This year, besides the pandemic and crypto, one of the most trending headlines is NFTs. Everyone is talking about NFTs, some plan to launch their own, while others identify themselves as collectors. Despite these differences, the bottomline for both groups is to make money out of this new interesting endeavor.
If you’re an aspiring content creator or digital media artist, the NFT space presents a huge opportunity to earn a decent income from your work. But what are the ropes of monetizing NFTs? How exactly can you get to the level of Beeple’s $69 million and recently, Murat Pak’s whopping 91.8 million sales?
Read on to find out!
Create Expedient NFT Collections
Of course, the widely accepted strategy for monetizing NFTs is creating art pieces that give collectors a run for their money. In other words, you want to come up with projects that give confidence to collectors willing to invest in them. It’s worth noting that creating admirable NFT masterpieces go beyond appealing designs, patterns, and sketches. It will help if you also focus on the underlying utilities for that particular NFTs.
In that case, ask yourself what a typical collector wants to experience before embarking on minting the collection. For instance, do they want exclusive access to my other collections? Do they want to use my NFT avatar as a skin in online video games? Providing these values puts you in a better position to monetize your NFTs for maximum gains.
Scarcity Will Earn You More
Collectors classify general pieces of art in three levels, whether traditional or NFTs. These levels include common, unique, and ultra-rare. Typically, unique and ultra-rare pieces sell for higher prices than common NFTs. That, creating a scarcity of your NFT collections is a lucrative approach to monetization.
But what are the basic features of a scarce NFT? First, you’ll need limited runs, probably ten or less over a certain period to maintain a hard cap on the collection’s supply. This assures investors that they are getting something extraordinary that is worth every penny on the price tag. Besides that, you can create artificial scarcity through price variations, especially if you are a renowned artist with a huge following.
Alternatively, you can mint NFTs to exclusive collectors and communities. But that means asking for higher prices because the collection won’t probably make it to a public auction marketplace.
Take Advantage of NFT Royalties
Typically, selling a traditional piece of art means the artist relinquishing their ownership rights to collectors. However, that is not the case with NFTs, thanks to blockchain technology. Blockchain maintains an immutable record of all NFT transactions and ownerships, allowing artists to benefit from royalties perpetually. In other words, you’ll still earn a percentage every time your NFT masterpiece sells or exchanges hands, whether it’s a decade or twenty years from now.
While some platforms automate royalty percentages, SpaceSeven allows artists to set their own rates. That said, set a royalty percentage that matches your NFT’s value to earn passively even when it’s not in your possession.
Another lucrative approach for monetizing NFTs is through fractionalization. You can leverage free online tools to subdivide your NFTs into fractionalized pieces, allowing multiple collectors to own a part of it at the same time. This makes the NFT masterpiece available to both novice and experienced collectors, driving its popularity. And as you already know, the more popular your NFT is, the more the internet buzz, as well as its value.
An excellent example of a fractionalized NFT is the Doge meme, which fetched nearly $4 million back in 2021. The new owner, PleasrDAO, then subdivided the NFT into billions of ERC-20 tokens, bringing the entire collection’s value to nearly $302 million. Just like PleasrDAO, you can also fractionalize your masterpiece collection into ERC-20 tokens and watch its value grow over time, especially when many users leverage the tokens for DeFi use cases.
Flip Your Collectibles
Generally, artists are collectors too, and they tend to amass more pieces of art than many enthusiasts. If you’re like-minded, capitalizing on flipping sounds like a good strategy for monetizing NFTs. Start by joining discussions in active NFT communities to learn about upcoming projects.
However, spotting the right NFT with the potential of earning you up to 10-fold profits when flipped in the future can be pretty daunting. There is no standard procedure that points you in the right direction. It is more of an art than a calculated move. Besides hope and faith, watch out for use cases and utilities that make an NFT collection valuable. And who knows, you may get some free airdrops and sell the tokens for millions of dollars, just like CryptoPunks.
Market and Promote Your Work
User-centric marketplaces can help redirect traffic from their social media sites to your NFT collections. However, that might not give you the maximum exposure. It will help if you promote your masterpieces via personal social media channels too. Do research to determine where the majority of your audience is and leverage relevant hashtags to reach them.
Alternatively, you can join other NFT community forums on Telegram and Discord to engage potential collectors directly. Many investors are always looking for new NFT investment opportunities to hope on but want you to find them first or find someone to market them with NFT marketing jobs at niftyjobs.com
Choose the Right Platform
The kind of platform that you opt for as an NFT artist determines whether collectors will find your work. That said, go with an innovative marketplace, such as SpaceSeven and leverage the platform’s algorithm, which will push your work automatically. Moreover, collectors will likely buy from trusted platforms with an outstanding reputation.
You also need a platform that allows you to control your prices and royalty percentages for maximum gains. That way, you can always earn your NFT’s true value.