How to Monetize NFTs in 5 Steps?
NFTs

How to Monetize NFTs in 5 Steps?

NFTs are an excellent way of making huge amounts of money. But how can you do it? When you mint an NFT, the work doesn’t end here. You may have the most exciting artwork in your hand or you may have created the most pleasant music record. However, if you do not tell the world about it, how can you expect your piece of art to get the popularity and worth that it deserves? You may be certain that the admirers of your art would definitely want to possess the rights to the ownership of your work. But as you know, only the famed NFTs get bought for millions of dollars. So how can you create the buzz around your product and make everyone want to own it? Let’s first know what NFTs are and how to monetize NFTs.

What are NFTs?

NFTs are digital assets representing physical objects like artworks, real estate, music records, and so on. Each NFT is unique and is identified by metadata which can not be possessed by any other NFT. In addition to this, there can not be more than one owner of an NFT at one time. NFTs are stored over blockchains and all the transactions are recorded over the blockchains.

How to Monetize NFTs in 5 Steps?

Here are 5 simple steps that you should follow while monetizing your NFTs.

Make a Crypto Wallet

Creating a crypto wallet should be the first thing on your to-do list after minting your NFT. It is because not having a crypto wallet is like not having a bank account to receive payment for your products and services. Since most of the NFTs are bought using cryptocurrencies like Ethereum, it is important for you to have a crypto wallet to receive and store your digital funds.

If you plan to convert the cryptocurrency into fiat money, you still need to have a crypto wallet to store the cryptocurrency in the first place. So if you want to sell your NFTs, you should have a crypto wallet that can easily be downloaded and installed on compatible devices. Set up your crypto wallet and you will be all set to receive digital payments for your NFTs.

Choose a Marketplace: How to Monetize NFTs?

Now you have your product to sell and a wallet to store your earnings. But how are you going to earn without having a marketplace to sell your product? You need to have a single marketplace to sell your NFT. It is because if your product is present for sale in more than one market, this can confuse your prospective buyers and dilute the originality of your product. The buyers must know why a given NFT is available only in this market and not the other one. In addition to this, if you want to sell your NFT for maximum profits, you have to be a smart creator. This means that you must choose a marketplace where you can create the product at a low cost but sell it at high prices. When you find such a marketplace, pick that up and start selling.

Promote on Your Social Media: How to Monetize NFTs?

You can pay anyone and get the job done for you. But you can never be sure that they put in all their efforts to ensure the success of the job. The same goes for promotions as well. There are plenty of companies offering social media promotional services. However, nothing can beat the power of self-promotion on social media. If you don’t talk about your product, who else will? So, to make your NFT, a hot-selling commodity, you must promote it over various social media platforms. Let people know about your NFT, what it is about, how it is different from your competitors, and where they can buy your NFT. The more you talk about your brand, the more interest and further conversions you will gain.

Create Scarcity: How to Monetize NFTs?

We often come across instances where buyers become all the more interested in buying a product, especially when the supply is low. Creating scarcity around your product is one of the best ways to make buyers want to buy your product. It is because scarcity around a product makes people question what is so interesting about this product that it is so much in demand.

So, if your NFT is scarce, the demand will be more. Additionally, this may also increase the value of your NFT. Now you can create scarcity for your NFT in two ways, one by setting a cap on its supply and the other by releasing your NFTs in different levels of tiers. Let’s understand this by an example. If you are setting a cap for your NFT by making it available for buyers only five times, more people will be wanting to buy it and hence, be ready to pay any price for it.

Secondly, you can release NFTs in batches having different quality levels and other features. You can create a unique batch of exclusive items. The main idea is to create different tiers of your NFTs in such a way that the buyers desire the highest levels.

Creating Merchandise

If you are not selling the copyrights of your digital work along with the NFT, you can still reproduce your work. It means that you own the right to merch your work which is represented by the NFT. However, if you sell the copyrights along with the NFT, then you are not allowed to create copies of your work.

So if there is some artwork that you are extremely proud of and you know that it is popular, it is best to reserve the copyrights. This way, you get to sell your exclusive artwork at high prices while retaining the rights to reproduce the work or use it to create merchandise and earn more. For example, if you have a digital art design, you can mint an NFT and sell it. Furthermore, you can use this art to design t-shirts, handbags, tattoos, posters, and so on.

Ways to Make Money from NFTs

Here are 5 fun ways to make money from NFTs.

By Renting the Highly-Demanded NFTs

If you have an NFT whose demand is very high, you can earn a lot of passive income by renting them out. There are people who want to borrow NFT game cards to improve their chance of winning in the game. In such cases, the agreement between the borrower and renter is defined by smart contracts. So the renter can decide the duration of the rental agreement and the other details of interest of both the parties.

By Staking the NFTs: How to Monetize NFTs?

Staking is the process of depositing your digital assets like NFTs in a decentralized finance protocol to produce some yield. There are a number of platforms that allow NFT holders to stake their NFTs and earn rewards.

Providing Liquidity

In a given liquidity pool, if you are willing to provide liquidity, you can earn NFTs as rewards. The earned NFT contains your information about the deposited tokens, the symbols on the tokens, and the pool address where you provided liquidity.

By Adopting Yield Farming: How to Monetize NFTs?

Yield farming is a method of generating the highest amount of yield by leveraging the various decentralized finance protocols using the digital assets that you have. For example, if you have a pre-owned NFT or have earned an NFT by providing liquidity in a pool, you can stake the NFTs in yield generating protocols to earn more yields.

Licensed Collectables and Video Games: How to Monetize NFTs?

Converting physical collectibles into digital form is one of the most popular uses of NFT technology. NFTs have a rarity which is great for selling digital collectibles at a higher price. Another interesting way of making money through NFTs is to create NFTs of in-game objects. The video-gaming enthusiasts are already spending large amounts of money on buying virtual avatars and weapons. If you create NFTs for these items, you can earn a lot of money through NFTs.

Conclusion

If you are a digital creator and would like to create popularity around your brand while earning lots of money, NFTs can open several doors for you. The absence of intermediaries in blockchain technology that stores NFTs helps you connect with your audience directly and build trust among them. The best part is that you can create NFTs with ease and monetize them in five simple steps. What are you waiting for? Start experimenting with this exciting marketplace and sell your buzzworthy commodities.

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