Let's look at the opposite side of sales and figure out how much the start of your own ICO will cost.
Many entrepreneurs still regard ICO as an easy way to finance their blockchain initiatives, despite the blows they are facing today. The success of your ICO depends on several aspects, not all of which can be directly impacted. However, adequate preparation can limit certain dangers and long-term boost total benefits.
So, finally, you are ready to transform your idea into a true crypto project. How much ICO do you need?
ICO launch's basic needs
There's some planning to do before you put your money on the table.
You need to identify people after you have developed your idea who will support your initiative by sharing their time and resources. Those with the right skills in the appropriate fields you would not be your biggest partners. The same applies to your teams, advisers and ambassadors throughout subsequent development stages.
At least hiring personnel, technological development, legal support, marketing, PR, and investor relations are all the whole costs to be covered.
But let's just go to the stats.
How thick should your wallet be?
There is no saying how much it would cost you to launch the ICO. You can become lucky and very prosperous after only $200k has been spent. Or you can put over 1 million dollars into the project and barely return any money.
However, experts generally agree on some range of expenditure at the individual level of each phase.
Before talking about technology, there is no purpose in solving any other issue. It is the core of every crypto-related project and it should first be charged.
So it is quite fascinating to know that sometimes in the ICO they aren't the biggest. It is customary to spend exclusively on technology for the margin of $25,000-$100,000. This cost includes developing the token sales platform, the KYC system, etc.
In any legal framework around the world, ICO still doesn't have a defined status. To this day, the crypto rules are rapidly evolving. Establish your business, improve your technology, create good token documents and more – everything leads to the rough path.
So you need a staff that can navigate and adjust the always shifting conditions. It makes the legal staff one of the ICO's biggest expenses. The lowest appropriate amount you're going to pay for a more or less protected project is about $50,000, but spending $100,000–$200,000 for legal coverage alone is often acceptable.
Note: you can certainly locate a team for up to $20k, but if you want to ensure that your project survives as a first difficult hit, you should be prepared to boost legal support fees.
The White Book
One of the most important requirements of every ICO is its White Paper. It is a complex document that should properly describe all the elements of the blockchain project and its practical use in an understandable way to potential investors. This is the technique to make the first impressions — and perhaps only —.
A lot of estimations are available, but in a realistic range of $5,000 — $10,000, but spending up to $15,000 alone on white paper is not uncommon. The pricing depends on many things, including: the complexity of your ICO project, the technical writer's qualifications and the length of your project.
Note: a crucial portion of your image is your white paper. Don't minimise these expenses to much, so your potential investors won't wind up with bad quality documents at the first site.
Today, an appealing and user-friendly website is vital for any company. Naturally, you may go through with a somewhat simple site and spend only $5,000 on it. But blockchain projects frequently require more advanced resources, which do not have ordinary business features and tools.
Developing an ICO website often costs between $10,000 and $20,000 depending on your needs.
Note: although it is not a problem to construct a website on its own in modern circumstances — there are many tools that allow you to accomplish this with just diving into the code — you'd rather have a professional web designer and web designer. They have the required abilities and would focus just on building the best site possible, allowing you and your colleagues to become more urgent.
Because the whole blockchain sector is online, the safety issue is extremely important. The cost of linked development and activities is usually within $30,000 — a margin of $50,000.
Publications & Marketing
ICO depends heavily on its community and its audience's reach. There is therefore no surprise that overall marketing costs in ICO budgets are among the highest. But to be fair, a lot more work needs to be done:
· Different media publications;
· Search and marketing with payment;
· SMM and management of the community;
· Participation in conferences and events.
Given all of this, the ICO project could cost between $40,000 and $400,000 for all key promotional channels.
Team, consultants, ambassadors
Each ICO needs its teams to have professionals. It is also sensible to hire consultants and ambassadors in various locations to contribute to development and PR. The expenses here range greatly from $80,000 to more over $200,000, depending on countries and other considerations.
So what did we learn?
There's always a way to spend more money, like in any other business. And you can always do as much work as you can — perhaps all of it. However, the question always concerns the combination of excellent quality and common sense.
The most prevalent statistics imply that the cheapest price for your successful ICO launch is approximately 250,000 dollars — 300,000 dollars. And if you want to feel as safe and secure as possible and yet generate a bit of money from your idea, you may invest roughly $1,000,000 or more, depending on the particular characteristics of your blockchain enterprise.