Like most first-movers, businesses that are early adopters in the NFT space can benefit by getting a head start on category competitors. The sooner you start in the NFT space, the faster you will understand what your audience is most interested in, giving you the opportunity to create more enticing NFT options going forward.
What are NFTs?
Starting with the basics, NFT stands for “non-fungible token”, meaning each NFT is unique. In the digital world, this could be a unique piece of art, any piece of sports memorabilia or highlight, music, or more. These NFTs cannot be replicated or replaced. For example, a $100 bill is fungible because any $100 bill can be swapped for another with the same value.
Are NFTs just collectibles?
Not exactly. Although no two NFTs are exactly alike, each one can represent something specific related to a brand, such as exclusive access to content, VIP experiences, event tickets, digital versions of real-life products, and more.
NFTs in the metaverse
Creating digital versions of real-life products can help outfit future avatars in the metaverse. As the metaverse explodes over the next decade, there will be a greater desire to bring real-world status symbols and products along for the ride.
Just like real-life, the metaverse is comprised of communities where users gather and can show off their NFTs. Popular metaverse locations include gaming sites Roblox, Minecraft, Animal Crossing, and Fortnite. Other currently popular metaverses include Zepeto, Decentraland, Sandbox, and Illuvium, to name a few.
Digital versions of real-life products
Luxury lifestyle brands may have an advantage here, as their audience thrives on exclusivity. That’s why high-end brands like Gucci, Louis Vuitton, Ralph Lauren, and Balenciaga are already deep into NFTs, creating an additional revenue stream for the company and setting themselves up for the future. Less exclusive brands can still create exclusive NFTs, sometimes through limited edition anniversary collections, special holiday or seasonal collections, or collaborations. These products can be brand-adjacent, such as branded skins or digital wearables for non-fashion brands. Think of it as digital swag in the metaverse.
Partnering with another brand’s IP is a mainstay in the marketer’s playbook and works well in the NFT space. Celebrity and entertainment collabs with other brands to create NFTs are one way to drive interest and revenue. Brands can also support up-and-coming musical and visual artists by creating collaborations that allow fans to engage with the artists throughout their journey of creation.
Limited edition collections
Just like IRL, limited edition NFTs can be minted to create scarcity around a season, an anniversary, or an event. Urgency and scarcity drive consumers to purchase, hoping that the NFT grows in value and popularity over time, like Holiday Barbie dolls.
If your business is conscientiously supporting a specific cause, you can create an exclusive NFT to drive revenue for that charity. Aside from supporting your cause, your brand can enjoy the halo effect of the collaboration.
If you’ve heard of NBA Top Shot, you know that they’ve sold NFTs representing different NBA highlight moments. But they’re not the only ones. The NFL, MLB, and NHL have followed suit in selling these moments, as has Vault by CNN, selling historic event NFTs from its archives.
NFTs as Access for Best Customers
NFTs can also act as access points for VIP customers to get exclusive brand content, behind-the-scenes footage of product development and launches, early access to new products, invitations to virtual or in-person events, and community interaction on Discord. Think of these NFTs as what you would give to your best customers to keep them as raving fans and brand advocates. In the sports category, these “fan tokens” provide exclusive access to players and teams to enhance the brand experience for superfans.
NFTs as rewards
Businesses can offer NFTs as rewards to customers who complete specific tasks, such as engaging and sharing online content. Businesses can also capitalize on the NFT buzz by giving away NFTs in a sweepstakes, contest (calling for user-generated brand content), or games.
How the NFT drives revenue for a brand
Unlike typical original art sales, where the creator gets paid only once, the NFT continues to reward original creators every time the NFT is traded, per the conditions outlined in the blockchain. Essentially, original creators get a percent of all future sales of any NFT. This ongoing revenue model is a game-changer for creators. It can also be a boon for brands. Finding a way to create meaningful, desirable NFTs for the metaverse can result in value increases as those NFTs are resold over and over again over time.
NFTs can be sold in series
Although every NFT is required to be unique, it doesn’t have to be listed as a 1 of 1. An exclusive NFT can be sold as a set of 500 serialized tokens offering the same value. The key is to identify the most appropriate total number of NFTs to drive scarcity and exclusivity so that the token rises in value over time, like a collectible.
Work with an expert to optimize your NFT strategy
Whether you’re an art museum or gallery, sports or entertainment entity, media property, or consumer brand, Anterdit has the expertise to guide your organization in developing an NFT strategy that fits your needs and meets your objectives as an incremental revenue stream. Accelerate your process by learning more about Anterdit’s easy-to-use white-label platform and advisory services today.