We’ve all seen the headlines of NFTs selling for tens of millions of dollars. In order to be successful in making a living from selling NFTs, a clear strategy is needed. NFT pricing comes down to understanding the cost and energy it takes to create value. Understanding what your goals are and the best way of achieving them are keys to your success. Are you striking while the PFP market is hot? Are you playing the long game in hopes of Bored Ape blue-chip status? Will the rarity of your NFTs be a factor for collectors?
Here are some things to consider when pricing your NFT.
Pricing Approach
Choosing the best approach requires understanding the complexities of NFT pricing and the varieties available:
- Owner Price: The value of an NFT depends on what the owner feels and thinks.
- Current Listing Price: Do your due diligence and browse the NFT markets and see the prices creators are listing for their NFTs. Some creators sell NFTs as 1/1 or a collection (1/10,000) where they determine the total number of pieces.
- Buyers Price: The amount a potential buyer is willing to pay for an NFT on the market.
- Actual Price: The price at which an NFT was sold at an auction on the market. This is normally displayed after an auction and the creator accepts a bid for the NFT.
Buy Now vs Auction Options
Creators and buyers alike need options. NFT markets that offer flexibility in minting and multiple blockchains are in demand. The Fimi NFT Marketplace is multi-chain and accepts various cryptocurrencies.
Some buyers prefer specific cryptocurrencies and blockchains and they tend to stick to their preferences. Having the flexibility to accept multiple blockchains provides a distinct advantage when trying to sell your NFT. Although this doesn’t really have anything to do with pricing, it is important to know.
Depending on the NFT market, NFT sellers have a choice between ‘buy now’ and ‘auction.’ The ‘buy now’ option increases the chances of NFTs selling out rapidly and can move volumes. The ‘auction’ or bidding process allows for buyers to submit prices, which can result in garnering a larger sale price for your NFT.
Versions/Editions
When it comes to NFTs, rarity rules. Buyers want to feel special as if they have entered an exclusive club with a velvet rope. Generally, the more art pieces there are, the less valuable they get. Creators have the option of creating copies or versions of their NFTs.
Versions, often referred to as ‘editions,’ contribute to the overall value of an NFT when it is sold on the market. For example, if you have ten versions and sell all ten at once, the first edition will sell the quickest and for the most money.
Copies can be widely obtained on any NFT market. The more copies there are available, the less valuable they become. The fewer art pieces there are, the more precious they become.
Affordable vs. Luxurious Labels
The law of supply and demand rules IRL and in the metaverse. Dividing NFTs as affordable and luxurious provides more options for earning. Luxurious offerings usually have the title of ‘rare’ or ‘super rare’ on NFT markets. These NFTs have limited availability and/or are available for a short period of time.
The key to a profitable NFT venture is to determine your goal before deciding on your NFT pricing strategy. The more NFTs you mint and the faster you sell them, the higher the floor price on the NFT markets. Consequently, selecting accessible pricing that is comparable to similar artwork will provide the greatest results.
