At first glance, non-fungible tokens (NFTs) might seem like a strange fad where young and overly-wealthy individuals throw money into a digital fire, never to be seen again. The concept began in 2014, but it has only gained traction since 2021. In that short amount of time, wealth opportunities with NFTs have gone from being a laughable gimmick to a genuine source of value.
And it’s not just eccentric free spirits and ignorant teenagers who are getting involved. Respected art collectors and celebrities alike invest millions of dollars into NFT assets. In addition, artists and content creators have found a new, lucrative source of income by selling their creations through this format. And as the demand for online wealth opportunities increases, it is likely NFT sales by individuals will only continue to grow.
With increasing wealth opportunities using NFTs, innovation has arisen. Here are a few ways NFTs are emerging as profitable ventures for both investors and creators alike.
The initial sale of an NFT involves a fair amount of expenses for the seller. There are fees to “mint” the NFT and get it certified and ready to sell via blockchain. In addition, there are gas fees, which are essentially transaction fees for using the Ethereum blockchain, and fees owed to the NFT marketplace. So it stands to reason that a creator has one shot at making a profitable sale on their NFT. Or they could run the risk of losing money on the endeavor. The biggest sale for the NFT creator will likely be the initial one. Still, there are significant financial benefits of the NFT resale, or secondary, market for buyers and sellers.
Firstly, there is no mint fee if a buyer decides to resell an NFT later. This is because the originally-obtained certificate is valid for the life of the NFT. Secondly, the original seller can receive additional income if they include royalty options in terms of the sale. This can provide wealth opportunities, especially if the NFT value increases significantly after the initial sale.
For example, a 12-year-old in England recently was able to sell his NFT collection for approximately $255,000 and then bring in an additional $95,000 from the secondary market sale due to his 2.5% resale royalties agreement. Depending on the exact wording of royalty agreements, an NFT creator could stand to get a cut of the profits every time the asset is ever resold. This allows creators to potentially have long-lasting, recurring income from their pieces.
The NFT movement has opened up more than a new asset class. It also unleashed an innovative option for artistic creation within the digital space. It’s a reality that hasn’t been lost on the creators of a new NFT project called DeadHeads, an entertainment brand that allows people to own their characters.
“I used to work in films,” explains project founder Jeremy Jenson, “I made film my whole life, and I realized that, within the whole film industry, labor’s not creative.” During his tenure in the art-heavy world of film, Jenson quickly realized that most films involve hundreds of people, all hustling to execute the creative vision of one or two people.
The founder adds that to turn this vision into reality, they had to create 3D characters everyone could own. Once those characters were minted, it would give the community a sense of ownership; not just over the NFTs themselves but of the show, as well. As the DeadHeads site explains, “imagine if you owned Obi-wan from Star Wars!” By creating a system where people can own characters, investors can assess the value of their purchases in real-time based on the popularity of the characters and the programs in which they appear.
Jenson knew that if the idea was going to work, there was much more to do than just creating the initial NFT artwork. It also involved developing TV episodes and movies with the characters. And not just a few, either. It would need to be an ongoing stream of media content. These would feature various characters from the project, weaving them into a coherent story.
This approach to NFT investment has the potential for a more profound sense of ownership between entertainment consumers and the entertainment medium itself. Moreover, investors are hoping that this ownership will prove lucrative to individuals in a way that traditional television and film industries are not.
The gaming industry is also considering a foray into NFTs. Quartz, a platform affiliated with major gaming company Ubisoft, has begun offering ownership of aesthetic game modifications such as battle helmets. The reception of the venture has been mixed within the gaming community. However, future NFT options are being discussed by both significant and indie gaming companies alike. For example, it’s possible that in the coming years, exclusive access to skins, weapons, and even characters could be purchased via NFT.
Even giant companies are getting into the NFT market regarding online entertainment and social media. In 2021, Nike launched a game on platform Roblox called Nikeland and purchased digital artifact company RTFKT Studios. This grouping will allow Nike to sell virtual sneakers on RTFKT via NFT to players of Nikeland to outfit their avatars. High-end sneakers, especially Nikes, have long been considered to be highly collectible. Therefore, it should be no surprise that collectibles with a large following would find it advantageous to put their product in a digital format.
Whenever a commodity becomes profitable, there will always be wealth opportunities for marketing professionals to provide their services. In the case of NFTs, however, there are far more ways for creators and resellers to go about advertising their products.
Marketing agencies have just begun to target the NFT market and offer help with sales and products. Most of the services they provide useful techniques applicable to other industries. SEO optimization for NFTs is a very similar process compared to other artistic media. Where NFTs differ, however, is in alternative options and self-promotion.
NFT products can range from digital art to social media posts to online published works. Because of this, effective marketing varies a great deal between sales. Additionally, the fact that a known individual or organization has ties to an NFT product can drive up their prices.
In these instances, self-advertisement through social media is likely to be more effective than other means of promotion. This could even surpass any SEO optimization offered on the planet. For example, a person with thousands or millions of followers on Twitter or Instagram can advertise their NFT sale. Not only that, but they can advertise directly to a huge audience with the push of a button.
Successful self-promotion isn’t limited to worldwide celebrities, either. Even everyday people with only a moderate social media presence can create an effective advertising campaign on their own. By spreading the word through various platforms, reaching a large crowd or just a targeted audience is attainable.
If social media isn’t in the content creator’s wheelhouse, there are ways to outsource that task. For example, social media influencers can lend their followers to someone willing to pay for that service in today’s day and age. Creators can also attempt to seed their product with an influencer. They can do this by offering an NFT as a gift and hoping the influencer’s platform will mention it. As a result, this would likely drive interest toward future sales.
Brands continue to find ways to make NFTs compatible with their products and services. Major companies have attempted to become relevant in the NFT field by linking NFTs to physical products they offer. Brands have accomplished this in a variety of ways.
Some companies have gone with an “unlocking” method. In this instance, a certain level of NFT purchases gives the buyer either a free physical product or the ability to purchase a minimal product. Gap is one example of this, and Mattel has also gotten on board by offering limited-edition Barbie NFTs with corresponding dolls. However, the toy brand has also begun dropping NFTs related to other popular products and games under their umbrella. This realm of NFTs includes things like Uno and Hot Wheels.
Another way businesses are tying NFTs to products is by offering to redeem NFTs for a limited edition physical product. This is different from the prior method; one that businesses require the buyer to turn in their NFT to attain the product. One company taking this route is Patron. For their first-ever round of 150 NFTs, buyers can redeem their NFT for a bottle of limited edition Chairman’s Reserve Tequila.
Whether a person is looking to buy, sell, or market NFTs, the potential for wealth opportunities is undoubtedly available. However, as the venture deals heavily in cryptocurrency and the technology surrounding it, certain dangers of instability or unknown regulations may be coming in the future.
However, it is undeniable that the value and prosperity behind the movement are real. As the trend continues, individuals and businesses alike will find more fun and new ways to incorporate NFTs into their platforms and their money-making strategies.
Image Credit: Vijay Verma; Blush.Design; Thanks!
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