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Making a Risk Management Plan for Your Business

It’s impossible to eliminate all business risk. Therefore, it’s essential for having a plan for its management. You’ll be developing one covering compliance, environmental, financial, operational and reputation risk management. These guidelines are for making a risk management plan for your business.

Developing Your Executive Summary

When you start the risk management plan with an executive summary, you’re breaking apart what it will be compromised of into easy to understand chunks. Even though this summary is the project’s high-level overview, the goal is describing the risk management plan’s approach and scope. In doing so, you’re informing all stakeholders regarding what to expect when they’re reviewing these plans so that they can set their expectations appropriately.

Who Are the Stakeholders and What Potential Problems Need Identifying?

During this phase of making the risk management plan, you’re going to need to have a team meeting. Every member of the team must be vocal regarding what they believe could be potential problems or risks. Stakeholders should also be involved in this meeting as well to help you collect ideas regarding what could become a potential risk. All who are participating should look at past projects, what went wrong, what is going wrong in current projects and what everyone hopes to achieve from what they learned from these experiences. During this session, you’ll be creating a sample risk management plan that begins to outline risk management standards and risk management strategies.

Evaluate the Potential Risks Identified

A myriad of internal and external sources can pose as risks including commercial, management and technical, for example. When you’re identifying what these potential risks are and have your list complete, the next step is organizing it according to importance and likelihood. Categorize each risk according to how it could impact your project. For example, does the risk threaten to throw off timelines or budgets? Using a risk breakdown structure is an effective way to help ensure all potential risks are effectively categorized and considered. Use of this risk management plan template keeps everything organized and paints a clear picture of everything you’re identifying.

Assign Ownership and Create Responses

It’s essential to ensure a team member is overseeing each potential risk. That way, they can jump into action should an issue occur. Those who are assigned a risk, as well as the project manager, should work as a team to develop responses before problems arise. That way, if there are issues, the person overseeing the risk can refer to the response that was predetermined.

Have a System for Monitoring

Having effective risk management companies plans includes having a system for monitoring. It’s not wise to develop a security risk management or compliance risk management plan, for example, without having a system for monitoring. What this means is there’s a system for monitoring in place to ensure risk doesn’t occur until the project is finished. In doing so, you’re ensuring no new risks will potentially surface. If one does, like during the IT risk management process, for example, your team will know how to react.

Writing a Business Plan

While it may be tempting to put off, creating a business plan is an essential part of starting your own business. Plans and proposals should be put in a clear format making it easy for potential investors to understand. Because every company has a different goal and product or service to offer, there are business plan templates readily available to help you get on the right track. Many of these templates can be adapted for any company. In general, a business plan writing guide will recommend that the following sections be incorporated into your plan.

Executive Summary

The executive summary is the first section that business plans open with, but is often the last section to actually be written as it’s the most difficult to write. The executive summary is a summary of the overall plan that highlights the key points and gives the reader an idea of what lies ahead in the document. It should include areas such as the business opportunity, target market, marketing and sales strategy, competition, the summary of the financial plan, staff members and a summary of how the plan will be implemented. This section needs to be extremely clear, concise and engaging as you don’t want the reader to push your hard work aside.

Company Description

The company description follows the executive summary and should cover all the details about the company itself. For example, if you are writing a business plan for an internet café, you would want to include the name of the company, where the café would be located, who the main team members involved are and why, how large the company is, who the target market for the internet cafe is, what type of business structure the café is, such as LLC, sole proprietorship, partnership, or corporation, what the internet café business mission and vision statements are, and what the business’s short-term objectives are.

Services and Products

This is the exciting part of the plan where you get to explain what new and improved services or products you are offering. On top of describing the product or service itself, include in the plan what is currently in the market in this area, what problems there are in this area and how your product is the solution. For example, in a business plan for a food truck, perhaps there are numerous other food trucks in the area, but they are all fast –food style and unhealthy so, you want to introduce fast food that serves only organic and fresh ingredients every day. This is where you can also list your price points and future products or services you anticipate.

Market Analysis

The market analysis section will take time to write and research as a lot of effort and research need to go into it. Here is where you have the opportunity to describe what trends are showing up, what the growth rate in this sector looks like, what the current size of this industry is and who your target audience is. A cleaning business plan, for example, may include how this sector has been growing by 10% every year due to an increase in large businesses being built in the city.

Organization and Management

Marketing and sales are the part of the business plan where you explain how you will attract and retain clients. How are you reaching your target customers and what incentives do you offer that will keep them coming back? For a dry cleaner business plan, perhaps if they refer customers, they will get 10% off their next visit. In addition, you may want to explain what needs to be done in order for the business to be profitable. This is a great way of showing that you are conscious about what clear steps need to be taken to make a business successful.

Financial Projections & Appendix

The financial business plan section can be a tricky one to write as it is based on projections. Usually what is included is the short-term projection, which is a year broken down by month and should include start-up permits, equipment, and licenses that are required. This is followed by a three-year projection broken down by year and many often write a five-year projection, but this does not need to be included in the business plan.

The appendix is the last section and contains all the supporting documents and/or required material. This often includes resumes of those involved in the company, letters of reference, product pictures and credit histories. Keep in mind that your business plan is always in development and should be adjusted regularly as your business grows and changes.

Business Plans

Building digital assets through nft strategies, what is nft.

Any digital asset whose ownership is recorded on the blockchain can be an NFT, which is generally art, collectibles, and other unique goods used in games or virtual worlds. Blockchain-native firms are unlocking the ideal commercial models for the technology as corporations enter this new industry, while older organizations are studying how to exploit these assets inside existing business models.

NFT business - How to make money?

It's time to learn about the industry, how to create NFT business plan and how to make money using NFTs. We all understand that the goal of any business is to make money. A business model aids in the formation, development, and maintenance of a company. The most popular way for enterprises to make money in this ecosystem is by selling NFTs. Because there is abundant demand for virtual goods, this business model is an unequivocal and undeniable choice. And as per the latest reports, it also performs admirably.

As previously stated, the most common approach for companies in the NFT ecosystem to generate revenue is through selling NFTs directly to users. Video game producers and creators, for example, have already entered the NFT market. The revenue generated by the NFT business accounts for the majority of the total revenues. Experts believe that selling NFTs directly to customers will generate revenue in the near future.

Keys to NFT Success

When creating the NFT p itch deck for clients, it should echo the excellent unit economics and include the following points -

Low marginal cost

Virtual trading cards or comics have a lower marginal cost of manufacture and dissemination than traditional physical trading cards or comics. While both need upfront expenses for designers, selling assets through a digital channel saves thousands of dollars in printing production costs, as well as the time and effort required to manage retail channels to get products into stores. Converting digital artwork into NFTs necessitates paying "gas fees" to mint tokens on a blockchain, which can cost up to $150, as well as a tiny monthly subscription charge, which varies depending on which platform or marketplace you choose as an outlet.

Intellectual property rights are also important to consider, however, this is still a developing field. Because there is no legal precedence in the United States for NFT ownership, a number of significant questions about authors' retention of commercial rights and future licensing are still being contested or refined, says the experts.

Finally, the ecological impact must be taken into account. The Ethereum network, which generates as much carbon as some small countries, is where most NFTs are traded and exchanged. That's large because the decentralized consensus technique it uses to validate transactions, known as proof of work, necessitates a lot of computational power. Companies, as well as individual artists, may face backlash or loss of sales from environmentally concerned clients.

Know the Risks

So, what's keeping your organization from joining the NFT bandwagon? Even a believer like me realizes that the industry is in its infancy and is largely unregulated. To begin with, not all NFTs are the same. Yes, the ownership certificate kept on the public blockchain ledger is immutable and unforgeable. It's important to understand, though, that this token is only a link to a digital file stored on a server. And not every server is the same.

Link rot, which occurs when hyperlinks break, is a severe issue. This usually occurs when the target file is relocated to a new server without the connection being updated, or when the server goes down. Keep track of where the digital file is stored when making or purchasing an NFT. The likelihood of the NFT being lost increases dramatically when it is stored on a local server. A public cloud storage solution decreases this danger, but a decentralized server is even better. You should also make sure the token's metadata is saved on a decentralized server.

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The Pourquoi Pas

Tech made Easy

How to create an NFT business plan

Over the past year , interest in Non-Fungible Tokens has plunged . Many on Twitter argue this is a good thing; that the concept was a scam all along . Others claim that the technology remains revolutionary and will one day be the biggest thing in the world . They blame external factors and bad actors for the current market depression.

I care little for either side; they’re probably both right, as is often the case. At the end of the day, NFTs exist, and they don’t seem to be disappearing. The technology was first adopted by web3 companies , who never really seemed to be able to differentiate business from scams . It was then over-taken by large multi-national companies, who are by their nature dull and unimaginative .

The shine having seemingly worn off, now is the right time to have a serious, honest discussion about how to view and use NFTs within your business. But first…

1. Do YOU need an NFT strategy?

Despite what some parts of the “industry” says, not everyone needs to have an NFT strategy. This is not an industrial revolution or a “new internet”. Before jumping in, it’s important to ask the following :

Does your brand have recognizable assets that could be turned into NFTs, such as a trademark character, notable branding, luxury products…?

Does your brand have an engaged community who identify as fans of your brand, products or services?

Do you want these people to have a stronger voice and a bigger role within your organisation?

Can you tie an NFT to real-life perks such as exclusive events, discounts, or early access to products?

Do you have the bandwidth and freedom to test out an innovative but unproven marketing channel?

If the answer to all of these questions is no… go outside, build something real, make a name for yourself and then start thinking about NFTs . Chances are, at that point, you won’t need them anymore.

A lot of entrepreneurs have made two mistakes over the past two years. First, they tried to assert that NFTs have self-sustaining value. They do not: digital assets are inherently contextual. Secondly, and more importantly… by their very nature, most centralized companies do not NEED to use NFTs . If I need to explain why, you shouldn’t be messing with cryptography.

2. Defining NFTs’ Value proposition

You don’t create digital tokens purely to make money. You create tokens because they add value to existing and/or potential customers. Which in turn give you money. Here’s how organizations and creators can use NFTs to leverage existing content and interact with their customers.

Develop new offerings

Due to the digital nature of NFTs, the line between different types of offerings is blurred. This is a sign of the times.

New products : Earlier this year, GAP launched “hoodie art” as an NFT , which unlocks physical clothing.

New services : Plenty of companies are betting on future metaverse users wanting to glam-up their digital avatars with wearable NFTs designed by luxury houses like Louis Vuitton, Valentino and Burberry .

New partnerships : Nike created CryptoKicks in partnership with RTFKT studios . The sneakers have sold for over $5K.

These examples show the incredibly dull way traditional actors see the world… We shouldn’t let them gain more power in this space. There are so m+any cooler things you can do with NFTs.

Create new forms of value

The concept of potential new value is fascinating, as the below can be mixed and matched as needed. There are a lot of innovative ways to interact with customers there.

Exclusivity : Many people in the recent past purchased NFTs simply to show people online how cool they are and how much money they have . Exclusivity has long driven luxury sales; NFTs are no different. The internet has been a great equalizer for decades, but this may be coming to an end, for better or for worse (probably the latter).

Social capital : Exclusivity is often shared by and with people of similar socio-economic backgrounds. This creates social capital. NFTs can be used to bring like-minded people together, in online communities, coordinated around a token. As an example, the most well-known social DAO, “ Friends with Benefits ”, gives access to NFT-related events in exchange for thousands of dollars . Do with that information what you will.

Community : Social capital and its own form of exclusivity naturally leads to the creation of communities. Lazy Lions , Bored Apes Yacht Club , Wall St Bulls … every NFT collection has its own group of fans and followers. In these communities, NFTs have two functions beyond mere financial incentives. Primarily, they act as artifacts of networks , which reinforce the community’s value by being the one thing everyone has in common. They can also represent voting shares in the community, whether officially or unofficially.

Access : By their very nature, NFTs are unique and cannot be broken down. As such, their unique code can work as a key to grant access to a community, to a real-world event, to a concert, to a sale… Mixed with the other forms of value mentioned here, this can be quite powerful.

Authenticity : Since tokens are unique, they can also be used as authenticate products they may be linked to (ex : YSL sends an NFT to your digital wallet when it sells you a bag). For industries suffering from plagues of fakes, this opens many possibilities. Not to mention the many use cases around identity.

Utility: A utility NFT isn’t just a piece of code or a pretty picture. It can also serve a real purpose online. The easiest example to grasp is equipment for video-games that give players new and unique attributes. Another, more advanced example is the utility garnered from an NFT that also acts as a voting token within a DAO. In the future, we can think of utility with regards to national identification, but we are far from it today.

Rewards : the blockchain being transparent, it’s easy for brands to identify who may own a specific number or combination of NFTs , and reward these people through a promotion or a unique gift, thus increasing brand loyalty.

Investment : with all the above in mind, one might think it wise to buy specific NFTs early, and keep them as they accrue the value highlighted. This is why many people bought NFTs over the past year. That was a mistake. But who’s to say, as the market matures, if it will continue to be? A company might get a head start by believably implying future value exists.

Entertainment : At the end of the day, why can’t I just like a silly picture and enjoy owning it as a piece of a company's history, or as the totem of a community? What’s so wrong with that? For all its glory, the digital world has always lacked biographical indexicality — a way of seeing the full history of a digital asset. And history has value, if only in the eyes of its beholder. As such, NFTs create hedonic value: owning one creates pleasure for its own sake. Companies can do well to understand that.

None of the above is mutually exclusive. This is not to say that your NFTs need to do it all — this is a mistake we see too often.

Improve customer relationship

All of the above ensures customers are :

More Engaged : Customers that are part of an exclusive community, from which they derive value, will work to improve that community. Companies dream of having active promoters : NFTs are a way to get there.

More Aware : an NFT collection, if done well, has a tendency to be self-propagating. This means more free advertising to potential customers. However, that awareness is meaningless if there are no benefits to entering a relationship with the NFT issuer.

More Loyal : If a customer is engaged, and gets regular rewards, and those rewards improve as he becomes more entangled with the NFTs’ issuer, why would he switch to a different service provider? NFTs are a path to unprecedented customer stickiness.

Drive long-term value

If everything goes well, NFTs are a path to :

Customer retention : a relationship having an exponential value, customer stickiness is increased.

Customer acquisition : Said value lowers the net cost of customer acquisition.

Data & Insights : having a more digital relationship on a transparent blockchain allows companies to have access to more data, which they can then use to improve their offer. Ethically, of course .

New revenue : this should not necessarily be the end goal, as mentioned above. But it can be a VERY nice cherry on the cake.

3. Going deeper : building an NFT business model canvas

I’ve long bemoaned the way the business model canvas is taught in business schools . Too rigid, no interconnections, no focus on ecosystems…So I don’t use it. What I’ve created instead are a set of questions that one might instead ask as they build a case to bring NFTs to the attention of a boss or partner. You’re welcome.

Who are the consumers of our company’s digital assets?

How are these consumers different from other types of customers — if at all?

What are their current purchasing motivations? What do they value? What do they look for as customers of our brand?

What kind of digital assets do they want to buy today? In the future?

Business case

What is the potential contribution of digital asset sales to our company’s top and bottom lines?

Will digital asset sales be additive? Or will they cannibalise some physical sales?

What investments are required today? Over the long term?

Go-to-Market

To what extent should our brand mint its digital assets as NFTs and / or pair physical assets with an NFT?

How can our brand reduce the environmental footprint of NFT mints?

Should we translate our digital assets to the virtual realm or create entirely new assets?

How can a brand authentically activate digital or digital/physical product pairings?

Brand Experience

Which elements of brand identity can and cannot be easily communicated in a virtual world?

How can our company authentically build community in a virtual environment? Is that an objective in itself?

How can our brand and sale platforms convert those communities to engage in the real world — if at all?

Partnerships

What kinds of partners would be a suitable match given our objectives, positioning and values?

What do these potential partners bring to the table (consumer access, digital credibility, technology, long-term vision...)?

If we don’t go through a partner, what proportion of our workforce is skilled in 3D modelling, rendering, blockchain technology...?

If the proportion is small, can we feasibly train our existing workforce or will we need to acquire new talent?

If this is more than a marketing gimmick ( it usually is ), how do we adapt our culture and structure to be nimble in a fast-evolving space?

Should we launch and operate NFTs within a siloed team or across the organisation?

These questions are in no way exhaustive, but they should put you on the right path. You’ll need to be on it, because planning is the easy part. Execution is where it gets hard… and fun.

4. Launch, run & coordination

Beyond the big plans and fancy marketing announcements, real work is needed for any project, whether on the blockchain or not. Below is a list of things to work on to ensure a sound NFT strategy and vision, as well as a successful implementation and roll-out.

Strategy & innovation

Define long-term strategy based on value opportunities ( continuous POCs are not a strategy! )

Continuously monitor market movements and trends ( it’s better to be a mediocre surfer on a big wave than a great surfer in a bathtub )

Identify what will be accepted / rejected by customers through rapid prototyping and regular improvements

Identify internal strategic focus areas, and link up with them ( see bathtub comment )

Ensure NFT-related activities align with brand guidelines

Test out target audience, markets, products

Develop communities (One? Many?) through meaningful projects

Manage campaigns alongside roll-outs of other offers

Collect new data points to improve marketing

Business Units

Manage NFT product management roadmaps

Build business cases and work through the high business value ones

Document priority features for customers

Work with creative teams / developers on creating assets

Leverage existing IP / create new digital IP

Understand blockchain risks and trade-offs versus other technologies

Select a tool stack according to company requirements

Integrate new tools into existing systems ( oh the humanity )

Define and prepare long-term customer support

Build services to support the custody of NFTs

Handle crypto payments and reconciliations ( lol good luck )

Understand financial impacts of NFT sales on the organisation

Manage royalty payments / collections

Manage associated taxes with NFT mint / exchange

Advise what local / global regulations allow (now and in the future)

Review all smart contracts, rights and obligations

Advise what types of rights are acceptable

Enforce copyrights, trademarks and patents

Work with Finance & Treasury teams on tax implications

5. Planning for risks

The world of NFTs is new and exciting. Just like the new girl in high school. And just like the new girl in high school, NFTs are dangerous. Damn it Jessica, my leg still hurts when it rains . Though NFTs can create a significant amount of value, they can also be net value-destroyers if risks are ignored.

For the brand

NFTs offer new mechanisms to present a brand and engage with consumers. Accordingly, they can hurt a company’s image, reputation, and legacy if done improperly. NFT offerings should be executed with the same level of rigor that a new product launch entails; quick cash grabs may damage consumer trust in the long term.

For instance, proof-of-work solutions to validate NFTs’ authenticity require significant energy cost. Brands looking to be perceived as ‘ green ’ should consider this in their blockchain selection process.

Scams, Hacks, Fraud and Theft

NFTs offer authentication, provenance, and title to ensure the proper rights management of assets. But fraud is common in this market — counterfeits have always existed, and always will. Fraudsters may mint an NFT relating to a work that is not their own and without the creator’s permission. Additionally, various hacking schemes exist to steal NFTs from their rightful owners. Not to speak of social engineering scams, or outright cyber-attacks.

These risks can be mitigated by purchasing NFTs from reputable creators, undertaking the proper due diligence of an asset’s provenance on a secondary market, and storing assets in secure wallets. This will probably never be enough, and strong contingency plans also need to be in place.

Ownership rights / rights transfer

The purchaser of an NFT owns the token. But owning an NFT does not equate to owning the underlying IP itself . Often these rights remain with the creator of the NFT. In order to preserve these rights and maintain transparency, legal contracts need to be constructed in the real world. These conditions would also need to be carried over to secondary markets and rights transfers.

Technology, however, is as much an art as it is a science. If the contracts are forever airtight, future innovation may be stifled. It is sometimes better to become a meme and be paid for it in free marketing than to sue a pre-school for IP “theft” .

Technological risk

Any NFTs released on a permissionless chain are subject to the technology risks posed by that chain. If a network goes down, ( *cough* Solana *cough* ), your NFT assets may be at best useless, and at worse the source of lawsuits. Yet, centralized chains can be at risk of hacking as well.

There is no right answer, only a thin line on which we must walk the best we can.

Regulatory risks

NFTs are a relatively new asset class. As such, much of the legal and regulatory framework surrounding them is still under development. This should not stop organizations looking to offer NFTs from enforcing existing regulations through KYC, AML, CFT tools.

Regulatory considerations around how NFTs could be regulated in the future (i.e., as a security) will soon present additional challenges. Best be as ready as possible today.

Loss or Damage

An NFT can occasionally be tied to an underlying asset or access to a physical experience. However, the NFT and the underlying asset it represents are separate. While the NFT will contain information about its link to the underlying asset and its holder, should the underlying asset be destroyed, lost, stolen, or the event halted, the NFT itself could be rendered worthless. It is important to have contingency plans in place for such an event

This article highlights but a speck of the efforts necessary to bring a new technology to the mainstream of an organization not specifically built around it. And, as I mention throughout, all these efforts may be for naught — the technology needs to improve, the laws need to catch up… and a new vision of “ value ” needs to emerge. I have nothing but respect for whoever earnestly wishes to hold the NFT banner within a non-web3 company.

Good luck out there.

How to Make a Business Model for NFT (Non-Fungible Tokens)?

January 2, 2023

Business Model for NFT, the world, nowadays, is crazy about the business model. And it is clear that NFTs are big business, really big. However, there are skeptics who think that the NFT bubble may soon burst. Real estate companies, luxury fashion labels, sports leagues, and ……. are selling NFTs. Sotheby’s, Christie’s, and Phillip; even these legacy Jewelry and art auction houses have entered into the business. This is, therefore, a trend worth exploring. Mark Cuban, a billionaire, is enthusiastic about NFTs. It can provide important new revenue streams for creators and small businesses, according to him. He advises to jump into the business. And what is the best time for it?

Table of Contents

Now! It’s time to act on to start with the right business model for NFT.

NFT Business Model: How to Make Money?

It’s time to understand the business and how to earn money using NFTs. We know that purpose of any business is to earn money. A business model helps in creating, developing, and maintaining a business. Hence, we are starting a discussion on the ways of revenue generation in the business model for NFT.

Selling NFTs is the most common means for businesses to make money in the ecosystem. NFT business model is an indisputable and undeniable choice as there is ample demand for virtual goods. It also works very well.

Selling NFT

As mentioned earlier, selling NFTs directly to users is the most popular method for companies in the NFT ecosystem to generate revenue. Likes of video game publishers and game developers have already entered into the NFT business. Revenue earned from the NFT business has a lion’s share in the total income. Experts opine that selling NFTs directly to users will create money for the foreseeable future.

NFT Marketplace

A new way of monetizing the internet with digital collectibles

You need an NFT marketplace to start your business . An NFT marketplace is very similar to eMarketplaces likes Amazon, eBay, and Itsy. Sellers sell their goohttps://www.vardhamaninfotech.com/nft-marketplace-development-company/ds in these marketplaces. Similarly, NFT owners sell their NFTs in these NFT marketplaces.

NFTs are Etherium (Cryptocurrency) based smart contracts for a digital asset. These are unique, verifiable, indivisible, and immutable tokens created using blockchain technology. These NFTs represent ownership rights of a digital asset, artworks, etc. An NFT seller sells his or her NFTs in exchange for a cryptocurrency in the NFT marketplace. The marketplace owner charges a commission, usually 2.5 to 5 percent, from the NFT seller. There are plenty of sellers and buyers of NFTs. Hence, the NFT marketplace owner earns a handsome revenue as commission.

Schedule NFT Marketplace Demo

Business Model for NFT: An Overview

According to the English dictionary, Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets of the same type. Fungible assets simplify the exchange and trade processes, as fungibility implies equal value between the assets. And, as per the Cambridge dictionary, non-fungible means not easy to exchange or mix with other similar goods or assets.

Non-fungible or non-fungibility are not new concepts for the business world. However, non-fungible token (NFT) is a rather new business idea. Blockchain technology has converted the idea into big businesses. Hence, there is a need to know about the NFT business model.

What Do You Need to Know About NFTs?

Understanding non-fungible tokens.

Fungibility is a rather simple concept relating to the things people own and use in daily life. Dollars or rupees are simple examples of fungible assets because one can easily replace them with something identical. To clarify, you can replace a 100 rupees note with one serial number with another 100 rupees note of a different serial number. Both notes hold equal value. This fungibility of fiat currencies lays the foundation stone to exchange. And this exchange system is the basis of any business. Hence, all classic business models are based on the fungibility of fiat currencies.

Inversely, non-fungible assets are unique in nature. These are not mutually interchangeable. An art piece of a famous artist is not interchangeable with another art piece of a different artist. This very nature of non-fungible assets leads to the blockchain-based new business model of NFTs.

Non-Fungible tokens contain identifying information about these unique assets. Also, there was a problem of a lack of unity in traditional digital assets. Non-Fungible tokens solve this problem too, Blockchain technology helps in creating a unique and immutable identifying system of these unique non-fungible assets. Thus providing a simple way to transfer ownership and manage access to these NFTs.

Non-fungible digital assets have been existing since the digital era started. However, the tokenization of these unique assets has the potential to pave a way for new business model for NFT. It is essential to know about the characteristics and unique abilities of NFTs that differentiate them from traditional cryptocurrencies before we understand the NFT business model.

Characteristics of Non-Fungible Tokens

<h3 UniquenessMetadata describing the uniqueness of a digital asset differentiating it from all other assets are the basis of NFTs. The owners can describe large numbers of attributes in rich metadata that make the NFT special and identifiable. In the blockchain, this record is permanent and unalterable. As an outcome, one can validate the authenticity of the asset using this feature.

Validating authenticity is a challenge for high-value non-fungible assets in art, gaming, collectibles, and other virtual or real-world assets. There are, always, fakes. The original function of NFTs was to verify digital art because they can function as certificates of authenticity. NFTs, help to protect these fraudulent activities. The very characteristic of blockchain helps negate counterfeiting and deceptive behavior. This reassures purchasers that their acquisition is authentic and original.

Validating the authenticity and Uniqueness characteristics of NFTs leads them to create a successful NFT business model.

Indivisible

We know that 35 percent of the famous Monalisa painting is meaningless. So, you cannot split the NFTs into smaller denominations. One can only hold, buy, and sell these as whole entities. However, there is a possibility that an expensive NFT can be bought in partnership and one can get a share of the same.

Though, technically one can create unlimited numbers of NFT, it is its scarcity that makes it attractive. That is what makes non-fungible tokens interesting for business. Increasing rareness enhances desirability and that is suitable for any NFT business model.

Moreover, NFTs solidify ownership rights. A non-fungible token paired with Blockchain technology helps to provide ownership rights to a digital asset. An NFT is also transferable. One can easily trade NFT ownership rights on a specialist market.

Now, we have some understanding of fungibility, non-fungibility, and non-fungible tokens (NFTs) along with the business model.

Besides this, there are many other ways to create revenue. Blockchain technology has opened up doors for more business opportunities. We will discuss these innovative ways to earn money using the business model for NFT in the coming blog post.

Written by Jyoti Kothari

Technology | business | nft, 0 comments(s), april 18, 2021, you may also like….

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7 steps for a Successful NFT Business — The NFT sell-out framework

So you want to start an NFT business or want to bring NFTs to your current organization?

Let me give you a hand with what I would call a “Framework for a Successful NFT Business.”

In this article, digested and condensed and translatde into 7 steps the Visa NFT paper “NFTs Engaging Today’s Fans in Crypto and Commerce” so that you don’t have to read the boring 17 pages. They have created a surprisingly clear (but long/boring) paper describing what NFTs are . If you want to go back to the basics of what NFTs are, check this article .

Like cryptocurrencies, NFTs are issued on a blockchain and are used to designate ownership of a certain asset. Additionally, they are cryptographically associated with the owner. Therefore, the NFT ownership can be proven with the public key and private key, just like any other cryptocurrency.

Unlike cryptocurrencies, NFTs are non-fungible, meaning that they are interchangeable or divisible. In other words, one Bitcoin is the same as another Bitcoin. Also, a Bitcoin can be divided into 2x 0.5 Bitcoin without losing value. NFTs have unique properties and cannot be divisible. For example, you cannot switch a Mona Lisa with my painting. Additionally, you cannot cut the Mona Lisa by half and expect to keep the same value. 🤣

According to Visa (and I would agree), NFTs can appeal to collectors, fans, teams, and they are a great way to capitalize on unique assets, engage with fans and create additional revenue. There is the breakdown of these points:

Now let’s look at the 7 steps that, according to VISA, will help to integrate NFTs into your business :

Identify the NFT use case

Determine the appropriate blockchain technology.

Store and access NFTs securely and easily

Distribute across an applicable marketplace, identify additional engagement opportunities.

How do you plan to use the NFT? Depending on the use case, there are different technologies, platforms and mechanisms to design an NFT. Your use case doesn't need to exactly feet the ones below but these are currently the top 3:

The 3 most prominent use cases are:

You can check more NFT use cases here: What are the NFT use cases other than Cryptokitties and where to find them .

⚠️ Crypto Henri YouTube ⚠️

There is a trade-off between the different technologies available that you need to understand before selecting the blockchain you want to work with. In addition, you need to consider variables such as scalability, transaction costs, ecosystem, interoperability and decentralization.

Ethereum is the blockchain with the most NFT activity, but other blockchains are gaining traction with NFTs, like Flow.

Ethereum, Rari, MATIC, WAX, Tezos, BSC (Binance Smart Chain) are some of the blockchains that support NFTs. However, I would say that probably 90% of the NFT market runs on the Ethereum blockchain. The ERC721 is the most common Smart Contract standard for NFTs.

Why does everyone goes to the Ethereum blockchain, although it may cost $50 to mint or transact NFTs, while other blockchains have extremely low transaction fees?

I think it all comes down to the fact that Ethereum is a very mature technology. There are more than 5 million active Metamask users (one of the wallets compatible with Ethereum and NTF), and this helps to bring big network effects. In addition, a lot of layer 2 solutions such as MATIC/Polygon are helping to lower the Etehreum transaction fees.

When choosing a technology other than Ethereum, consider that the transaction fees may be way lower, but the ecosystem, infrastructure and community may also be much smaller. Additionally, there are approximately 400 thousand Ethereum developers, making it easier to build applications and smart contracts using Ethereum.

Mint the NFT

Now it’s time to pick your asset and mint the NFT! You can check in this video all the steps to mint an NFT (this is just one of the many ways). You can also use an existing marketplace such as OpenSea to mint your NFT.

Once the NFT is minted, it will be immortalized in the blockchain.

According to Visa (and I would agree): In creating NFTs, companies are well-advised to find providers who will mint NFTs according to custom smart contracts so that companies have as much control as possible over the parameters of the NFT, including provenance, attributes of the NFT, and storage of the underlying media asset.

Decide how to store digital assets in a long-term sustainable

Where is the NFT file (for example, the digital artwork or Basketball card) be stored? There are different ways to do it, but you should choose a more sustainable and immutable way to store it. If you store it in a centralized server, it may be lost. If you store it on Google Drive, the file URL may be changed. The best way is probably to choose a decentralized storage option.

I talk about the IPFS decentralized storage for NFTs in the 2 articles below. Take a look if you are interested.

Like their cryptocurrency cousins, NFTs are also stored in crypto wallets, and they are associated with a public/private key pair. There are many wallets available, and they offer different levels of security. For example, Metamask is a very convenient way to connect to NFT marketplaces. Still, it may also be seen as slightly less secure considering that it may be exposed to attacks (just by the simple fact that your computer is connected to the internet).

Other platforms, such as Nifty Gateway, offer custodial wallets, wallets, meaning that the customer is not responsible for the wallet security. This option may be easier for the broader audience.

Pro-tip: if you own any valuable NFT or crypto asset, buy yourself a cold storage wallet to keep your assets safe!

You will also need to choose your marketplace (assuming that you want to sell your Picasso NFT!).

Different marketplaces accept different forms of payment (some accept only crypto, others accept credit cards). They may use different blockchains, have different integrations with exchanges, have different communities, or be specialized in different kinds of assets. Make sure you select the right marketplace to distribute your NFT.

Use your creativity. One of the biggest advantages of NFTs is composability. You can add any added benefits to NFTs:

The NFT world can enable huge growth opportunities. However, the first-mover advantage is on the side of the ones jumping to the market in 2021!

Position yourself for long-term opportunities and maximize the value of your business with NFTs! 🚀🤘🏻

Additional considerations

NFT is not a sea of roses. Some additional considerations may be a show-stopper if you are not aware of them and if they are not properly considered:

Have you minted any NFTs? If yes, leave a comment! I would love to know more about it! 🤩

🚀 Follow my Medium, and please also check my 🧱 blockchain courses:

🐶 The First Ever Dogecoin Course

👨‍🎓 Fintech, Cloud and Cybersecurity Course

📖 The Complete NFTs Course

👨‍🎓 Unblockchain Course — The Brain-Friendly Blockchain Course

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NFT Business Plan — A Whitepaper & Deck of an existing startup.

You probably won‘t build the new CryptoPunks. But here‘s the beauty of NFTs — They are extremely unpredictable. You might create something much bigger than CryptoPunks. Alternatively, your NFT project might not say the light of the day. Your NFT business plan could end up archived.

The truth is, it‘s a challenge. I won‘t be writing one of those traditional SEOd articles that are telling you an NFT project will make you hundreds of thousands. In fact, based on experience, there is a high chance it won‘t make anything at all.

But you know what? So is starting a restaurant, a coffee place, a freelancing career, or any business whatsoever. Every business has a risk. So if you‘re thinking of creating an NFT project, I should not be the person who would stand in your way. No one should.

I‘ve created a whitepaper and a pitch deck for a client in the NFT and crypto industry. Let me showcase it to you; may it guide you in creating yours. Oh, and if you want to download it to share it with a colleague, you‘ll find the PDF available.

Finally, before starting this article, you need to know that we do not endorse BTCEN‘s product whatsoever. The article is meant to show you how we wrote a whitepaper and a pitch deck for an NFT project and how you could too.

If you have any questions, we always check the comments!

The NFT Business Plan

Whenever I get a client request whether they want an NFT Business plan or a white paper, I always explain that at 99% of the cases, they‘re the same thing. In the crypto world, the word whitepaper is just more common than the word business plan.

The contents are almost exactly the same. Yet, instead of financials, we put tokenomics.

Here‘s the whitepaper. (Oh, and the company is BTCEN .)

After you check it out, take a look at the pitch deck.

That being said, here‘s the structure of this NFT whitepaper.

NFT Whitepaper Structure

Executive summary.

The executive summary is what we usually write at the end of the whitepaper or business plan. It simply states the most important elements mentioned in the plan. Think of it as something that would summarize the plan for an investor who is in a rush.

Hence, it ought to be showing the opportunities in investing in this project quite well.

After that, we start showcasing the market opportunity. It is crucial to convey the market opportunity in an NFT project. That is simply because it‘s quite volatile. So investors might want to invest in a dip, or to generally ensure that the market is growing in this industry.

The Project

What the project does is what should be pitched at this exact time. After conveying that there‘s a big market opportunity, it‘s time to tell the world what the project is. In this case, it‘s BTCEN.

This was the most time consuming section, and you can predict that seeing how complex it is. We had to create a token release schedule based on researching similar NFT Business plans.

A fair amount of projections had to be placed. As mentioned earlier, this market is volatile and unexpected. Yet, after communicating with the BTCEN team quite well, we were able to reach the perfect projected token release schedule and Tokenomics.

It‘s crucial at each NFT project that one states what‘s the plan. There will be a community and they will be investing in your NFTs. For that, you need to convey to them in your business plan the details of your NFT future plan. Are you now raising funds? What are you going to use them for? How long is the expected date for minting the NFTs? Etc…

Finally, showcasing the team is, I would say, the most important aspect of an NFT project. BTCEN‘s final whitepaper showcases their team. When this was in the works, they were still hiring a team to manage this. However, before investing in any NFT, you ought to know who created it.

NFT Pitch Deck Structure

The BTCEN team requested a pitch deck derived from this whitepaper, and so we delivered.

Now this is not very connected to the NFT project. The problem is one that they‘re targeting. That was the supply chain issues that were happening in the past few years.

They‘re focusing on a niche of beverages and trying to help them with their supply chain management.

Business Model

This is the most suitable connection to the whitepaper and the business plan. Their business model resides around their NFTs and their crypto token.

Market Size

It‘s not only about the beverages market (or the niche focus of energy drinks). It‘s also the NFT market, the gaming market, and any other market that could potentially invest in their NFTs.

Competitors Analysis

Then the deck showcases some of the competitors in terms of tokens and their market caps.

Displaying this similar to displaying a financial model in a typical pitch deck is what we‘re intending to do in this slide. Rather than pitching a lot of details, the token information and what they intend to invest the token‘s budget in is sufficient.

Following that, this slide showcases what they intend to do with the investors fund at that stage. Remember that this is an investor deck at the end of the day; so it is supposed to raise funds pre-token launch.

For the above slide, they‘re mentioning how much they‘re raising and what equity they‘re giving accordingly.

As mentioned in the whitepaper, a timeline is critical to allow investors to understand what the plan of the startup is.

Again, as mentioned earlier as well, showcasing the team is critical.

NFT Business Plan Consultants

If you like this NFT white paper and deck, do hit a like below or tell me in the comments. If you‘re looking for someone to help you in creating your own whitepaper, pitch deck, or NFT business plan, simply search on Albusi for NFT whitepaper, and you‘ll find freelancers to do that for you with some samples.

Meet The Author Of This Article

I’m Al Anany , the CEO of Albusi.

My articles are here and on Medium, whilst my videos are on Youtube.

I specialize in Tech, hence NFTs and the crypto market are markets that I highly believe in.

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NFT Marketplace Business Model: The Ultimate Guide

Quick Summary:

Do you want to develop the NFT Marketplace? But you’re unsure which NFT Business Model you want to go for? This blog will help you in making the right decision. In contrast to fungible tokens, like identical cryptocurrency units, non-fungible tokens (NFTs) are distinct assets. NFTs can be offered in a 1:1 ratio or multiples for the same good or experience. Due to the distinctiveness of NFTs and the unmatched advantages of blockchain technology it is possible to develop new NFT Business Models . Even if some possible NFT use cases are still difficult to envision, these NFT Business Ideas are finding their foot in the industry.

Compared to standard cryptocurrencies, non-fungible tokens are distinct. These digital tokens are incomparable because each one has a distinct online identity. Let’s further explain using an example from a popular cryptocurrency, such as bitcoin, Ethereum, Tether, or another. These may be traded for BTC at an equal price. NFTs operate differently, though. Digital assets are irreplaceable and cannot be copied, duplicated, or stolen. Because of smart contracts, it retains its intellectual property rights. But the asset’s novelty, location, and capacity for a single edition make it a superb digital asset in the crypto business.

A multimillion-dollar revenue structure is developing in the NFT sector. It makes sense that early adopters are already optimizing their income streams by utilizing the advantages of NFT across various sectors, including gaming, sports, entertainment, real estate, and more. The creation of the NFT platform, supported by Ethereum blockchain development services, offers unique characteristics and specialization for various tokenized solutions across sectors.

The NFT Business Model allows substantial investment opportunities and better results. NFT tokens are unique tokens made from collectibles or recognizable products like music, video games, artwork, and more. As a result of the NFT Marketplace Platform’s Development, users may tokenize their physical and digital assets and turn them into collectibles and tokens. The NFT Marketplace may function as a typical shop and auction platform.

To better understand NFT, let’s understand a few examples. Some of the best NFT examples include:

The Best Proof Of The NFT Marketplace Promising Future

Now that we have an overview of the NFT marketplace let’s look at the NFT Business Ideas that are categorized into 4 Business Models .

NFT Business Model

To make the NFT Marketplace Business Model easier to grasp, it is broken into 4 segments. There is a sizable market for virtual products, making the NFT Business model an unquestionable choice.

Digital Collectibles

Digital art most commonly addresses the NFT Business Model , which is also the most well-known. Along with music and clips from sporting events, digital collectibles often include other forms of intellectual property, such as patents. They want to show it to everybody. A digital asset allows you to display it to countless people while establishing your ownership without question. Using blockchain technology, NFT enables us to gather any digital object. Some NFTs can even act parallel with the natural object and serve as a digital twin. But how is it possible? While having a digital file that can be copied, emailed, downloaded, etc., may seem odd to some people. The Non-Fungible Tokens (NFTs) serve as distinctive identifiers of digital files that may be used to trace their history and demonstrate ownership. According to the guidelines outlined in a smart contract, the transactions are recorded in a decentralized database known as a blockchain.

This terminology might sound strange and foreign, but take a moment to consider how bitcoin works. NFT collectibles are similar to bitcoin because they are data storage units in a blockchain. Still, unlike bitcoin, which is fungible and interchangeable, NFTs are distinct and not interchangeable. This revelation has significant ramifications for digital assets that may now employ this technology for identification and traceability. NFT collectibles, like any other physical collection, can increase in value beyond economics depending on their scarcity, usefulness, and other considerations.

In the context of video games or the metaverse, collectible digital files are easily accessible through NFTs and may be gathered, exchanged, invested in, and even used for other purposes. Enormous consequences, as we’ve already stated. The rapid rise in popularity and adoption of NFTs is not surprising. Collectors, famous people, and significant businesses that dealt with natural treasures have not been the only ones to adopt the technology.

Robust Communities

NFT communities are associations of like-minded investors and collectors that work together to create their own culture and brand, advancing the project’s potential for future success. Projects involving NFT must have strong NFT communities to succeed. A specific blend of exclusivity and community is necessary for NFT initiatives to utilize social media to their fullest potential. Each owner of an NFT for a project is automatically a shareholder and a representative.

Some of the Popular NFT Communities include:

Most NFT communities start as NFT projects with 10,000 avatars, each with a distinct personality. Owning one of the community’s tokens is typically a requirement to become a legitimate member. As the group expands, it attempts to create a shared identity and culture that serves as a brand to the outside world. It’s challenging to compile a list everyone can agree on because everyone has their tastes. Despite this, it is our duty to prevent newcomers from becoming lost in the never-ending sea of NFT communities and initiatives. Many of the newer NFT initiatives are usually attractive to beginners with restricted budgets simply because they are less expensive.

There is nothing wrong with joining a smaller NFT community with a lower pricing point, but you should be aware that many con artists out there target new members. Before exploring a new area, we advise that you first join an established group and get some practice under your belt. This will significantly enhance your entire experience, and you could decide to remain with one of them in the end.

Also Read : NFT Marketplace Development Costs

Proven Experience

Paper records were used in the past to prove experience. This is still valid in many circumstances, such as when a college diploma or ticket is used. One of its many downsides is the ease with which paper paperwork may be misplaced or duplicated. NFTs may stand in for experiences like learning, seeing a concert, attending a sporting event, or traveling. This change in how we access and document experience might result in fewer institutions and ticket vendors because of blockchain’s intrinsic capacity to eliminate the middleman.

Some of these experiences may be virtual, reducing the actual area needed even further. The potential impact of NFTs on experiences is vastly oversimplified. Nevertheless, it’s intriguing to consider how this NFT technology can lower the middleman fees we pay for concert admission or share part of the earnings with players when a playoff series ticket is resold at a price higher than it was initially paid.

Securing Personal Information

The ability to secure and verify information on the blockchain makes an NFT solution worth considering for identifying documents and healthcare records. It is worth considering while storing sensitive personal information. Due to its security, you can also consider using the NFT solution for voting purposes

A massive variety of NFT use cases may be created using these four business models. In-game collectibles like a virtual Gucci bag that can be bought in Roblox for more than the actual handbag are examples of how gaming communities sometimes incorporate such items.

Checklist for NFT Marketplace Business Model

Typically, a checklist is made when planning a trip or packing for one. Similarly, this checklist will help create a successful NFT Marketplace Business Strategy:

Choose the Ideal Blockchain Network

The growth & popularity of the blockchain network can be seen through the stats provided above. In this digital era, cryptocurrencies are one of the most debated topics. Most of these cryptocurrencies are based on the blockchain network. Below are some of the Best Blockchain Networks on which NFT can be based:

Having an overview of NFT can help you make an informed decision. You can also hire dedicated developers to develop the NFT solutions that suit your unique requirements and budget.

Select the Token Standard Accordingly

Selecting the token standards that best suit your company’s needs comes after choosing the blockchain network you wish to employ. You must use token standards like ERC-721 or ERC-115 since Ethereum, for instance, is the most talked-about blockchain standard. Similarly, given the NFT requirements, your token will be different.

ERC-721: In the NFT industry, ERC 721 is the most widely utilized token standard. Tokens created following ERC-721 specifications are all unique and immutable. The evolution of NFTs on the Ethereum blockchain is described in the standard.

ERC-998: The ERC-721 standard is expanded upon by ERC-998. It uses both uniform fungible tokens (ERC721) and distinct non-fungible tokens (ERC721) (ERC20). Consequently, a corporation intending to hold a group of assets opts for ERC 998.

ERC-1155 : The token enables users to register fungible and non-fungible tokens by utilizing the same address and smart contract. The development of the coin took the NFT gaming platform into account.

TRC-721 : On top of the TRON blockchain network, the token standard is based. On TRON, transactions may move and track NFTs via a standard interface. A knowledgeable and resourceful public chain structure makes it quicker and easier to deploy TRC-721.

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Select your Domain

One of the most significant elements affecting the NFT market is the domain. To grab the attention of both buyers and creators, pick it intelligently. However, your business’s goal is the only factor that should influence the domain you choose. Select your serving niches first, then pick an intriguing domain name for this.

Some Popular Domain Names are listed below:

These domains help enhance your brand’s presence in the NFT market since they rapidly attract users’ attention.

Select the Correct NFT Market Type

There are four types of NFT Marketplace. Open & Closed as well as Curated & Non-Curated. Both Open & closed marketplace works in the same way, but the only difference is that open NFT is accessible by any user type. Whereas, for a closed NFT Marketplace, only approved users are liable to participate in trades. Another one is curated and non-curated. In both curated and uncurated to promote and sell their works of art and valued projects, digital artists typically turn to specialize or niche sources. A piece of art may be sold online in a couple of minutes on non-curated NFT platforms, which are not curated by the company that built them. To use these services, users do not need to authenticate.

Also Read : Cost to Build an Online Marketplace

How to Monetize an NFT Marketplace Business Model?

NFTs are Etherium-based transactions for a digital asset. Utilizing blockchain technology, these coins are one-of-a-kind, verifiable, indivisible, and immutable. These NFTs represent ownership rights for digital assets, artwork, etc. The NFT Marketplace is where an NFT vendor offers their NFTs in return for a cryptocurrency. The Marketplace owner demands a fee from the NFT vendor, typically 2.5 to 5 percent. NFTs are sold and purchased by many people. Aside from this procedure, some charges and levies enable the owner of the NFT Marketplace to generate a respectable income as a commission.

Listing Fee

The center for cryptocurrency memorabilia is NFT Marketplace. Over 2 million collections and over 80 million NFTs are present in OpenSea. Each collectible must be categorized separately, which is problematic. Because of this, grouping them into categories on a platform provides them a name under options that are simple to search. Businesses charge authors a fee for category listing since it is an easy process for NFT Marketplaces. You can determine the fees based on the cost, investor demand, freshly updated information, or other factors.

Initial Fees

Protocols support every NFT transaction, and NFT platform developers must pay for the technologies that enable NFT work. Businesses charge content producers early beginning fees to post on commercial websites to bridge the gap between technology and platform demands.

Minting Fees

Minting fees are assessed for registering original content or artwork on blockchain networks. Creating a blockchain-based NFT by “minting” a digital file is possible. Instead of minting each collectible one at a time, content providers may pay less by minting more of them on the platform.

Private Sales

The choice is offered only if the content author wishes to sell to a specific category. They have the option of paying the administrator for private sales fees. The rest can watch the merchandise and the sale or auction but cannot buy anything. Finding real clients rather than those who are merely looking to drive up the price of NFT is easier.

Bidding Charges

The NFT Business Model has the authority to impose extra fees in addition to the bidding cost. The creator or clients who wish to launch or participate in bidding must pay the sum. The date for the auction, the value of the products, and the entrance of players can all influence the bidding fees.

Transaction Processing Charges

To maintain and operate blockchain networks, gas costs(payments made by users to compensate for the computing energy) must be paid with the transaction processing fee. Curious as to why. Stablecoins, social tokens, and cryptocurrencies can all be used to make payments in peer-to-peer transactions. Blockchain technology is heavily employed in cryptocurrency, but investors must deal with it to complete transactions.

Affiliate Program

Every artist looks for a marketing plan for their products. Companies have the option to charge for supplying real-time information on bitcoin collectibles, rewards programs, auction notifications, and more.

Multiple Sales Charges

Implementing numerous sales tariffs is another way for NFT markets to make income. Artists frequently use the NFT Marketplace to post sales for various works. The Marketplace, however, must cover the network fees to execute these deals. From the creators, you can collect a percentage of this fee.

NFT Business Model: Wrapping Up!

So, this was it! Hope this article can help you make an informed decision about NFT Business Models that you can start with. With NFTs included in its robust ecosystem, the cryptocurrency economy has expanded even more. Several NFT Marketplaces might start operating in the future resulting Fashion designers, Artists, Photographers, Sports Enthusiasts, and game developers having access to the unique NFT Platform Business Model . As impact of this digital collectibles will become much more valuable.

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NFT Business Models: To Only Start in 2023

Starting an NFT business is just becoming a trend nowadays. With the advancement of Blockchain Technology and the vogue of Crypto currency , demand for the NFT marketplace development is increasing every day. In the year 2021, the global Non-fungible Tokens(NFT) market size reached over $50 billion and is expected to grow to USD 147.24 billion by the end of 2026 as the press release published on PRNewswire .

With the NFT, you can start a business in different industries like music, business ideas, art selling, sports, wearable, cryptocurrency, an investment firm, business consulting firm, NFT course, etc.

Now we explore the terms NFT so you can easily get to know it before starting your NFT marketplace business.

Non-fungible Tokens(NFTs)

A brief history of nft that matter to entrepreneurs, jaw dropping numbers of nft business and marketplace, best nft business models(ideas) you can start.

#1An NFT Marketplace –

What is NFT marketplace?

What are the most successful NFT projects?

Axie infinity, cryptopunks, bored ape yacht club, top 10 most expensive nfts ever sold (till date), nft business models: conclusion.

NFTs are crypto assets available in blockchain with unique metadata . These crypto assets can not be replicated and are different from each other. So can be used for commercial transactions of physical goods and services.

For instance – To understand it better, you can compare non-fungible tokens with real money. You know every paper currency has printed a combination of unique alphanumeric on it that distinguishes it from other paper money. Like real money, each non-fungible tokens are unique and don’t have any copy of it in the blockchain.

The first NFT “ Quantum ” was minted in the year 2014 on the Namecoin blockchain by an artist Kavin McKoy . Quantum is a pixilated image in an octagon shape that hypnotically changes shade and pulsates in a way reminiscent of an octopus.

Top 5 NFT businesses and their sales volume all time till date:

You can see the latest stat updates here: https://dappradar.com/nft/marketplaces

We think reasons are enough to start your own NFT business. NFT marketplace development is the best opportunity for entrepreneurs to earn money that they never think.

You can start your NFT business journey by choosing a unique business model according to your preferences and expertise. We listed the best NFT business models or ideas that should be successful for you in 2022. Here is the list of NFT business models that you can start now:

Let’s discuss all the business ideas one by one

#1 An NFT Marketplace –

Start your NFT marketplace to start selling digital products and arts. We keep it top of the list because it is the best NFT business model for entrepreneurs to start in 2022. NFT marketplace follows the traditional auction system. You can hire a blockchain development company to get build your NFT marketplace.

Buyers come to buy a digital product and start bidding for it. Sellers can list their products in the relevant category available on the marketplaces. Marketplace owners charge sellers a fixed fee for each sale from the NFT shop. For example, OpenSea the biggest NFT marketplace charge 2.5 percent per transaction.

NFT marketplace is a platform where people can sell, buy, and trade NFT-based goods and services using a cryptocurrency such as BitCoin or Etherium as money . Like other marketplaces such as Amazon, eBay, and Etsy, people can list their products and services to sell on based price.

NFT marketplaces leverage blockchain technology to verify the origin of digital content, so the secrecy and the ownership of the selling products are protected. No one can create a replica and only one owner at a time like antique physical art and products real auctions.

Also read : Best Blockchain for NFT Marketplace Development

#2 NFT Online Course –

People are seeking to learn more about NFT technology. If you know much about non-fungible tokens, sharing your knowledge with other NFT enthusiasts is the best business idea. New technology geeks want to know more about non-fungible tokens.

You can design an NFT learning course including videos, articles, and resources. For example, you can see The Complete NFT Course – Learn Everything About NFTs on Udemy. You can also design a course like this and start selling it on Udemy or your own website.

You can research topics, lessons, and study material on a platform like Udemy and design according to it. You can also start your YouTube channel to teach people.

#3 An NFT Gaming Platform

Creating your own gaming platform based on the NFT concept is also a very good idea. Numbers of gaming companies are developing games based on blockchain technology. Gaming companies allow players to do transactions in NFT to unlock advanced levels, upgrade tools, and learn to play the game.

Companies like Dapper Labs , Enjin, Gala Games, and Alwaysgeeky Games are the worth watching NFT gaming companies working for years to provide the best NFT games.

#4 Selling NFT Arts

The next NFT business idea that comes into mind is selling NFT arts. If you are an artist creating digital arts like portraits, images, GIFs, Graphics, Paintings, Logos, Icons, 3D images, etc. You can sell it on marketplaces or your website. You can visit OpenSea to explore the example of most selling artifacts. The competition is so high in this category.

To be successful in this category you need inspiration every day for this you can follow some of the best artists in the industry like Giant Swan , and FEWOCiOUS . You will also get an idea of your target audience, and the latest trending arts.

#5 NFT Sport Business

NFT sports business is the next big idea to start with blockchain technology. Sport NFTs are non-interchangeable digital records, cards, clips, collectibles, digital memorabilia, or videos recorded on a blockchain that sports lovers buy, sell, and hold. According to the investment bank Jefferies , the sports NFT market is expected to raise $75 billion by 2025 . Today, this market is worth $14 billion .

To apprehend sports NFT business, you can follow Sorare , a well-established company selling digital cards and collectibles on OpenSea. Global soccer league and clubs such as LaLiga, Bundesliga, Real Madrid, Liverpool, Bayern Munich, and PSG partnership with Sorare to sell digital products.

#6 Create An NFT Community

Millions of people are just searching about NFT on search engines. Everyone wants to know about the NFT more and more. So this is the right time to start creating an NFT community so people can get the answers to all their questions about NFT. It is very necessary to know that every NFT collection has a huge online community that proves NFT enthusiasts are seeking to join communities based on NFT.

You can start an NFT community where people can ask questions, give answers, start a discussion, and share information. After your community gets bigger, you can monetize it and earn money.

#7 NFT Cryptocurrency Business Model

Another business model that you can explore is the NFT cryptocurrency . To start this business you need a deep understanding of crypto protocols. There are so many businesses nowadays using cryptocurrency to trade in goods, products, digital products, and more. So you can start your own NFT cryptocurrency and collaborate with other online businesses who promote your NFT crypto to buy their products.

For instance AXS coins , Axie Infinity Shards is an NFT-based online gaming company, that uses AXS coins to trade in-game products and creatures. The value of AXS coins is reached $70 now from its launch.

#8 NFT Collectibles

NFT collectibles market is taking shape with the emergence of blockchain technologies. The craze of collecting and trading NFT-based digital arts, memes, images, punks, and kittens is growing every day. So starting an NFT collectible business can be a great success for you. For example, OpenSea leading NFT marketplace has listed the collectibles category on its website, and people are trading their digital products here to earn Ethereum.

The most expensive NFT collectible sale to date is worth $2,924,080 (1000Ξ) on SuperRare . This GIF image generate by @XCOPYART received 100 Etherium as artist royalty. So you imagine the profits, and recurring profit every time.

These eight are the most amazing NFT business model ideas to start in 2022. You can start any of them with the help blockchain development company or blockchain developers.

Before you start, a question that should come to your mind is whether NFT business ideas really work. If you have this question in your mind too then check these most successful NFT businesses that are doing well.

Here are the top 3 most successful NFT projects:

Bored Ape Yacht Club (BAYC)

Axie Infinity best NFT game online . This game is based on Etherium blockchain technology and players can earn crypto currencies for playing the game. Axie Infinity gives NFT rewards to players for engagement in the game.

Axie’s in-house marketplace has traded $3.6 billion so far. The most expensive Axie ever sold is $820000 and 2,800,000 active players count daily .

CrptoPunks are the most trending NFT projects in 2022 based on the Etherium blockchain. CryptoPunks are the collectible characters created by the Larva Labs . Now owned by the Yuga Labs . Larva labs minted the 10,000 unique CryptoPunks that revolutionize the CryptoArt moment on NFT marketplaces.

These CryptoPunks cover by online press and media such as Mashable, CNBC, The Financial Times, Bloomberg, MarketWatch, The Paris Review, Salon, The PBS NewsHour, and The New York Times in 2018, and again in 2021.

The total value of all sales till now is 611.71KΞ ($1.93B) as stats publish on Larva Labs. You can see the top 10 expensive Cryptopunks NFTs ever sold to date in the image below.

Image source: https://www.larvalabs.com/cryptopunks

BAYC is the 3rd most popular NFT project nowadays. Bored Ape Yacht Club is a collection of 10000 unique NFTs on Etherium blockchain owned by the Yuga Labs .

The most expensive BAYC NFT ever sold to date Bored Ape Yacht Club #8817 (see the image below) was winning a bid of $3.4 million . BAYC surpasses the trade volume of $1 billion in 2022.

most expensive bored ape yacht club cryptoart

Image : Bored Ape Yacht Club #8817

These are the top three NFT projects online to see and follow if you are going to start your NFT business. You will get an idea of how much money you can make with NFT businesses.

Hope this article helps to give you a clearer picture of the NFT business models you can start in 2022 . You will also get the all necessary news and information related to the NFTs. Now you can start your own NFT business with the help of our blockchain developers. Contact us to get help with blockchain website design and development.

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How to start a business in the NFT services niche: top 10 ideas.

NFT Services: Top 10 Business Ideas That Will Take Off

August 26, 2021

All the craze around NFT services and shocking sums of money that appear next to this concept attract more and more entrepreneurs. Digital artists, influencers, and different creators sell their works in the form of digital assets and get colossal payrolls. For example, Grimes sold $6 million worth of NFT digital art. Some pieces of physical art gain a new form of digital life. Banksy’s piece called “Morons” was fully digitized, transferred to NFT, and burned to confirm the value of the digital asset.

However, artists aren’t the only ones who gain profits from the NFT services. With the rising demand, different NFT stores, startups, and applications appeared. For example, Rarible , a decentralized marketplace and an NFT art gallery that allows digital creators to sell their creations reached the price of $45,48 per token in less than a year.

In this article, OpenGeeksLab is going to discuss the future of NFT for entrepreneurs, how businesses can create and sell NFTs, and go through the upcoming business trends in this niche. Let’s get started.

How Businesses Can Benefit From NFT Services

Benefits of NFT services for businesses.

The real value of NFT for business is that this technology allows for creating a one-of-a-kind asset. This fact enables your business to provide a unique customer experience and offerings to audiences. NFTs’ versatility allows you to create literally anything you can imagine. Music, images, videos, digital real estate, virtual worlds, and many other things that can be delivered to your audience. NFTs became a brand new tool to create unique selling propositions, increase customer engagement, and develop storytelling.

From the marketing point of view, non-fungible tokens enable you to:

For example, Taco Bell, to stay on top of the latest trends, launched digital Tacos via Rarible . These were basically taco-themed GIFs called “NFTacoBells”. 25 NFTs were sold within 30 minutes from the start of sales with a maximum bid reaching $3,646. Of course, this sum sounds funny for such a giant as Taco Bell. However, this campaign helps Taco Bell to show that they are on the same wave with their clients, drive brand awareness, and maintain the brand’s NFT media presence.

However, marketing isn’t the only niche where NFT services can be useful. Tokenizing sports events or concert tickets may have a positive impact on an event niche. NFT verified tickets can’t be resold, meaning profiteers will stop buying all tickets online to sell them five times more expensive around concert halls.

NFT services could be useful not only for virtual estate but for physical real estate too. Today, this niche is filled with bureaucracy and various intermediaries ranging from estate agents to lawyers. A transition to smart contracts could solve the problems of layering facilitators. All history of rights and ownership can be stored on the blockchain to simplify sales processes.

The list of use cases is unending. The NFT business model is quite new and requires some time to gain shape and attract new ideas. Right now, let’s dive into 10 NFT business ideas that will resonate all over the blockchain world very soon.

10 NFT Business Ideas for SMEs

The NFT business has a steep learning curve and resembles conceptual art more than a well-established trend. That’s why it’s hard to draw up obvious business plans that will blow up for sure. Still, if you have an understanding of blockchain and some guts to try, we’ve compiled a list of the top 10 NFT business ideas that may surge in 2022. Let’s break down each of them.

1. Create a White Label NFT Service

White-labeling is the process of removing the brand names of manufacturing companies and placing logos and brand names of sellers. This is a common practice used by small businesses that resell goods from China on platforms like Shopify .

The same strategy may be applied to NFT services. With NFT services you don’t have to build a platform from scratch, because the concept contains plug-and-play white-label capabilities by default. If you manage to create a global Shopify-like NFT platform with both sellers and buyers in mind, you’ll take over this niche for a long time.

2. Create NFT Collectibles

NFT services suit well for distributing limited collectible assets. Thus, celebrities, sportspeople, and other public people create and sell collectible cards of themselves. For example, Wayne Gretzky, a Canadian hockey player, nicknamed “The Great One” launched NFT cards . Cards were divided by price levels with the cheapest one costing $12 with 5,000 copies and the most expensive one costing $1,500 with only 12 copies available. All cards were sold out in minutes .

Still, collectibles should not necessarily relate to some person. Opensea.io is a marketplace where users can trade their digital creations for Ethereum. Here you can find everything, from creative logos to digital sneakers. The scope of your creations is limited only by your creativity. As it comes clear, the more creative you are, the more revenue you’ll generate.

3. Start an NFT Marketplace

NFT auctions are a gold mine in the world of NFT services. All operations with non-fungible tokens are carried out via such marketplaces. All popular NFT marketplaces follow the conventional auction model. Their revenue model is also adopted from traditional marketplaces. These platforms charge predefined fees from each sale served via the NFT shop. For example, Rarible, a virtual NFT gallery, charges 2.5% fees in Ethereum or local RARI coins from each lot on auctions.

Like every other marketplace, your platform should have storefronts of goods and a convenient search system. Besides, it’s important to take care of thorough moderation of digital assets uploaded to platforms and provide a clear and concise interface for sellers. With the rapid development of NFT art, creating your own NFT marketplace is one of the most promising business ideas for the near future.

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4. Start an NFT Online Course

Even though many enthusiasts are interested in NFT services, this niche has a rather high entrance threshold. That’s why, if you understand NFT processes, you can start an online course to share your knowledge. You can start courses on an e-learning platform like Udemy , launch your own platform, or even arrange real-life boot camps (don’t forget to wear a mask).

To better understand audiences’ topic involvement, let’s examine the most popular NFT course on Udemy. The full course lasts for 3 hours and 40 minutes and is divided into 39 short lectures. Since its launch, this course has been attended by 1250 students. With a price of $25 dollars, you get a decent amount of money for your efforts.

Moreover, online courses may just be a part of your global strategy. Showing your expertise gathers people around your knowledge. Having gathered loyal users around your personal brand, you can run a YouTube channel, arrange training sessions, and become an influencer in this niche. With NFT services know-how, your possibilities are unlimited.

5. Start an NFT Cryptocurrency

Another NFT business model that requires a deep understanding on your part is NFT cryptocurrencies. Crypto protocols that revolve around NFT shopping, Video games, art, and related spheres are on the rise. For example, AXS coins reached a $70 price out of nothing in less than a year. Axie Infinite is an NFT-based online game that uses the AXS coin to trade in-game creatures. Even though the main driver for AXS coins is a video game, this cryptocurrency became a stable source of revenue for developers of the protocol.

The hardest thing with this model is to understand the niche, provide value, and engage users. A plain “NFT” prefix doesn’t ensure the instant success of your cryptocurrency if it doesn’t have a meaning behind it. Besides, the competition in the NFT market is high, so you have to invest time in a thorough analysis of your niche and understand what problems your protocol can solve.

6. Start an NFT Loan Platform

Non-fungible tokens turn DeFi lending platforms into a semblance of real-world pawn shops. The combination of these technologies allows decentralized lending platforms to accept non-fungible assets as collaterals. Take a look at ETNA Network . Developers claim that they’re working on a solution that opens new interconnected possibilities for NFT in DeFi. Accepting non-fungible tokens as collateral opens lending possibilities for those uninterested in conventional crypto and helps investors diversify their investment portfolios.

Besides, ETNA Network encourages users to hold ETNA coins. This platform grants access to zero-interest loans for users who make collaterals with ETNA.

An NFT lending platform is a great use case that helps holders of emerging assets. NFT owners may experience problems with short-term funding, because of NFts’ current state and low liquidity. Combining loans with non-fungible tokens attracts more users to your platform.

7. Become an NFT Broker

As well as conventional cryptocurrencies, NFT assets’ prices are highly volatile and brokers make profits from their price differences. Unlike any cryptocurrency, each non-fungible token is one of a kind. That’s why monitoring stock prices and keeping your hand on a pulse of crypto news won’t work out at this point.

Consider NFT trading as a long-term investment. Antique traders buy assets knowing that their price will only increase over time. The same thing with non-fungible assets. Buying demanded lots, knowing how to put them in the right light, and when to sell them is what makes a successful broker.

8. Create Your Own Virtual Reality

With NFT services, you’re able to create more than just a platform. You can be a creator of alternative universes. Yes, virtual worlds are booming right now. People create their own worlds to make other people interact with their worlds. What’s far more interesting is that creating virtual worlds might be a very profitable idea in the real world.

For example, Decentraland , the platform that allows everyone to create “metaverses”, gathers large sums of money with its MANA cryptocurrency. Plots of digital land in Decentraland worlds are selling for hundreds of thousands of U.S. dollars . Users create different virtual experiences like digital exhibits, NFT galleries, concerts, and share them with other users. Some people already have jobs in virtual worlds. Virtual gambling institutions invite virtual croupiers and pay them salaries in MANA. In their turn, croupiers serve real people that spend their MANA in casinos.

The MANA currency itself experienced rapid growth recently. For less than a year, this currency’s price has quadrupled. From this standpoint, we are safe to say that being a god is a quite profitable way of living.

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9. Become an NFT Artist

One of the most obvious NFT business models that comes to mind. If you are a designer or have a creative background, you can take a chance and make your NFT art. We must warn you that the competition is high and not all assets are worth thousands of dollars. However, for every product there are consumers. If you’re confident in your abilities, create pieces of art or some other digital content, figure out all aspects of NFT minting, and put it on marketplaces like OpenSea , Rarible , Atomic Hub , and SuperRare .

Unfortunately, there’s no single source of truth on how to create content that generates revenue. Our main advice here is to be as creative as you can, gather an audience around yourself, and try to deliver the content they like. Of course, you can seek inspiration from well-known artists like Blake Kathryn , FEWOCiOUS , Giant Swan , and others. But copying others’ styles is a road to nowhere. Develop your own form of art and make it meaningful. If you explore deeper, you’ll be surprised by the absurdness of some art pieces that are worth hundreds of thousands.

10. NFT Wearables

Wearable devices that display your NFT assets might sound a little freaky, but it definitely might be the next fashion trend. Take a look at Eduardo Jaramillo and his concept of an NFT necklace. A young jeweler converted an ordinary Apple Watch into a stunning accessory that displays different non-fungible assets possessed by owners. Of course, this accessory is not a cheap one with a golden chain and a case encrusted with diamonds. However, Eduardo doesn’t plan to stop there and wants to make wearables affordable for everyone.

This case shows how NFT services can be applied in the most unexpected aspects of real life. NFT wearables’ niche is unexplored and leaves a vast room for imagination. Rings, bracelets, keychains, and other types of accessories may be interesting to various audiences.

NFT business models aren’t limited to these exact use cases. There’s so much to be tried. Video games, media services, reverse search engines, and more. Non-fungible tokens’ future lies in the hands of creative people that can find an appropriate utilization for this technology. When running out of ideas, you can analyze what other enthusiasts think and want to see. Bit Country provides a forum where users can suggest their ideas and vote for the most prominent ones.

Create NFT Service That Brings Value to Users!

Non-fungible tokens have been out there for quite a while and this trend doesn’t plan to go anywhere. Unlike other one-day crypto technologies, NFT services have many practical use cases and their potential will only grow over time. More and more digital artists appear on the horizon, while celebrities also dive into this niche to maintain an online presence and increase their net worth.

If you’re thinking about giving this niche a try, don’t hesitate to contact us right away . We, at OpenGeeksLab , will help you find the right development approach to any NFT business model you’ll choose. We use NFT’s potential at its full capacity to create a product that drives revenue, attracts, and retains users.

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Belov Digital Agency > Blog > NFT Business Marketing 101

NFT Business Marketing 101

March 1, 2022

Your business is in NFT? This market is growing rapidly and shows a promising perspective. Congrats yet? Yes, but not so fast! Now, to get to the top in this tight competition, you need to market your services right. Welcome to the NFT Business Marketing Strategy 101!

Since the NFT industry goes hand in hand with the crypto market, most of the recommendations work well for cryptocurrency and other blockchain-related businesses.

So, where do we begin?

1. No time to waste!

We don’t mean to pressure you, of course. But the whole NFT market thrives on hype, which means you need to act fast. Going to launch a service? Do it now while the industry is hot!

Make sure, though, you still take time to plan things. Fast shouldn’t mean completely carefree: just as with any other business, think through things like:

and so on, and so forth. An NFT business marketing plan developed at the beginning is what will keep you on the right track as you grow.

2. Get an NFT marketing website

Right, we recommend getting it done before you launch your service (if there is anything planned aside from the landing site). It will help you in lots of ways:

Besides, having this done, you’re likely to pull the rest of the planned things through faster. Your marketing website will be pushing you, too: pushing to launch ASAP since you’ve already promised the service to the NFT crowd.

What is a good marketing website for an NFT and crypto business?

The greatest websites for businesses in NFT, crypto, or anything related:

Have modern & tasteful interfaces

Call it cheesy, but those are precisely the adjectives that should describe your soon-to-launch website. You’re about to do business with digital geeks – they surely will make their judgments about your service based on how the website looks and feels. The latter means your design has to be awesome inside out, so to say: from both UI and UX perspectives.

Convey the message and highlight urgency

Don’t try to make NFT seem like a steady market solid on its feet. It’s not – and that’s what makes NFT flourish. Since there is hype, emphasize it and make the most of it. Make your audience want you now , not tomorrow. The NFT crowd aren’t the ones you can buy with the you’ll-be-rich-in-5-years type of stuff: change it for famous today : now, that’s hot!

Engage visitors

Your NFT/crypto marketing website can be a simple landing page, a business website, a subscription platform, or even an online store – it all depends on your goals. It can be a great idea to open early signup and offer perks and discounts. Also, some businesses sell membership – consider that, too. And don’t forget to display the activity: people will be more likely to join in if they see that a lot of others already did.

Need help creating your NFT/crypto website?

Our team has built hundreds of awesome websites – we know exactly what makes a great website. In our portfolio , there are various digital businesses and projects: from cryptocurrency startups to the world’s most renowned banks. We’ll be happy to help you with designing and developing your website – we offer turnkey solutions, web design & development as separate services , and design-to-site conversions .

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If you’re launching a marketing website, you need to analyze its performance and results. There are hundreds of services that analyze websites from the perspective of various metrics – Google alone has enough to cover all your needs in that regard.

3. Get your NFT service up and running

Now that you’ve started on promotion and gained some attention, time to offer the service that you plan to monetize. Whatever it is – an NFT marketplace, a cryptocurrency exchange point, or anything from that field, make it technologically impeccable. Because your idea, however great it is, needs the appropriate implementation. People simply won’t use the website that has what they need but has it awfully inconvenient.

The recommendations for the online service itself will vary depending on what it is. General advice: keep it clear, up-to-date, and optimized for page speed. Of course, your service has to be functioning perfectly and have excellent performance metrics. And don’t hesitate to contact us with your ideas : we’re always happy to give our helping hand to those building great projects.

4. Find other advertising channels

There are tons of them available, but choose wisely! Needless to say, NFT fans aren’t evenly distributed all over the internet like butter on a roll. While it may be quite fruitful to make a deal with an influencer well known in the community, Facebook marketing will probably bring less – this network’s primary audience is definitely not NFT people, after all.

What do the NFT folks need?

Without going too deep into the market analysis, you’re likely going to target people who:

Right! Depending on your specific business case, you may deal with artists themselves. But, even though it may not appear absolutely straightforward, that’s not the defining trait of the NFT community. What is , on the other hand, is quick thinking, business decisiveness, and the spirit of an explorer.

How do we get the attention and interest of such people? Here are three key elements that build a perfect site for the NFT/crypto community:

People who are into such – rather complicated – technology as blockchain-related services, don’t need simplification. You can even accentuate the technological aspect in the design – but make this complexity convenient to use. Also, you want your audience to communicate with you: they can bring in ideas, leave valuable feedback, and, what may sound even more appealing to you, get involved more and more with every click. Digital activity is crucial for NFT business marketing because this type of business is 100% an online thing.

Summing it up : if your service is visually attractive, offers users interacting with it conveniently and in various ways, and still keeps the focus around the target action, it will grow successful and profitable.

NFT business marketing - how to make your website profitable

If you’re looking for an expert team to help you with a web project, we’re ready to help. Team Belov Digital builds highly interactive websites, be it e-commerce or e-learning, and ensures that the user flow leads to the necessary results. Take a look at our portfolio: there, we have complex cross-site search for the EBRD resources , web design and development for e-commerce , web app development , and more projects with diverse functionality. And your NFT/crypto project can be among the best – it’s time to launch it !

Where to advertise NFT services?

You can benefit from all the channels, but not from all the resources. It should be clear enough that a decent YouTube blogger telling about your service will do much more good than a Facebook ad – even the most complex and expensive one. The crypto geeks and NFT fans are just not on Facebook, to begin with – you won’t hit your target there.

– Promotion via your website

You’ve already started on this when you launched your NFT marketing website (you have, didn’t you? Because you should!) – keep going: post content (both promotional and informative), tell more about your service. If you have other digital resources you can use for advertising, you most certainly should.

– SEO

This one stems directly from the previous point. To attract leads, you first need to get their attention. That means you should work on your search performance and backlink strategy.

– Social media

The Facebook example from above was not to say you should stay away from social networks in general. Even on Facebook, you may very well find people interested in NFT, crypto, and the like – you’re just less likely to succeed in it there. Other resources, though, can be more beneficial: try Telegram, YouTube, Discord – possibilities are endless.

– Ads

More subtle or completely outright – ads still work well when made professionally. Know who you’re planning to reach and what you want them to do – those are the fundamentals of your NFT business marketing strategy.

– Influencer collaboration

If you get an NFT blogger to tell their audience about you, you can get a massive boost of your visitors. To be fair, the boost will be massive only if you find an influencer with a large enough number of followers and – even more importantly – a relevant blog topic. Also, note that such collaborations work better in the long-term perspective. Be confident in the quality of your service and let the bloggers, trusted by their audience, review it honestly – that will build a great brand image.

– Partnership

Yet another form of collaboration with people and companies that can help you gain trust. “If there are big guys that trust you, then you must be good!” – that’s basically the logic behind such things. And, of course, the big guys part is relative to your size and scale: if you’re a small NFT startup, Rarible will probably be not your first partnership call.

– Word-of-mouth

Let the positive word about your service spread across NFT and crypto communities! What people say about you outside the advertising context is crucial for your brand. It can help elevate your business naturally and effectively at the same time.

– Reviews

Feedback is essential for any service. When you’re just getting started, try to provide free access to some (or all) users and ask them for reviews. That way, you’ll get valuable information for yourself and for the future growth of your business, and you’ll have happy clients speaking in your favor. By the way, it’s nice to have feedback and testimonials functionality on your website (not just on Trustpilot and other third-party resources) – having developed quite a few sites with those and other interactive features , we can gladly help you with that. And put the best comments on your website: that will increase trust significantly.

NFT audience can be quite tough to please. But having your digital media set up right, you’ll have their hearts and minds and become their favorite brand. Build a detailed marketing strategy, get an NFT marketing website for your business , target your desired audience via all digital channels (but not all sites and platforms), and success won’t be long in coming!

Meanwhile, our team is always there to build awesome things with you. If you need a marketing website for NFT or cryptocurrency projects – or any other services to launch and elevate your digital business, drop us a line – we’re quick to respond and ready to help.

Liuba Kalantyrya

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NFT Marketplace Business Plan

February 3, 2022 February 3, 2022

According to NonFungible.com , in the first quarter of 2021, the total market capitalization of large NFT projects increased by 2100% (the market grew by 300% last year ). Most NFTs sell out instantly, with the most famous NFTs selling for nearly $70 million. In addition, celebrities are supporting the NFT hype by tokenizing their music, paintings, memes, short videos, logos, computer code, and the like.

At the same time, the main beneficiaries of the NFT market were sites that provide an opportunity for the simplest possible purchase and sale of NFTs. In this article, we will briefly describe what NFTs are and where they can be used, as well as how to develop your own NFT marketplace and how much it costs .

What is NFT?

A non-fungible token, or NFT, is a digital token that acts as an electronic certificate of ownership for physical or virtual assets such as photos, videos, tweets, computer code, etc. Each NFT is a unique, non-fungible, indivisible digital asset. This means that, unlike bitcoin or ether, NFTs are not identical to each other, therefore, they cannot be traded or exchanged on an equivalent basis and they cannot be used as a means of payment for trading transactions.

For example, NFT Cryptopunk 4250 is a certificate of ownership of a unique character that exists digitally and is described as a pixelated image of a punk woman wearing welding goggles with messy hair and purple lipstick. This item is listed for sale on the Larva Labs marketplace for $116,913.

NFT Cryptopunk 4250 for sale at Larva Labs

Another example of an NFT is a picture of a cute girl smiling in front of a burning house, which became the Disaster Girl meme. 21-year-old American Zoe Roth (she is in the photo) sold this meme for 500 thousand dollars .

Disaster girl. Photo: Dave Roth / Know Your Meme

As you can see, NFTs can make crazy money. Some NFTs are, of course, more attractive and therefore people are willing to pay significant amounts for them, while other NFTs are sold for pennies. The principle of value formation in this market is simple: the more famous (more in demand) the lot, the more expensive it is.

Here are some more examples of famous NFT lots:

How does the NFT marketplace work?

Unlike Bitcoin or Ethereum, you cannot directly trade non-fungible tokens on regular cryptocurrency exchanges. To buy and sell NFTs, you need dedicated trading platforms that allow you to issue, hold, and trade non-fungible tokens. Now this market is dominated by large marketplaces OpenSea, Rarible, Superfarm and Mintable.

They generate NFTs using special smart contracts that add a set of unique information (metadata) to each such token and prescribe its main parameters (name, immutability, inseparability, address/number, etc.). After that, non-fungible tokens can be bought and sold on the site at a fixed price or through auctions.

How smart contracts work in NFT marketplaces. A source

From the client side, NFT marketplaces work like regular online stores . The user needs to register on the platform and create a personal digital wallet to store NFTs and cryptocurrencies. The user can then either use the listing to purchase NFTs or create their own token. Launching an NFT is usually simple and similar to creating an eBay listing. You need to specify the name, price, give a description and an image, photo, video, gif, and the like.

Interface of NFT-marketplace OpenSea

Niches and applications of NFTs

Most NFTs are used to commercialize all kinds of digital art, from digital copies of real paintings to memes. For example, on the OpenSea marketplace, you can buy, sell, and transfer images, videos, gifs, and music. This platform runs on Ethereum and issues NFTs using the ERC721 and ERC1155 protocols.

But fine art is not the only area of application for non-fungible tokens. They can also be used to trade collectible cards (NBA Top Shot), game characters (CryptoKitties), real estate (Mintable), virtual worlds (Metaverses), investment offers (Spencer DINVIDDI contract), and any other area where ownership of anything. The main thing is to create a marketplace that will be able to work with the right of ownership you need.

For example, if you want to develop an NFT marketplace for fine art trading, then you essentially need to create a regular online store , the back end of which should be able to issue, store, sell, and change NFTs. It’s relatively simple. If you need an NFT platform for real estate trading, then you will need to create an analogue of Zillow or Trulia. Such sites should be able to work with MLS databases and databases of state registers, determine the user’s location, etc.

And so it is with every area. Here are some more examples:

Main features of the marketplace

The NFT marketplace combines the functions of an online store , an auction, and a blockchain platform for issuing non-fungible tokens. Users should be able to create their own NFT products and sell them. In addition, these marketplaces usually offer some features to attract and retain customers, as well as improve the quality of their service. When developing your own NFT marketplace, it is better to start by implementing the following things.

Showcase. This feature provides the visitors of the trading platform with all the necessary information about the lot: name, price, description, preview, owner, purchase method, rating, etc. Some NFT marketplaces also provide information about the blockchain and protocol of the token so that users can verify the authenticity of purchased NFTs.

Rarible online marketplace showcase

Search system . Make sure your users can easily find the item they are interested in. It would be nice to split all assets into several categories such as art, photography, videos, domains, memes, and music to make it easier for users to navigate the store listing. Filters also make navigation easier, especially if there are a lot of similar items on the platform.

Registration, login . To be able to buy or sell NFTs on the platform, the user must create an account. Typically, the registration process occurs through email, phone number or social media accounts . In addition, the user is also usually prompted to provide their cryptocurrency address. If it is not there, then the possibility of registration is offered using links to cryptocurrency wallets, such as Coinbase Wallet , Metamask, MyEtherWallet.

Create ad . This process should be simple and not take much time. Ideally, it should be the same as on Ebay. To achieve this, you need to think about the optimal user path and implement something like the OpenSea collection manager. It helps to quickly upload a product to the site and specify the properties of the token, such as name, price, description, tags, external link, and so on.

The process of creating a lot on the OpenSea website

Wallet for NFTs . Users need a wallet to send, receive and store non-fungible tokens and cryptocurrencies. The easiest way to do this is to provide integration with popular crypto wallets. The main thing is that such wallets support the NFT protocol you need. Usually these are wallets such as Metamask, MyEtherWallet, Coinbase Wallet and WalletConnect.

Trading History . Usually, an NFT marketplace should have a section where the user can view their trading history. So you can understand how popular the site is, what they sell on it and at what price. For example, on OpenSea, the trading history includes the following data: event, product name, price, buyer, seller, date.

Trading history on the OpenSea website Reviews and ratings . Shows how much the lot or the seller/buyer is liked by the visitors. This information helps users evaluate contractors and specific lots. Typically, the rating is implemented in the form of a numerical rating of the product or likes. Reviews can be implemented both in the form of comments that all registered users can post, and in the form of reviews that counterparties leave to each other after the transaction is completed.

Notifications . You can implement a push notification system to inform users about new bids in a selected category or from a selected seller, a status change on a featured item, a new message, a sale of your own lot, or an update to the NFT trading platform.

Support . An important element of any trading platform. With the help of the support service, users will look for answers to their questions, solve problems and conflicts. You can implement a support service as a call center, email support, a separate information portal, or using a help bot.

Non-Fungible Token Standards

In order to run a blockchain-based NFT, certain token standards must be used, which guarantee that the asset will act in a certain way and demonstrate how to interact with the basic functions of the asset. Currently, the most popular standards for running NFTs are:

Stages of developing your NFT marketplace

The trading platform for buying and selling NFTs is a complex piece of software that is best left to a development company with relevant experience. Since 2015, we have been helping businesses and individuals implement projects in the field of fintech and blockchain — from wallets to cryptocurrency exchanges. At the same time, our company can help you both create a marketplace from scratch and clone an existing platform.

Step 1: open a project

The first step in creating an NFT marketplace is for you and the development team to review the details of your project in order to assess the technical feasibility of the project and its viability. Here you must answer the questions:

The answers to these questions will guide you through the entire development process and help you develop the specifications for building your NFT marketplace. If you find it difficult to answer questions, do not worry, the development team will help with this: they can describe your ideas in text and visual diagrams, prepare technical documentation so that you can start designing.

Once the initial concept and specifications are in place, the development team can create a development plan to provide a rough timeline and budget for the project. Then you can start designing.

Step 2: design and development

When all the technical requirements and the development plan are agreed, the development team can get to work. First, you, the business analyst and/or designers design the user interface of the marketplace (wireframe, mockups and prototypes) describing the user flows and functions of the marketplace. An efficient trading platform architecture is also being created.

UX / UI design . Navigation and the appearance of the user interface are very important when developing an NFT marketplace, since they determine the first impression, usability and user experience in general. So make sure that your site design appeals to your audience and is simple enough for anyone with even the slightest familiarity with Amazon and Ebay to understand.

An example of a possible interface design for an NFT marketplace. A source

Back-end and smart contracts . At this level, the work of the entire internal (server) part of your trading platform is carried out. When developing it, in addition to the usual business logic and marketplace functionality, you must implement work with the blockchain, smart contracts, wallets and provide an auction mechanism (most NFTs are sold using it). Here is an example of a technology stack for the backend of an NFT marketplace:

front-end . This is the entire external part of the trading platform, which is responsible for the interaction with the end user. The main goal of front-end development is to provide ease of management, as well as reliability and performance. Here is an example of a technology stack for an NFT marketplace front-end:

Step 3: testing the created product

At this stage, several cycles of code testing are performed to ensure that the platform works correctly. The QA team runs several checks to make sure that your project code does not contain critical errors and bugs. In addition, the content, usability, security, reliability and performance are checked for all possible scenarios for using the platform.

Step 4: Deploy and Support

When the platform is tested, it’s time to deploy your NFT marketplace on the server (cloud). Please note that this is not the last step, as you will also need to organize the support service. In addition, it is also necessary to plan the further development of the platform in order to follow the market trends and user expectations.

The cost of creating an NFT marketplace

Source | StrategiNext

nft project business plan

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