How to make it as an NFT artist
In recent years, non-fungible tokens (NFTs) have surged in popularity – and the momentum doesn’t appear to be slowing down anytime soon. NFT artists can potentially make money (or cryptocurrency). But how much?
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New research from Crypto.news found that the average price of NFT art is $232.24, with the top 20% of NFT art collections pulling in over $8,000 in sales over a 30-day period between mid-June and mid-July. One in four NFT collections bring in at least $3,773.63 per month, or $21.77 per hour, at an average price of $862.52 per piece.
Are these numbers accurate and furthermore, how can interested artists break into the NFT space to make money?
Riches await – but only for some
Before you jump into creating NFTs solely to land a windfall, remember that not all artists will thrive in this increasingly competitive and saturated field – far from it. In fact, the numbers in this new research are more than a little misleading.
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“It is possible to make so much money; however, these numbers are hugely skewed by the inflated returns achieved by the very best collections, which can sell for hundreds of thousands of dollars per NFT,” said Dan Ashmore, cryptocurrency data analyst at CoinJournal. “Throughout the crypto rally, there was an increasing centralization of wealth among the top NFT collectors.”
It is quite easy to break into the world of NFT
The length and rigor behind making art depends entirely on the artist; however, once her NFT work is complete, she can very easily push it out into the world.
“One can upload a collection of images to the blockchain in minutes,” Ashmore said.
The barrier to entry may be lore, but it takes work to get it to capture interest and ultimately sell an NFT.
“The challenge is really in the marketing rather than the art – the blockchain makes the idea of NFTs accessible to everyone,” Ashmore said. “The most successful collections have built a type of exclusive members-only club where you have to own an NFT to gain access. This involves items that are owned by owners, private online chat rooms, members-only events, and other ideas. »
Stand out in the crowd
NFTs are hot, hot, hot – meaning artists need to stand out from the crowd with a remarkably distinct piece/collection.
“To get started with NFT art, one needs to have unique artwork,” said Sudhir Khatwani, founder at The Money Mongers. “If it’s not unique, it won’t get much attention as thousands of people are selling NFTs online these days.”
Make money on NFTs
There are a few ways to make money reproducing NFTs beyond just selling them. Jonathan Merry, Director of Bankless Times, walked us through some possibilities:
- Rental. “The procedure for renting is not the least bit complicated; it works the same way as renting out a piece of property and collecting rent,” Merry said. “An NFT can be rented by lending it to someone for a predetermined period of time in exchange for cash. An effective technique to monetize NFTs without giving up ownership is to rent out the property.”
- Earn royalties. “The developer of a digital asset can still get passive royalties even after selling it to a third party,” Merry said. “But the creator must impose these conditions; and if someone buys the asset you created, you will receive royalties for the rest of your life. Royalties are a great source of passive income for artists. When it comes to making money from NFTs, royalties are important to consider, despite the initial confusion they can cause.
- Trading in NFTs. “Some business owners and investors buy and sell NFTs like stocks to make money,” Merry said. “You can easily sell your collection of NFTs if you no longer need them, just as you would if you had produced them yourself. The only step you skip is the embossing procedure. However, it is important to understand when to sell when trading NFTs Making money on NFTs via trading may seem dangerous to some, but the rewards can be significant.”
Steps to take to get started
To start a career in NFTs, here’s what you need to do:
- Have an Ethereum wallet. “This is actually inevitable,” said Igor Zakharov, CEO of DBX Digital Ecosystem. “Most NFTs are settled via the Ethereum blockchain; and as such, Ether is the standard medium of exchange used to both buy and sell NFTs.”
- Build an audience/community. “NFTs are very community-driven, and this is an important step to launch a successful NFT career,” Zakharov said. “Besides the obvious social media platform used to build community, other sites like Telegram and Bitcoin Talk can be useful.”
- List your NFT. “Do some research and decide where to list your NFTs for sale,” Zakharov said. “There are a number of NFT marketplaces, including Open Sea and Super Rare. It may be necessary to list on multiple platforms to increase your chances of selling.”
- Build an audience. Promote your art and build a community on online platforms including Discord, Reddit and Twitter.
What you actually stand to make
Realistically, a talented and aggressive NFT artist can expect to draw in decent dough in the first year – at least enough to count as a decent side hustle.
“The space varies enormously, but serious artists breaking into the NFT space should expect to make at least $10,000 in their first year,” said Rylee Armond, a cryptocurrency/NFT media consultant, NFT artist and the founder of Omnicake Web3 Media Consulting. “Have there been projects or artists who create more than this? Of course, especially if a larger project comes out (selling every NFT), this could be much more than $10K in total.”
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