The Most Promising NFT Business Models For Brands And Content Creators
March 31, 2023
In the world of digital marketing, Non-Fungible Tokens (NFTs) are quickly becoming the talk of the town. As NFT adoption increases, brands and content creators are exploring new opportunities to leverage this technology to enhance their business models.
However, with the growing popularity of NFTs, it can be overwhelming to navigate through the various business models and determine which one is the best fit for your brand. That's where we come in. We understand the pain points of businesses struggling to adapt to the ever-changing digital landscape.
In this article, we will look into the advantages of integrating an NFT business model into your brand or offering, different NFT business models, and how to market your NFT collection.
Why should you consider using NFTs?
You may be wondering about the benefits of integrating NFTs into your digital strategy. Here are a few reasons why you should consider using NFTs:
1. Authenticity and ownership of digital assets
One of the best things about blockchain technology is that it makes it easier to verify the ownership and authenticity of digital assets. This is especially important for artists, musicians, and anyone else who wants to protect their intellectual property and prevent their content from being stolen or misused. NFTs can create a permanent and transparent record of ownership on the blockchain, making it easier to determine ownership and enforce copyright laws.
2. Creates new revenue streams
NFTs also provide new revenue opportunities for brands and content creators. Because NFTs are one-of-a-kind and cannot be replicated, they can fetch high prices in auctions and marketplace listings. This means that your digital asset has the potential to generate significant earnings.
Furthermore, NFTs can be sold multiple times, and original creators can earn royalties on secondary sales, allowing creators to generate revenue from their work long after it has been sold.
3. Build engagement with your audience through an NFT community
NFTs can also be used to engage with your fans and build a community around your digital collectibles. Your audience can buy NFTs to show their support for what you're doing. This instils a sense of ownership in your audience and nurtures a personal connection with them. Moreover, NFTs can be used to create token-gated experiences for NFT owners, such as backstage passes, meet and greets, and exclusive access to new releases.
4. Potential investment opportunity
Because NFTs are one-of-a-kind and scarce, their value can increase with time, and certain NFT projects have already turned into investment opportunities. NFTs, just like traditional investments, can be bought and sold on several other NFT platforms and marketplaces, making them a desirable choice for investors.
Top NFT business models to watch out for in 2023
Let's look at some of the most popular NFT business models and their examples to gain a better understanding of the NFT market and its future potential.
1. Turning digital artworks into NFTs
Generating NFT artwork and launching NFT collections is a well-known NFT business model that has contributed to the popularity and mainstream adoption of NFTs. Launching NFT projects involves creating one-of-a-kind digital artworks that are verified on the blockchain network.
When you own an NFT, you own the original work of art, which you can sell on marketplaces. These digital artworks might take the form of paintings, sculptures, or animations. Artists that sell their artwork as NFTs can earn a lot of money, and NFTs give artists a new opportunity to commercialize their work.
Beeple's "Everydays: The First 5000 Days" artwork, which sold for $69 million at Christie's auction, is one of the most well-known examples of NFT art.
2. Launching music as NFT
Music NFTs are digital tokens that represent ownership of a particular music track, album, or even concert ticket. These tokens allow fans to invest in the artist's music, participate in revenue sharing, and gain access to exclusive content. Music NFTs can also provide an additional revenue stream for artists, who can sell them directly to their fans.
A popular example of a music NFT is Kings of Leon's album "When You See Yourself," which was sold as an NFT for $2 million.
3. Fashion NFTs
Fashion NFTs are digital tokens that represent ownership of a unique fashion item, like a limited-edition sneaker or a designer handbag. These tokens can be used to verify authenticity, track ownership, and enable peer-to-peer trading. NFTs in fashion can offer a new way for fashion brands to engage with their customers and offer them exclusive, one-of-a-kind products.
For example, fashion brand RTFKT Studios has released limited-edition sneakers as NFTs that sold for hundreds of thousands of dollars.
4. In-game assets
In-game assets are digital items that can be purchased, sold, or traded within video games. They can include things like weapons, skins, avatars, and other virtual things that let players change how they play. Players can own and control these in-game assets thanks to the development of blockchain technology and the use of non-fungible tokens (NFTs).
Moreover, these new NFT business models can provide a new revenue stream for game developers. By creating unique and desirable digital assets, game developers can generate additional income from players who want to purchase these items. NFT-based gaming assets can also provide a new way for players to monetize their gaming experience by allowing them to sell or trade their unique digital assets and items with other players.
Axie Infinity is a prime example of a blockchain-based game that utilizes NFT technology-based in-game assets. In this game, players can earn and trade NFT-based creatures called Axies. These digital creatures have unique characteristics and abilities, making them highly valuable and sought after by players. As a result, players can sell or trade their Axies for cryptocurrency, providing them with a new way to earn money through their gaming experience.
5. Create token-gated content
Token-gated content is a unique business model in which digital content can only be accessed by people who have a certain NFT. A token-gated NFT platform is a good business model as it creates scarcity and exclusivity, driving up demand and increasing the value of the NFTs.
It also lets creators make money from their work and give their most loyal fans special access. The NBA Top Shot platform is a prime example of this business model, where users can buy NFTs representing iconic basketball moments and gain access to exclusive content.
Token-gated content makes fans feel like they are part of a community and gets them involved. It also gives creators a new way to interact with their audience while giving collectors and investors access to rare and exclusive digital assets.
6. Launch NFT-based loyalty programs
NFT-based loyalty programs are a promising business model that rewards customers with digital tokens for their purchases or engagement with a brand. These tokens can be traded or redeemed for discounts, exclusive content, or other rewards, creating a loyal community around the brand.
For brands, NFT-based loyalty programs can incentivize customers to make repeat purchases, create a new revenue stream, and provide a new way to engage with their customers.
An example of an NFT-based loyalty program is Starbucks Rewards, which rewards customers with stars for their purchases and is exploring the use of blockchain technology and NFTs to enhance its program.
NFT-based loyalty programs give brands a unique chance to build a loyal customer base while trying out new ways to make money and interact with their customers.
7. Launch an NFT marketplace
NFT marketplaces are online platforms where creators can sell their digital art directly to buyers without intermediaries such as art galleries or auction houses. These marketplaces create a sense of exclusivity and rarity, as each NFT is unique and valuable.
NFT marketplaces offer a good NFT business model for creators to monetize their digital creations and for buyers to invest in one-of-a-kind digital assets. Examples of popular NFT marketplaces include OpenSea, Rarible, and SuperRare. As the NFT market continues to grow, NFT marketplaces will become increasingly important in facilitating the sale and trade of digital assets.
8. Create an NFT community
NFT communities are groups of people who share an interest in NFTs, blockchain technology, or digital art. They give artists a place to show off their work and get to know potential buyers. They also let collectors find new artists and connect with people who like the same things they do. Members of NFT communities feel like they belong, which makes them a good model for both creators and collectors.
NFT communities are a good NFT business model for creators, as they provide a platform to increase visibility and build a following. The Bored Ape Yacht Club is an example of an NFT community that offers members exclusive access to events and merchandise, creating a sense of exclusivity and value around the Bored Ape NFTs.
9. Build an NFT launchpad
Launching an NFT launchpad can be a lucrative NFT business model for entrepreneurs as it provides a platform for creators to showcase and sell their digital assets while also offering a new way for collectors to discover and invest in up-and-coming artists.
By launching an NFT launchpad, Web3 entrepreneurs can attract a wide range of creators looking for a platform to sell their digital assets. These platforms provide a place for creators to gain exposure and reach a wider audience, which can lead to increased demand and higher prices for their NFTs.
Furthermore, NFT launchpads can also be a good investment opportunity for entrepreneurs. By charging a commission or transaction fee for every NFT sold on the platform, entrepreneurs can generate a steady stream of revenue.
Examples of successful NFT launchpads include Nifty Gateway and Foundation. These platforms have attracted a large and dedicated user base and offer a diverse selection of digital assets from established and up-and-coming artists.
How brands and content creators can leverage NFT marketing?
As the popularity of non-fungible tokens (NFTs) continues to rise, brands and content creators are looking for ways to capitalize on this trend and incorporate NFT marketing into their business strategies.
If you're looking to leverage NFT marketing for your brand or content, consider partnering with us. We are a web3 marketing company that specializes in helping businesses grow in the NFT space. With our expertise in NFT marketing and our deep understanding of the blockchain ecosystem, we can help you create a successful NFT marketing strategy that resonates with your audience and drives results