Valuing and Marketing Your NFT
2022 promises to be another enormous year for the NFT industry. Already, we are seeing that $10-$20 million worth of NFTs are sold every week, hundreds of thousands of people trade NFTs every month, and more than 50% of NFTs sell for under $200!
Creating a successful NFT brand today is still attainable for anyone, especially with new platforms like Fayre. In order to build your brand, you’ll need to sell your NFTs, which require many important components.
The two we’ll focus on here are appropriately valuing your NFTs and creating a solid marketing strategy to get your work out there. Keep in mind, our advice is targeted for the beginner who is just starting out in NFTs.
Why are NFTs valuable?
NFTs tend to receive a little bit of unnecessary flack, perhaps because the technology has grown to be so dominant, so quickly, and because it’s widely known for pictures of bored animals. But that’s exactly how we should think of it — as an innovative technology.
NFTs are a fascinating technology which can transcend art and branches into other industries because of its underlying technology, the blockchain. The most essential feature you need to know when it comes to NFTs is as follows.
- A blockchain is a distributed public ledger, which is designed to be immune from censorship, theft, and double-spending, thanks to Proof-of-Work. NFTs reside on a blockchain, which means they are highly secure assets (given the blockchain they are on relies on a solid Proof-of-Work network).
This definition leads us to the other feature of NFT technology, which is that cool non-fungible part. In other words, each NFT is, indeed, unique to itself. Although this is true, many communities tend to lump an arbitrary number of NFTs together to create scarcity from limited supply of “same-style” NFTs.
What is interesting is that these million-dollar fetching NFTs cost almost nothing to make when compared to their price tag. The cost of making an NFT average is around $70–150. So, if anyone tells you “NFTs are worthless, man,” take a step back and throw some facts their way, i.e. that there’s some underlying capital to consider before we even think about putting our cool NFTs on the market.
The subjective side to NFTs is just as exciting as the objective, real-world values we place in a growing technology. In fact, the subjective side is likely to draw the attention of the majority of people.
Creativity is a highly valued trait in today’s world, and that’s largely due to the internet allowing people to communicate and share information (art, businesses, ideas). Art, music, film, literature, design, dance, and basically any other medium you can think of has been booming over the last decade as social platforms like YouTube, Instagram, Spotify, Facebook, Twitter, and TikTok have changed the way we interact with each other.
Entertainment has grown from being a valuable commodity to acting as a daily expectation. That’s because platforms like the ones listed above have allowed more and more creators with unique voices, perspectives, and styles to make their art available to the world.
The old saying “Different strokes for different folks,” applies perfectly to today’s art scene. You can be fairly certain that there is someone who will like your art no matter the subject or approach, you just need to get it to them.
Marketing your NFTs
Thus, marketing your NFTs properly is really what will drive your NFT values upwards. If anyone and everyone can make the art, then value will come down to the attention your art will receive.
When coming up with a marketing scheme, you should make sure that it ties into your vision as an NFT creator. Are you trying to make tons of money from your NFTs, or trying to build a community? Do you want to have an unlimited amount of NFTs under a certain style, or would you prefer to create scarcity?
At any rate, you’ll need to garner some attention by using platforms other than your NFT marketplace to spread the word about what you’re trying to do. There are more than a few ways to go about this.
Let’s do a quick run-down of five basic marketing pieces every NFT creator should take advantage of:
1. Create a social media presence specifically for your NFT(s) — By having a separate NFT presence on multiple social media channels, people will get the impression that your NFTs are legitimate and have a reason to be online. And you get to show off your cool art.
Plus, if you can build a strong following, connecting with or gaining endorsements from larger, related social media pages will be easier and more effective at attracting new fans!
**2. Build a website dedicated to your NFTs **— Much like a social media presence, having a website creates a veil of professionalism that is impressive to newcomers. The best advice for building a new website is to keep it simple. Provide only necessary information and have nice, organized pictures. Make sure to link your website to your socials and anywhere else you’re marketing.
**3. Use social forums like Reddit to discuss your NFTs with others **— To grab some more personalized attention, and to appear as an interactive member of the NFT community, join some NFT discussion boards. Let the people know firsthand what your NFTs are all about. You never know who’s attention you might grab.
**4. Create a teaser for your NFTs **— This one may seem out of reach for many people, but anyone can create an eye-catching 10–30sec video, or at least find someone to help create it. You’ll use this video to build excitement around your NFTs and get people interested in your drops.
**5. Start a newsletter **— This is a great community-building tool which will allow you to talk directly to your fans. Fans that subscribe to newsletters are likely to follow and support your product.
Writing articles about your work is also a good way to build a branding voice, but it is less direct than a newsletter would be.
NFT specific marketing
Okay, if you can handle building the marketing machine we just laid out above, you can certainly manage these handy dandy tips too:
- **Collecting NFTs **— A great way to show that you’re dedicated to the community and to your craft is by collecting NFTs. Find stuff you think is cool and interact with the creators to spread your excitement about NFTs. If you can build up a portfolio of awesome NFTs, you can gain potential customers as well as natural publicity.
- Collaborate with other creators — Collaborations are a traditional form of promotion found in music, film, photography, and so on. Building a community with others is a Win/Win situation. Remember, there’s always enough pie to go around so long as everyone is doing their best.
- Create special NFT drops or fan rewards — Creating a special reward for your community can help you build loyalty and can earn the interest of potential followers.
Make sure all of your promotions and hype run through your marketing machine as consistently as possible, and before you know it you’ll start to build a fanbase.
How to value your NFTs
Okay now comes the most simple part of this entire article. Ask yourself, have I done my homework and marketed in every way that I can? Do I have a following that’s interested in what I do with NFTs? Can I compete with other creators, and if so which ones?
Well, if the answers to those questions are yes, yes, and I think my work is similar to (insert NFT creator here), then it’s time to start pricing your NFTs strategically. Your marketing machine acts sort of like a safety net in the way that you can use it to find people that will buy your products no matter the price. NFTs are pretty cool in this respect as it seems many people don’t mind buying internet art projects for enormous sums of money.
Considering your product as something you might want to purchase may also be helpful when trying to set a price. Does it provide you utility, spark emotions, or connect with you in some way? At what price would you buy something of the same ilk for? Is there an appetite for your type of art? Trial and error is the best way to work this value problem out.
We gave you a lot to consider in this one, so let’s recap.
NFTs definitely have some intrinsic value to offer, which is found in their ability to tie anything into a secure storage system, the blockchain. They are also intrinsically valuable because they are all one-of-a-kind creations, both objectively and subjectively.
Placing a value floor on your NFTs is a learning process steeped in the middle of the ‘build an NFT community process”. Sometimes folks get lucky and strike gold, so to say. But in most cases, authenticity found over time is the most valuable commodity people look for in art.
If you’re just starting out, joining Fayre could be a good move for a few reasons. Creating NFTs on our platform is incredibly straightforward and easy, and it can be done at a low cost as well.