How to price an NFT is a question you’ll find yourself repetitively pondering as an NFT creator. And being the creator gives you the authority to price your NFT using whichever strategy you find appropriate. But finding the appropriate strategy to help you determine your NFT price may be the tricky part.
Rule number one on pricing your NFT: there is no fixed rule on pricing your NFT. Just keep in mind that if you set your price too high, you risk never being able to sell your token. But select your price too low, and it will be more challenging to raise it later on.
Ways to Sell your NFTs:
The two most common methods of selling NFTs are a fixed price or an auction. You can set your fixed price during the minting process. But if you wish to test the market, you can go for an auction. During an auction, your NFT is sold to the highest-paying bidder, this is often called an English auction.
Another type of English auction is the timed one. This is when an NFT is up for bid for a predetermined period of time. After the time is up, the highest bidder wins. Furthermore, you can opt for a dutch auction. This is a decreasing-price auction in which the price keeps declining until your NFT is purchased.
Is your goal to sell out quickly? Or is it to remain relevant for a long time and become a blue-chip NFT? There’s value in being able to say you’ve sold out fast. However, it’s not the only way to promote your NFT collection and pump its value.
Understand the Costs Involved
While creating and selling NFTs, there are several costs you need to keep in mind. The process can cost you anywhere from a few pennies to several hundred dollars. First thing’s first, wages. This is the cost of hired help if you’re not a total pro and can go from A to Z on your own.
Other costs to consider are: One, gas fees paid to execute transactions on the blockchain (with Ethereum being the most expensive). Two, account fees paid to the NFT marketplace (i.e. OpenSea, Rarible..) Three, listing fees are charged by some marketplaces as well. And, of course, the cost of marketing your NFT collection.
Determinants of How to Price an NFT
A limited edition NFT may be priced higher than one with multiple copies. If you think you’ll produce 50 pieces that are all 1:1s, unique, and not similar to each other, you’ll want to increase the price. However, if you plan to do 100 pieces and all are the same with very few differences, a set price works best.
Utility is a substantial factor in how to price your NFT
Unlockable content is the hidden content to be viewable by NFT owners only, and it is the main producer of utility for an NFT collection. As a creator, you can enrich the NFTs worth by creating unlockable content in the real world.
Redeemable discounts, thank-you notes, signed products, and high-resolution video clips are all examples of unlockable content on nonfungible tokens. This strategy helps NFT sellers build brand equity and sell their work at competitive prices.
NFTs with a solid presence on different social media platforms with displays of clear roadmaps usually sell better than others. Building a brand involves the creator frequently marketing their work on socials and joining public NFT conversations to attract more people to buy their work.
Not to mention an attractive website listing. A well-built NFT listing with an accurate description on a reputable website gives you more credibility and genuineness that attracts buyers.
Conclusion on How to Price Your NFT
After you’ve gone closely over how to create your NFT, how to price it may seem challenging until it’s simplified. Paying close attention to the market and your buyers will give you the very first few steps into building your own project and making a decent profit.