Demystifying NFT Artist Earnings: Understanding the Potential Income of NFT Art Creators
If you are in a community of NFT enthusiasts, you must be aware of the earning opportunities in the industry to educate the audience. NFTs (Non-Fungible Tokens) have been gaining popularity since play-to-earn gaming and metaverse emerged. But, is it possible to make a living out of NFTs? How much money do NFT artists make? We answer all these questions in this blog.
What are NFT Artworks?
NFTs are tokenized digital artworks that are unique and can not be interchanged. One can buy or sell NFTs over blockchain using FIAT or digital currencies. Unlike cryptocurrencies, every NFT in a collection is unique. For example, you can exchange a BTC with another but can not change an NFT of the same collection with the other.
Which Factors Decide the Value of an NFT?
Several factors directly impact the sales of an NFT collection and the revenue from it. Let's have a look.
- Rarity: Rarity means how rare or unique an NFT is. If it is the first of its kind, it is likely to be expensive. Cryptokitties and The First 5000 Days are examples of rare NFTs.
- Utility: Utility means how an NFT can be used. Gaming NFTs are generally high-utility NFTs.
- Liquidity: Liquidity is directly proportional to the value of an NFT. Investors prefer to invest in NFTs with high trading volumes.
- Popularity: Factors like what an NFT represents and who are the previous owners also affects an NFT's value. For example, the first NFT representing a Formula 1 car was sold for $113,124.
- Platform fee: The transaction fee charged by the marketplace/platform facilitating the NFT sale adds up to the overall value.
How do NFT Artists Make Money?
There are different ways NFT artists monetize their artworks. Here are three common ways NFT artists price themselves:
- Per hour: According to research by Cryptonews, NFT artists earn up to $21.77/hour. This value may increase or decrease based on the artwork.
- Per piece: The same research says that NFT artists charged an average of $232/artwork. However, NFT artists may charge around $50 for a base NFT.
- Royalty: Royalty is a commission in simpler terms. Every time the NFT changes hands, the artist gets a certain percentage of the selling price.
Here are the most expensive NFTs to be ever sold:
- The Merge - $91.8 Million
- Everydays: the First 5000 Days by Beeple - $69.34 Million
- Clock by Julian Assange and Pak - $52.74 Million
- Beeple's Human One - $28.98 Million
- CryptoPunk #5822 - $23.7 Million
- CryptoPunk #7523 - $11.75 Million
Also read, Making Money With NFTs: A Comprehensive Guide
How To Become A Successful NFT Artist?
Anybody can create an NFT and thus, anyone can become an NFT artist. However, building a fanbase helps you maximize the chances of selling your NFTs.
First of all, pick a niche and master the art of NFT creation in that niche. Second, build a community through Twitter, Discord and other platforms. Collaborate with other creators and influencers. Finally, when you have created a buzz, launch your NFT on a reputed marketplace.
Are you an aspiring NFT artist looking to monetize your digital artwork? Building a fanbase is crucial for selling your NFTs. With Blaze, the next-gen customer engagement tool, you can easily create and manage your community on various platforms. Collaborate with other creators and influencers to grow your network and increase your chances of success in the NFT world. To explore how to maximize the potential of your NFT sign up with Blaze today to take your NFT career to the next level.