In today’s music industry, musicians have to constantly navigate the ever-changing online environment. Disappearance of opportunities and emergence of new ones happen within the space of a few months, and we must stay adaptable, in the know on the latest trends.
Most importantly, however, we need to carefully discern which trends and opportunities will suit us as individuals. There are endless ways to make money as a musician, so knowing what works for you and your audience is the only thing that matters. Some musicians make their money from streaming, others through live shows and concert sales, or even through brand partnerships, sync licensing and so much more. The platforms we find our audience on will vary too, depending on the demographics that are most likely to use them.
So, when something new appears on the horizon, it doesn’t automatically mean you need to jump on the bandwagon – but you should absolutely be aware of it. NFT music market has piqued the interest of many musicians, so we will give our best, most straightforward explanation of what it is and what to look out for.
What Is An Nft?
NFT is a non-fungible token. Essentially, ‘fungible’ means interchangeable which can be replaced by an identical item. So, NFTs are the exact opposite, meaning they are unique and cannot be replaced by another item. Much like an original painting.
At this point, you may be wondering, what’s the point of buying an NFT of a song if that same song can be listened to on Spotify and other platforms? Well, just like that original painting, NFT music market allows for the creation of a unique, digital original that only you have. Not to mention, you can also release versions of your music that will only ever be available to a limited number of people. The way you do it is up to you.
How Do You Get Started?
You can sell your NFTs on several blockchain platforms. To get started, you will need to purchase cryptocurrency to pay for the transaction fee. This will allow you to put your NFTs on the marketplace, or ‘minting tokens’ as it’s commonly referred to. And that’s it! Your NFTs are now available to be purchased.
Know Your Audience Before You Get Started
How likely are your fans to purchase your NFTs? This is a question you should ask them, before minting your tokens. Sure, artists like Grimes, 3LAU, Deadmau5 have made millions selling NFTs, however – they already have a large audience, which ensures their success on these marketplaces.
The best way to see whether this is a viable option for you is to simply ask. Run a poll on your social media platforms, speak to your audience directly and see how they feel about it. Maybe there are other ways they’d like to support you? Or maybe they’re avid NFT users and would love to show their support this way. Remember, minting your tokens isn’t cheap, so you don’t want to end up losing money. You should also carefully consider the size and the spending capacity of your audience when setting the price of your NFTs.
Other Ways To Upsell The Nft
Just because NFT music market belongs in the digital world, doesn’t mean they can’t come with a physical incentive. For example, this could include concert tickets, VIP experiences, masterclasses, and workshops with you. If you’re really trying to convert your audience towards supporting you with NFT sales, it could be a great way to get them involved.
Let Your Audience Be Part Of The Journey
No matter how your audience chooses to support you – be it music sales, merch sales, crowdfunding, one thing is for sure – people care about investing in the art that resonates with them. NFTs can be the perfect opportunity for your most supportive fans because they also incentivise their support. For example, once they purchase your NFT, it’s in their best interests to share your art and contribute to your success, as this will drive up the value of the token, allowing them to make more money.
Another way that this can be utilised further is by using NFTs to fund your projects and giving your audience a stake in the profits. Platforms like Orica offer an option for others to buy into the project and receive royalties from it, much like collaborators would. This puts artists in the unique position of, potentially, no longer needing the support or investment from major labels to fund their project.
Nft Music Market And The Environment
Of course, we can’t responsibly talk about NFTs, without the mention of their environmental impact. The amount of power required to complete each transaction is extremely harmful to the environment and requires a lot of resources. So, when you are choosing a platform to sell your NFTs on, take this into careful consideration. There are marketplaces which are carbon efficient, so don’t make the mistake of jumping on the most popular ones and attaching yourself to the least environmentally friendly option. This could potentially hurt your career and reputation in the future.
Should Musicians Sell Nfts?
So, to sum up – should you sell NFTs? Well, it’s up to the individual and the key here is ensuring that you will find your audience and customers on these marketplaces. It’s important to consider that NFTs are still a relatively new potential income stream for musicians, which can change quickly and it’s hard to predict how well it will do in the future. There is also, of course, the concern of environmental impact of blockchain technology.
The upside, however, is that NFTs have given us the opportunity to create digital art that is original, unique and non-fungible, which was previously only possible with physical copies. They can also provide a profitable funding opportunity for musicians who are looking to crowdsource, not to mention a unique and, potentially, impactful alternative to traditional merchandise. Anyone can create one, as long as you can afford the initial token fee, so this further democratises the music industry. Not to mention, unlike physical merchandise, you don’t need to consider shipping or manufacturing of your NFTs and they can be very quick to create.
As with any new technology or money-making opportunity, do your research first and ensure this is the best option for you and your audience. Speak to your fans, carefully research all the many NFT marketplaces that are available, what they have to offer and, of course, their environmental sustainability. It’s certainly an exciting time for artists and musicians, and we look forward to seeing where NFT music market takes us.
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