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How do NFT Creators Make Money?
NFT creators are a diverse bunch of folks and there’s now more interest than ever in becoming an NFT creator after the hype surrounding NFTs selling for millions of dollars apiece. With NFTs becoming a new and exciting way to earn a living, it’s still a mystery to many how exactly NFT creators make money on their NFTs. We’ll outline the ways that NFT creators make money in this article so read on!
Intro: NFT Creators
NFT creators are a diverse bunch of folks and there’s now more interest than ever in becoming an NFT creator after the hype surrounding NFTs selling for millions of dollars apiece.
With NFTs becoming a new and exciting way to earn a living, it’s still a mystery to many how exactly NFT creators make money on their NFTs. We’ll outline the ways that NFT creators make money in this article so read on!
How do NFT Creators Make Money?
1. NFT creators make money every time they sell their NFTs.
NFT creators do not have to be artists, which is a common misconception. There are many software tools now available to help creators produce and mint their own NFTs, and then to list them for sale on popular NFT marketplaces.
For example, Metacommerce’s Studio allows you to create your own NFT collection for free [link to the Studio page]. Every time an NFT is purchased, the NFT creator receives a portion of the sale price and on any subsequent sales of that NFT, which essentially acts like a royalty in perpetuity that benefits the NFT creator. Typical royalty percentages range from 5% to 15%.
2. NFT creators can sell NFTs as a membership pass to a specific community.
NFTs don’t have to be used just for art. Utility for NFTs is also an important factor in why consumers are interested in purchasing a specific NFT. An NFT can act as a membership pass that gives access to an exclusive community.
The Bored Ape Yacht Club NFT is a notable example of an NFT project that provides membership utility. Since NFTs can’t be copied or altered, they are ideal in verifying that the holder is a member of the community.
NFTs also provide an additional value to their holders. Even after a membership program ends and thus the utility ends, holders will still own that NFT, which could have inherent value even without a membership program.
3. NFT creators can sell NFTs as exclusive access tokens.
NFTs can provide access to exclusive events, lessons and opportunities. This utility is different from a membership program because NFTs that act as access tokens have a more limited scope.
For example, an NFT creator might want to sell an NFT as an access token to a 1:1 meeting with themselves. If the NFT creator already has an established fan group, this type of opportunity could be lucrative and highly desirable.
The VeeFriends NFT project was launched in 2021 with some NFTs giving their holders the opportunity to have breakfast with Gary Vee, the creator of this project.
These NFTs were more valuable than other NFTs in this project due to this additional utility, and thus have a higher resale value that leads to more royalty payments to the NFT creator.
4. NFT creators make money from brand deals and sponsorships
Similar to web2 influencers, brand deals and promotions are also an avenue for NFT creators to make money. A large company may want to collaborate with an NFT project in order to use your reputation and audience to promote their brand.
This avenue for making money is most available to NFT projects that have a large community.
An example of a collaboration between a NFT project and a brand is Tiffany & Co.’s collaboration with CryptoPunks in August 2022, which sold custom jewelry pieces to CryptoPunk holders at $50,000 each and sold out in less than 30 minutes.
How can you become an NFT Creator?
The great news is that you do not need to have a coding background or know how to code in Solidity to become an NFT creator and to make your own NFT collection!
Metacommerce’s Studio allows you to create your own NFT collection for free. Our platform makes it easy to become an NFT creator today so why not create your own NFT project?
How can you become an NFT Creator Successfully?
1. Have patience!
Rome wasn’t built in a day and not every NFT project will be an overnight hit. Even some of the largest NFT projects took time to sell out and some were even given away for free (i.e. CryptoPunks in 2017). The good news is that it’s never been easier to create your own NFT collection without needing to write a line of code, such as through Metacommerce’s Studio platform. You may have to create a few NFT projects before you find one that finds strong community support.
2. Use a trusted platform to create and sell your NFT project.
The NFT and crypto landscape is quickly evolving, both in the technology and the culture. There are many scams that target unsuspecting NFT enthusiasts. It’s important to choose to create your NFTs using a platform that you can trust to avoid running into technical problems with your NFT and its smart contract in the future.
3. Don’t forget to have fun with the process (aka. WAGMI 😊)
With all the talk about money, it’s easy to forget that NFTs are an exciting new space that needs your creativity and new ideas! Whether you make $200 or $200,000 on your first (second, third, fourth…) NFT project, remember that ultimately NFTs are about the community and the human-to-human connection of being in it together. Curious about the ethos behind WAGMI?
Closing
It’s never been a more exciting time for anyone who’s interested in becoming an NFT creator. It’s also never been easier or cheaper to create your own NFT project without having to code or pay thousands to a developer. If you have an interest in NFTs and an idea for your own NFT project, why not get started for free today?