How much should you price your NFTs?
Early in 2021, markets for nonfungible tokens (NFTs) began to gather momentum, and by the end of March 2021, this new market for digital assets had a total traded volume of approximately $550 million. NFTs can represent any digital asset, such as collectibles, artwork, video game characters, virtual world objects, and digitized sports. In this article, we'll go over some strategies for setting prices for NFTs that still allow for a profit.
So how can one approach pricing without wanting to pull their hair out? Here are some suggestions:
1. Be patient
This is our top recommendation for creators. It is reasonable to believe that because you've worked so hard on something, people will intuitively recognize its value and purchase it. But if you're new, you should expect it to take time. Each creator is unique, and a formula that works for one may not work for another. It will take some time to determine the optimal price for your products. Don't be disheartened; just because your work isn't selling does not mean you're a poor creative and should instantly destroy all your tokens. You must continue to work on your vision and make minor tweaks along the way; they are all small steps on your path to success.
2. Do some research
Now that we've pumped you up, we can give you some actual advice. Intuitive pricing is one of the biggest drawbacks for a developer. It's easy to make decisions as a creator based on your own estimations of your work's worth, but that's all guesswork until you have a look at the NFTs in your area and see what other artists are up to.
o The Market Data
It's a good idea to explore several markets and examine the starting prices of NFTs that are similar to yours and those that are not. The average cost of a given NFT type should now be clearer to you.
o Learn about your rivals
Looking at market prices for comparable NFTs, however, may not provide enough data. You should also make it a habit to compare your own success to that of other creators; this can be done by looking at the number of people who like and follow other artists and the number of times their products are sold. Find out who buys their NFTs, especially if they are competitive. By doing so, you may more precisely define your market and learn specifics about their demographics, interests, and purchasing behaviors.
o Let your buyers decide
Some NFT developers wait for offers before setting a price. This might give you a range of pricing that collectors are willing to pay for your work. You don't have to accept offers, especially if they're too cheap. You can use them to gather buyer data for future listings. Accept an offer higher than expected, and you can feel good offering your other pieces at a similar price. Remember to post on social media that someone acquired your NFT for that price to boost its perceived value.
3. Make full use of the platform
Your work is valued regardless of where it was produced. However, depending on where you mint your NFT, you may be able to exploit the platform you're on to add or raise its value. In fact, you should constantly utilize the features to their utmost potential, as that is their purpose!
NFT Pricing Strategies
A. Pricing as a market tactic
Your NFT's price might symbolize more than just the worth of your job. Pricing your NFTs less than you would like in order to make them more affordable for collectors can be a marketing strategy to encourage collector loyalty. Some artists do this by setting a cheaper price for their initial collection so that early purchasers feel rewarded for their support, particularly if prices grow later on. A t-shirt from a luxury brand would be priced higher than an identical t-shirt from a mass-market brand, even though they are identical. If your brand has an aura of exclusivity or luxury, you should charge accordingly.
B. Selling price vs royalties
There are two methods to earn money from your work with NFTs: the first sale and resale royalties. Depending on the sort of NFT you are creating, you may need to adjust this ratio. Collectibles are more likely to be traded than fine art NFTs, so you may be able to sell for a cheaper initial price and rely on royalties as a source of income. This may inspire more individuals to purchase your NFTs during the initial offering.
C. Increase costs in a linear manner.
Our final price recommendation is to think linearly. It can be scary to enter a market when there are thousands of other NFTs for sale. Do not underestimate the value of your artwork, even though it is impractical to expect big prices immediately. First sales are always the most difficult to make, but after you have a constant stream of buyers interested in your work, you should adopt a linear pricing plan and gradually raise the floor price while gradually increasing the price of your products.
Buyers and collectors do not just consider price when purchasing your product; they also consider artistry, utility, quality, design, and occasionally the labor of NFTs, among other factors. There are an infinite number of elements besides price that contribute to the sale of a non-fungible token, thus selling your NFTs at a low price may not guarantee their success. A high price is not necessarily indicative of the genuine value of your work. Do your homework and make informed judgments, but keep in mind that there are no absolute laws for price.
SO, WHAT'S NEXT?
Hi, I'm Pao. If you enjoyed reading this article you might like to read also:
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