Pre-sale is a process or a set of activities/sales normally carried out before a customer is acquired, though sometimes presales also extends into the period the product or service is delivered to the customer. The sale of service or goods before its release date generally has a discount rate greater than 50%, this is done as the producer wants to assess the market’s willingness to pay and buy the product due to the risk factor being very high.
ICO Pre-sale or also known as Pre-ICO, is the token sale event that Blockchain enterprises run before the official crowdsale or ICO campaign goes live. The fund-raising targets for Pre-ICOs are often lower as compared to that of the main ICO and tokens are usually sold cheaper.
For the purposes of prudence, Pre-ICOs ideally make use of separate smart contracts from the main ICO event – This is informed by the need to avoid a mixture of Pre-ICO funds with the main ICO to enable proper and easy account reconciliation and audit.
Some projects run Pre-ICOs as a way to accrue funds to cater for the expenses incurred on the way to launching the main ICO. Some of the expenses include paid promo ads, strategic recruitment and meet-up costs to help whip up investor interests.