If it is hard to decide to on how to price your artworks in the traditional art world, then one thing is for sure; it is even harder in the NFT space. Anyone who has tried to decide on a fair price when it comes to prints, originals and other types of mediums, will know that it can be frustrating and overwhelming.
You don’t want to be the artist who spent hundreds of dollars minting your NFT artworks, only to get stuck with them. So how do you set an ideal price?
In short, there is no blueprint or guide on how to do it correctly, and even though we can look to other successful CryptoArtists for ideas, everyone has a different background and their own journey in the space that has led them to where they are. However, there are a few guidelines you can follow that will help you decide on the value of your NFT masterpieces.
This is a really important point to consider when selling NFTs. Is your artwork a 1 out of 1 unique edition, is it available as multiple editions (such as 10), or are there over 100 NFT editions of it? The rarity of your artworks will have a major impact on your pricing strategy. Generally, if there are many editions of it, it will be considered more of a collectible than a piece of unique fine art. You can play around and see what sells best. Some artists sell their high-price, rare artworks faster than multiple edition, cheaper ones, and for others it is the other way around. So try out different prices and rarities and see what your audience is most interested in.
Emerging vs Established Artist
Artists who are established outside of the space and doing well, will not necessarily do well when they first enter the NFT space (unless of course they are celebrities or mega star artists). Generally, if you are a new artist with no sales history, don’t charge too much. The CryptoArt space is already overcrowded and sales have slowed down a lot.
Once you have an established presence in the space, you can start raising your prices. Connections and networking are everything. The crypto community hang out on Twitter rather than Instagram, so it is very important to get active there and start interacting with other artists and potential collectors. Once you have gained some popularity amongst the crypto and NFT community, it will be much easier to sell your art. Engage with other artists, retweet them and they will retweet your work back, which will gain the attention of their followers and collectors.
Read more about how to become a CryptoArtist and establish yourself in the space here.
Raise Your Floor Consistently
With all the Twitter posts about big sales and the success of artists, it can be easy to overprice your artwork when you first enter the scene. Many misleadingly believe that it is easy to be successful and sell your artworks for a high price because the news only show the big sales. However, the reality is that there are way more artists than buyers in the space, and it is important to pace yourself when it comes to pricing.
If you are new to the space, it is best to keep your prices on the lower end at first, and gradually raise your ‘floor’ price. Floor price refers to the minimum price that an artwork can be sold for. Just like in the traditional world, the same principle applies to the NFT world – as an artist becomes established, the more expensive their artwork gets.
Many collectors are also interested in buying NFT art as an investment, so they can sell it for more on the secondary market later on. It is not a bad idea to give a slight price drop or discount on the original so the price will rise as it gets resold.
Utility is becoming increasingly important in creating long-term value for NFTs. Many collectors are now looking for more than just an art piece to appreciate for its aesthetic properties only, they also want to be able to use the NFT for something else or have unique perks come with it. So you can consider including cool unlockables as a little extra surprise. This can be something like a physical print, a discount on your next piece or other pieces, or perhaps exclusive access to your next drop. There are no boundaries to this, think of fun ways to make the collector’s experience worth it and to thank them for believing in you.
Categorize Your Artwork
There is a diverse range of marketplaces and a diverse base of customers. You can divide your art into two or three different categories to target different types of customers. You can have some cheaper artworks for buyers who are looking for cheaper NFTs, middle-priced multiple editions, and higher-priced, rare artworks for high-profile collectors.
Don’t beat yourself up or give up if you don’t sell something in the first month or even two months. It can take a long time to get noticed when you are competing with so many artists and especially when you are new to this space with zero connections. Maybe your first few artworks will sell for less than what you wanted, and that is ok. You can always raise the price. Don’t have regrets and don’t be discouraged. Be patient and keep creating!
Try Out Different Platforms
Even though Ethereum is still the leader, there are many different platforms on different blockchains now. In the beginning, try as many as you can to see what works best for your style of art. Open marketplaces like OpenSea and Rarible can be a good starting point while waiting to get accepted on the more exclusive marketplaces, which can take a couple of months sometimes due to the high volume of applications. Many are finding success selling on alternative platforms like like hic et nunc or SignArt.
You could try selling collectibles which are lower priced on platforms that are not Ethereum-based, and higher-priced NFTs on the more exclusive NFT marketplaces. However, don’t try selling the same artwork for 0.1 ETH on one platform, and for 1 ETH on another. This will undermine its value, so be consistent with your prices for the same piece of art on different marketplaces.
ETH Fluctuations and the Crypto Market
There are constant fluctuations in ETH, however, it is best avoid thinking of ETH in terms of fiat. Many get confused by this and tend to change their prices according to how the crypto market is behaving. Today 1 ETH might be worth $2700 and next week it could be $3500. Don’t let this discourage you to lower your prices. Stick to the original price you set in ETH and be consistent with that. The crypto community generally buys NFTs by considering its value in ETH and not in fiat.
At the end of the day, you are the artist and you have complete freedom to decide on the value of your art. Don’t be scared to try out different strategies, and remember that many artists are also collectors, so it is worth connecting with the community and supporting each other. Keep creating and innovating and you will find your sweet spot in this wonderful space!
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Ivelina is an NFT and Blockchain lover. She has a knack for putting complex concepts into simple words.