Crowd-Sale Smart Contracts
The next stage is to develop a smart-contract application to manage the ICO and disseminate it to the appropriate audiences. This reveals any potential errors in the code and allows it to be rewritten correctly. The ICO's launch date and pricing are determined by the ICO's specific criteria and ideal attributes.
A developer's time is far more valuable when adding new functionality. As a result, if paying $100 per hour, the total cost of this contract will be around US$10,000.
Audits of security
Smart contracts must have a high level of security since they oversee the execution of currency transactions. The token will not attract contributors if it is unable to ensure security. A single blunder might result in significant losses that are irreversible.
Of course, it's difficult to be entirely certain of its security, but audits can reveal and rectify the contract's weak points.
A high-quality audit might cost up to $50,000 USD. The second option is to employ a professional for around $10,000.
Marketing is the art of conveying a storey about a project, and it has a lot of force and clout in the corporate world. The way an ICO is presented to investors has an impact on future collaboration and market trust. A well-thought-out marketing strategy and a well-paid ICO marketing cost can result in a respectable amount of internet activity that is targeted at the right people.
You can establish a well-designed ICO, but if no one knows about it, it will be worthless to others. As a result, be prepared to invest a significant amount of time, effort, and money into it. To ensure a successful ICO, provide something of value that sticks out from the crowd.
$100,000 – $300,000
Placing an ICO project on exchanges is another way to boost its popularity. The price ranges from $50,000 to $500,000 for this service.
In addition, send crucial information via email marketing, such as:
The ICO has been updated with additional features and capabilities.
Notifications about investments
Links to ICOs.
$100,000 to $550,000.
Management of the Community
The project's promotion in the media and through social media marketing is critical in establishing a positive image and announcing the team's success, expertise, and dependability. The ultimate goal is to build a community that will support the entire project rather than just the token and the profits it generates. A dedicated team is critical for the long-term success of an ICO.
Twitter, Instagram, YouTube, Google, and Facebook are all important channels for attracting clients and increasing your company's results. Tools like Mailchimp, for example, can send up to 2,000 emails and autoresponders for free.
Maintain positive customer relationships in order to develop a robust and effective client base for future collaboration. It costs around $5,000, but the benefits are more, including buzz marketing, which should not be overlooked.
Hire a community manager who will provide useful and relevant content for your ICO to make it more effective. The cost is around US$10 per hour, but consumers will receive critical information as a result. The cost is estimated to be around $400 per week or $2,000 per month.
For teamwork process improvement and governance, use communication services like Telegram and Slack. Meet to discuss current challenges and plans, as well as, of course, to collaborate with influencers. This will improve the overall results of your labour and result in a much larger profit.
Pay attention to the placement of useful press releases to spread a project among potential users.
Paid advertising that is well-planned is an important aspect of the marketing process. It is one of the methods for gaining market acceptance.
Determine your target audience to create a targeted advertising campaign. This will save money while also assisting in the identification of priority during distribution.
Determine which websites, such as social media sites and crypto-forums, your target demographic spends the most time. Create unique adverts to promote it to individuals who are interested.
Cost: $50,000 a month for the entire team, plus $50,000 for bought advertisements.
Fees for Legal Services
Before launching an ICO, it's critical to ensure that the legal prerequisites are in place. Create custom software and represent the ICO as a legal entity. Include compliance and disclaimers, as well as terms and conditions and waivers. This will give it credibility in the eyes of your customers. Legal counsel will safeguard the project and lend credibility to the ICO. This will protect investors from any type of fraud.
$50,000 to $150,000.
Don't forget to look at examples of popular ICOs that have launched a successful ICO campaign for inspiration on how to best prepare your ICO's running processes. Also, get in touch with Cryptoauxiliary to create the ICO of your dreams, complete with all desirable features.
To summarise, the total cost of launching an ICO ranges between $350,000 and $1,000,000. It depends on the ICO's characteristics, the developers' level of professionalism, and, of course, the number of investors.
Ensure that resources are managed objectively. Don't be remorseful about spending a lot of money on critical expertise; it was well worth it. And, of course, keep in mind that a truly valuable project will receive more feedback than one that hasn't been thoroughly thought out.