The following article is intended as a starting point for inspiration around pricing NFTs, and is not financial, business, or legal advice.
If you are just beginning to buy, sell, or create your own NFTS, then you may be wondering how you should approach pricing. When it comes to pricing your NFTs, there are a few different aspects you should look at first.
Pricing your own NFT creation
Pricing your own NFT creation can be one of the most daunting tasks you face along your NFT journey. So, how should you start?
Price your own NFT creation in order to compensate for your time and resources used during the creation. It’s important that you demand a fair price, both as a seller and for your consumers. Keep in mind, if you don’t have a reputation of some sort publicly, it may be hard to sell your NFT if it’s priced too high.
Price your NFT based on the amount of time and effort you put into creating your product. For example, let’s say you spent 10 hours creating a gorgeous digital painting. From there, you can decide an hourly rate for yourself and price your NFT accordingly. If you charge $50/hr, you can assume 10 hours of work equates to $500.
Additionally, if you have any extra expenses such as a program that you purchased to create your NFT, or a computer for example, you should consider adding in an additional fee to help cover the costs of your supplies. If you paid $1000 for a new computer, then you could add an additional $50 to the total cost of your NFTs until you have earned enough to cover the cost of your purchase.
This may be a good strategy to use when you are just starting out as an NFT creator. Once you build your reputation up and establish yourself within your niche, then you can start demanding higher prices for your creations as the demand for your NFTs increases as well.
Tips and reminders for pricing your NFT
To be completely honest, there is a lot you should consider before pricing your NFT. Your primary goal may be to turn your creative work into a viable income. You may also want to create a direct method of support between you and your community.
You can’t do either of these well if you set your prices too low. Here are my top tips and reminders for pricing your NFTs:
- Price your NFT higher before trying to price it lower. You can always lower your price, but it’s more difficult to raise your price if you have been selling your NFT at a set price, simply because your audience will expect that lower price.
- As soon as people begin purchasing your NFTs and as you build your reputation, you can also begin to increase your prices. Don’t increase your pricing too quickly or too dramatically though, as this could backfire and potentially even ruin your reputation due to people viewing you and your work as a cash-grab. Slow and steady wins the marathon.
- If you find your NFT sitting stagnant for too long with zero sales, then you may want to consider lowering your price.
- When pricing your NFT, keep in mind the fee to mint your NFT as well as any transaction fees the buyer may need to pay. Your sale price should reflect these additional fees, for both you and your collector’s sake. If it costs you $20 to mint your NFT, make sure you add that into the price of your NFT when listing it for sale. This, of course, isn’t an issue on Voice, where minting is free! Moreover, if the buyer needs to pay a transaction fee, it’s nice if you can help offset the fee by lowering your price, but not too much–you still need to make a profit to stay in business.
- The community determines the value of every NFT. What does that mean exactly? It simply means that whatever people are willing to pay to obtain an NFT, is what it’s worth. If people are only willing to pay $1 for your NFT, it’s worth $1. Likewise, if others decide to pay $1000 for your work, the market value is then $1000. Auctions are an important tool to help determine what the market value of an individual piece is, at that current moment.
Important note: pricing does not define your worth as a creator. Let yourself see your initial pricing as exploration, not definition! Ultimately, there is no right or wrong way to price your NFT. It depends solely on your personal goals, how patient you are, and how much your audience is willing to support you.
This post originally appeared on Voice in association with CyberScrilla.com.