June 15, 2023

What NFTs will make me money?

Learn about the potential of NFTs to generate income and the various options available to creators with Mintstars. Discover how to make the most of this exciting new technology.

Fraser Bell

Welcome to our introduction to NFTs and how they can make you money!

If you're new to the space and interested in learning about the potential of NFTs, you've come to the right place. In this blog, we'll explore how NFTs can generate revenue and provide some tips for beginners looking to get started. If you’re a content creator curious about NFTs, check out MintStars and feel free to contact us!

How does an NFT make money?

You can either make money from NFTs by creating your own collection which you sell to NFT buyers or by buying and selling existing NFTs for a profit.

As a creator, people might buy your NFTs because:

  • They like the artwork your NFT represents
  • To be part of a community of other fans and buyers
  • To show support for you or your brand
  • To unlock exclusive benefits offered to buyers
  • In the hope that they can resell the NFT for more money at a later date.

Huge brands like Adidas, Porsche, and the NFL have all launched a number of NFT collections for this reason. Individual celebrities like Paris Hilton, Snoop Dogg, Tony Hawk, and Travis Scott have also sold NFTs. These have attracted eye catching prices - Emily Ratajkowski sold a single image of herself as an NFT for $175,000 in 2021. In many cases, buying the brand or celebrity's NFT gives access to exclusive merchandise, events, online forums and content. In the NFT world, these benefits are typically referred to as “utility.”

Investing in this type of NFT can be seen as speculating on the future popularity of the NFT, the celebrity or the brand, as well as the desirability of the benefits being offered to NFT buyers.

NFTs can also represent ownership of physical assets, such as real estate, high-value sneakers or artwork. In this case, the NFT is simply the digital certificate of ownership for the real-life asset, with the record stored on the blockchain. When an NFT represents this type of asset, buying or selling the NFT to try and make money is a way of speculating on the value of the physical asset.

How do beginners make money with NFTs?

Making money with NFTs takes time. However, one of the key pillars of success for artists, influencers and creatives to consider is community. Those with an existing strong following, or who are able to build one are best positioned to make money selling NFTs. The reason is intertwined with why people buy NFTs in the first place: If buyers feel they are receiving access to a club of other members who share a common interest - whether that’s admiration for an individual, a visual identity, artwork or something else - they are much more likely to spend money on the NFT. Since NFTs exist solely online, the value and status they give are typically predominantly experienced online.

What does this mean for creators?

Think about what you could create that would appeal to your audience or potential audience. Does it appeal to their aesthetic tastes? Does it appeal to their desire to support you, a specific cause, or others in your audience?

Once you have your content (and any utility you wish to offer), you can start thinking about how to promote your NFT.

Social media is a natural starting point, with Twitter the most popular platform for promoting and discovering NFTs. Most existing NFT buyers have a presence on Twitter, but platforms like Reddit, Instagram and TikTok can all be part of an NFT marketing strategy

How do you create NFTs?

Creating an NFT involves publishing it to the blockchain. This process is called “minting”. To mint and sell your NFTs, you can choose between 3 types of platforms:

  • Open platforms - such as OpenSea - allow anyone to mint and sell almost anything
  • Vertical-specific platforms - such as The Dematerialised for fashion - specialize in NFTs that appeal to certain types of buyers and include features tailored to appeal to this audience
  • Platforms that incorporate specific utilities - such as MintStars - enable creators to make NFTs that have particular functionality. In MintStars’ case, owning an NFT from a creator allows you to view the content it represents, such as an exclusive video.

Every platform has its own limitations and fees, although in general, they don’t require upfront investment to use. All you need to get up and running is content that is appropriate and desirable for buyers to spend money on!

Can you make money minting NFTs?

  • Minting NFTs can be a lucrative way to make money in the digital art world.
  • Some popular platforms for minting NFTs include OpenSea, Rarible, and SuperRare.
  • However, it's important to keep in mind that there are costs associated with minting NFTs, such as gas fees and platform fees.
  • It's also important to carefully consider the value of your artwork and the demand for NFTs in the current market before investing time and money into minting them.

Earlier we shared some examples of brands and celebrities that have made money minting NFTs. However, it’s not necessary to already be a household name to start making money off NFTs. As mentioned, most platforms allow you to create NFTs for free and have helpful guides on how to get started. OpenSea, Rarible and SuperRare have helped thousands of artists get started selling digital artwork.

The beauty of NFTs is that you as the creator are in control of how many NFTs you sell. While celebrities and influencers with large audiences may try to sell collections of tens of thousands of NFTs, you can start with 1-of-1s or other low quantities. You can also price your NFTs at any price you want, making them more accessible or exclusive depending on your audience.

A crucial element to selling NFTs (or an NFT “drop”) is the promotion of the sale in the build-up to making the NFTs available for buyers. The idea is to create excitement and expectation in advance of the drop so that when the NFTs go on sale, they are quickly snapped up by your audience.

In conclusion, while creating and promoting NFTs requires creativity and planning, there is little risk in giving them a try. There is also potential to make money from NFTs and build your reputation as a creator.

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