There can be multiple types of valuation for different Non-Fungible Tokens (NFTs), some are set on a solid rate, while others can be acquired through auctions. But, in order to truly set a proper valuation for an NFT, consistent sales numbers are quite important as they highlight popularity levels.
Back at the start of the year 2021, the NFT market experienced a sudden massive growth in engagement and popularity and as the year reached the month of March, the NFT market generated an impressive trading volume of more than $500 million.
Digital NFTs can have various types ranging from images, videos, music tracks, digital art, 3D collector items and many others associated with art, however what makes each single item unique is the identification it is given.
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The identification of an NFT is protected and stored inside of what is called a blockchain, giving them a valuation. The current most popular blockchain is known to be Ethereum, but there are many other blockchains that have been showing a consistent increase in popularity with time.
When NFTs are to be sold, the record of their shifting is recorded onto a blockchain. This concept is very similar to cryptocurrencies, but the main core idea behind NFTs is quite different.
Cryptocurrencies operate over the concept of fungibility, while NFTs operate over non-fungibility, hence the name Non-Fungible Token (NFT). Now that we have an idea of what NFTs are, this guide will provide a path towards understanding how you can determine the value of an NFT and begin selling your own NFTs in this massively growing market.
Figuring out the Valuation
When someone is starting a career in NFT trading, they have a lot of questions in mind, one of them mainly being about “how much they should sell their digital item for?” or “how to determine the optimal path for keeping steady sales numbers?
The thing to note is that there is no solid path, but there are multiple ways to achieve this optimality. A seller can either choose a listing valuation of their own or they can sale the NFTs according to the valuation that is suggested by a potential buyer, formally called as a buyer price.
But despite both of these options, honestly speaking, it is up to you to decide on how much valuation you want to give for your digital items.
But do keep in mind that if you expect too much, then the asset might not seem attractive and if you expect too little then raising the valuation of the items might become a challenge, so determining the value can require some tedious research and work. The section below discusses the tolls that need to be understood before going in.
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Various Tolls to Keep in Mind
There are several types of tolls that are to be handled in the listing and sale of NFTs. Tolls include the charges that a digital artist can take for creating NFTs and if the artist is new to NFTs, then those charges can scale up. It is recommended to use a zero-code tokenization solution such as TokenMind which helps people with an amateur background on computers to make their way up.
Toll types include the charges submitted during the NFT minting process which can vary across different blockchains, the charges for listing an item on a NFT selling platform like OpenSea, the sales toll during the sale of an item and the charges that are involved during the marketing of your NFT brand.
Some blockchains have quite high minting charges, but some have a more optimal offering, so proper research should be done to select the best option.
Determining Rarity Levels
The rarity level of an NFT item is mostly determined by its variation, uniqueness and supply levels. Taking a look at an example, a very special, time limited and supply limited NFT has been listed on the marketplace, so obviously the valuation of that NFT will be much greater than that compared to a normal NFT having good supply.
Taking functionality into consideration the valuation of utility tokens is far greater as they can be utilized to buy other things, so it is also important to figure out the intentions of the client and mark the valuation accordingly.
Developing your Brand and Exposure
As of now, NFTs are still left with a huge amount of potential and as the market continues to grow, the number of opportunities also sees a rise. Consistent work is considered to be one of the main values behind success, so a level of good consistency and loyalty must also be reflected by the artists that are involved in the creation of these digital items for them to sell at an optimal rate.
In order to develop a name in the NFT market, the recognition of the artists working on the NFTs are to be boosted through different types of social platforms that include Instagram, Twitter, Facebook and many other popular sites having a large user base.
In addition to that, seeking out several different selling platforms, artists and companies is also a vital way of creating more branches for a growing tree.
Both the owner and the artists should be motivated about their idea. If you see someone selling NFTs for massive valuations then you should also consider following their footsteps, but be very careful, as the number of risks also increase. It is recommended to never be too overconfident about your offerings, as you cannot truly determine the fate of your sales.
Making good items and selling them consistently is the best way to increase valuation of the floor rate and develop an impressive proof-of-concept. A proof-of-concept is generally a sort of assurance that the idea behind the items is viable enough to work with.
The floor rate is said to be the cheapest rate for NFTs and needs to be consistently managed according to market activity. This floor rate is usually figured out when an NFT is being minted, originating from the owner. This floor rate gradually increases as the NFT starts to shine in more eyes.
Seeking out Different Selling Platforms
There are a good number of popular marketplaces such as Rarible, OpenSea, Nifty, Binance and SuperRare, however keep in mind that the artist’s creation is said to have value at any place, without considering the minting origin. All of these marketplaces have different sets of charges, so do some research before selecting one. Some have a better blockchain but carry high charges.
This does not mean that only the better blockchain have higher fee, as some of the very popular ones known today offer great functionality with minimal charges. So, it is advised to seek and work with different marketplaces and maintain a consistent sales valuation so that more eyes can be attracted towards the idea.
Increasing Valuation for your NFTs through Unlocks
Developing unlockable rewards over NFTs can be a great way to add depth to your sales. Not only does your items go for sale, but the buyers can benefit from additional rewards of schemes by acquiring your offering. The unlockable benefits are usually set during the setup process, so that the benefits are only available to those that have purchased the NFT.
Unlockable such as price cuts, welcome notes, signatured items, higher quality artwork are some of the many examples associated with the sale of NFTs. Additional perks in general are quite pleasing to buyers who are looking just a little bit more for what they have invested into.
This not only helps sellers to develop their brand, but also helps them to sell easier at challenging prices and compete alongside other successful brands.
Becoming a Professional NFT Seller
To become a professional NFT seller, it is very vital to understand all the concept and details surrounding NFTs, the NFT markets, blockchains, platforms and the types of NFTs that are popular in the space alongside their valuations.
When you have a good grasp over the basic concepts, it will greatly help you in figuring out how to sell products and maintain their associated valuations.
After that you will have to select an NFT marketplace that caters towards your idea in order to figure out the path towards the development and minting process, while also helping you decide the proper valuation of your digital items. But the big question still lingers in the minds of many about setting the valuation of an NFT.
As mentioned in the previous sections, the price of an NFT is dependent on its creators will, however it is extremely important to present how much your offering is different from the others if you decide to set the price on a higher level than usual.
Obviously if your offering is unique and attractive, then there are buyers that are willing to pay any price to get their hands on what you are offering to them.
Following that is finding how various methods of offering your product, which is dependent upon how you want things to flow. There are two very common strategies to sell, either by setting a solid price tag, or presenting it to bidders in an auction event.
Usually, NFTs are sold on a marketplace, however if you are looking to research the market, the look for English auctions in which the bidder with the biggest offering takes it home.
A variation of the English auction called the timed English auction that can also be utilized in which your offering is only available for a given time frame, thereby attracting more bidders to challenge each other to obtain the offering you provide.
Another variation called as the Dutch auction can also be considered in which a certain valuation for your offering is set and the valuation keeps falling until it is bought. For sellers looking to gain profits on each of their sales, royalties are also available for use.
Once you learn about the price trends in the market, you can effectively set a good price valuation for your NFT offering in the market and maintain a good sales option.
These are the ways you can utilize to gain experience in the NFT market and begin selling your NFT items like a true professional. The more experience you gain, the better price valuations you will be able to set for your items.
But despite all these ways mentioned above, the concept of marketing also plays a huge role in how your offering can be discovered. The next section will discuss in detail about how the concept of marketing is important for your sales numbers.
Role of Marketing in NFT Sales
To be successful in today’s world, businesses are required to have excellent marketing strategies so that their products can reach the most amount of people as possible.
Similar to traditional markets, if you want to increase the recognition of your offering to the world, you must have a great marketing strategy as its significance is so high that it is often referred to as the “heart” of any good offering.
Without marketing, if you feel that you are not achieving the sales numbers you hoped for, it generally means that your offering is not reaching enough eyes in the market.
As previously mentioned, you should try your best to display your offering on different social media platforms to gain more attraction. Social media platforms are huge these days, so developing a good reach can benefit in ways you can’t even imagine.
Alongside that is the artist’s/creator’s profile that is generally advised to be made transparent. Artist privacy needs to be looked into as some of the artists prefer to keep their identity hidden, but some welcome the bright lights on their portfolio.
So, if you want to further increase the reach of your offering, you can promote the artist’s profile, portfolio and experience levels. Furthermore, if the artists are passionate about the project and post on their social media about it, then it also helps them to bring in more fans, leading to increase in sales numbers.
There have been many instances in which buyers have purchased NFTs just by seeing a popular artist working on it, mainly because of the quality and delivery time of their precious work.
NFTs having an excellent reach on social media and being transparent over their vision sell more and are preferred by more eyes in the market. For instance, the Bored Ape Yacht Club has managed to develop such an excellent profile and recognition that they are able to sell their NFTs for millions of dollars globally.
Not only that, a well-built website or application, featuring your product line, having clear descriptions, guidance on how to acquire your items and user-friendly user interface helps to develop trust and provide a path for users to reach your product line in a much more orderly and streamlined way.
Just make sure that you are not making any false promises or are giving out more than what your offering is valued at.
Getting Started with Selling NFTs on OpenSea
OpenSea is an NFT marketplace, where you can list and sell your NFTs. Below mentioned are the steps you need to follow to submit your first NFT onto the OpenSea NFT selling platform.
- Go to OpenSea’s website or application and create a profile.
- You will be required to verify your identity and profile through several different measures.
- Next you will need to connect a digital wallet in which you have your cryptocurrencies and NFTs stored.
- After that click on the “Profile” option on the top right.
- Select the NFT you want from your wallet to list and click on the “Sell” option.
- You can either choose to set a solid valuation or conduct a timed auction for which you will need to mention the timing accordingly.
- Lastly, you are required to sign the deal and after that, Congratulations! You have now listed an NFT for sale on the platform.
- If you are selling to a specific user, you can use the “Reserve” option to list the NFT to the wallet address of that user, however to there is a separate 5.5% cut on the transfer, in which 3% is owner cut and 2.5% is cut for the services provided by the website.
As a concluding note, hopefully this article has helped you in understanding the concept and process behind the sale of non-fungible tokens in the market. Selling an NFT isn’t that much hard but figuring out the selling strategies is quite a time-consuming task which is vital for your business.
If you want to sell your offering at a higher price rate, then you will have to prove its worth for sellers to buy it. The NFT market is quite competitive in these matters so bringing unique and innovative ideas is key.
You can now work on developing your own unique ideas and make a great level of income from selling indistinguishable digital items to buyers around the world.