You may have heard about NFTs and how they are sold for large amounts of money. Some sellers have even gained thousands of dollars up to even millions of dollars. This has caused a rise in popularity and even more monetary gains for sellers.
But with all products, there is a risk that you could lose money. Your creations may not be what the masses want, and sometimes, especially when you are new to this market, it may be challenging to sell your NFT.
Although there is a risk of losing money when you mint your NFT, there are many precautions you can take to better your chances of earning money. Here is everything you need to know to help you reduce that risk.
Can You Lose Money By Minting NFTs?
There will always be a risk when trying to sell your product. This goes for any type of marketplace. Selling your NFT may be a little slow when you start, but you may find yourself thriving as you gain buyers and experience.
Just keep in mind that the NFT market will have its ups and downs. This is because prices change with popularity and trends. A popular NFT today may not be popular a month from now. You just have to market your products and get your name out there.
Minting NFTs Costs Money and Energy
If you are trying to make money selling NFTs, you need to understand the costs behind minting. Assuming you are using the most popular blockchain, Ethereum, to mint your NFT, it will cost anywhere from $75 to $700. Why such a drastic variance in cost?
Minting costs are based on how busy the network is. For instance, the less busy, the less it will cost to mint. The busier it is, the more it will cost. See below, where I provide suggestions on how to mint for a lot less money.
The other factor associated with minting costs is the amount of energy required per NFT. It’s a substantial amount, and I discuss what some researchers have come up with in this article: How Much Energy does it Take to Make an NFT?
As you can see, profit margins can get eaten up, and I haven’t even discussed selling costs which each NFT platform charges to sell your NFTs. However, I don’t want to discourage you.
Keep reading for some money-saving and making tips!
Tips To Making A Successful NFT
You can do several steps to increase the chances of making money and not losing money on your NFT. This can help reduce the risk that your NFT doesn’t sell, and as you rise in popularity, so will your income, hopefully!
Here are a few tips to consider when you sell your NFT:
- Get involved with the NFT community.
- Research what is trending.
- Don’t downplay your worth.
- Rent out your NFTs.
- Create NFTs that have value.
Get Involved With The NFT Community
It is essential to stay up to date on everything happening when you are trying to earn an income with NFTs. This market is constantly changing, so to better your revenue, it is best to stay in tune with the current state of the marketplaces.
Being able to contact buyers and sellers like yourself can be helpful. You can ask questions and share your thoughts on things. It is a great way to market yourself and make business connections. You can also learn a lot from the veterans in this field.
The top NFT communities can be found on these social media platforms:
Research What Is Trending
Researching what is trending can help you learn the patterns of the game and start making NFTs that people want or need. You don’t want to fall behind on a trend and not gain revenue on that trend.
This advice is assuming you are not an established artist that already has a style. As an artist myself, I’m not switching up my aesthetics. I’m referring to all the other different types and categories of NFTs that can be created. I drop a few of the popular categories below.
Like the stock market, the NFT marketplace is just as fast-paced.
Don’t Downplay Your Worth
Never downplay your worth when it comes to your products. Don’t sell your NFT for the bare minimum. Sell your NFT for what you think it is worth. It is your creation and should be sold for how much you think it is worth.
If you are new, you can always research products similar to yours and see the price tag on them. You may not sell it at the same price, but you can still figure out a number to put on your product.
This pricing guide should help you out:
Rent Out Your NFTs
Renting out your NFTs is possible to make some revenue without having to do too much work and get a passive income. You don’t have to create NFT after NFT but instead rent out your product.
Create NFTs That Have Value
Create NFTs that have value and that you love to make. There are many types of NFTs, so you have many options to choose from. Here are some popular tokens that hold their value:
- Mobile apps
- Metaverse housing
- Metaverse accessories
- Online courses and classes
- Collaboration deals
You don’t have to be confined to just these, but these seem to be the ones that hold value in the market. You can always try in other areas. You never know; your NFTs may blossom overnight in popularity.
What Are Cheap Ways To Mint An NFT?
Hefty fees can sometimes swallow up a good portion of your sales, especially in the beginning as a seller. To save money when minting your NFT, follow these tips:
- Lazy minting
- Find the best submission times
- Change your software settings
- Find NFT platforms with less or no gas fees
Lazy minting is when the buyer pays for the minting fees. Basically, the minting happens at the time of purchase, and those fees are deferred to the buyer. This may take a little longer than other methods, but the returns can be better. Check out this article to learn how to do it on the Rarible platform.
Best Minting Times
Believe it or not, when you submit your NFT to be minted, it can change the fee amounts. As I said before, the busier the network, the higher the costs to mint. The cool thing is that I published a guide with a grid showing the better days and times to mint. You can access it here.
Change Software Settings
Before minting your NFTs, you may want to check your software settings. Using settings that are default will reduce your fee price. There is a mint fast setting, which costs more, and a mint slow setting which is more affordable.
Apps With Less Or No Gas Fees
A quick way to save you money is to find apps that offer little to no fees. If the app is not well-known, try to avoid these because many scammers are out there, but two popular marketplaces are Rarible and OpenSea.
These two marketplaces provide some of the lowest fees and even no fees at all with the lazy minting feature. They have been around a while, so you know they are legit. In fact, I minted an NFT on Rarible, and you can check it out here.
Risks are everywhere when it comes to selling your creations or products. You may not know what will become popular. The market is forever changing, so you constantly evolve with your products. Before you go, here are two more handy guides to help your NFT dreams come to fruition.
- NFT Auction Vs. Fixed Price: Which is the Better Option?
- How Much Does It Cost to Create an NFT? A Simple Answer
Get creative and mint some NFTs! To the moon!