NFTs have radically altered the creator economy, helping creatives all over the world pivot their passions into full-fledged careers. During the pandemic, it has also radically shaped the digital economy for creatives and helped build income for those who had lost their jobs. For this reason, the popularity of NFTs has continued to grow and has prompted many creators to look into leveraging this economy for themselves.
Before getting started with the more practical aspects of being an NFT creator, you may want to consider what rewards NFTs have for you as a creator, and what some of the risks are.
Check out our article on Everything you need to know before getting into NFTs.
As an artist, oftentimes when an artwork gets sold to a secondary buyer, there is little or no revenue generated for you thereafter. NFTs allow royalties to be programmed into artworks, meaning you receive a percentage of sales, depending on what platform you’re on. This is written into the smart contract, ensuring you receive a profit anytime your work gets resold.
2. It’s cheap:
It is cheap to set up. As long as you have an artwork ready to mint, the process is fairly straightforward. Minting an asset takes mere minutes, and depending on the gas fees, shouldn’t run you by too much either. The Mintable marketplace offers gasless minting, which eliminates the cost of gas fees altogether. NFTs are sold mostly on decentralized, peer-to-peer platforms such as Mintable. This bypasses the need for a gallery or auction house that usually takes a large percentage of the sale of your work, meaning you get to keep more of what you’ve sold.
3. Verifiable and Authentic:
Each NFT is unique. Once it is entered into the blockchain, it works like an inimitable certificate of authenticity. This provides market transparency as creators can use it to verify their works for buyers. For subsequent sales and owners, it is a way to look at the history and acquisition prices of the piece.
But with every reward, comes a risk. It is therefore imperative for a creator to examine the likely risks when it comes to moving forward in this sphere.
1. Slow Sale Rates
We understand the struggle of an artist. Especially when you’ve put your heart and soul into a creative piece of work, you’d want the gratification of seeing it picked up by a buyer immediately. However, that’s not often the case. Due to the sheer quantity of other NFTs on the platform, whatever you have minted might take some time to get discovered amongst the vast majority of other NFTs. It will take some work of slowly building a following and promoting yourself to help get eyes on your NFT.
Here are some tips on how you can build your brand and grow your audience: https://editorial.mintable.app/2021/09/01/growing-your-nft-brand-and-audience/
2. High Gas Fees
Depending on traffic on the blockchain, the rate charged per transaction on the blockchain can get pretty high. Not only can it be a turn-off for new creators, it inadvertently affects the price of the NFT. If an artwork is priced too high without its price justified by its value, potential buyers and collectors may get put off by the creator minting the artwork.
Mintable offers gasless minting as a feature, to help new artists get their passion careers off the ground.
3. Sensitive materials
Creativity exists on all vectors, that much is true. But sometimes being creative on the wrong vector might get your artwork removed from a platform. As many of these platforms are open for public viewing, art that leans on the side of the erotic, or contains what the wide population might consider “sensitive” material e.g. nudity, or political and socially charged content, are not favored as highly. It is a grey area, as we’ve discussed in an earlier article, but nonetheless, there may be some limitations for an artist whose work crosses into those territories.
So is it time to get started?
Now that we’ve weighed out the rewards and risks of entering the NFT market, we hope that we’ve made it slightly easier to make a decision. The NFT market is currently a ripe bed for new investors looking to get quick returns on their money, meaning it is risky but that there are just as many potentials for growth. It is a young market, but it has grown significantly in the past year. Getting in early could provide you with a headstart over other artists that will join in on the trend only later.