Now if NFTs are so cool, you’ve probably thought of creating (or “minting“) one yourself.
After all, you can technically put just about anything into an NFT if you wanted.
All you have to do is store data on a digital ledger and the world is your oyster, right?
What if you could pull off a Beeple and sell your NFT creation for millions of dollars?
But just because you CAN create an NFT does not guarantee you will make a fortune. Heck, you might even lose money if you’re not careful.
First off, you need a thorough understanding of NFT dApps and blockchains to be able to decide which one to use.
Although the majority of NFTs are built on Ethereum, there are other blockchains such as Tezos, Solana, or Flow that come with their respective pros and cons.Each of these blockchains has its own cryptocurrency, which means you have to read up on its market dynamics and corresponding transaction fees.
Gotta make sure your potential revenues aren’t eaten up by costs!
Also, just because you’ve come up with a unique and mind-blowing invention, like an alarm clock that cooks bacon at 6 am, does not mean the product will sell.
It might not even make it through Shark Tank.
If your NFT creation does not provide any kind of value for potential buyers, then good luck selling it!
Yes, we know, avatars of uninterested primates or jpegs of rocks don’t seem to be worth anything at all, but to the right audience, they are.
Of course, building that audience and getting your marketing plan done right is by no means an easy feat.Not everyone can get in touch with my buddies Snoop Dogg or Steve Aoki, then ask them to buy and promote an NFT.
Just as in starting a business, you should ask yourself the following questions to determine if creating your NFT can be profitable:
- What are you offering to your potential customers?
- Which problems or market gaps are your NFTs addressing?
- Is there enough demand for your NFT and how do you gauge it?
- Are there similar NFTs in existence and how does yours differentiate from them?
- How do you plan to reach and build your target market?