3 NFT Business Models
How to make money with NFTs
NFTs are the future. They’re going to be an important part of the Internet. Especially for creators.
They’re still in their infancy. But who knows where things can go?
Regardless of their age, they are proving to be 3 business models for NFTs.
However, I can almost guarantee you that there will be more in the future. These are the 3 big ones right now.
Community
A good community can make or break you. Communities offer the ability to meet like-minded people, share interesting ideas, and grow.
Platforms like discord and telegram are proof. communities are great.
But there are many different kinds of communities. There are public and open communities where everyone can join. These tend to be large and noisy.
These communities can be great. But the trade-off is quality. You inevitably have trolls, and nonsense along the way. People who obviously don’t belong there.
One option is to price people out. The more you’re willing to pay, the more you value access to that community.
This increases the quality but also has a trade off. All the value goes to the creator. Not necessarily the community members themselves. You know, the people who make the community great?
NFTs fix this problem.
You can create a private community and only those who have the NFT can join.
There are countless examples across the web. For example, I’m a member of the Developer DAO.
It’s a community of programmers interested in building Web 3.0 and the future.
The community is top notch. These aren’t just people who think similarly. But also have similar skill sets and struggles.
And there are many other examples.
The best way to learn more is to simply join a DAO for yourself. See what it’s all about. It’s really interesting to say the least.
The Opportunity
If you have the right connections and can build a high-quality community, this is going to be an amazing business model for you.
You can monetize through the initial sale of the NFT. But you also get a cut if they sell it to someone else in the future.
Even if people love being part of the community, everyone has their price.
Artistic & Collectibles
This is the most obvious use case. The idea is simple. Create something amazing. Mint it as an NFT. And sell it.
However, this isn’t just limited to creating great art.
The real breakthrough in this category will be in gaming. Having an NFT will make the experience even better.
Of course, that can’t degrade the game quality for other players either though. People won’t play it. It’s a more difficult problem than you might imagine.
Here’s a Twitter Thread with more info.
When news sites are talking about NFTs, this is generally the kind they’re talking about.
Experience-based
This is the newest and most speculative NFT business model. Not many people have attempted this just yet.
But it can prove to be a big thing. Here’s why.
We pay lots of money for experiences. Think about how much money gets spent on education alone.
We’re talking billions of dollars. Not to mention how much we all individually pay for college.
We largely go for the experience and skill set.
Having a marketing degree probably means you’re better at marketing than the average Joe.
But right now, we rely on accredited schools to teach us these skills. But as everyone is finding out, schools aren’t that great. Lots of people leave college with no marketable skills and a useless degree.
In many cases, it would be much better to get direct mentorships or learn from an online masterclass.
And with NFTs, this might just become a reality.
Imagine being mentored by Vitalik Buterin. Imagine he made you an amazing software developer.
He wouldn’t have any way to give you a degree. After all, he’s not a college. but what if he could create an NFT that verified the mentorship?
You could easily verify that it was created by him. And verify that it’s in your wallet.
But this goes so much further than education.
Imagine any kind of event you would want to be part of. A concert, a sports game, live stream, training, etc. The possibilities are endless.
We’re still early with the tech. Most people don’t know how to use NFTs. Let alone what they are.
But there may be a day when most people do. And every valuable event is on the blockchain.
I hope you enjoyed this week’s edition of Crypto Creatives. Make sure to follow our Medium publication for more!
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