Checklist for an NFT creator
The ratio of supply and demand is the main criterion that determines the value of NFTs. The checklist will help you determine what price to set for NFTs. First, let's look at how to determine market volume.
NFT market
The capacity of the NFT market is assessed by analytical agencies that publish regular reports in the public domain: Nonfungible.Com and ChainAnalysis. The reports are based on automatic monitoring of records on the blockchain about transactions on NFT platforms. Transaction data is open and publicly available. An additional tool for NFT demand analysis is Google Trends. This is a tool that determines the number of user search queries in a given period. With this tool, you can choose a blockchain.
NFT platforms
Each NFT platform has its own audience, but not every author can count on this audience. NFT platforms, when choosing NFTs for publication on the main page and on social networks, are usually guided by the following criteria: demand for your NFTs and transactions confirming it; fame and international recognition (brands, authors with a wide audience of subscribers or authors - winners of international competitions); the quality of digital art. If you take into account these criteria, then determine whether you can count on the audience of the selected NFT platform.
Your own market
This is your own audience ready to purchase your NFTs. If you are an artist with a portfolio of exhibitions in galleries, then you can offer NFTs to collectors who have purchased your painting and in this way assess the demand. If you are an independent artist, you can offer NFTs to your social media followers or groups where you can post NFTs for free. If you do not have your own audience, then you can find an NFT agency or producer.
Determining the demand for NFTs
The method is suitable for authors of digital art and collectibles who have no experience with NFT platforms.
NFT minting
Choose an NFT platform where you do not need to pay gas fees and storage fees or a platform where gas fees and storage fees are minimal. For example, platforms on the Tezos and Polygon blockchains. The price of NFT is the lowest possible, better - up to $10 in dollar terms.
Subscriber notification
Post on your social media the news that you have released an NFT. Make an e-mail newsletter on the base of your subscribers (or ask the NFT agency, producer, gallery you work with). Look at the reactions. Decide if you have a fan club you can count on.
Publications in free groups
Find groups in Telegram, Discord, Facebook with an audience of 1000 or more members where you can publish NFTs for free. Look at the reactions of the participants and the sales results. There is a high probability that NFTs will be bought at low prices. But on the condition that you tokenized a quality piece of digital art.
A/B testing
A/B testing is a marketing research method in which a control group of items is compared to a set of test groups in which one or more of the metrics have been changed in order to find out which changes improve the target metric (Wikipedia).
Choosing an NFT platform
You can release a print run of digital art and distribute this print run across different NFT platforms (remembering to include full information about the print run in the description so as not to violate the rules of the selected NFT platforms). The price must be the same everywhere. Look at which platform will buy your NFTs faster and if they will buy at all.
Checking your own audience
Issue 3 similar NFTs, and set the price equivalent to $10 for one, $100 for the other, and $1000 for the third. Segment your own audience so that one third show $10 NFTs, another $100, and a third $1000. The characteristics of each of the segments must match (gender, age, interest group and other criteria). Look at the reactions. If you managed to sell NFTs for $1000, then you can sell NFTs for $1000 in the future.
You can do the same experiment by placing ads on popular social accounts on Twitter or Instagram. The cost of such advertising - from $ 20. The number of subscribers - from 100,000. Do not forget to check the accounts for robotism (the ratio of live subscribers and bots) using parsers, for example, InstaHero.
Price and value
In classical economics, a value is considered a characteristic that satisfies the need of the buyer. Added value is a marketing term, it is the amount that the buyer is willing to overpay by purchasing NFTs. Value added is that which is artificially created by the owner of the NFT. The value added method is relevant for brands and NFT agencies.
Option: buy NFT for $100,000 - you get the opportunity to place NFT on your avatar in social accounts, the media write about you, you get access to private parties organized by the authors of the NFT project.
Loyalty programs
Option: NFT owners get access to loyalty programs and concierge service for fashion brand owners. That is, the right to discounts and bonuses - for example, the opportunity to attend presentations and private events.
Option: the fact of the acquisition of NFT will be covered in the media. The buyer will be able to express himself to a wide audience. Details on working with the media when promoting NFTs for brands will be discussed at the next lecture.
Speculative Methods
People often ask: is it possible to buy NFT for $100 now and get a guarantee that you will buy NFT back in 3 months for $150? Yes, there are NFT agencies that use such methods. But NFT platforms do not position themselves as investment platforms, and NFT as a financial asset. It is wise to exercise caution when choosing speculation as a method of selling and reselling NFTs so as not to become hostages to loans.
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