NFTs, or non-fungible tokens, are blockchain assets accompanied by digital certificates ensuring user ownership over the specified asset. The central concept behind the NFT is that it must be unique. No matter what it is, you can’t mix or exchange it with other goods. The NFT market is one of the fastest growing in the whole world, and the full potential of NFT marketplaces is still unknown.
But what we know for a fact is that NFT markets were evaluated at USD 11.32 billion in 2021, according to Verified Market Research. The prediction is that by 2030, the NFT market will rise and reach USD 231.90 billion. These numbers are more than enough to ensure that the market will attract too many artists, NFT sellers, and investors.
Among all the controversial and complicated aspects of NFTs, one that takes the sleep of most NFT sellers is the NFT value. After all, pricing NFT isn’t simple, and finding a fair price is far more complicated than people think.
Pricing NFTs is complicated because there is no fixed price, and the parameters you can use to determine your floor price are unclear. This means you must build your best NFT pricing strategy, considering all the traditional production and selling costs, such as gas fees, marketplace fees, and effort value. Considering all that, GamerSEO prepared a complete article to help you price your NFTs and increase your income with NFT sales.
NFT Pricing Strategies
For many, NFT marketplaces are the evolution of artwork and the art world. And, as for the traditional art world, determining the typical price range is complicated. The project behind each NFT or currency will price the assets differently. The most developed and creative projects will, obviously, have a higher price. But if you properly use the NFT pricing strategy, your assets might be sold for higher prices.
Price Your NFTs: Problems of Listing Your Nonfungible Tokens for the Wrong Value
As we mentioned, there is no fixed price for recently created NFTs, but having it priced higher may be complicated. If buyers consider your NFT is overpriced, it might remain so forever, and you won’t earn a penny.
On the other hand, having a lower price is complicated because it will be hard for you to valorize your fine art on the NFT marketplace.
The big deal is to enter with certain humility but keep growing your nonfungible token’s floor price constantly. As you start selling NFTs more consistently, you can raise the NFT floor price, as consistent sales and prices help generate proof-of-concept. As the NFT creator, one artist can determine the average price for their NFT art pieces.
NFT Pricing Strategy Steps
After all that, you already understand the complication behind pricing your NFTs. But there are strategies for pricing nonfungible tokens you can surely adopt. These steps will help you determine your NFT prices, making you increase revenue while keeping the same sales.
Research Carefully and Use Different Marketplaces
Since the NFT world presents incredible potential, many artists enter open marketplaces to sell their NFT art. And, commonly, nonfungible token artists need the necessary market knowledge and determine the right price to enter this world.
Therefore, you should start with research. Artists can go to several markets, such as OpenSea or Rarible, to study and utilize multiple platforms.
No matter how innovative your NFT project is, it will have some similarities with another rare NFT, so check the prices other NFT owners ask for their digital assets. You may also look for some utility NFTs that contrast with yours.
However, the floor price presented in one secondary market isn’t enough to determine the competitive prices. That’s why you must analyze different marketplaces for a complete overview of your possibilities and floor prices. Collecting information is the key to ownership transfers and a successful digital token sale.
Check Your Direct Competiton
Another good habit is determining the artists that compete against you and those you want to pursue on your NFT project journey. Check their number of followers on each secondary marketplace, how frequently they sell, and their price history. It will give NFT holders ideas about how to proceed in an NFT space, achieving outrageous success with your collectibles to profit tens of thousands of dollars.
Let Potential Buyers Decide
The NFT ecosystem and your target audience will determine the price of your NFT collection. This is good because you don’t have to actually accept any offer until the perceived value for your NFT collections is met.
Another very important thing is to be patient with your own NFTs. A strategy helps NFT sellers, but you must take your time and apply them. Don’t get too desperate to make money. Like a traditional physical print or art, you won’t always sell quickly, no matter the secondary marketplace you use, so don’t expect the NFT to sell in the first week.
You must pass through the NFT journey and build brand equity as we do with traditional works and products in a physical space. An artist puts a lot of effort into each artwork, making them think buyers will accept the listing price they want. It can happen, but expect it may take at least some days, weeks, or months to sell. An NFT project rises with time, so give it time and don’t burn your tokens.
The Currency Matters
Since we are talking about tips related to proper pricing, let’s give another example. The NFT industry currencies are not dollars or euros. In the non-fungible token space, what rules are the cryptocurrencies, such as Bitcoin and Ethereum.
We connect the currency to the right state of mind because if you think about dollars, you may end up classing your NFT higher or lesser than its actual worth. At the time of writing, Ethereum (ETH) was worth more than 1.1 thousand dollars, but the coin reached a peak of over 4.6 thousand dollars.
Listing your NFT for thousands of dollars may be impacting but pricing your NFTs for 1 ETH is pretty easy. Of course, you know how much digital currency is worth. That said, we recommend that your crypto art have a price based on traditional digital coins, not fiat money. After selling NFTs, you can easily convert the crypto payment received into real money.
Use Pricing as a Marketing For Your NFT
You must valorize your work and consider all the costs involved in NFT creation, including programs used to develop each part of the digital image, your time, selling fees charged, and any other additional fees or other costs.
But you can also use the pricing for marketing the nonfungible tokens you created. Attractive prices will bring more collectors, build fidelity, and earn you revenue by the number of sales, not for the exact price.
Know Yourself, Your Work, Projects, and Values
Knowing exactly how the market works and the prices it generally pays for each artwork is not enough. You must know what you are planning for each project and how you will develop each of them. You must also keep in mind all the effort you put into each NFT.
Listing fees are also important. Besides the price for your time and effort, check all the fees you’re paying to list and sell NFTs, as, sometimes, creation costs are high. This makes NFTs floor price increase. Many markets have selling fees and other fluctuating gas fees charged to different creators. Usually, it’s their main source of income.
Copies, Inventory, and Value
Among all the factors, there are other things you must work on in your artist profile to raise your floor steadily. These factors include copies, inventory, and value-added for the collection. Let’s see a little about each of them.
You should first consider the number of copies in your NFT collection. The more copies, the lower its price will be in general conditions.
The biggest challenge for an artist is to make an attractive collection with the smallest number of copies possible. This is far easier if you already have a strong clientele with strong spending habits. Having fewer copies also decreases the production cost and minting process.
Managing inventory is also fundamental for any artist. Keeping NFT ownership of many pieces is problematic if you produce assets because it indicates your work isn’t recognized and that investors are not looking for your art. This will be a decreasing-price auction.
On the other hand, having few NFTs in your inventory may show you aren’t an active and trustworthy artist, mainly if you don’t have many recurring clients and mainstream recognizability. But this becomes less important if your work has a good buying history that can indicate you are in demand.
Another factor in starting to bring more clients and investors is the value your NFT may have. To add value, the NFT project’s founder must present ways to develop the bigger project behind the NFT. The blockchain and the metaverse offer infinite possibilities, which makes projects focused on both extremely interesting and attractive to investors. A limited edition NFT will draw more attention.
Another way to add value to an NFT is through authenticity, which artists must focus on. There won’t be a more significant project behind your art, but it will attract buyers if they are cool and authentic. If you find ways to make your nonfungible tokens unique and exclusive, you will also get the mainstream.
As we previously mentioned, NFTs are relatively new, with a few fixed strategies adapted by investors looking for ways to make real money. Besides that, nonfungible tokens depend on a series of factors besides what an artist can do. But with all of these pricing strategies, you already have the base you need to determine your NFT’s worth, avoiding some of the biggest mistakes.
If you want to read more articles and quality content about NFTs, metaverse, cryptocurrencies, and many other topics of the digital world, check out the GamerSEO blog. If you’re looking for content production for your blog or website, contact us! We will be pleased to help you develop your business.
SEO specialist with over six years of professional experience. A/B test and Data-Driven SEO enthusiast. In his work, he focuses on the development and implementation of a strategy that achieves predetermined, specific goals. Privately, a fan of mountain biking.