NFTs can be big business. NFTs can also be big FOR businesses and brands.
If you are new to the world of the non-fungible token, it may seem like a strange thing to suggest that businesses should make and sell an NFT. I mean, aren’t NFTs just useful for selling digital art to collectors? It may surprise you to learn that businesses and brands are doing much more with NFTs than that.
We spend a lot of time talking about the NFT business, so here, let’s talk about the business NFT.
Many NFTs are created by individual artists as a means of income. Business NFTs are a little bit different. While they may still demand an artist (who should be paid handsomely for their work), a company can make an NFT to sell to promote or expand their own brand.
There are a nearly unlimited number of ways that NFTs can be used for business, and with enough creativity, nearly any business can get in the NFT game. Harvard Business Review says “Companies in the media business can naturally use NFTs to create a new class of media assets. NBA’s TopShot is currently the most compelling legacy example of this kind of product line expansion.” They go on to explain how fashion brands, and even restaurants, are using NFTs.
Understanding how businesses can use NFTs means digging into what makes an NFT valuable. The digital asset you buy has value, certainly, but the record of your purchase on the Ethereum blockchain (or any other blockchain) does too. That’s part of the cost to make an NFT.
When a consumer buys an NFT, the transaction is recorded in a form that’s nearly impossible to fake. That record becomes both a deed of sale and a certificate of authenticity that is permanent.
Taking advantage of this record, and selling NFTs that reward a buyer for their purchase long-term, is a key part of creating and selling business NFTs. It’s not just about the digital collectibles, it’s about buying into something bigger. The players in the business NFT space get this.
Here are 5 ways your businesses can put NFTs to work.
You may already be reaching the NFT crowd, but we’d be willing to bet that you could use more customers and fans in the demographic that buys NFTs. Creating and implementing your NFT marketing plan will involve racing into that market, and into other areas that you may not reach.
Wouldn’t it be great if everyone was talking about your business? This is one reason that brands are utilizing NFTs in their business plans. An NFT project can get you mentions, attract influencers, and help create momentum.
If your brand is somewhat terrestrial, present in the here and now, NFTs can be a great way to take things into the digital world. NFT collections and other digital assets have real value in the metaverse. This is why, as Harvard Business Review puts it,
“Apparel companies can envisage digital versions of their physical clothing and accessories. Ralph Lauren has already been selling branded digital apparel in virtual worlds like Zepeto. Dolce & Gabana recently auctioned millions of dollars’ worth of NFT-based digital couture.”
Creating an NFT membership project, or using your NFT project to foster decentralized autonomous organizations (DAO) (more on those here) can turn your project into a built-in community. Every business knows that repeat business is the key to success, so helping buyers feel that they are authentically a part of your brand is well worth the cost of creating an NFT.
A very clever NFT roadmap rewards buyers over time. Some businesses create NFTs that include additional art drops in the future. Others mint NFTs that allow for access to exclusive benefits for whoever owns them.
When someone buys an NFT the value of their purchase is intrinsically linked to the value of the brand that created it. This can often mean that your NFT buyers become your loudest cheerleaders.
Do you want to learn more about how your brand can increase brand loyalty and monetize your audience? Would you like to learn how to create your own NFT project and start building your community?
Not sure where to get started? Click here.
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