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NFT pricing strategy: How to price your NFT collection

TLDR

 

  • Idol NFT pricing strategy that will assist you to price your NFTs correctly.
  • Find out how to correctly set the floor price for your NFTs and what drives up such prices.
  • Understanding of the industry and the blockchain used in NFT development.

Related: Understanding The Challenges And Solutions of NFT Insurance in 2022

NFTs may be purchased at a predetermined price or through an auction. To increase the NFT’s floor price, however, inventors should constantly sell to provide proof-of-concept.

Markets for nonfungible tokens (NFTs) began to garner attention at the beginning of 2021, and by the end of March 2021, this new digital asset market had a total lifetime traded volume of around $550 million. Any digital asset, including collectibles, works of art, video game characters, items from virtual worlds, and digital sports, can be an NFT.

An NFT’s ownership is documented on a blockchain, frequently one on the Ethereum network. However, ownership transfers and the blockchain recording of the cryptocurrency payment received will occur as a result of the sale of this digital asset. But this doesn’t mean that cryptocurrency and NFTs are the same. In general, fungibility or interchangeability is one of the key characteristics of cryptocurrencies and fiat money, whereas the nonfungibility feature of NFTs makes them valuable.

This article will cover NFT pricing strategy, what causes the NFT floor price to increase, how to determine whether your NFT is valuable, and how much you should charge for an NFT.

About NFT

Nonfungible tokens, often known as NFTs, are a common component of the cryptocurrency Ethereum blockchain. To put it simply, NFTs are digital assets that consumers may own and trade online. An NFT only has one owner at a time because it was established using blockchain technology, making it unique. As a result, computer code keeps track of who owns the products’ digital copies. NFT comes in many shapes: it can be an art piece, GIFs, videos, sports highlights, collectibles, sneakers, music, or even a tweet.

NFT pricing strategy

Gen-Z has embraced the NFT space as a digital art market and, more importantly, as a chance to become self-made millionaires at a young age. The rise of the digital art trade is proof that people’s methods of earning, and spending money are evolving. As a result, the retail industry is moving in droves into the NFT-verse, where digitization is at the heart of its products. Retailers may be able to transform their source of earnings like never before if they can grasp the principles underlying the marketing and trading of NFT products. NFT pricing strategy that will help you price NFT correctly are given below.

What factors impact the cost of NFT?

The crucial question, “How does one price their art?” may frequently go through Web3 artists’ thoughts when they start their NFT journey. or “what is the most effective method for selling NFTs?” Although there are no predefined techniques for pricing NFTs, nonfungible tokens (NFT) sellers may choose to offer their tokens at the listed price in a secondary market. They might also complete the sale at the buyer’s price, which is the sum the buyer is prepared to pay.

Regardless, as the designer, you have complete control to select the ideal NFT pricing plan following the NFT pricing strategy. However, if you choose your price too low, it will be more difficult to raise it gradually, and if you choose your price too high, you run the chance of never being able to sell that item. So, the following factors should be taken into account when deciding how much to charge for an NFT or how to price an NFT artwork. For better outcomes, carefully analyze the NFT pricing strategy before investing.

Identify the many costs that are involved

When producing and selling NFTs, a variety of expenses are indicated, including production costs like the salary of a 3D artist if one wants to learn how to make nonfungible tokens on their own. For people without a background in software programming, using a zero-code tokenization platform like TokenMint may be a solution. For better outcomes, carefully analyze the NFT pricing strategy before investing.

Other expenses include the cost of marketing nonfungible tokens, marketplace fees for minting or listing nonfungible tokens, selling fees assessed by NFT markets, and minting costs that may change as gas prices change.

NFT pricing strategy to price artwork

Due to the availability and kind of an asset determining its rarity, a rare NFT is worth more than a common one. For instance, the price of a limited edition NFT can be more than one with many copies. Similarly, a tangible painting might be worth more than any available digital image. Utility tokens are more valuable because their owners can use them to purchase products and services, making them more functional. Therefore, when setting the pricing for these utility NFTs, you must take your clients’ needs into account.

NFT pricing strategy

Boost your visibility and brand

There is significant room for growth in the NFT ecosystem, which is still under development. The nonfungible token must show enthusiasm and faith in the process, just as consistency is one of the most important elements of completion and success. One must promote their artist’s name to the general public through various platforms, such as Twitter, Discord, and Telegram, to familiarize people with the artistic process and build a reputation in the NFT sector. Working with other platforms, artists, and companies in the nonfungible token arena may also create new chances for you to sell your work at a fair price. For better outcomes, carefully analyze the NFT pricing strategy before investing.

NFT pricing strategy to raise the floor price

Thinking, “If Beeple can sell his Everydays art for an amazing $69 million, why couldn’t I?” is effective as a motivator. Overconfidence can be deceiving, though, as you might not accomplish the same level of sales as another artist working in the same field. Make some consistent sales to demonstrate a proof-of-concept to raise the floor price of an NFT.

The NFT collections’ floor price, which is always being updated, is their lowest price. The NFT project’s inventor or founder sets the first-floor price of a nonfungible token during the minting process. After the minting process is over, holders who list their work on a secondary market decide the floor price. The floor price for an NFT project does, however, increase as it becomes more well-known. Additionally, proof-of-concept is data that aims to evaluate the viability of an idea or verify that it will function as expected. NFT pricing strategy helps you to raise a better floor price which is essential for good results.  

 

Make use of many platforms and keep your pricing somewhat consistent

Markets like OpenSea and Rarible are sites where NFT artists can sell their works, yet their creations are valued everywhere, no matter where they were minted. The best way to maintain activity and obtain the most traction is therefore by utilizing numerous platforms with constant fees for your work. Thoroughly consider the NFT pricing strategy for better results.

Including unlockables will increase the worth of your NFTs

Unlockable content gives NFT owners useful content. By producing unlocking material outside of the digital token, the artist can increase the NFT’s value in the real world. When establishing nonfungible tokens, there is a parameter for unlockables. The content needs to be unlocked to be viewed by NFT owners exclusively.

Unlockable content on nonfungible tokens can include redeemable discounts, thank-you cards, tangible items like signed products, high-resolution video clips, and more. This tactic helps NFT vendors establish their brands and achieve profitable sales of their products. Consider NFT pricing strategy carefully before investing for better outcomes. 

NFT pricing strategy for selling at a high price

Understanding the market, the blockchains utilized in NFT creation, the marketplaces for nonfungible tokens, the common sorts of NFTs already sold by artists in the sector, and their normal price range is the first step to successfully selling and pricing your NFTs. Before creating your token’s unique value proposition, the next step is to select an NFT marketplace that fits your ambitions and figure out how much it will cost to create, mint, service, and sell your token.

Creators are free to set the price of an NFT at any level they deem appropriate. To be able to charge a higher price for your NFTs and draw in more customers, you must understand what makes your nonfungible tokens different from those of the competitors. After that, investigate selling NFTs. Your NFT pricing strategy will determine the methods you can use to sell your nonfungible tokens. 

The two most popular ways to sell NFTs are at a predetermined price or through an auction in which nonfungible tokens are put up for sale on the open market. During the minting process, fixed prices can be established for NFTs, or if you want to test the market, pick an auction—often referred to as an English auction—in which the bidder who ultimately offers the greatest sum for your NFT is the winner.

The highest bidder wins the NFT at the end of a timed auction, a specific type of English auction in which an NFT is up for bid for a predetermined period. Another choice is a Dutch auction, which is a decreasing-price auction in which the price keeps dropping until your NFT is bought. Consider NFT pricing strategy carefully before investing for better outcomes. NFT sellers can select the royalties option if they wish to get paid every time their work is sold. After taking into account the aforementioned alternatives, decide on reasonable pricing for your NFT.

 

How to set price on NFT Open sea

The steps listed below can be used by sellers of nonfungible tokens to offer cryptographic artwork or NFTs on OpenSea:

  1. As seen in the image below, click the “Profile” icon in the top right corner of the OpenSea page.

NFT pricing strategy

2. Select the non-fungible token you wish to sell from your wallet, or start by learning how to build an NFT.

3. As seen in the image below, click “Sell” in the top right corner of the item page.

NFT pricing strategy

 

4. Choose whether the price is a fixed amount or a timed auction, pick a present time frame for the sale, or input a custom time frame using the calendar.

NFT pricing strategy

 

5. By entering the wallet address into the “Reserve for specific buyer” form under the “More Options” section, as illustrated in the image below, the item can also be reserved for a certain buyer. OpenSea levied a 5.5% cost for this sale,  consisting of a 3% creator fee and a 2.5% service fee.

 

NFT pricing strategy

6. To complete your listing, sign a deal. Your item’s sale listing will be confirmed via a pop-up message.

Can NFTs be sold without marketing?

Like any other product, marketing is the key to selling non-fungible tokens. So, if you’re wondering why your NFT isn’t selling after getting knowledge about NFT pricing strategy, it could be because there isn’t enough knowledge on nonfungible tokens in the industry.

 Every artist has their unique tastes; some prefer to be out in the open, while others prefer to maintain their anonymity. However, it is crucial to let customers know about your professional history, including your name, and experience with blockchain technology, crypto art, or other nonfungible tokens, to increase the profile of an NFT project.

Non-fungible tokens with a strong social media following and transparent roadmaps may do better than others in the market. For instance, if an artist constantly tweets about their digital artwork and participates in discussions about NFT pricing strategy, it will help them develop a brand and draw customers to purchase their work. 

As an alternative, a well-designed website that accurately describes your NFT collection will convey authenticity to the public and aid in turning website visitors into actual purchasers. To earn the trust of your clients, do not, however, under or over-promise.

 

More to read:

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Disclaimer: This blog is for educational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

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