NFTs, or non-fungible tokens, are becoming very popular in recent times. Unless you are living under a rock, you have likely read headlines highlighting the huge incomes of some of the top NFT creators.
But have you ever thought about how they make this money and how much they can make with NFTs?
The answer to this is much more complex and nuanced since there are many different things you need to understand before. There are many ways an NFT creator can make money, and it is important to understand them before concluding. So let’s dive in and better understand this matter in detail.
How Does An NFT Creator Make Money?
There is no definitive way for an NFT creator to make money. Instead, their income sources can vary to a great extent. So let’s check out different ways an NFT creator can make money.
As obvious as it may sound, selling NFTs or relevant products is one of the most popular and conventional ways NFT creators make money. But unfortunately, there is a common misconception that one has to be an artist to sell their NFTs. But this is far from reality in many ways.
In a more conventional sense, most NFT creators make money by creating digital artwork and selling it in an NFT marketplace. However, there is no shortage of instances where NFT craters have made millions by selling their artworks.
For example, there’s FEWOCiPUS, who made $18 million by selling his NFT artwork. Besides that, there is also the example of an NFT artist, Beeple, who sold a single piece of his art for $69 million.
Memberships and rewards are another great way to earn revenue with NFTs. Suppose you are a business looking to enhance your loyal base. Then, NFT is the right solution since it will help you boost revenue generation while strengthening your customer base.
The growing prevalence of the Metaverse has opened a door of opportunities for the NFT universe. Digital goods are now becoming very valuable, and you can use this to your advantage and earn appealing returns with NFTs. However, this is still a relatively unexplored sphere, so the earlier you get started, the better your chances of generating better returns with NFTs.
Growing high-speed internet access has made our world much more interconnected than ever. As a result, NFT creators are taking this opportunity to collaborate with other creators and earn revenue. Besides an opportunity to generate better revenue, collaborations are also great for making your brand visible among target audiences.
But collaborating is more challenging than it seems. First, you need to ask yourself why anyone should collaborate with me. You, as a creator, need to put something on the table since collaborations must be mutually beneficial and not one-sided.
If you have nothing to offer from your end, chances are high that no one would want to collaborate with you in the first place. This becomes evident when you see your favourite social handles promoting one or the other brand. But the catch here is this collaboration benefits both the brand and the influencer.
If you do not have a large follower base, it does not make any sense for a brand to collaborate with you. So remember that collaboration is a two-way road that serves both the participants equally, helping maintain a beneficial balance between the NFT creator and promoter.
This is one of the most popular ways NFT creators earn money with their creations. The royalty will give them a certain percentage of the sale price every time someone buys the NFT in a secondary marketplace. These payments come from perpetual payments and are executed through smart contracts.
Once you create the NFT artwork, the demand for the same will depend on how much people want it. With more demand, you will automatically get more royalties and more revenue. In most cases, the royalty percentage ranges from 5-10%.
For example, if you sell an NFT worth $1000, you can expect a royalty of about $50 to $100. So make sure you include royalty if you are an NFT creator.
As mentioned earlier, only some people who create NFT have to be an artist. People will even compensate you for technical skills such as creating an NFT. NFT developers oversaw the entire execution of the NFT smart contract mechanism, minting dApps, NFT reveal, and even presale complications associated with the launch of an NFT.
This can be another case of collaboration between artists and developers who more or less compensate each other for leveraging their skills. Smart contracts are the foundation of NFT, and people are willing to pay premium prices for these skills. Many black NFT creators have gained unmatched popularity and fortune with their smart contract development skills.
Brand sponsorships are another lucrative way for NFT creators to make decent money. This does share certain characteristics with collaborations, but brand sponsorships are only limited to popular NFT creators promoting a brand and its offerings while getting paid for the same. This certainly highlights the importance of popularity when making money as an NFT creator.
These deals are often known for their versatility which offers opportunities not just to NFT creators but others. This means everyone from photographers, video creators, writers, designers, or artists can partner with brands and generate returns. But make sure you find a brand that resonates with your NFT to keep your community engaged and drive better sales for them.
Conclusion: How Much Do NFT Creators Make?
The earning potential of an NFT creator can vary on a couple of different factors. For example, there might be cases where an NFT creator is making $200, while there are also cases where certain NFT creators make millions in no time.
Ultimately, it is all about what you have to offer that will determine how much you earn as an NFT creator. So ensure you provide the market with unique features that grab their attention. The more demand for your NFT, the better the chances of generating better returns.