Leveraging NFTs for More Revenue: A Guide for Artists

Written by Daisie Team

Published on 10 July 2023 8 min read

The digital revolution has radically transformed the music industry, and one of the latest game-changers is Non-Fungible Tokens (NFTs). As an artist, you may be wondering how to navigate this new frontier and leverage NFTs for more revenue. This guide is your roadmap, providing practical steps and strategies to help you thrive in the NFT market, specifically focusing on NFTs in the music industry.

1. Get Your Art Ready for NFTs

The first stride in your NFT journey is preparing your art. This crucial stage involves creating, optimizing, and protecting your digital art. Let's dive into these steps:

Create Digital Art

Art in the digital realm can take many forms: music, images, videos, or a combination of these. Whatever format you choose, consider how it will communicate your unique style and message. Think of your audience—what will resonate with them and make them eager to own a piece of your work? As you create, remember that the beauty of NFTs in the music industry is that they allow you to monetize your art in its purest, most authentic form.

Optimize Your Art

Next, you'll want to optimize your art for the NFT marketplace. This might mean adjusting the file size, ensuring high-resolution, or adding metadata—information that describes your art, such as your name, the creation date, and a description of the piece. An optimized piece enhances the buyer's experience and could be the difference between a sale and a pass.

Protect Your Art

When it's time to let your art fly into the digital world, make sure it doesn't go unprotected. One of the unique aspects of NFTs in the music industry is their ability to ensure artists' rights. Each NFT is linked to a blockchain, which records ownership and copyright information. So, as you prepare your art, remember to take advantage of these protections. This way, you'll not only share your art with the world, but you'll also ensure it remains your art.

2. Select the Right NFT Marketplace

With your art ready to shine in the digital world, it's time to select the right NFT marketplace. Just like traditional art is sold in different galleries, NFTs are traded on various online platforms. Here's how you can find the best fit for your work:

Compare Marketplaces

Start by exploring different NFT marketplaces. Some platforms specialize in specific types of art or cater to certain genres of music. For instance, OpenSea has a diverse range of digital assets, while Rarible is known for its user-friendly platform. Mintbase, on the other hand, is a favorite among musicians for minting and selling music NFTs. Take note of the kind of art each marketplace sells and the community it attracts.

Evaluate Fees and Contracts

Next, consider the costs. Most NFT marketplaces charge a fee for minting NFTs and take a percentage of the sales. These fees vary from platform to platform, so it's important to understand what you'll be paying. Also, look at the contracts. Some platforms offer artists a cut of future sales, a feature that could mean an ongoing revenue stream from a single piece of art.

Consider Your Audience

Finally, think about where your audience is. You want to sell your NFTs on a platform where potential buyers are already hanging out. If you're a musician, look at where music enthusiasts are buying NFTs. This step will help you tap into the existing demand for NFTs in the music industry and make your digital art a hot commodity.

3. Mint Your NFTs

After selecting the right marketplace, the next step is to mint your NFTs. Minting is the process of turning your digital art into a unique, non-fungible token on the blockchain. Here's how to do it:

Understand Minting Process

Minting NFTs is like creating a digital certificate of authenticity for your artwork. When you mint an NFT, a unique token representing your artwork is created on the blockchain. This token cannot be replicated or replaced, making your artwork truly one-of-a-kind. The process involves uploading your digital art, adding metadata like title, description, and price, and then minting the token.

Choose the Right Minting Platform

Now, where do you mint your NFTs? The answer often lies in the marketplace you've chosen, as most have their own minting platforms. But some artists prefer to use standalone minting platforms like Mintable or Cargo. These platforms offer advanced features like batch minting, which allows you to mint multiple NFTs at once, or gasless minting, which can save you a lot in transaction fees.

Mint Your Art

With your platform chosen, it's time to mint your art. This involves uploading your digital file, adding metadata, and then confirming the creation of your NFT. Remember, once minted, the details of an NFT cannot be changed, so double-check everything before you press that mint button. And voila, you've just minted your first NFT! This is a significant step in leveraging NFTs in the music industry for more revenue.

4. Price Your Art

Now that you've minted your NFTs, it's time to put a price tag on them. This step can feel a little tricky, but don't worry—we've got some tips to guide you.

Research Pricing Strategies

First off, do some research. Look at other NFTs in the music industry similar to yours, and see what they're selling for. Are there any patterns or trends you can spot? It's important to remember, though, that the value of an NFT is subjective and ultimately determined by what a collector is willing to pay for it.

Set Your Price

Next, set your price. Remember to take into account the costs you've incurred in creating and minting your NFT, as well as the commission fees of the marketplace. It's also a good idea to price your NFT a little higher than what you'd be happy to sell it for. This way, you have some wiggle room for negotiation.

Adjust as Necessary

Finally, be prepared to adjust your prices as necessary. The NFT market can be quite volatile, with prices fluctuating regularly. Stay informed about the latest trends in NFTs in the music industry, and don't be afraid to change your prices in response to them. Remember, the goal is to make a profit, not to hold on to your NFTs forever!

5. Promote Your NFTs

After pricing your art, it's time to make some noise about it. Promoting your NFTs effectively can significantly increase your chances of making a successful sale.

First up: social media. It's not just for sharing cute cat videos. Platforms like Twitter, Instagram, and Facebook can be powerful tools for getting the word out about your NFTs. Start by sharing your work with your existing followers, but don't stop there. Use hashtags related to NFTs in the music industry to reach a wider audience. And remember, consistency is key: post regularly to keep your audience engaged.

Network with Collectors

Next, connect with potential buyers. Attend online events and forums where NFT collectors hang out. Platforms like Discord, Clubhouse, and even LinkedIn can be great places to start. By engaging directly with collectors, you can build relationships that could lead to sales—not to mention valuable feedback about your work.

Collaborate with Other Artists

Finally, consider teaming up with other artists. Collaborating on an NFT project can be a win-win situation. It allows you to pool your resources and talents, reach a broader audience, and create something truly unique in the NFT music industry. Plus, it's a great way to learn from each other and grow as artists. So reach out to fellow artists whose work you admire. Who knows? Your next big hit might just be a collaborative effort!

6. Manage Your Sales

Once you've successfully promoted and sold your NFTs in the music industry, the next step is managing your sales. This involves keeping track of your earnings, planning for taxes, and ensuring you have a strategy for your future income.

Monitor Your Sales

Keep a keen eye on your sales. Use tools like Etherscan to track transactions on the Ethereum blockchain. This allows you to see who’s buying your NFTs and at what price. Monitoring sales also helps you understand which pieces are popular, providing valuable insight for future creations.

Manage Your Earnings

When your NFTs start selling, it's tempting to celebrate. But remember, managing your earnings wisely is as important as making them. Consider reinvesting a portion of your earnings back into your art—buying better equipment or software, for instance. And don't forget to save some for a rainy day—you never know when you might need it.

Plan for Taxes

Oh, the joy of taxes! Yes, it's not the most fun topic, but it's important. In many places, income from NFT sales is taxable. So, be sure to set aside a portion of your earnings for tax purposes. Consult with a tax professional to understand your obligations better. It might seem like a hassle now, but trust me, future you will thank you for it!

7. Engage with Your Audience

Having a devoted audience is like having a superpower in the world of NFTs in the music industry. But remember, with great power comes great responsibility! Engaging with your audience can help build a robust community around your art, and it might be easier than you think.

Build a Community

Begin by creating a space where your audience can interact—not just with you, but with each other. This could be a Discord server, a Facebook group, or even a subreddit. A strong community can be your most powerful marketing tool. It's not just about selling NFTs—it's about creating connections, sharing ideas, and growing together.

Don't underestimate the power of a well-timed tweet or a thoughtfully crafted Instagram post. By staying active on social media, you can keep your audience updated about your latest pieces, upcoming projects, and more. Plus, it's a great way to get instant feedback on your work.

Provide Value to Your Followers

Ask yourself: What can you offer your followers that they can't get anywhere else? Maybe it's a behind-the-scenes look at your creative process, or exclusive access to early releases. By providing unique value, you can turn casual followers into loyal fans—and loyal fans are more likely to invest in your NFTs in the music industry.

8. Expand Your NFT Business

Once you've built a solid foundation, it's time to think bigger. How can you take your NFT business to the next level? Here are some strategies that might help you make the most of the opportunities in the world of NFTs in the music industry.

Explore Other NFT Opportunities

Did you know that NFTs aren't just for digital art? There's a whole wide world of NFT opportunities out there. Musicians, for example, are starting to sell their songs as NFTs. And authors? They're getting in on the action too, minting their words into NFTs. By exploring these other avenues, you could diversify your portfolio and reach a whole new audience.

Collaborate with Brands

Artists and brands make a powerful combination. Think about famous collaborations like Andy Warhol and Campbell's Soup or Shepard Fairey and Obey. By partnering with a brand, you could gain exposure to a wider audience and create something truly unique. And in the age of NFTs, these collaborations can take on a whole new level of interactivity and exclusivity.

Diversify Your Income Streams

Lastly, don't put all your eggs in one basket. By diversifying your income streams, you can protect yourself against market fluctuations and ensure a steady income. You could sell prints of your work, offer commissions, teach art lessons, or even start a Patreon. The more streams of income you have, the more stable your business will be.

With these strategies in mind, you'll be well on your way to expanding your NFT business and maximizing your revenue. So why wait? Start exploring the endless possibilities of NFTs in the music industry today!

If you're eager to dive deeper into the world of NFTs and unlock new revenue streams for your art, don't miss the workshop 'Sell Your Creations As NFTs' by Tom Glendinning. This workshop will provide you with practical tips, insights, and strategies to successfully sell your creations as NFTs and boost your income as an artist.