As non-fungible tokens (NFTs) become increasingly popular, many NFT development teams are looking for ways to monetize their platforms. In this comprehensive guide, we’ll explore some of the most effective strategies for generating revenue through NFT marketplaces. From royalties and secondary sales to advertising and sponsored content, there are plenty of opportunities for NFT developers to turn a profit.
Royalties: The Basics
One of the most common ways that NFT creators monetize their platforms is through royalties. When an NFT is sold on a marketplace, the creator can specify a percentage of each sale that will be paid out as a royalty. This allows the creator to continue earning revenue from their work even after it has been sold.
Case Study: Cryptokitties
Cryptokitties is one of the most well-known NFT platforms, and it’s also a great example of how royalties can be used to generate revenue. When an artist sells their NFT on the Cryptokitties platform, they receive a percentage of each sale as a royalty. In addition, if the NFT is sold again in the future, the artist will continue to receive royalties from that sale.
Advertising: A Powerful Tool
Another way that NFT marketplaces can generate revenue is through advertising. By allowing brands and businesses to advertise on their platforms, NFT developers can turn a profit without having to take a cut of every sale.
Case Study: OpenSea
OpenSea is one of the largest NFT marketplaces in the world, and it’s also an excellent example of how advertising can be used to generate revenue. In addition to selling NFTs, OpenSea offers a variety of advertising options, including banner ads and sponsored collections. These options allow businesses to reach a large audience of NFT collectors and enthusiasts.
Sponsored Content: A Winning Strategy
Sponsored content is another way that NFT marketplaces can generate revenue. By partnering with brands and businesses, NFT developers can create unique, exclusive content for their platforms. This content can be anything from virtual events to limited edition NFTs.
Case Study: NBA Top Shot
NBA Top Shot is a platform that allows fans to collect and trade NFTs featuring moments from the NBA. The platform has been extremely successful, in part because of its sponsorship strategy. By partnering with the NBA and other teams, NBA Top Shot has been able to create exclusive content that appeals to basketball fans.
Secondary Sales: A Lucrative Opportunity
Finally, NFT marketplaces can also generate revenue through secondary sales. This is when an NFT is sold again in the future, usually for a higher price than its original sale. By taking a cut of these sales, NFT creators and developers can turn a profit.
Case Study: Rarible
Rarible is an NFT marketplace that has been particularly successful in generating revenue through secondary sales. The platform allows artists to create their own unique NFTs, which can then be sold on the marketplace by collectors. When an NFT is sold again in the future, Rarible takes a cut of the sale as a fee.
