NFTs are fairly new, so it’s possible that you haven’t yet figured out the role of the NFT in your business model.
But, no matter what type of business you run, there are ways that you can benefit from NFTs.
In this guide we will discuss just a few of the ways that you can build the NFT into your business plan template.
In our blog, we’ve talked before about NFT memberships.
We’ve explained them as a means of providing special perks to those who buy a digital asset. Blockchain technology allows businesses to have a permanent record of NFT transactions, so membership status can be easily verifiable for life.
This model is working and repeatable.
Adopters include well-known brands like Coachella, which is selling 10-lifetime passes as NFT memberships. The perk of lifetime access makes the NFT valuable, and the exclusivity drives the price point.
Corporate NFTs do best when they have something like membership perks on offer.
NFTs with well defined roadmaps do better than those that aren’t well thought out. As we describe in our Guide to NFT Roadmaps,
“The roadmap is a fundamental aspect of an NFT project — it’s your chance to provide clarity and transparency around your venture, the kind of community you want to build, and what people can expect for their investment. While not every project uses roadmaps the same way — and some even forgo them — they’ve become standard practice for a reason.”
Some of the most exciting roadmaps are projects that are designed to change over time, giving buyers new surprises (like additional pieces of digital art) over time.
As Coindesk puts it, “Dropping an NFT project with no future plans won’t inspire the community to participate and will instead invite criticism that the project is just a corporate money grab or a cheap marketing ploy. Sophisticated NFT buyers will see right through that. The best NFT projects are constantly evolving, adding layers and nuance to their existing projects and listening to the needs and wants of their community.”
This is a great way to keep your community engaged for years to come.
NFTs can be very useful for raising capital. Obviously big sales of a single NFT can net millions, but these are few and far between.
Businesses and brands are having more success raising money with NFTs through the creation of decentralized autonomous organizations (DAO) - a blockchain-based community that is governed by a group of stakeholders instead of a single entity. Its rules are stated in smart contracts and can only be changed through a vote that includes all DAO members.
If a brand is willing to relinquish control of a decision to a DAO, in exchange for the influx of cash that comes from people buying into the organization, then it acts as an incentive to invest.
Consider, for example, a DAO that allows the group to collectively design a shoe for a shoe company. The company may benefit both from the NFT sales and from the sales of the shoe itself. A DAO may help them market the product.
An NFT community can help a brand’s overall sales and marketing division. If the community that is built around the company is strong enough and loyal enough, then they become the champions of the brand.
NFT members can help your social media team and content creators by helping get your name into their own network. This can be especially true if you license the commercial-use rights of the NFT you’ve sold them.
Like we explain on our website, this license “means letting your project become a launchpad for decentralized creativity, allowing your community to use their NFTs in their own creative and commercial endeavors — and even to earn a profit doing so.”
In our NFT Masterclass, we teach business owners how to build an NFT storefront or NFT platform into their business model. Here, brands can sell NFT collections directly to their customers in a branded and managed environment, as opposed to in a larger and impersonal marketplace.
We think that doing so allows them to maximize their marketing efforts to create a loyal and “sticky” fanbase.
Want to learn more about leveraging NFTs for your business? Explore our Masterclass and contact us!
From obscure and esoteric to household name: “NFT” made its way into the common lexicon at breakneck speed. In just two years, the global market cap for transactions involving NFTs grew almost tenfold, and everyone...Learn More
We’re proud to share the news of our $7.5M seed round, led by Tiger Global. — The next chapter in commerce & community 2021 was a landmark year for NFTs, highlighting the important role they’ll play in...Learn More