Headline: How to develop a market to sell your own NFTs
Date:
Body: OK, we have approached all manner of subjects related to NFTs and cryptocurrency. One thing we haven’t touched on is, when you have an NFT, how do you go about creating a market for it.
OK, first the basics…
Cryptocurrencies and NFTs have to be thought about differently. Cryptocurrencies are securities since they are fungible and almost fantastically divisible. NFTs are unique and are therefore non-fungible. They are also (ostensibly) not divisible, though there are some investment pools that seem to belie this attribute.
What gives the NFT its value?
The feeling of owning a unique thing is the basic draw for investors. The value of the NFT also seems to have some part in loss of anonymity. When you purchase, say, one of the bored apes, you often use this image as your online avatar, and it becomes, in part, a piece of your identity. It is an incredibly personal decision, and this is where you can get into trouble. If you do want to sell it eventually, if some people admire it as much as you did, then you might make a handsome profit by selling the image. On the other hand, if it now seems inappropriate to many people, you might have trouble selling it at all.
Case in point is the artist named Beeple. He created an NFT, and then sold it at Christie’s Auction House for $69 Million. Truly, this was a record-breaking sale. But, this is not a one-off. By November of 2021, that year alone, over $10 Billion of NFTs had been sold online.
How do you market an NFT?
Most people would just “mint” their NFP into the OpenSea site, and then try to sell it. But to really get the opportunity for a nice sales price, you need to market the image through social media influencers and the like. Make sure that they “talk up” the value being sold. It is also important (if possible) to get experts to blog about it, and write articles in e-zines.
Just as in other types of marketing, the secret is really in developing and nurturing relationships. Perhaps you have a handful of wealthy people who are really into digital art, and you also have relationships with several businesses that might like to invest in digital media. Both of these groups would be important to notify before an important sale (of your NFT.)
What are some channels to consider?
Social media advertising is nice because, people who are exactly there, have chosen to be exactly there, and are therefore prepared for your information, and prepared to perhaps make an associated purchase. Good old-fashioned Public Relations is good to promote your NFT and to promote you as an expert who would know the unique value of the token. Display advertising through Google and others is a great method to find qualified prospects who might bid on your NFT. You pay per 1,000 impressions, so, you can be really careful with our marketing budget. Finally, Email marketing can be one of the most targeted and important marketing types. It is important because when building your own email list, these individuals have affirmatively chosen to get updates from you. So, you are really preaching to a choir already committed to listen to you. (In fact, some businesses have found out that each dollar invested in email
Just as an example, Coach has some animal characters they use in their ads. They have made NFTs of these animals with a promise that if you purchase one, you will also receive a unique customized Coach bag. This is a very effective way to re-enforce the feeling of exclusivity, which is so central to their brand.
So, what’s REALLY involved in creating an NFT?
The real promise: NFTs as the basis for a multifaceted digital consumer connection. Take the bored ape yacht club for instance. When you purchase an ape, you are purchasing an avatar for your use in online activities. But, you are also purchasing entrée into special parties and offers only for those who have apes. You are also making a contribution to preservation of ape habitat. In all these things, you are publicly defining yourself in a manner in which the metaverse of your choice will hopefully value your contribution highly. When you strip away all of the other things, NFTs are really there to drive engagement with the brand. It might be the brand of “be a nice guy” or it might be the brand of “I only shop for and purchase the BEST! Companies desperately want to get this conversation started now, and the want it to point in their positive direction.
| Step | Comment |
| Pick your item. | Make sure that you have all ownership rights. |
| Select your blockchain. | Usually Ethereum is recommended. |
| Setup your digital wallet. | Usually at Coinbase or other trusted site. Using MetaMask wallet is usually OK too. |
| Select your marketplace | OpenSea is usually seen as the best regulated. |
| Upload your file | There are usually excellent instructions on how to mint your own NFT creations. |
| Set up the sales process. | The particular NFT exchange you choose will likely have a couple of different auction-like mechanisms for price discovery. Based upon your NFT, make your choice. |
The Verdict
NFTs are here to stay. They will only continue to multiply and they will probably morph from simple pictures and video images into 3-D pictures and beyond. Your NFT will become your online identity and perhaps serve a few functions within the offline world too. This is not a passing fad like Beanie Babies, but it is challenging. The challenge comes in finding art (or music or whatever) will continue to be relevant for a long time after it has been minted. BAYC really bit hard into a complex of feelings shared by so many people; The search for identity, the search for something fulfilling to do with our lives, the search for other searchers. They hit a homerun, there is no debate. The real debate is whether or not somebody equally creative can tap into something so fundamental too. If so, then you have an NFT that is really worth something.
REFERENCES
https://www.entrepreneur.com/article/417186
https://hbr.org/2022/02/how-your-brand-should-use-nfts
Editor’s Note: Please note that the information contained herein is meant only for general education: This should not be construed as Tax Advice. Personal attributes could make a material difference in the advice given, so, before taking action, please consult your tax advisor or CPA.