MIP40c3-SP9: Strategic Marcomms Core Unit Budget

MIP40c2-SP9: Strategic Marcomms Core Unit Budget

Preamble

MIP40c2-SP9
Author(s): Kathleen Chu
Status: RFC
Date Applied: 2021-03-25
Date Ratified: <yyyy-mm-dd>

Motivation

The Strategic Marcomms unit, formed by a team of experienced professionals, plays a vital role in representing the MakerDAO brand in the eyes of potential users and partners.

The complexity of the products and undefined regulatory frameworks in major jurisdictions in the cryptocurrency sector means the team has to be diligent communicators capable of executing marketing plans while being mindful of the potential concerns of users and regulators.

I am proposing this budget to take the groundwork built by the foundation and drive it forward. My unit ensures MakerDAO reaches its full potential by tapping into new markets and boosting visibility in existing ones. We will be the face of MakerDAO for new users and partners.

My team consists of diverse individuals who are multilingual. Their international background and level of experience inject strength and brings value to the team. That diversity is essential as we present Dai as an unbiased currency, and position MakerDAO as a way to unlock financial freedom for anyone, anywhere.

The stablecoin market with a $60 billion market cap has surged exponentially in the past year, where Dai accounts for 5 percent of the market share. The team will target this addressable market and new growth markets while collaborating with other units in reaching the common goal of bringing Dai to the level of mass adoption.

Core Unit Name

Strategic Marcomms

Budget Composition

On average, marketing budgets account for about 10 percent of a company’s revenue. Together with the PR communications, they function as revenue drivers.

The proposed budget is based on industry data and estimates made after consulting with experts and service providers in finance, accounting, legal, marketing, and PR. The budget encompasses key areas of coverage, and some initiatives such as outreach programs are scheduled to be activated in the second and third quarters.

The budget is about 6.6 percent of the Maker protocol’s revenue (based on estimates from the first two months of the year), below the 10 percent average. The below-average estimate is made regardless of additional costs unique to MakerDAO units, such as legal consultation and the team’s operation cost. A lower than average budget shows that the unit is ambitious, ready to execute its plan, and simultaneously realistic of what can be achieved in one year.

Budget Breakdown

People:
This budget ensures that MakerDAO attracts and retains creative and diligent professionals to reach new markets and users. The estimates are within the compensation range in reports published by major HR consulting agencies based on job levels and experience.

The table below gives an overview of the number of people that plan to join the unit, and the number of people we need to hire.

  • Marketing includes consultants focusing on marketing, events, and community building.
  • PR & Communications includes media outreach, PR agency management, and content.
  • We plan to add eight more people to fill out marketing-related roles such as SEO, email and social media marketing channels, and outreach. We aim to fill these roles by the first quarter with help from recruiters.
People Current To hire
Facilitator 1
PR & Communications 2 2
Marketing 2 6

Marketing & PR:
This budget covers upcoming marketing campaigns, advertising, and cost for hiring PR agencies in locations we identify as top markets that can provide relatively high ROI. It also includes joint campaigns with potential partners in major markets such as the U.S, Japan, EU regions. The budget also ensures we sponsor the most significant events and host educational and exciting events for potential users. We see potential in the metaverse and aim to explore opportunities in the virtual space.

The budget also includes content that is educational, relatable, easy for potential users to read while further strengthening our already-established position in the DeFi and Web 3 space. The content will be in the form of blog posts and audios.

Outreach Programs:
This budget includes the initiatives listed below that are aimed at reaching out to new audiences.

  • Ambassador program
  • Community management
  • Translation
  • PR outreach (Podcast and Clubhouse)

Administration:
This budget is for daily operation, accounting, IT subscriptions, and recruitment so the unit can focus on fulfilling their mandate. It also includes traveling for the team on speaking engagement post COVID.

Legal & Consultation:
This budget ensures the unit has a global legal counsel on retainer, in addition to hiring counsels for crucial jurisdictions such as the U.S., Japan, and the EU.

Incentives:
A 20 percent is added to the category of People to provide an incentive for the team members to achieve their deliverables. The unit is interested in MKR vesting being discussed by the community. We support such a framework and await the outcome of MKR-related discussions for MakerDAO units. We may change our incentive structure accordingly after the governance community reaches its conclusion.

Categories Annual Budget (DAI) % to Total
People 1,436,400 38.81%
Marketing & PR 1,546,000 41.77%
Outreach Programs 266,000 7.19%
Administration 272,644 7.37%
Legal & Consultation 180,000 4.86%
Quarterly 925,261
Total Annually 3,701,044
(6.3% of estimated revenue)

Budget Implementation

There are costs associated with setting up the unit such as prepayment, legal advice, one-time deposit, and bank account. We ask for an advancement of the funding prior to the starting date to cover costs needed. An annual budget brings monthly cost to 308,420 DAI.

Budget implementation: Simple

Advancement: 100,000 DAI

First month: 208,420 DAI

Second and third month: 308,420 DAI each

Asset type: DAI

Payment Frequency: First day of each month

Strategic Marcomms Core Unit
Facilitator Onboarding

9 Likes

Could you provide more details on how the 1,436,400 will be paid out across the 13 employees?

What subscriptions and accounting software are you running that requires a 272k budget?

5 Likes

@Kathleen

Just following up on my inquiry.

1 Like

Hi Zarevok. There are some changes as we build the team, and the budget will need to be modified.

On People, the team members are hired as contractors, given that we are just starting. Contractors usually cost 20% more than the estimated range of salary. That comes down to 1.19 million DAI. Then, I included 20% as incentives if we reach our key results, bringing the total to 1.4 million.

The 272k budget on admin-related cost includes the cost of setting up a company, accounting reporting, gas fee, wire transfer, auditor, travel expense, and recruiting fee.

Half of the group were confirmed at the time of the estimate, and half weren’t. Therefore, I included 30% on the estimated salary for the cost of hiring a recruiter for the rest of the team because I would like to get everything started as soon as we launch.

1 Like