The increasing excitement surrounding blockchain technology and cryptocurrency assets has encouraged individuals, organizations, and governments to be interested in using its advantages.
Another digital asset that has gained much traction is the Non-Fungible Tokens known as NFTs.
Since its introduction into the digital sphere, many experts have emphasized the potential of NFTs to influence future blockchain development. As a result, it’s not unusual to see that its applications are becoming incredibly important in various industries.
However, while big businesses have started using NFTs for various purposes, most small businesses are yet to join in on the trend. In this interview, NFT expert Clancey Braxton explains whether small businesses can leverage the growing popularity of NFTs.
What advice do you have for small businesses looking to capitalize on the popularity of NFTS?
Clancey Braxton Yohman: Any small business venturing into NFTs must have a perfect go-to-market strategy before releasing it to the public. This will guarantee that the digital asset gains enough traction and is swiftly taken up after entering the market.
Coupling digital assets with physical goods is another method for small businesses to profit from the NFT boom. Customers’ familiarity with the physical product will help the NFT gain traction and ultimately raise both of their values.
How expensive would it be for small enterprises to mint their NFTs?
Clancey: Minting NFTs can be expensive, especially if the small business intends to mint many of them. Depending on the type of NFT and the provider utilized for the process, the cost to mint 10,000 NFTs might range from $500 to $5,000. Additionally, the higher the quality of NFT, the more expensive it would be to mint it.
Because of this, small businesses should only think about producing NFTs if it complements their marketing or community outreach plans. Without that, it might come out as a waste of scarce resources.
What are the technological requirements for small businesses to launch their own set of NFTs?
Clancey: Three main elements are needed to launch an NFT. The first item is the digital art file (image, gif, video) that would be uploaded to your chosen NFT marketplace. The next step is to link a compatible wallet for payments to the platform. Finally, to initialize the wallet on the platform, gas fees must be paid with Ethereum.
While there are several platforms to use, making a choice should be based on the platform’s reputation, dependability, and audience size.
How should small businesses approach assigning a price to their NFTs?
Clancey: All potential costs, including the mint charge and any transaction fees, should be considered when selling NFTs, in addition to the desired profit. Ultimately, it is preferable to price the NFT higher rather than lower.
You can start raising your prices after the NFT has a lot of support and sales. However, you might want to consider lowering your cost if your NFT stays stagnant for an extended period with no sales.
Must customers use cryptocurrency to purchase NFTs?
Clancey: Customers typically use platforms like Coinbase to convert USD into cryptocurrencies before buying NFTs. Although some platforms do provide alternative methods, this is not common because most NFT traders are cryptocurrency investors and won’t be willing to sell their coins via other means unless it is a peer-to-peer transaction.