How To Price Your NFT

Usually, the value of NFTs decreases as the number of pieces increases. However, the crucial factor is whether those are copies. Because they are widely available and not unique, NFT costs decline as more copies become available. Versions, commonly referred to as "editions", assist in determining the total worth of an NFT when it is being sold on a secondary market. As there is always a risk of underestimating or overestimating your work, let's examine why NFT pricing models should be split into 2 different categories.

Using the affordable model for NFT pricing allows you to gain a competitive edge since more collectors can join the market and make purchases at those prices. As the starting cost is .02 ETH, everyone can afford to buy it.

▶️ Pros:

• Allows to create and sell multiple copies of a single NFT
  
• Production requires less time and effort
  
• Easy to sell
  
  

▶️ Cons:

• NFT collection requires constant replenishment
  
• Brings negligible profit with each item sold
  
  

Although the lavish NFT pricing model targets fewer buyers, you can charge more, reaching your financial objective more quickly. The initial cost for each piece of your NFT collection is 1 ETH or more.

▶️ Pros:

• One deal might bring a significant profit
  
• As 1:1, it can cost more than 100 copies
  
• Increases the value of your NFT for potential buyers
  
  

▶️ Cons:

• It may be time consuming
  
• It cannot be duplicated or copied
  

"How much should I sell my NFT for?" is the first question that occurs once the NFT has been created. So, the following factors should be considered when deciding how much to charge for an NFT, as they directly affect the price of NFT art.

When it comes to pricing your NFT, you may start by checking reputable news portals. It has been demonstrated that the general prices on the NFT market fall whenever there is a discussion about the use of NFT or raising doubts about the true worth of cryptocurrencies. Most often, it occurs as a result of a brief drop in active users who were dubious following sceptical news. If price reductions are brought on the news, it is preferable not to list your tokens.

The price of the associated NFTs may also be impacted by the relative size and fervour of the community that has grown around a project. The quantity and activity of users on a project's Discord server, sub-Reddit, or Twitter community can be used to estimate this measure. A group of fervent NFT-enthusiasts can create priceless network effects by promoting the aesthetic or practical advantages of the NFT on the aforementioned platforms. This will increase the price of the underlying NFTs.

Even the rare and potentially expensive piece of NFT is worthless if there is zero brand recognition. One must promote their NFTs to the public through various platforms, such as Twitter or Discord, to familiarize people with the process of NFT creation and develop a reputation within the NFT industry. Additionally, by collaborating with other non-fungible token platforms, artists and companies have higher chances to increase the price of their NFTs.

In case you are new on the market, the time when you list your NFT makes a real difference. Given that you need to pay a fee for every piece of work you want to sell, it is wise to choose the time when those fees are the lowest. As a rule, the time when you can have the biggest gains comes between 1 am and 3 am (UTC) and between 9 pm and 11 pm (UTC).

Many NFT marketplaces allow the creators to choose between two NFT pricing models or even use both simultaneously. In particular, you can sell the piece of art or any other token by identifying the fixed price or putting it into the auction. But before selecting the suitable pricing model, you should know the advantages and disadvantages of each of them.

The most typical method of selling an NFT is to establish a fixed price. This is the most straightforward choice, and it works best for NFTs with a distinct value proposition. So users can click on the "Buy now" button and pay the exact amount you have specified. This pricing model is more convenient both to NFT creators and buyers.

The main advantage is that the process of selling NFT with a fixed price is automated and does not require you to invest more time after you calculate the desired price. The listing will be available on the marketplace until it is sold or the appointed time frame elapses.

As for disadvantages, one should keep in mind that with a fixed price, the potential earnings are limited to a certain amount.

You can choose an auction if you're unsure how to price NFT art or want to test the market. It works as a classic auction when the NFT owner selects the timeframe and minimum price. Afterwards, potential buyers start bidding and increase the amount of money they are willing to pay. After the estimated time expires, the highest bid gets the listed NFT. If no one participates, the tokens return to the owner.

The element of tension and competition pushes sellers to spend more than they expected before the auction. Hence, the NFT creators usually earn more profit than with fixed prices.

However, there is no guarantee that one's NFT will be sold at all. Unbidden auctions are quite common in every NFT marketplace. So, it is crucial to know if there is any interest in your NFT before putting it into the auction.

Pricing your NFTs can be intimidating if you're an artist who is just getting started in the NFT world or an entrepreneur who is considering using NFTs for the first time to fund or power your business. To make things easier for you, below we share the most useful tips on how to price your NFT and maximize your profit.

Exploring different markets and examining the floor pricing of NFTs that are not only in the same genre as yours but also those that contradict it is a smart idea for choosing a proper NFT pricing model. This ought to give you a good idea of what the typical cost of a certain kind of NFT is.

However, comparing the costs of several NFTs could not provide you with all the necessary details. Another useful habit is to compare yourself to other creators. Their popularity in the market is determined by the size of their fan base and the frequency of sales of their works, so such research will help you assess how you stack up and how much to charge.

Typically, a rare NFT may generate more profit than a regular one. A limited edition NFT will cost more than one that is available in many copies. Similarly to this, a real painting can be worth more than the available digital image. Utility tokens are more valuable because their owners can use them to purchase products and services, making them more functional. Therefore, when developing an NFT pricing strategy, consider the rarity of your NFT and take your clients' needs into account.

Unlockable content that is only accessible to collectors is another method to develop relationships with your supporters and add value. It could be a high-resolution digital file with exclusive information about the NFT creation process or a physical print that will go with the NFT.

The NFT collection created by photographer Peter Hurley may serve as an innovative example. Access to a virtual city in the Metaverse called Shabangrsville, and drawings for benefits like a headshot session or workshops with Peter are made possible by ownership of the NFTs.

The best thing about NFT pricing models is that you may adjust them to fit your demands. Try different strategies to see what works best for you. Once you've developed a following in the cryptocurrency industry, you might hold a flash sale where your products are discounted for a limited time.

Feel free to increase your prices if you find that your NFT artwork is selling more quickly than you anticipated. As you establish yourself and gradually raise your floor price, you should ideally reevaluate frequently. It's also a good idea to monitor the prices at which your work is being sold on the secondary market because this information can help you decide when to increase your prices.

To prevent burnout and disappointment, it's critical to understand that while some people are experiencing overnight success, many others aren't. Most will require time to develop a fan base and audience, so approach your NFT collection with a long-term perspective. It's not necessarily true that your work won't sell just because it didn't sell right away. It can imply that for the appropriate collectors to discover you, you need to get out there, share your story, and promote your NFT art. It is also wise to consider the future sales of your NFT when establishing the pricing policy.

Once you already know the basics of how to price your NFT, you should draw a pricing strategy for long-term usage. To do it successfully, you need to know a few marketing tricks that will help you to sell more and with higher price tags.

Pricing your NFTs less expensively than you would like to in order to make them more accessible to collectors can be successful a marketing strategy to encourage collectors' loyalty. Some artists achieve this by establishing a lower price for their initial collection so that early supporters feel appreciative, particularly if the prices rise later. A t-shirt from a luxury brand would cost more than a comparable t-shirt from a mass-market brand, even though they are exactly the same. Pricing can also be a reflection of branding. You should set your prices appropriately if your brand is powerful and exudes an air of exclusivity or high quality.

Besides lowering the price at the beginning, you should think about which currency to use for receiving payments in the first place. It is a common mistake when new artists think about listing the price in one of the fiat currencies. Remember that the currency specified in the description of your listing should be one of the cryptocurrencies – that is how it works in the NFT world. Investors are more likely to buy your piece of art if they see the desired crypto.

The initial sale and resale royalties are the two ways that NFTs allow you to monetize your work. You might want to alter this ratio depending on the kind of NFT you produce. You might be able to sell for less upfront and count on collecting money from royalties because collectables are more likely to be traded than fine art NFTs. This can entice more customers to purchase your NFTs during the initial offering.

To start earning royalties for NTF, you need to specify the percentage of your interest manually when minting the token. Usually, you can earn 5% - 10% from each new deal with your NFT sold. Once the minting process is over and the smart contract on the blockchain is created, you can sell the NFT and start earning even years after the initial sale takes place. So, when selecting a strategy for how to price NFTs, take into account future royalties.

It can be frightening to enter a market with thousands of other NFTs for sale. Also, don't undervalue the worth of your NFT art despite the impossibility of expecting to command high prices right away. The first sale is always the most difficult to make. However, once it has been done, and you have a regular stream of customers interested in your work, use a linear model to raise the floor gradually while increasing your prices as you go.

Enormous price jumps can be justified only for scarce items, but in all other cases, you can increase the price following the linear progression. It means that the price should increase gradually by 10-15% per each new piece of NFT.

Every successful NFT pricing strategy is not possible without the consideration of the possible expenses one may come across when selling NFT. You start the process by creating an account on one of the desired trading platforms first. Afterwards, to use it as a seller, you need to pay a so-called gas fee, which will be included in the final price of the token. The size of a gas fee varies depending on the platform and the size of your NFT supply. Still, most selling platforms split the charges into four components that we briefly describe below.

Once you want to make your NFTs available to potential buyers on the secondary marketplace, the platform will charge you a listing fee. It is the most widespread fee every seller pays using online marketplaces, even outside the NFT world. As a rule, it is the smallest charge an NFT creator has to pay and may vary from $10-$20 per listing.

The most prevalent expense you will find on almost every marketplace is a commission fee. In simple words, when an NFT is purchased, the secondary market charges a fee in the form of a percentage. As an illustration, let's say the organization now charges a commission of 15% of the total sale. So if you sell your NFT for $300, the commission will be $45 in this case.

While thinking "how much should I sell my NFT for?", keep in mind that you will need to pay an escrow fee. This fee is charged for the enrolment of the payment to your crypto wallet or in case you want to withdraw the funds. Although it might cost between $30 and $55, it is one of the rarest fees that exist on NFT marketplaces.

The last fee you will most likely pay before starting to sell your NFT is a minting fee for getting an authentication certificate. It proves that your NFT art is unique and all rights on it belong to you as a creator. The minting fee is charged by the blockchain that hosts your token. The amount is flexible and varies from $1 to $1000 depending on the time of performing the creation process. For example, during the night hours, the fee will be lower because of lower activity.

It can be difficult to price your NFTs, but if you put the time and effort into your research, you'll be able to establish a price that will enable you to sell your tokens and earn a profit. Although minting and selling NFTs is a riskier endeavour than investing in other assets like GICs or stocks, it can become a reliable source of income, especially as you become more well-known in the industry. Aim to determine the proper price for your own NFTs using the tips we provided in this guide as a starting point. You'll be able to charge higher fees for your NFT once you start selling your first works and begin to establish a name for yourself. So don't be frightened to try new things and have fun!