Lately, you can’t swing a dead CryptoKitty or give someone a “side-eyed Chloe” without someone jumping into the NFT pool. NFT’s are everywhere. Uncle Snoop (Dogg) has one, so do Shakira, Paris Hilton, Ellen DeGeneres, and Eminem. This doesn’t mean that NFT’s are the financial playground meant only for the rich and famous or big corporations. Your small business can benefit from the NFT craze.
What is an NFT?
A non-fungible token (NFT) is a digital asset that represents virtual and physical items that cannot be switched with anything fake because they were created on a blockchain. You can always track the original owner on the blockchain. NFT’s can be works of art, music, photography, videos, memorabilia, health records, contracts, and more.
In 2017, NFTs started to gain traction with the launch of digital trading cards, CryptoPunks, and CryptoKitties. According to nonfungible.com, in 2018 total NFT sales reached $40 million. From then, the trajectory of NFTS exploded into the mainstream exceeding $338 million annually in sales. The nonfungible.com report reflects total volume traded exceeded $500 million in Q1 2021. In Q2, an additional 40% was earned, leveling sales to a handsome $700 million.
The reason NFTs are soaring is that they are programmed to be scarce, and people like to collect things that are limited. Scarcity drives up the bidding price.
Additionally, NFTs last as long on the blockchain they’re built on continues to exist. They also have provable ownership which can be programmed for resale, and they cannot be counterfeited.
Small Businesses and the NFT Mania
There are opportunities for small businesses to take advantage of the NFT craze. Counterfeit-proof single-use promotional items like coupons, promotional discounts, tickets. Blockchain codes are copy and tamper-proof.
- Build a customer loyalty program with a NFT loyalty card. Customers can sign up, download it to their smartphones. Every time they shop, they accrue points. Once they reach certain purchasing milestones, they can be rewarded, receive discounts or be allowed to use blockchain tokens to make purchases.
- Support charity or cause-related marketing. In September 2021, NFT company Bookblocks.io has partnered with a New York-based organization to help women in Afghanistan have access to education amid the Taliban takeover. When the token was released, proceeds were given to Women for Afghan Women, an organization that helps provide education and vocational training. A similar program could be duplicated to support local charities or neighborhood causes.
- Fundraising for expansion. If your business is expanding in any way, an NFT campaign is a low- cost funding alternative to a bank loan. Launch a crowd funding campaign where donors know exactly how to track their money.
- Gamification. Another creative and low -cost opportunity to marketing your small business. A fun digital scavenger hunt that involves local business will not only drive foot traffic, but digital imprints as well.
We are still breaking ground in the NFT market and small businesses won’t be left out. With a little imagination, NFTs can be a fun playground to grow your business.