Should I make an NFT?
- What to consider before creating an NFT
- Why you should primarily care about the needs of the fans
- What you can offer and where
It’s a little paradox at the moment: On the one hand, the NFT hype is still going strong, there are always new projects popping up, and more artists are taking a stab at it with their drops. At the same time, profits from NFTs are dropping rapidly, which, of course, has something to do with the inflation and crypto winter, as well. Whether or not NFTs really are the future is therefore not entirely clear. Nevertheless, many artists will ask themselves if they, too, should give them a try. We’ve put together what you should keep in mind when doing so.
Do I understand NFTs and am I passionate about them?
The search for answers should start with yourself. Do you thoroughly understand NFTs and their whole process? Have you ever purchased an NFT yourself, and if so, would you do it again? Are you only looking at a potential source of income or are you genuinely passionate about the concept? If you aren’t well-versed or aren’t entirely convinced, it’s better to just leave it.
Is there a demand for it from my fans?
Quite a few artists had to take massive criticism from their fanbase following their NFT drops. So, you need to be absolutely certain that there is an actual demand. Maybe your fans would much prefer a new merch collection or a vinyl version of your last album. Even if you think the demand is there, you have to thoroughly explain to your fans why you are doing this and how they can purchase the NFT.
What do I want to offer?
If you’ve checked off the first two points, you’ll be faced with the question of what you want to sell. As a musician, you can use NFTs in various different ways – for instance, by connecting an artwork with the music, offering a share of the royalties, or putting physical products such as merch or concert tickets behind an NFT. Once again, you have to think about what the fans would want and of course, what goes with your image as an artist.
Only one copy or multiple? And at what price?
Once you know what you want to offer, the next question is whether it should be a one-off, which, correspondingly, would be more expensive, or a whole series with different NFTs. Additionally, you can decide whether the NFTs will be offered at a fixed price or whether you prefer an auction.
Especially when it comes to your first NFT drop, you should make sure it is affordable to as many fans as possible.
Which platform should I use?
More and more NFT platforms are springing up like mushrooms, and depending on what you want to sell, some platforms would be more suitable than others. Similarly, the fees and the impact on the environment will also differ.
Even though it may have looked like it sometimes, NFTs, like albums or merch, don’t sell themselves. So, you’ll have to use all your channels to announce the drop and, as mentioned, get the idea through to your fans.
Can I offer something from which both sides can profit?
This is a question you don’t have to ask yourself and yet probably should. As previously mentioned, many fans view NFTs critically, even more so when it clearly benefits the artists only. So, instead of just thinking about how to line your crypto wallet, you should also consider what value you are offering the buyers.