🔒 Make Mad Money With NFTs 🔒

Within the last year, NFTs have taken the world by storm as a way to make money. NFT collections such as Bored Ape Yacht Club and Cryptopunks have become icons for digital identity. And holders of these NFTs have crafted digital brands around their individual punks and apes. Many other NFT collections have followed suit. It is not unusual today to see an NFT profile picture on Twitter or other social media sites.

As NFT collections and platforms have exploded in popularity, developers and creatives have brainstormed new and innovative uses for NFTs in the realms of real estate, live events, and even healthcare. 

However, the biggest adopters of NFTs have become artists. These innovators see it as a new way to be in control of their work. With the potential to earn more money than they possibly ever could have in more traditional systems, artists have revolutionized the NFT space. 

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What is an NFT anyway?

NFTs are Non-fungible Tokens that live on blockchains.

What does this mean?

Fungible tokens are tokens such as Bitcoin or Ethereum. It doesn’t matter exactly which Bitcoin or Ethereum token you own as they are all exactly the same. Each Bitcoin is just like every other Bitcoin. They all have the same value and have the same functions. These tokens are equally interchangeable. Non-fungible tokens (NFTs) do not work like this.

Each non-fungible token (NFT) has its own unique values and traits. Each one is unique, even if it is a part of a collection such as Bored Ape Yacht Club or Cryptopunks.

Since NFTs exist on the blockchain, they cannot be copied or duplicated. Even though a right-click and save can allow one to copy the image associated with a specific NFT, if it is not transferred on-chain, the NFT holder still has complete ownership of it.

What do NFTs have to do with artists?

Many artists have entered the Web3 world via NFTs as they can sell all types of artwork as NFTs. Some artists choose to create NFTs of pixel art while other artists create music videos as NFTs. It all just depends on what the artist wants to create!

When users mint these pieces (created and added to the blockchain), they can sell NFTs for whatever price the artist wants. Additionally, these NFTs will always show the artist as the original creator of the work. They then can earn indefinite royalties for the artist every time it is resold. Which makes for a consistent way to make money.

This is a drastic change from other artist platforms. Typically artists only collect a one-time payment for the initial sale. The industry may not also grant full creative freedom to the artists due to the restrictions of the platforms.

The blockchain will always keep a record of the original creator of the NFT as well. If someone likes a certain piece of work, they can find the original minter of the piece. Then, look at their other artwork as well.

A buyer is unable to buy an NFT and claim they created it as the blockchain holds the record. The original artist are always credited, no matter how many times it has been sold or how much time passes as long as the digital ledger that is the blockchain exists.

How do artists make money with NFTs?

This is the biggest question when it comes to artists in NFTs!

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As long as artists create, they are able to receive payment for their work for whatever they believe is a fair price. Artists are able to make money directly from NFTs though initial sales and ongoing royalties. 

The initial sale price is whatever the artist decides and royalties are typically a percentage of the secondary sale prices. Transactions typically occur in cryptocurrency. However, more and more NFT platforms are experimenting with accepting payment in fiat (US Dollars, Euros, etc.) currency.

The primary overhead cost to create NFTs is the initial minting cost to put them on the blockchain. This cost can range greatly depending on which blockchain the artist chooses to mint their NFTs on and the demands of the network at the time of minting. Some minting prices can be as low as $1, while others may be well over $1000.

Participants can sell NFTs as individual pieces (commonly referred to as 1/1) or as pieces that are a part of a larger collection. With larger collections, it is not uncommon for an entire team of artists, developers, project managers, and more to work together to carefully create and release collections. These teams internally decide how to compensate members. Developers are able to work within these teams to create custom smart contracts (code that runs on the blockchain) that allow for more control over the way the NFT collection functions, sells, and more.

A small part of the Crypto Coven team

However, artists do not need to be a part of a team or have technical skills to thrive. There are plenty of no-code tools available to create NFTs and NFT collections with a few clicks of a button, allowing for more accessibility and a more seamless transition into Web3 for those who do not have any technical knowledge. 

No code NFT creation on the OpenSea platform.

How do artists sell NFTs?

NFT platforms such as OpenSea and Rariable function as digital museums and marketplaces for artists who want to make money with NFTs to showcase and sell their work. These types of platforms charge fees to users when minting, buying, and selling on the platforms. Fees are typically a small percentage of the cost to sell, buy, or mint. 

Homepage of FormFunction, a platform for 1/1 NFTs on the Solana blockchain

There are many different NFT platforms, with some choosing to platform only specific types of work. Some NFT platforms only allow 1/1 work while others will only display NFTs from a particular blockchain. For example, FormFunction is an NFT platform that only allows creators to mint 1/1 pieces on the Solana blockchain. Objkt is a platform that only displays NFTs from the Tezos blockchain. And Foundation is a platform for creators who want to mint on the Ethereum blockchain. There are even NFT platforms they require an invitation for an artist to mint and sell on the site. Artists are free to choose whichever platform they believe best showcases their work. With so many options, there is a space for every kind of creator.

On SuperRare, artists need to be invited to mint their artwork.

Larger NFT projects with development teams will sometimes create their own custom websites and platforms to sell and trade their NFTs. Depending on the needs of the individual artist or team, creating a website can be useful for marketing, costs, and branding purposes. However, It is not necessary to create a website. NFT platforms, such as Opensea, provide all the tools necessary to mint, buy, and sell on their platforms.

It is also possible for artists who want to make money to directly sell their NFTs to buyers through the use of direct trading platforms such as NFT Trader and SudoSwap once the artist mints the NFT. When using these platforms, buyers and sellers should be cautious and triple-check what is being traded and with whom. 

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Scammers will sometimes try to trick others into trading stolen assets. Or even spoofing links from these websites once a trade is agreed on to steal assets from victims. Platforms such as OpenSea and Rariable can be much safer and easier to use, especially for those who are new to the NFT space.

Setting up a trade using SudoSwap

Fees and royalties vary based on the platform the NFT is minted on. It is important to consider these when deciding on a platform. Some platforms have set royalty fees for creatives while others give artists complete control over the royalty fee. The creator of the NFT receives the royalty fee whenever someone sells the NFT on a secondary market.

Royalties for creators on Foundation.

While initial sales and royalties are the primary ways that NFT creators can make money, it is also possible for artists to license their work, create merchandise, and even sell tickets to performances and events showcasing their work. It is completely up to the artist how they want to market their NFT to the world. 

In some cases, artists will even allow others to create derivative works to from their original work or license the work to the individual holders of the NFT. In the case of Bored Ape Yacht Club, this has led to holders creating merchandise such as craft beers, clothing, and even recreational gear using the Bored Ape branding. The possibilities are truly endless.

Of course, not all artists will find the same seemingly overnight success in the NFT space as projects such as Bored Ape Yacht Club appear to have found. It can be hard work. Artists will need to onboard and acclimate themselves to crypto culture, find communities of like minded people, and establish their voice in the Web3 world. Initial sales, royalties, and other possible revenue sources can grow and add up over time. 

While the initial learning curve may be steep, there is opportunity to make money with NFTs waiting for those who are willing to take the risk. As long as artists are willing to create, the great wide web of Web3 will be there to buy.

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