You are your own worst enemy when it comes to pricing your NFT. Since there’s no existing blueprint or standard in listing a tokenized artwork or any digital asset, it means you must decide what counts as “reasonable.” Balance is the key – you’ll learn later that not everything minted into a non-fungible token will sell thousands or millions of dollars.
Listing your first-ever piece is no cakewalk, and your decision makes or breaks the chance of selling it. In fact, the value of your tokenized artwork is so subjective that you might even be inclined to sell it at a loss.
You know that pricing your NFT item too high will turn most buyers off unless it’s a super rare asset with high value. On the other hand, pricing it too low means you’ll have difficulty raising your stock over time.
So, before you pay the gas for your NFT venture, you must weigh on some critical factors first.
Know What’s Hot and What’s Not
The NFT marketplace is a cool place to be if you’re a creator, but it’s also cruel enough once you realize that no one’s interested in what you’re offering. Before you decide to devote your time selling an NFT, you must learn how the ecosystem works, particularly which saleable and trendy assets.
The value of a tokenized item depends on two attributes: demand and rarity. In other words, pricing your NFT relies on the question of whether people are looking for your creation and if it’s rare enough that its value will skyrocket once it hits the market.
Put Yourself in the Shoes of a Buyer
Naturally, pricing your NFT asset is based on how much it means to you, not the actual demand in the NFT marketplace. To steer out of this predicament, you should look at some objective factors instead. You must understand what buyers perceive as valuable.
Spend time browsing other artists’ collectibles; see how they’ve priced their creations, and then figure out if you’re willing to buy them at those prices. Once you’ve done that, it’s time to determine your strategy in pricing your NFT.
1 – Strike a balance between modesty and calculated aggression.
There’s a lot of money in the NFT ecosystem, but that’s not always a good thing for newcomers. First-timers get overwhelmed by the prospect of making six-figure sales, not realizing that they must start from the bottom.
Make some modest sales first and increase your prices steadily. Everyone must work their way up, even if there’s a slight chance of selling your creation at an unbelievable price.
2 – Be patient.
The NFT marketplace isn’t for you if you’re looking to cash in on your artwork overnight. Even if your first tokenized artwork sells for $50, that’s already a great accomplishment; don’t be too hasty in expecting the dramatic increase in value every time you mint another item.
Don’t be discouraged if you fail to sell your token right away. It’s all part of the process. Like all things in life, you’ve got to work for it. Being patient means waiting it out – it’s the same strategy that collectors use to make a profit from assets they bought a while back. There eventually comes a time when the same item becomes a hot commodity, thereby exponentially increasing its value.
3 – Be present across different NFT platforms.
Expansion is a must if you want your first NFT to sell. You can’t afford to put all your eggs in one basket – understandably, you’re not going to use multiple platforms for one sale. However, try listing them in other venues once you’ve gotten the hang of creating an asset and putting it up for sale on one platform.
Also, diversifying your asset categories helps in bringing in more traffic to your profile. If you’ve listed a tokenized object in the blockchain collectibles category, add it to gaming and non-fungible tokens, too, so that potential bidders will see what else you have.
4 – Experiment and have fun.
While you’re still new to the ecosystem, try making low-key items first. When you feel confident enough about your creation, make something more valuable after.
NFTs are commodities that share some features with fiat currency – it’s not advisable to invest too much capital in one asset if you don’t want to lose everything. Therefore, play it safe by taking small risks at first until you learn how the market works.
Of course, you don’t have to limit yourself to one tokenized item either. Just make sure that your creativity knows no bounds, and you’ll find success in creating valuable NFTs at the right price.
5 – Be open-minded about discounts.
A lot of people make the mistake of pricing their tokenized items too high – mainly because they want to maximize profits. You may be tempted to demand a premium price for your tokens, but don’t be too inflexible when it comes to discount offers.
You can set a minimum and maximum amount that buyers can offer in exchange for your tokenized item, but don’t be too quick in rejecting offers. Sometimes, the best way to make sales is to accept them graciously, even if you’re not getting what you’ve asked for originally.
6 – Use “unlockables.”
A common practice among game developers is to make at least one unlockable item in their game. For example, you can design an NFT that can’t be traded or sold – but you can still earn money from it if the buyer chooses to unlock its access.
When buyers purchase an NFT token, they’re buying hope for future profits from unlocking its features and functionality.
This also applies to digital artwork minted into NFTs. For example, aside from getting the exclusive digital rights to your creation, you give the buyer an unlockable, i.e., exclusive access to your next item or a physical product.
7 – Talk about (describe) your creation.
It only means something if someone understands what it can do. NFTs have a certain level of complexity that may leave potential bidders wondering how to use, trade or resell your creation.
Therefore, provide a brief description of your NFT and highlight its features that users might find attractive. Build value by providing a narrative of your artwork or creation.
Success Isn’t Always About the Money
The key to a successful NFT investment isn’t just about making profitable assets – people who have been here for a while know how the market works and want to contribute to its growth.
Even if you fetched a measly amount on your first try, it doesn’t mean you failed. In fact, many creators didn’t even sell in their initial attempt. Focus on the concept of growth. Your venture into the NFT space will eventually bear fruit once you take the first step.