Non-fungible tokens (NFTs) have exploded in popularity recently, with sales reaching $25 billion in 2021 alone. As interest grows, more people want to know how to sell an NFT and make money in this digital market. This guide will walk you through the process of selling NFTs, from creating artwork to listing it on marketplaces.
What is an NFT?
An NFT is a unique digital asset that represents ownership of a virtual item like artwork, music, videos, etc. NFTs use blockchain technology to provide public proof of ownership that cannot be altered or deleted.
How to sell an NFT involves first understanding what makes them valuable:
- Scarcity: Most NFTs are part of a limited set with a fixed supply. Their scarcity drives demand.
- Ownership: NFTs have sole owners and the blockchain serves as an immutable record of ownership.
- Utility: Some NFTs offer additional benefits like exclusive access to certain platforms or communities.
- Bragging rights: For collectors, owning certain NFTs can signal status and wealth.
How to Create an NFT
To sell an NFT, you first need to create one. Here are the main steps:
- Choose a blockchain platform – Popular options include Ethereum, Flow, Tezos, Solana etc. Each has pros and cons.
- Create artwork – This can be a digital painting, photo, video clip, music file etc. Make sure you own the intellectual property rights.
- Upload to a platform – Platforms like OpenSea allow you to upload your artwork and create (aka “mint”) your NFT.
- Add metadata – Include title, description and other details to make your NFT stand out.
- List your NFT – Choose a starting bid and sale duration for the auction. You can also opt for direct “Buy Now” listing.
Where to Sell Your NFT
Once minted, you need to choose an NFT marketplace to list your digital creation for sale:
- OpenSea – The largest NFT marketplace with the most listings and top sales. Easy to use with low fees.
- Rarible – Similar to OpenSea but with more of a community focus. Makers can get royalties.
- SuperRare – Focused on digital/crypto art. Curated selections with exclusivity.
- Foundation – Artist-centric platform with clean UI. Invite-only submissions.
- AtomicHub – Marketplace for NFTs on the WAX blockchain. Lower fees.
- Social Media – You can directly sell NFTs on Twitter, Facebook, Instagram etc. Leverage your existing followers.
How to Price Your NFT
Determining the right price for your NFT is part art, part science. Keep these tips in mind:
- Research comparable NFTs and see what similar items have sold for recently
- Set a minimum price that covers your costs, like platform fees
- For auctions, start bidding lower to attract interest
- Consider parceling a large set into multiple NFTs at different prices
- Rare traits like 1 of 1 editions can command much higher prices
- If you have an engaged social media following, your NFTs may sell for more
Marketing Your NFT Listing
To generate interest and buyers, you need to promote your NFT listing:
- Social media – Leverage your own accounts and relevant hashtags. Engage with the NFT community.
- Influencers – Reach out to influencers focused on NFTs/crypto art and collaborate on promotions.
- NFT forums – Post teasers and listings on Reddit groups like r/NFT, r/NFTCollect, r/NFTArt_Finance.
- Giveaways – Offer free NFTs to select influencers or early buyers. This can kickstart initial interest.
- Press releases – Distribute releases to relevant crypto/tech publications.
- Cross-promote – Collaborate with other artists and cross-promote your NFTs.
Tips for Successfully Selling Your NFT
Follow these tips to increase chances of selling your NFT:
- Create hype – Use social media and influencers to build anticipation and buzz pre-launch.
- Auction vs fixed price – Auctions create competition and bidding wars. But you risk selling below expectations.
- Include unlockable content – Add exclusive content that unlocks when a buyer purchases your NFT.
- Retain ownership rights – You can still monetize the underlying IP through merchandise, derivatives, etc.
- Sell in bundles – Offer bundles of your NFTs at discounted rates to drive volume.
- Time auctions carefully – Try 7-10 day auction periods. Shorter can seem rushed, longer can lose momentum.
- Offer staking/royalties – Consider ongoing % of secondary sales as added value for buyers.
Step-by-Step Process to Sell an NFT
Follow these steps when listing your first NFT:
- Set up a cryptocurrency wallet like MetaMask to hold crypto funds.
- Get tokens like ETH into your wallet to pay platform fees.
- Upload your NFT artwork file and create the token on a marketplace.
- Fill out listing details like title, description, supply count.
- Choose a sale format – fixed price or timed auction.
- Set a competitive starting price based on comparable NFTs.
- Promote your NFT listing via social media and press.
- Interact with potential buyers by answering questions.
- Review bids and transfer NFT upon successful sale.
- Withdraw proceeds from the sale into your crypto wallet.
Common Questions about Selling NFTs
Here are answers to some frequently asked questions:
How much does it cost to sell an NFT?
Platform fees are typically 2.5-5% of the transaction value plus minor blockchain gas fees. So your net earnings are 95-97.5% of the sale price.
What are the tax implications of selling NFTs?
In many jurisdictions, selling an NFT for profit is treated as a capital gain and taxed accordingly. Consult local regulations.
Can I sell an NFT on multiple platforms?
Yes, you can list your NFT across multiple platforms to reach a wider audience of buyers.
What royalties do I get from secondary NFT sales?
You can code royalties (e.g. 10% of each future sale) into the NFT’s smart contract. But this option is not universally available or enforceable.
How long does it take to sell an NFT?
There’s no guarantee. Some sell immediately, others can take months. Leveraging your network and promotions will reduce time to sell.
Selling NFTs offers artists, creators and collectors an exciting new avenue to monetize their digital content. By following this guide on how to sell an NFT, you can tap into this new market for digital collectibles. With the right marketplace strategy, promotion and competitive pricing, your unique NFT can potentially sell for lucrative sums. As the ecosystem matures, more tools and services are emerging to help creators effectively value, list and market their NFT offerings.