business plan nft

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The ultimate blueprint for structuring your nft business for success.

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The dynamic world of Non-Fungible Tokens (NFTs) is capturing the imagination of entrepreneurs and investors alike, offering unprecedented opportunities for innovation and profit. NFTs, unique digital assets verified using blockchain technology, are transforming how we perceive ownership and value in the digital age.

For those looking to venture into this exciting market, structuring your NFT business effectively is crucial for long-term success. In this guide, we will delve into the essentials of NFTs and outline the optimal business structures that can help your NFT project thrive.

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Understanding NFTs

What Are NFTs?

Non-fungible tokens (NFTs) are unique digital assets representing ownership or proof of authenticity of a specific item or content, typically stored on a blockchain. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be exchanged one-to-one, NFTs are one-of-a-kind or part of a limited series.

This uniqueness of NFTs allows the owners to affirm the ownership of digital art, music, videos, virtual real estate, and even collectible items within video games.

The blockchain technology underpinning NFTs provides a transparent and secure way to track the provenance and ownership of these digital assets. As a result, NFTs have opened up new revenue streams for creators and innovative investment opportunities for collectors and traders.

How NFTs Work

NFTs operate on blockchain technology, most commonly on the Ethereum network, though other blockchains like Binance Smart Chain and Flow are also used.

Each NFT contains distinct information in the form of metadata, which includes details such as the creator’s identity, ownership history, and any associated digital files. When an NFT is created or “minted,” this information is recorded on the blockchain, providing an immutable and transparent ledger.

To interact with NFTs, users need a digital wallet that supports the specific blockchain the NFT is on. Once minted, NFTs can be bought, sold, or traded on various online marketplaces such as OpenSea, Rarible, or Foundation.

Smart contracts, self-executing contracts with the terms directly written into code, facilitate these transactions and ensure that creators often receive a percentage of resales.

This decentralized process ensures security, transparency, and trust in the ownership and transfer of NFTs.

Popular NFT Use Cases

NFTs have found applications in various fields, each leveraging blockchain technology’s unique properties.

Digital art is the most well-known use case, with artists creating and selling their works directly to collectors, bypassing traditional intermediaries like galleries and auction houses.

Music is another growing area where musicians can distribute tracks and albums as NFTs, offering fans unique ownership experiences and special perks.

In the gaming industry, NFTs represent in-game assets such as weapons, skins, and virtual real estate, which players can buy, sell, or trade. This provides gamers with actual ownership and the ability to monetize their gameplay. 

Another exciting use case is virtual worlds, where users can purchase parcels of virtual land and develop them as they see fit.

Additionally, NFTs are being explored for ticketing, ensuring authenticity, and reducing fraud for events and experiences. These diverse applications highlight the versatility and potential of NFTs in transforming how we interact with digital and physical assets.

Choosing the Right Business Structure

Sole proprietorship vs. llc.

When setting up your NFT business, it is crucial to select the business structure that best suits your requirements. A sole proprietorship is the simplest business structure, requiring minimal paperwork and offering complete control to the owner.

However, it does not provide liability protection, meaning your assets could be at risk if the business faces legal issues or debt.

On the other hand, an LLC offers significant advantages regarding liability protection. This structure separates personal and business assets, safeguarding personal wealth from business liabilities.

While setting up an LLC involves more paperwork and higher costs than a sole proprietorship, it provides greater credibility and potential tax benefits. 

Additionally, an LLC can have multiple members, making it a more versatile option if you plan to collaborate with partners.

Choosing between these structures depends on your needs, goals, and willingness to manage the associated administrative responsibilities.

Benefits of Incorporating

Incorporating your NFT business offers several key benefits that can provide a solid foundation for growth and stability.

One of the primary advantages is liability protection; incorporation creates a legal distinction between the business and its owners, shielding personal assets from business-related debts and legal actions.

This is particularly important in the volatile NFT market, where unforeseen challenges can arise. Incorporation enhances credibility and trustworthiness, which can be crucial when attracting investors, partners, and customers. 

It signals a level of professionalism and commitment to long-term success. Additionally, corporations often have easier access to funding through venture capital, loans, or public offerings.

Tax benefits are another significant advantage. Depending on the structure (such as forming an S-Corporation or C-Corporation), businesses may benefit from lower tax rates and deductions not available to sole proprietorships or partnerships.

These benefits make incorporation an attractive option for entrepreneurs aiming to scale their NFT ventures effectively.

Legal Considerations

Addressing various legal considerations when structuring your NFT business is essential to ensure compliance and protect your interests. Intellectual property (I.P.) rights are a primary concern, especially since NFTs involve digital content like art or music.

Ensure you have clear agreements regarding the ownership and licensing of I.P. to avoid potential disputes.

Another critical area is securities regulation, mainly if your NFTs could be classified as investment contracts. Understanding and adhering to securities laws can help you avoid regulatory pitfalls.

Additionally, anti-money laundering (AML) requirements are becoming increasingly relevant as governments tighten regulations around digital assets. Implementing robust AML policies is essential to stay compliant.

You should also consider data privacy laws, primarily if your platform collects user information. Compliance with regulations such as GDPR or CCPA is crucial to avoid hefty fines and reputational damage.

Consulting with legal experts specializing in blockchain and digital assets can provide invaluable guidance as you navigate these complexities.

Setting Up Your NFT Business

Business Plan Essentials

Creating a robust business plan is crucial for the success of your NFT venture. Start by outlining your business model, detailing how you will make, market, and monetize your NFTs.

Identify your target audience and understand their preferences and behaviors to tailor your offerings effectively.

Next, conduct a competitive analysis to identify your main competitors and understand their strengths and weaknesses. This will help you position your business uniquely in the market. Define your value proposition clearly—what makes your NFTs unique, and why should customers choose you over others?

Financial planning is another critical component. Forecast your revenue, costs, and profitability to ensure your business is financially viable. Include a detailed marketing strategy outlining how you will attract and retain customers.

This should cover online marketing, social media campaigns, and partnerships.

Finally, outline the operational plan, detailing the day-to-day activities needed to run your business smoothly. A comprehensive business plan guides your operations and attracts potential investors and partners.

Registering Your Business

Registering your NFT business ensures legal compliance and establishes your brand. Choose a unique business name that reflects your venture’s identity and check its availability.

Once confirmed, you must decide on the appropriate business structure—sole proprietorship, partnership, LLC, or corporation—and file the necessary paperwork with your state’s business registration office.

Next, apply for an Employer Identification Number (EIN) from the IRS. This number is essential for tax purposes, hiring employees, and opening a business bank account. Depending on your location and the nature of your business, you may also need specific licenses and permits.

Protect your brand by registering trademarks for your business name, logo, and unique product names. This safeguards your intellectual property and prevents others from using similar marks. Registering your business legitimizes your operations and builds trust with customers and partners.

Creating a U.S. Bank Account

Creating a U.S. bank account is crucial for efficiently managing your NFT business’s finances. A US bank account facilitates easier transactions and adds credibility to your enterprise. Start by researching banks that offer business accounts suited to your needs.

Many online banks provide simplified processes, making setting up accounts remotely easier for international entrepreneurs.

To open a U.S. bank account, you must typically provide your Employer Identification Number (EIN), business registration documents, and proof of identity. Some banks may also require proof of address and a detailed business plan.

Opening your U.S. bank account with doola enables you to accept payments in U.S. dollars, streamline your financial operations, and take advantage of various banking services such as loans and credit lines.

Additionally, it simplifies tax compliance and financial reporting. Partnering with a service like doola can expedite this process, allowing you to focus on growing your NFT business.

Managing Compliance

Tax Obligations

Understanding your tax obligations is vital for the smooth operation of your NFT business. First, determine the types of taxes you must pay, including federal, state, and local taxes. Sales tax can be particularly complex for companies dealing in NFTs, as it varies by jurisdiction and the nature of the digital asset.

Income tax is another significant aspect. Your tax filing requirements will differ depending on your business structure—whether it’s a sole proprietorship, LLC, or corporation.

An LLC, for example, offers pass-through taxation, but you’ll still need to file an annual return and pay self-employment taxes.

Keep meticulous records of all transactions , as blockchain-based assets can complicate accounting. Use specialized software or consult with a tax professional to ensure accurate reporting. Additionally, consider any international tax implications if your business involves cross-border transactions.

Staying compliant with tax regulations avoids legal issues and enhances your business’s credibility and stability in the long run.

Legal Compliance Tips

Ensuring legal compliance is essential for the success and longevity of your NFT business. First, familiarize yourself with the regulations specific to your industry and location.

This includes understanding securities laws, especially if your NFTs could be seen as investment contracts.

Implement robust anti-money laundering (AML) and know-your-customer (KYC) procedures. These measures help prevent illegal activities and build trust with your users. Regularly update your compliance policies to reflect the latest regulatory changes.

Protecting intellectual property is another crucial aspect. Ensure you have clear agreements regarding the ownership and licensing of digital assets. Register trademarks for your business name and unique products to safeguard your brand.

Data privacy is equally important. If your business collects user data, comply with laws such as GDPR or CCPA. Implement robust data protection measures to secure sensitive information.

Consulting with legal experts specializing in blockchain and digital assets can provide invaluable guidance, helping you navigate the complexities of legal compliance effectively.

Using doola for Tax Compliance

Managing compliance can be daunting, but using a comprehensive platform like doola can simplify the process for your NFT business. doola offers a suite of services designed to help entrepreneurs navigate the complexities of legal and regulatory requirements under our doola Total Compliance package .

From business formation to ongoing compliance, doola provides end-to-end solutions.

One of the key advantages of using doola is its ability to help you set up your U.S. business entity efficiently, ensuring all necessary documentation and filings are completed accurately. Additionally, doola assists in opening a U.S. bank account, which is essential for financial management and tax compliance.

doola’s platform also includes tools for managing your tax obligations.  

By leveraging doola’s expertise and resources, you can focus on developing your NFT business while ensuring all compliance aspects are handled professionally.

Scaling Your NFT Business

Marketing Strategies

Effective marketing strategies are crucial for scaling your NFT business. Start by building a solid online presence through social media platforms like Twitter, Instagram, and Discord, where the NFT community is highly active.

Regularly engage with your audience by sharing behind-the-scenes content, updates on new drops, and collaborating with influencers and artists in the NFT space.

Content marketing is another powerful tool. Publish blog posts, create educational videos, and participate in podcasts to establish yourself as an authority in the NFT field. This will boost your brand’s credibility and attract a wider audience.

Additionally, consider running targeted advertising campaigns on platforms like Google Ads and Facebook Ads to reach specific demographics interested in NFTs.

Email marketing can also be effective; build a mailing list to inform your audience about upcoming releases and exclusive offers.

Finally, participate in NFT marketplaces and online communities to gain visibility and network with potential buyers and collaborators.

Combining these strategies will help you grow your NFT business effectively.

Future Trends in NFTs

The future of NFTs is filled with promising trends that can shape your business’s growth.

One emerging trend is the integration of NFTs with augmented reality (A.R.) and virtual reality (V.R.), which will enhance the user experience and add new dimensions to digital ownership. This could lead to more immersive and interactive NFT artworks and collectibles.

Another significant trend is the rise of utility NFTs, which offer additional benefits beyond mere ownership.

These could include access to exclusive content, membership in elite communities, or even real-world perks. Utility NFTs can provide ongoing value to holders and foster long-term engagement.

Interoperability between different blockchain networks is also gaining traction. This will allow NFTs to be used across multiple platforms and ecosystems, broadening their functionality and appeal.

Additionally, as environmental concerns grow, there is a push towards more sustainable and eco-friendly blockchain technologies. Embracing these advancements can improve your business’s reputation and attract a more conscientious audience.

Staying ahead of these trends can position your NFT business for future success and innovation.

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What is the best blockchain platform for minting NFTs?

The choice of blockchain for minting NFTs depends on several factors, including transaction fees, network speed, and the specific features you need. 

Ethereum is currently the most popular platform due to its extensive infrastructure and strong developer support.

Still, alternatives like Binance Smart Chain and Flow offer lower transaction costs and faster processing times, which can be advantageous for businesses looking to scale.

How do I price my NFTs?

Pricing NFTs can be challenging as it involves considering the uniqueness of the asset, the market demand, production costs, and the creator’s reputation. Start by researching similar NFTs and their selling prices. 

Consider using auctions to let the market determine the value or set a fixed price based on your costs and desired profit margin. Pricing strategies may evolve as you gain more insights into your audience’s purchasing behavior.

How can I protect my NFTs from piracy?

Protecting digital assets involves ensuring that the NFTs are securely stored and that their metadata, which includes ownership and provenance information, is accurately recorded on the blockchain. 

Use secure digital wallets to store NFTs and consider implementing additional copyright measures, such as watermarking digital files or smart contracts that automatically enforce copyright terms and conditions.

What are the common legal issues associated with NFTs?

Common legal issues include intellectual property rights disputes, compliance with securities law, and adherence to consumer protection standards. 

It’s crucial to define the rights transferred with each NFT sale clearly and to verify that you have the legal authority to sell digital representations of physical or intellectual property.

Additionally, understanding whether your NFTs could be classified as securities based on local regulations is vital to avoid legal complications.

How can I effectively market my NFTs?

Effective marketing of NFTs typically involves leveraging social media platforms, engaging with the NFT community through platforms like Discord and Twitter, and collaborating with well-known artists or influencers. 

Additionally, storytelling plays a significant role in marketing NFTs; sharing the unique story behind each piece can enhance its value and appeal.

Consider running targeted digital advertising campaigns and participating in NFT showcases or virtual galleries to increase visibility.

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NFT Business Plan — A Whitepaper & Deck of an existing startup.

You probably won‘t build the new CryptoPunks. But here‘s the beauty of NFTs — They are extremely unpredictable. You might create something much bigger than CryptoPunks. Alternatively, your NFT project might not say the light of the day. Your NFT business plan could end up archived.

The truth is, it‘s a challenge. I won‘t be writing one of those traditional SEOd articles that are telling you an NFT project will make you hundreds of thousands. In fact, based on experience, there is a high chance it won‘t make anything at all.

But you know what? So is starting a restaurant, a coffee place, a freelancing career, or any business whatsoever. Every business has a risk. So if you‘re thinking of creating an NFT project, I should not be the person who would stand in your way. No one should.

I‘ve created a whitepaper and a pitch deck for a client in the NFT and crypto industry. Let me showcase it to you; may it guide you in creating yours. Oh, and if you want to download it to share it with a colleague, you‘ll find the PDF available.

Finally, before starting this article, you need to know that we do not endorse BTCEN‘s product whatsoever. The article is meant to show you how we wrote a whitepaper and a pitch deck for an NFT project and how you could too.

If you have any questions, we always check the comments!

The NFT Business Plan

Whenever I get a client request whether they want an NFT Business plan or a white paper, I always explain that at 99% of the cases, they‘re the same thing. In the crypto world, the word whitepaper is just more common than the word business plan.

The contents are almost exactly the same. Yet, instead of financials, we put tokenomics.

Here‘s the whitepaper. (Oh, and the company is BTCEN .)

After you check it out, take a look at the pitch deck.

That being said, here‘s the structure of this NFT whitepaper.

NFT Whitepaper Structure

Executive summary.

The executive summary is what we usually write at the end of the whitepaper or business plan. It simply states the most important elements mentioned in the plan. Think of it as something that would summarize the plan for an investor who is in a rush.

Hence, it ought to be showing the opportunities in investing in this project quite well.

After that, we start showcasing the market opportunity. It is crucial to convey the market opportunity in an NFT project. That is simply because it‘s quite volatile. So investors might want to invest in a dip, or to generally ensure that the market is growing in this industry.

The Project

What the project does is what should be pitched at this exact time. After conveying that there‘s a big market opportunity, it‘s time to tell the world what the project is. In this case, it‘s BTCEN.

This was the most time consuming section, and you can predict that seeing how complex it is. We had to create a token release schedule based on researching similar NFT Business plans.

A fair amount of projections had to be placed. As mentioned earlier, this market is volatile and unexpected. Yet, after communicating with the BTCEN team quite well, we were able to reach the perfect projected token release schedule and Tokenomics.

It‘s crucial at each NFT project that one states what‘s the plan. There will be a community and they will be investing in your NFTs. For that, you need to convey to them in your business plan the details of your NFT future plan. Are you now raising funds? What are you going to use them for? How long is the expected date for minting the NFTs? Etc…

Finally, showcasing the team is, I would say, the most important aspect of an NFT project. BTCEN‘s final whitepaper showcases their team. When this was in the works, they were still hiring a team to manage this. However, before investing in any NFT, you ought to know who created it.

NFT Pitch Deck Structure

The BTCEN team requested a pitch deck derived from this whitepaper, and so we delivered.

Now this is not very connected to the NFT project. The problem is one that they‘re targeting. That was the supply chain issues that were happening in the past few years.

They‘re focusing on a niche of beverages and trying to help them with their supply chain management.

Business Model

This is the most suitable connection to the whitepaper and the business plan. Their business model resides around their NFTs and their crypto token.

Market Size

It‘s not only about the beverages market (or the niche focus of energy drinks). It‘s also the NFT market, the gaming market, and any other market that could potentially invest in their NFTs.

Competitors Analysis

Then the deck showcases some of the competitors in terms of tokens and their market caps.

Displaying this similar to displaying a financial model in a typical pitch deck is what we‘re intending to do in this slide. Rather than pitching a lot of details, the token information and what they intend to invest the token‘s budget in is sufficient.

Following that, this slide showcases what they intend to do with the investors fund at that stage. Remember that this is an investor deck at the end of the day; so it is supposed to raise funds pre-token launch.

For the above slide, they‘re mentioning how much they‘re raising and what equity they‘re giving accordingly.

As mentioned in the whitepaper, a timeline is critical to allow investors to understand what the plan of the startup is.

Again, as mentioned earlier as well, showcasing the team is critical.

NFT Business Plan Consultants

If you like this NFT white paper and deck, do hit a like below or tell me in the comments. If you‘re looking for someone to help you in creating your own whitepaper, pitch deck, or NFT business plan, simply search on Albusi for NFT whitepaper, and you‘ll find freelancers to do that for you with some samples.

Meet The Author Of This Article

I’m Al Anany , the CEO of Albusi.

My articles are here and on Medium, whilst my videos are on Youtube.

I specialize in Tech, hence NFTs and the crypto market are markets that I highly believe in.

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NFT Business Plans

Building digital assets, through nft strategies.

Basically, this is the time for the exponential curve and is arguably the perfect time to create the NFT pitch deck. And, in particular for media and entertainment assets, this is the right time to consider starting their NFT strategies at a time when they can establish a sustainable competitive edge.

While cryptocurrencies have been present for more than a decade since the debut of Bitcoin in 2009, the phenomena of Non-Fungible Tokens (NFTs) have gained up just now. These unique cryptographic tokens generated on solid blockchain networks like Ethereum and TRON are valued at several millions of dollars due to tremendous demand from investors. Let's have a look at the business plan of the NFT Marketplace.

A well-organized NFT marketplace lies behind the surge in transactions for buying and selling these crypto collectibles. It efficiently manages all of the trading operations of investors. Axie Infinity, Decentraland, OpenSea, NBA Top Shot, Rarible, Sorare, and SuperRare are just a few of the well-known NFT selling platforms.

Many experts in their latest report mentioned something called the "hype cycle" that defined the maturation of new industries and products. Among them, nonfungible tokens, or NFTs appeared at the top of the curve. However, there are arguments suggesting that NFTs have not reached the peak point but are more in the “Innovation Trigger” stage. So, when considering the NFT business plan, it should be understood that this technology’s commercial viability is still in the development phase.

What is NFT?

Any digital asset whose ownership is recorded on the blockchain can be an NFT, which is generally art, collectibles, and other unique goods used in games or virtual worlds. Blockchain-native firms are unlocking the ideal commercial models for the technology as corporations enter this new industry, while older organizations are studying how to exploit these assets inside existing business models.

NFT business

How to make money.

It's time to learn about the industry, how to create an NFT business plan, and how to make money using NFTs. We all understand that the goal of any business is to make money. A business model aids in the formation, development, and maintenance of a company. The most popular way for enterprises to make money in this ecosystem is by selling NFTs. Because there is abundant demand for virtual goods, this business model is an unequivocal and undeniable choice. And as per the latest reports, it also performs admirably. As previously stated, the most common approach for companies in the NFT ecosystem to generate revenue is through selling NFTs directly to users. Video game producers and creators, for example, have already entered the NFT market. The revenue generated by the NFT business accounts for the majority of the total revenues. Experts believe that selling NFTs directly to customers will generate revenue in the near future.

KEYS TO NFT SUCCESS

When creating the NFT pitch deck for clients, it should echo the excellent unit economics and include the following points:

Low marginal cost

Virtual trading cards or comics have a lower marginal cost of manufacture and dissemination than traditional physical trading cards or comics. While both need upfront expenses for designers, selling assets through a digital channel saves thousands of dollars in printing production costs, as well as the time and effort required to manage retail channels to get products into stores. Converting digital artwork into NFTs necessitates paying "gas fees" to mint tokens on a blockchain, which can cost up to $150, as well as a tiny monthly subscription charge, which varies depending on which platform or marketplace you choose as an outlet.

Limitless potential

Intellectual property rights are also important to consider, however, this is still a developing field. Because there is no legal precedence in the United States for NFT ownership, a number of significant questions about authors' retention of commercial rights and future licensing are still being contested or refined, says the experts. Finally, the ecological impact must be taken into account. The Ethereum network, which generates as much carbon as some small countries, is where most NFTs are traded and exchanged. That's large because the decentralized consensus technique it uses to validate transactions, known as proof of work, necessitates a lot of computational power. Companies, as well as individual artists, may face backlash or loss of sales from environmentally concerned clients.

Improved customer engagement

It is possible to increase the customer base with NFTs because it involves dealing with the digitally native generations of the companies. Experts believe that this can foster a positive impact on customer retention and also create a spillover effect that can work perfectly for sports teams and have more people involved in it. And, it can create a recurring revenue potential for the company.

Know the Risks

So, what's keeping your organization from joining the NFT bandwagon? Even a believer like me realizes that the industry is in its infancy and is largely unregulated. To begin with, not all NFTs are the same. Yes, the ownership certificate kept on the public blockchain ledger is immutable and unforgeable. It's important to understand, though, that this token is only a link to a digital file stored on a server. And not every server is the same.Link rot, which occurs when hyperlinks break, is a severe issue. This usually occurs when the target file is relocated to a new server without the connection being updated, or when the server goes down. Keep track of where the digital file is stored when making or purchasing an NFT. The likelihood of the NFT being lost increases dramatically when it is stored on a local server. A public cloud storage solution decreases this danger, but a decentralized server is even better. You should also make sure the token's metadata is saved on a decentralized server.

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How to create an NFT business plan

Over the past year , interest in Non-Fungible Tokens has plunged . Many on Twitter argue this is a good thing; that the concept was a scam all along . Others claim that the technology remains revolutionary and will one day be the biggest thing in the world . They blame external factors and bad actors for the current market depression.

I care little for either side; they’re probably both right, as is often the case. At the end of the day, NFTs exist, and they don’t seem to be disappearing. The technology was first adopted by web3 companies , who never really seemed to be able to differentiate business from scams . It was then over-taken by large multi-national companies, who are by their nature dull and unimaginative .

The shine having seemingly worn off, now is the right time to have a serious, honest discussion about how to view and use NFTs within your business. But first…

1. Do YOU need an NFT strategy?

Despite what some parts of the “industry” says, not everyone needs to have an NFT strategy. This is not an industrial revolution or a “new internet”. Before jumping in, it’s important to ask the following :

Does your brand have recognizable assets that could be turned into NFTs, such as a trademark character, notable branding, luxury products…?

Does your brand have an engaged community who identify as fans of your brand, products or services?

Do you want these people to have a stronger voice and a bigger role within your organisation?

Can you tie an NFT to real-life perks such as exclusive events, discounts, or early access to products?

Do you have the bandwidth and freedom to test out an innovative but unproven marketing channel?

If the answer to all of these questions is no… go outside, build something real, make a name for yourself and then start thinking about NFTs . Chances are, at that point, you won’t need them anymore.

A lot of entrepreneurs have made two mistakes over the past two years. First, they tried to assert that NFTs have self-sustaining value. They do not: digital assets are inherently contextual. Secondly, and more importantly… by their very nature, most centralized companies do not NEED to use NFTs . If I need to explain why, you shouldn’t be messing with cryptography.

2. Defining NFTs’ Value proposition

You don’t create digital tokens purely to make money. You create tokens because they add value to existing and/or potential customers. Which in turn give you money. Here’s how organizations and creators can use NFTs to leverage existing content and interact with their customers.

Develop new offerings

Due to the digital nature of NFTs, the line between different types of offerings is blurred. This is a sign of the times.

New products : Earlier this year, GAP launched “hoodie art” as an NFT , which unlocks physical clothing.

New services : Plenty of companies are betting on future metaverse users wanting to glam-up their digital avatars with wearable NFTs designed by luxury houses like Louis Vuitton, Valentino and Burberry .

New partnerships : Nike created CryptoKicks in partnership with RTFKT studios . The sneakers have sold for over $5K.

These examples show the incredibly dull way traditional actors see the world… We shouldn’t let them gain more power in this space. There are so m+any cooler things you can do with NFTs.

Create new forms of value

The concept of potential new value is fascinating, as the below can be mixed and matched as needed. There are a lot of innovative ways to interact with customers there.

Exclusivity : Many people in the recent past purchased NFTs simply to show people online how cool they are and how much money they have . Exclusivity has long driven luxury sales; NFTs are no different. The internet has been a great equalizer for decades, but this may be coming to an end, for better or for worse (probably the latter).

Social capital : Exclusivity is often shared by and with people of similar socio-economic backgrounds. This creates social capital. NFTs can be used to bring like-minded people together, in online communities, coordinated around a token. As an example, the most well-known social DAO, “ Friends with Benefits ”, gives access to NFT-related events in exchange for thousands of dollars . Do with that information what you will.

Community : Social capital and its own form of exclusivity naturally leads to the creation of communities. Lazy Lions , Bored Apes Yacht Club , Wall St Bulls … every NFT collection has its own group of fans and followers. In these communities, NFTs have two functions beyond mere financial incentives. Primarily, they act as artifacts of networks , which reinforce the community’s value by being the one thing everyone has in common. They can also represent voting shares in the community, whether officially or unofficially.

Access : By their very nature, NFTs are unique and cannot be broken down. As such, their unique code can work as a key to grant access to a community, to a real-world event, to a concert, to a sale… Mixed with the other forms of value mentioned here, this can be quite powerful.

Authenticity : Since tokens are unique, they can also be used as authenticate products they may be linked to (ex : YSL sends an NFT to your digital wallet when it sells you a bag). For industries suffering from plagues of fakes, this opens many possibilities. Not to mention the many use cases around identity.

Utility: A utility NFT isn’t just a piece of code or a pretty picture. It can also serve a real purpose online. The easiest example to grasp is equipment for video-games that give players new and unique attributes. Another, more advanced example is the utility garnered from an NFT that also acts as a voting token within a DAO. In the future, we can think of utility with regards to national identification, but we are far from it today.

Rewards : the blockchain being transparent, it’s easy for brands to identify who may own a specific number or combination of NFTs , and reward these people through a promotion or a unique gift, thus increasing brand loyalty.

Investment : with all the above in mind, one might think it wise to buy specific NFTs early, and keep them as they accrue the value highlighted. This is why many people bought NFTs over the past year. That was a mistake. But who’s to say, as the market matures, if it will continue to be? A company might get a head start by believably implying future value exists.

Entertainment : At the end of the day, why can’t I just like a silly picture and enjoy owning it as a piece of a company's history, or as the totem of a community? What’s so wrong with that? For all its glory, the digital world has always lacked biographical indexicality  — a way of seeing the full history of a digital asset. And history has value, if only in the eyes of its beholder. As such, NFTs create hedonic value: owning one creates pleasure for its own sake. Companies can do well to understand that.

None of the above is mutually exclusive. This is not to say that your NFTs need to do it all — this is a mistake we see too often.

Improve customer relationship

All of the above ensures customers are :

More Engaged : Customers that are part of an exclusive community, from which they derive value, will work to improve that community. Companies dream of having active promoters : NFTs are a way to get there.

More Aware : an NFT collection, if done well, has a tendency to be self-propagating. This means more free advertising to potential customers. However, that awareness is meaningless if there are no benefits to entering a relationship with the NFT issuer.

More Loyal : If a customer is engaged, and gets regular rewards, and those rewards improve as he becomes more entangled with the NFTs’ issuer, why would he switch to a different service provider? NFTs are a path to unprecedented customer stickiness.

Drive long-term value

If everything goes well, NFTs are a path to :

Customer retention : a relationship having an exponential value, customer stickiness is increased.

Customer acquisition : Said value lowers the net cost of customer acquisition.

Data & Insights : having a more digital relationship on a transparent blockchain allows companies to have access to more data, which they can then use to improve their offer. Ethically, of course .

New revenue : this should not necessarily be the end goal, as mentioned above. But it can be a VERY nice cherry on the cake.

3. Going deeper : building an NFT business model canvas

I’ve long bemoaned the way the business model canvas is taught in business schools . Too rigid, no interconnections, no focus on ecosystems…So I don’t use it. What I’ve created instead are a set of questions that one might instead ask as they build a case to bring NFTs to the attention of a boss or partner. You’re welcome.

Who are the consumers of our company’s digital assets?

How are these consumers different from other types of customers — if at all?

What are their current purchasing motivations? What do they value? What do they look for as customers of our brand?

What kind of digital assets do they want to buy today? In the future?

Business case

What is the potential contribution of digital asset sales to our company’s top and bottom lines?

Will digital asset sales be additive? Or will they cannibalise some physical sales?

What investments are required today? Over the long term?

Go-to-Market

To what extent should our brand mint its digital assets as NFTs and / or pair physical assets with an NFT?

How can our brand reduce the environmental footprint of NFT mints?

Should we translate our digital assets to the virtual realm or create entirely new assets?

How can a brand authentically activate digital or digital/physical product pairings?

Brand Experience

Which elements of brand identity can and cannot be easily communicated in a virtual world?

How can our company authentically build community in a virtual environment? Is that an objective in itself?

How can our brand and sale platforms convert those communities to engage in the real world — if at all?

Partnerships

What kinds of partners would be a suitable match given our objectives, positioning and values?

What do these potential partners bring to the table (consumer access, digital credibility, technology, long-term vision...)?

If we don’t go through a partner, what proportion of our workforce is skilled in 3D modelling, rendering, blockchain technology...?

If the proportion is small, can we feasibly train our existing workforce or will we need to acquire new talent?

If this is more than a marketing gimmick ( it usually is ), how do we adapt our culture and structure to be nimble in a fast-evolving space?

Should we launch and operate NFTs within a siloed team or across the organisation?

These questions are in no way exhaustive, but they should put you on the right path. You’ll need to be on it, because planning is the easy part. Execution is where it gets hard… and fun.

4. Launch, run & coordination

Beyond the big plans and fancy marketing announcements, real work is needed for any project, whether on the blockchain or not. Below is a list of things to work on to ensure a sound NFT strategy and vision, as well as a successful implementation and roll-out.

Strategy & innovation

Define long-term strategy based on value opportunities ( continuous POCs are not a strategy! )

Continuously monitor market movements and trends ( it’s better to be a mediocre surfer on a big wave than a great surfer in a bathtub )

Identify what will be accepted / rejected by customers through rapid prototyping and regular improvements

Identify internal strategic focus areas, and link up with them ( see bathtub comment )

Ensure NFT-related activities align with brand guidelines

Test out target audience, markets, products

Develop communities (One? Many?) through meaningful projects

Manage campaigns alongside roll-outs of other offers

Collect new data points to improve marketing

Business Units

Manage NFT product management roadmaps

Build business cases and work through the high business value ones

Document priority features for customers

Work with creative teams / developers on creating assets

Leverage existing IP / create new digital IP

Understand blockchain risks and trade-offs versus other technologies

Select a tool stack according to company requirements

Integrate new tools into existing systems ( oh the humanity )

Define and prepare long-term customer support

Build services to support the custody of NFTs

Handle crypto payments and reconciliations ( lol good luck )

Understand financial impacts of NFT sales on the organisation

Manage royalty payments / collections

Manage associated taxes with NFT mint / exchange

Advise what local / global regulations allow (now and in the future)

Review all smart contracts, rights and obligations

Advise what types of rights are acceptable

Enforce copyrights, trademarks and patents

Work with Finance & Treasury teams on tax implications

5. Planning for risks

The world of NFTs is new and exciting. Just like the new girl in high school. And just like the new girl in high school, NFTs are dangerous. Damn it Jessica, my leg still hurts when it rains . Though NFTs can create a significant amount of value, they can also be net value-destroyers if risks are ignored.

For the brand

NFTs offer new mechanisms to present a brand and engage with consumers. Accordingly, they can hurt a company’s image, reputation, and legacy if done improperly. NFT offerings should be executed with the same level of rigor that a new product launch entails; quick cash grabs may damage consumer trust in the long term.

For instance, proof-of-work solutions to validate NFTs’ authenticity require significant energy cost. Brands looking to be perceived as ‘ green ’ should consider this in their blockchain selection process.

Scams, Hacks, Fraud and Theft

NFTs offer authentication, provenance, and title to ensure the proper rights management of assets. But fraud is common in this market — counterfeits have always existed, and always will. Fraudsters may mint an NFT relating to a work that is not their own and without the creator’s permission. Additionally, various hacking schemes exist to steal NFTs from their rightful owners. Not to speak of social engineering scams, or outright cyber-attacks.

These risks can be mitigated by purchasing NFTs from reputable creators, undertaking the proper due diligence of an asset’s provenance on a secondary market, and storing assets in secure wallets. This will probably never be enough, and strong contingency plans also need to be in place.

Ownership rights / rights transfer

The purchaser of an NFT owns the token. But owning an NFT does not equate to owning the underlying IP itself . Often these rights remain with the creator of the NFT. In order to preserve these rights and maintain transparency, legal contracts need to be constructed in the real world. These conditions would also need to be carried over to secondary markets and rights transfers.

Technology, however, is as much an art as it is a science. If the contracts are forever airtight, future innovation may be stifled. It is sometimes better to become a meme and be paid for it in free marketing than to sue a pre-school for IP “theft” .

Technological risk

Any NFTs released on a permissionless chain are subject to the technology risks posed by that chain. If a network goes down, ( *cough* Solana *cough* ), your NFT assets may be at best useless, and at worse the source of lawsuits. Yet, centralized chains can be at risk of hacking as well.

There is no right answer, only a thin line on which we must walk the best we can.

Regulatory risks

NFTs are a relatively new asset class. As such, much of the legal and regulatory framework surrounding them is still under development. This should not stop organizations looking to offer NFTs from enforcing existing regulations through KYC, AML, CFT tools.

Regulatory considerations around how NFTs could be regulated in the future (i.e., as a security) will soon present additional challenges. Best be as ready as possible today.

Loss or Damage

An NFT can occasionally be tied to an underlying asset or access to a physical experience. However, the NFT and the underlying asset it represents are separate. While the NFT will contain information about its link to the underlying asset and its holder, should the underlying asset be destroyed, lost, stolen, or the event halted, the NFT itself could be rendered worthless. It is important to have contingency plans in place for such an event

This article highlights but a speck of the efforts necessary to bring a new technology to the mainstream of an organization not specifically built around it. And, as I mention throughout, all these efforts may be for naught — the technology needs to improve, the laws need to catch up… and a new vision of “ value ” needs to emerge. I have nothing but respect for whoever earnestly wishes to hold the NFT banner within a non-web3 company.

Good luck out there.

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How NFTs Create Value

• Steve Kaczynski
• Scott Duke Kominers

Understanding this new — and often confusing — asset class.

How much could a cluster of pixels possibly be worth? More pointedly, why is it worth anything at all? The explosion of NFTs and their accompanying marketplaces have left many baffled, incredulous, and deeply skeptical. But while NFTs may be fetching eye-popping, eyebrow-raising valuations, there is a logic to how — and when — they create value. By creating a system of verifiable digital ownership NFTs fundamentally changed the market for digital assets, creating the possibility for new types of transactions. Amidst a flood of new ventures, however, it can be hard to tell which are creating value and which are just riding the hype. The companies that have been most successful on this new frontier have a few things in common: They make meaningful use of the NFT technology itself, leverage a community of users, generate confidence that they can continue executing on the project to maintain ongoing community engagement, offer accessible “on-ramps” for new users, and are able to weather crypto market swings.

In March 2021, a work of art called Everydays: The First 5000 Days  sold for $69 million at Christie’s Auction House. It’s not out of the ordinary to see eight-figure art sales, but this one received a lot of attention because the piece was sold as a non-fungible token (NFT) – an electronic record corresponding to an image that lives entirely in the digital world.

• Steve Kaczynski is an avid NFT collector who provides NFT market commentary for the Decentralized Generation Network (dgen.network). His professional background is in communications, with a focus on public relations and marketing at large corporations.
• Scott Duke Kominers  ( @skominers ) is a Professor of Business Administration in the  Entrepreneurial Management Unit  at  Harvard Business School ; a Faculty Affiliate of the  Harvard Department of Economics ; and Co-Principal Investigator of the Harvard Crypto, Fintech and Web3 Lab. He is also an  a16z crypto  Research Partner, and advises a number of companies on marketplace and incentive design. Previously, he was a Junior Fellow at the  Harvard Society of Fellows  and the inaugural Saieh Family Fellow in Economics at the  Becker Friedman Institute . His first book is The Everything Token: How NFTs and Web3 Will Transform the Way We Buy, Sell, and Create .

Partner Center

What Is an NFT — And How Can It Help You Build Deeper Customer Relationships?

As Web3 continues to bubble up, businesses may wonder how to get involved — or if they should at all. Here’s a primer.

Ari Bendersky

Share article.

When an artist named Beeple sold a piece of digital art for $69 million in 2021 through a Christie’s auction, it raised eyebrows — mostly because it was an NFT. At the time, most people had never heard of this acronym. But in the last year cryptocurrencies , such as Bitcoin and Ethereum, continued to attract investors and more people embraced the decentralized ecosystem of Web3 , the blockchain , and the metaverse — pushing this whole virtual world more into the mainstream. You may still wonder: What is an NFT and how can it help my business ?

NFTs, or non-fungible tokens, come in many forms, but most people associate them with art or music. Brands like Adidas, Coca-Cola, and the NBA have offered these digital tokens as collectibles or keys to unlock events or exclusive promotions. While more businesses embrace NFTs, should you enter this new Web3 world? Here, we offer a primer to help make sense of NFTs and how they can benefit businesses.

What is an NFT?

First of all: fungible? Something that is fungible can be swapped or replaced with something identical. Something that is non-fungible is unique and can’t be replaced with anything else. 

In the physical world, examples of fungible items are a dollar bill, a spiral notebook, or a gallon of milk. On the other hand, a Banksy painting is non-fungible since there’s only one. In the Web3 world, a bitcoin is fungible and can get replaced with another bitcoin. 

NFTs, however, are digital tokens that represent digital files, such as photos, videos, and music, which could represent traditionally physical goods such as concert tickets or sneakers. They are created and stored on the blockchain (a digital ledger) to represent something distinctive or scarce. 

You may also wonder about the difference between Web1, Web2, and Web3. In its most basic sense, Web1 allowed people to access and read information on websites, like Yahoo. In Web2, blogs, wikis, and social media like Twitter and YouTube got introduced, giving people more control over the information they created and shared. In Web3, the decentralized world puts ownership into the hands of the community.

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What can NFTs do for your business?

Products are no longer sold just in the physical world. A new generation of buyers is splitting its time between the physical, digital, and virtual worlds — and brands need to meet their buyers where they are. NFTs open doors to new markets, experiences, revenue streams, and brand relationships — giving brands the opportunity to increase revenue and open lines for community feedback. 

You’ll continue to sell products in the physical world and on websites like Amazon or Target (Web1) and promote them on social media (Web2), but you can also sell NFTs in new digital-first marketplaces like the metaverse (Web3), likely in your own branded store. People can buy or earn NFTs to hold in a digital wallet or to sell or trade. Ultimately, it’s about deepening the brand-consumer relationship and building on loyalty and rewards programs. 

NFTs also further your digital transformation and can create new revenue streams. For example, NFTs contain smart contracts that govern their use and can be set to execute at a certain point. A smart contract can dictate how long the asset must be held before it can be sold, how much it can be sold for, and what royalty the original creator retains on each sale. As a business, you can earn revenue, in perpetuity via a royalty, through a smart contract. Consumers can even “ rent ” your NFT to use in games and other activities. If they win and earn money, you split the earnings. The revenue streams at this point are plentiful and will continue to grow.

How are some brands using NFTs?

This all may sound confusing or overwhelming, so let’s talk about what some well-known brands are already doing in this space: 

• Luxury fashion house Gucci created brand awareness by selling $12 digital sneakers to be “worn” in augmented reality (AR) like in the online gaming platform Roblox. 
• Brewer Stella Artois offered 50 NFT horses that will race on a digital racetrack.
• Car manufacturer Alfa Romeo equipped its new SUV with an NFT that will track vehicle data to show proper maintenance over time. 
• Coachella, the annual California music festival, launched an NFT marketplace where people bid on NFTs to unlock lifetime passes, unique on-site experiences, and physical and digital art. 

What drives success with NFTs in the Web3 world?

Does entering this world and creating NFTs actually make sense for you? Do you have a community that wants what you’re offering? While you’ll continue to operate mostly in a Web2 environment for the foreseeable future, Web3 is decentralized, meaning the community works together and collaborates. It’s about co-creation and co-ownership. 

Community drives success in this world. A brand first should identify a community to collaborate with on how to enter the market, otherwise it may get ignored and fail. This has already happened with a number of celebrity-crafted NFTs . So work with a community to help you create whatever it is you’re creating. Community will always be your best defense in Web3. This leads us to the next step: What utility does your NFT provide?  

Many NFTs offer some sort of utility and have intrinsic value, whether monetary, access, perks, voting rights, and more. And they can be another revenue stream for businesses. For example, you can: 

• Collaborate with artists or musicians to create NFT art.
• Use NFTs as special offers or keys to gain access.
• Mint digital assets people can display like a badge of honor.
• Create a real-life product extension like Louis Vuitton’s seal of authenticity .
• Offer legal ownership of intellectual property.
• Allow people to rent out NFTs for revenue.

How can you get started with NFTs?

So how do you get started and enter this new world? You can approach this in one of three ways:

• Low effort with little to no investment : If your company uses Slack , set up an internal channel for employees who demonstrate a passion for NFTs, crypto, blockchain, and more to discuss ideas and help you get set up or host virtual listening sessions. 
• Medium effort with some investment : Start accepting crypto as payment for your goods and services. If you have a log-in to your website, allow people to log in with their digital wallet instead of a password. Or you can simply buy an NFT and hold on to it while also joining those communities and showing your commitment to Web3.
• High effort with significant investment : This is where you go all-in on NFTs and Web3. You can create an NFT project and work with an external community to build a roadmap to enter the market, where you sell NFTs on your branded marketplace. 

This world is moving fast and changing even faster. Yes, there’s a lot to understand and learn, so take the time to do your research. NFTs won’t fit with every company, business, or organization. Do what makes the most sense for your company, customers and community. And then get ready to go down the NFT rabbit hole. It’s deep.

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Ari Bendersky is a Chicago-based lifestyle journalist who has contributed to a number of leading publications including the New York Times, The Wall Street Journal magazine, Men's Journal, RollingStone.com and many more. He has written for brands as wide-ranging as Ace Hardware to Grassroots ... Read More Cannabis and is a lead contributor to the Salesforce 360 Blog. He was also the co-host of the Overserved podcast, featuring long-form conversations with food and beverage personalities. That lives on wherever you stream your favorite podcasts.

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Metaverse Business Plan Template

Written by Dave Lavinsky

Metaverse Business Plan

Growthink has have helped over 500 entrepreneurs and business owners create business plans to start and grow their metaverse companies.

If you’re unfamiliar with creating a metaverse business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a metaverse business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Metaverse Business Plan?

A business plan provides a snapshot of your metaverse business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Metaverse Business

If you’re looking to start a metaverse business or grow your existing metaverse company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your metaverse business to improve your chances of success. Your metaverse business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Metaverse Businesses

With regards to funding, the main sources of funding for a metaverse business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for metaverse companies.

Finish Your Business Plan Today!

How to write a business plan for a metaverse business.

If you want to start a metaverse business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your metaverse business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of metaverse business you are running and the status. For example, are you a startup, do you have a metaverse business that you would like to grow, or are you moving into a larger digital platform in metaverse?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the metaverse industry.
• Discuss the type of metaverse business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of metaverse business you are operating.

For example, you might specialize in one of the following types of metaverse businesses:

• Metaverse entertainment: Already well-known in gaming; such as Minecraft and Roblox, this type of business is focused on sales of various forms of entertainment, including AI, AR, and VR selections.
• Metaverse enterprise: In enterprise, c orporations engage in metaverse for purposes of systems management; such as onboarding employees, and technology growth; such as development of digital assets.
• Metaverse real estate: The purchase or trading of metaverse real estate creates wealth and/or entertainment in this type of metaverse company.
• Metaverse marketing: Marketing in metaverse includes product branding, social media marketing, NFT sales or promotions and, in some cases, sales of physical goods to promote digital branding.

In addition to explaining the type of metaverse business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the amount of real estate purchased, reaching X number of gamers , etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the metaverse industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the metaverse industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your metaverse business plan:

• How big is the metaverse industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your metaverse business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your metaverse business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of metaverse business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Metaverse Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other metaverse businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes brick-and-mortar retail stores, real estate brokers, DTC products marketed and sold to consumers. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of metaverse business are they?
• What are their digital assets?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to explore your competitors’ customers to determine what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you buy metaverse real estate with the strategy of renting out that real estate and managing shops ?
• Will you offer products or services that your competition doesn’t?
• Will you sell custom headsets that work only with your augmented reality games?
• Will you offer physical goods in conjunction with product branding ?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a metaverse business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of metaverse company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide metaverse onboarding for employees of your clients?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your metaverse company. Document where your company is situated and mention how the site will impact your success. For example, is your metaverse business located in a busy retail district, a business world, or a gaming district? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your metaverse marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise via social media
• Use 3D or augmented reality to demonstrate products
• Market your experiences or events in metaverse
• Use product placement to promote your products or brand

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your metaverse business, including oversight of NFT sales or functions within your metaverse company, communicating with clients, buyers or vendors, and purchasing metaverse real estate.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to launch your Xth game, or when you hope to reach XX in cryptocurrency revenue. It could also be when you expect to expand your metaverse business to a new world.

Management Team

To demonstrate your metaverse business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing metaverse businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a metaverse business or successfully running a small metaverse advertising agency.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you buy X real estate locations each month, and/or offer rental and management services of that real estate? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your metaverse business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a metaverse business:

• Cost of computer equipment and software
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer accessories, and other equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your metaverse real estate holdings or a list of corporate contracts you hold.

Writing a business plan for your metaverse business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the metaverse industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful metaverse business.

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OpenSea Business Model

The OpenSea business model has scalable capabilities centered around allowing users to purchase, sell, and trade non-fungible tokens via its website. They make money through service fees generated whenever a digital asset is sold on their website. Since its launch, OpenSea has raised more than $421 million through NFT sales.

A brief history of OpenSea

OpenSea was founded in 2017 by Devin Finzer and Alex Atallah. The platform created a revenue source for game developers like CryptoKitties looking for ways to generate profit from their game characters. 

Devin together with Alex drafted some rough business drafts and applied for a grant from YCombinator, from which they got their initial funding of $120,000. At its launch, their project focused on the concept of using blockchain technology to share Wi-Fi bandwidth.

In early 2018, they released OpenSea, and, by March of the same year, they had already sold digital collectibles worth more than $500,000.

By the end of 2019, OpenSea became the undisputed leader among NFT marketplaces, and this was achieved thanks to their acquisition of business competitor Atomic Bazaar and the introduction of more features, like the sale of digital assets in bundles, which also helped to offset Ethereum gas fees. The investments by high crypto investors, such as 1confirmation, Founders Fund, and Blockchain Capital, who injected more than $2 million into the business, also helped to boost the business.

Who Owns OpenSea

As a very recently founded company, OpenSea is, as presumable, owned by its founders: While Alex Atallah remains a Co-Founder, Devin Finzer holds the position as the CEO. Furthermore, Nadav Hollander is the CTO, and Brian Roberts is in charge of the CFO position.

OpenSea’s Mission Statement

“To build an open digital economy”

How OpenSea makes money

OpenSea offers the infrastructure of its platform free of charge, however, the business model dictates that they take a percentage of the transaction fee as a service fee. Their fee structure matches the likes of other NFT marketplaces like Rarible.

To encourage NFT buyers and sellers to use the platform, OpenSea covers all Ethereum gas fees for all transactions on the platform.

Service Fees/Minting Fee

For every transaction on the platform, OpenSea takes a 2.5% service fee, meaning that a transaction of $1000 generates OpenSea a revenue of $25. 

In its earlier days, OpenSea introduced the bundles feature to alleviate problems where Ethereum gas fees are more than the cost of an NFT, however, currently, OpenSea covers all Ethereum gas fees.

• Registration Fees

To initialize a user’s account, OpenSea charges a one-time fee between $70 and $300. OpenSea charges a fee of approximately $10 to $30 to gain access to a user’s NFTs.

• Contract Approval Fees

Users that use OpenSea’s custom NFTs contract pay a one-time approval fee for authorizing transactions. The fee can also be paid whenever a new cryptocurrency is used for the first time.

OpenSea’s Business Model Canvas

Let’s take a look at the OpenSea  Business Model Canvas  below:

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OpenSea’s Customer Segments

OpenSea’s customer segments  consist of:

• Buyers : People who buy NFTs from others, in the case of a popular NFT, buyers engage in auctions to outbid others;
• Sellers : They design, advertise, and sell NFTs either as single assets or as a collection (bundle).

OpenSea’s Value Propositions

OpenSea’s value propositions  consist of:

• Buyers: A convenient marketplace with a huge range of NFTs available. Ethereum gas fees have been covered by the platform;
• Sellers: A free-to-enter NFT marketplace with a huge offering of buyers. Service fees are only a small fraction of the total NFT cost. With the platform covering the gas fees, there’s more profit to be made.

OpenSea’s Channels

OpenSea’s channels  consist of:

• App for Android and iOS

OpenSea’s Customer Relationships

OpenSea’s customer relationships  consist of:

• Customer Service 
• Social Media 

OpenSea’s Revenue Streams

OpenSea’s revenue streams  consist of:

• Service Fee/Minting Fee

OpenSea’s Key Resources

OpenSea’s key resources  consist of:

• App and Web Services
• Active Sellers & Buyers
• Digital Assets

OpenSea’s Key Activities

OpenSea’s key activities  consist of:

• Payment Processing
• Marketplace Management
• Peer-to-Peer trade of digital assets

OpenSea’s Key Partners

OpenSea’s key partners  consist of:

OpenSea’s Cost Structure

OpenSea’s cost structure  consists of:

• Payment Processing Fees
• Website Maintenance

OpenSea’s Competitors

• Rarible: Based in Moscow and founded in 2020 by Alex Salnikov and Alexei Falin. Unlike OpenSea, Rarible charges both buyers and sellers a 2.5% service fee, however, the seller can decide to cover the whole 5%. Rarible issued its own governance token (RARI) in July 2020;
• Mintable: Founded in 2018 by Mark Cuban-backed Mark Burks, Mintable is a digital asset marketplace just like OpenSea, the platform also offers NFT minting services. However, it differentiates itself by making the trade of digital assets possible with fiat currency;
• SuperRare: Founded in 2017 by John Crain, Charles Crain, and Johnathan Perkins, they are also the founder of Pixura , the company building the crypto collectible technology in use by SuperRare. The platform allows NFT creators to gain additional profit whenever their digital assets are resold. SurperRare takes a 15% cut of the first sale, leaving the creator with 85% and an additional 3% for every resale;
• KnownOrigin: Founded by David Moore, Andy Gray, and James Morgan in 2018, KnownOrigin has generated more than $1.3 million in sales. They have worked with brands like Netflix, Adobe, and Adidas, and just like SuperRare, they have developed secondary sale systems;
• Coinbase NFT : One of OpenSea’s biggest rivals, Coinbase already has more than 1.1 million users signed up on its NFT waitlist, which trumps OpenSea’s total active user base. Coinbase NFT has already partnered with collections like World of Women, DeadFellaz, and Lazy Lions;
• FTX NFTs : Unlike OpenSea, FTX NFTs do not use P2P systems, the platform is centralized and custodial, and, as a result, users’ data is stored on its network. Full anonymity isn’t offered by the platform.

OpenSea’s SWOT Analysis

Below, there is a detailed  swot analysis  of OpenSea:

OpenSea’s Strengths

• Diverse Range of Assets: OpenSea’s position as the first NFT marketplace and its acquisition of competitors have allowed them to obtain and offer a large and diverse range of digital assets;
• Zero Gas Fee: Like most of its competitors, OpenSea has waived Ethereum gas fees for its users in a bid to make the platform much more attractive;
• Low Service Fee: OpenSea unlike its competitors maintains a service fee or minting fee charge of 2.5%, which has given them the needed edge to remain the undisputed marketplace for digital assets;
• Royalty fees: Creators on OpenSea can attach a 10% royalty on their asset for every resale it accumulates;
• Brand Recognition: Their first marketplace status has made the platform a popular, trusted space for digital assets trade.

OpenSea’s Weaknesses

• Royalty Fee: The ability of original creators to attach royalty fees of up to 10% to their assets reduces the profit of resellers;
• No Fiat Support: Unlike competitors like Mintable and SuperRare, OpenSea doesn’t support the trade of digital assets with fiat currencies.

OpenSea’s Opportunities

• Market Trends: With the recent growth in NFT and Metaverse stocks and popularity, and with more games incorporating NFTs into their gameplay, the market demand for an efficient asset marketplace with a low entry barrier is on the rise;
• New Features : Features like Collection Manager with zero gas fees, and the introduction of new features, will set it aside from its competitors while ensuring that it retains its number one title.

OpenSea’s Threats

• Competition: With the establishment of new marketplaces, a new wave of rivalry and competition is set to begin in the digital assets’ ecosystem;
• Market Trends: Just as the popularity of digital assets has grown, there is a chance that it will eventually fall, leading to a decrease in OpenSea’s revenue generation. This is already happening with the current reduction in assets trade in comparison to 2021.

OpenSea is a marketplace for trading digital assets, and the OpenSea business model is based on minimal transaction fees. As the platform gets more popular, more and more transactions are expected to happen on OpenSea, which will result in more revenue from transaction fees.

Their value proposition for users is really simple: They want to provide a safe and reliable way for users to buy and sell the digital assets they want, so they don’t have to face the risk of losing thousands of dollars on a scam. Business-wise, that means dedicating a lot of their resources to trust and transparency, and this has continued to increase users’ trust in the platform, resulting in revenue increase.

Who is Daniel Pereira ?

I love understanding strategy and innovation using the business model canvas tool so much that I decided to share my analysis by creating a website focused on this topic.

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Your Guide to the Marketing Jungle

Why NFTs for Business: What You Need to Know

Have you heard people rave about non-fungible tokens (NFTs)? Wondering how they can be used for business?

In this article, you'll discover a deep dive into the world of digital goods and what you need to know to use them in your business.

How NFTs Can Help You Build Community

NFTs are making a huge impact in the business world. We haven't seen this large an impact or this level of excitement about an innovation since the advent of social media. It feels like the very early days of Facebook or Twitter.

Primarily, NFTs allow businesses to create digital proof of ownership, attendance, and even transference to different experiences they offer their customers.

Additionally, NFTs are transparent and instant. The smart contract coded into the token can't be edited or altered, which means the business that created that token will always see the return whenever that token is sold. If people purchase an NFT and later decide to transfer that NFT to a third party, the business will still receive a share of the transaction as written into the smart contract.

The business can still earn revenue just based on the fact that the experience it created for its audience is being accessed and enjoyed, even if that access wasn't purchased directly through one of its sales funnels.

With NFTs, businesses are also offering their audience a chance to buy into their community. This is a much deeper connection than people who simply purchase a subscription. Buying into a community essentially gives that member partial ownership of that community. The members help determine the value of the community based on how many tokens they hold, as well as their asking price when they sell off their tokens after they no longer need access.

Whether an NFT grants people access to a community on Discord, an event, a course, or a coach's calendar for special coaching opportunities, that access will be granted automatically and within a couple of minutes of purchase. So people will be able to reap the benefits of being an NFT holder faster than anything that requires manual verifications and checks or emails sent back and forth.

You also don't have to worry about technical issues such as when an email is accidentally marked as spam or doesn't get delivered for a variety of other reasons. The proof of their access is visible on the blockchain immediately, allowing immediate access.

How NFT Airdrops Work

If you use NFTs to reward your community and grant them rewards for participating in your community, those rewards are done through something called airdrops .

An airdrop is a transaction in which you send an NFT from your portfolio to someone else's portfolio.

So, for example, you could have one NFT for your community and a separate NFT for attendance at your events. Every once in a while, you could decide to move your attendance tokens over to your community's portfolios, along with whatever new benefit is coded into the smart contract of those attendance tokens.

You can also send more of your community tokens to token holders. If someone is holding 50 of your community NFTs, and you choose to reward them with another 10 tokens, you simply move them over using an airdrop.

How Proof of Attendance Works

The proof of attendance protocol, sometimes referred to as POAP, is based on the idea that you could give out NFTs based on limited-time concepts and have, possibly, a secret word to access them.

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For example, TIME magazine does an amazing job in their TIMEPieces Discord community sessions. They'll give out a secret word, and during that same timeframe, within about an hour, you can go to their website and put in the word. Doing so will grant you a special POAP.

This special NFT is limited-edition and limited-time, and can only be acquired through this secret word given out during the session. And it can grant you access to more exclusive experiences.

Find Out More About the Culture and Communities Built Around NFTs

If you're thinking about creating NFTs and bringing them into your strategy, start by collecting the tokens from other creators . This will allow you to get into the culture and start to understand the impact and the community that's growing around NFTs.

Just as on social media, the culture of any platform is largely written and determined by the earliest adopters. The same is true for NFTs. A large part of the culture is being determined and you have a chance to see the direction it's headed. Then, when you're ready, you can decide how you can impact and support your own community with an NFT.

If you're looking for examples to use as inspiration for your own NFTs, check out Twitter. The NFT community has really latched onto Twitter, and especially Twitter Spaces . This makes sense, given Twitter's longstanding reputation as a place where you can chat in real time on just about any topic. At any time, you can search for #NFTCommunity to find ongoing conversations.

You can also find and join communities on Discord.

One note of caution: As with email and SMS, don't click links in any direct messages you receive from people you don't know on Twitter or Discord. These messages sometimes contain links to well-designed sites that try to convince you to purchase a fake NFT through them, connect their wallet, or give them your seed phrase. Under no circumstances should you click on any links you don't find directly in the Twitter bio or in Discord's Important Links channel of the community you're in.

You can also explore NFTs on a site like OpenSea. However, rather than do a keyword search, start by exploring Categories (Art, Collectibles, Music, etc.) and Stats (Rankings and Activity).

As you learn more about NFTs, think about ways you could use them to bring your community closer. How can you provide value to your community through NFTs? How can you integrate your NFT into everything you already do?

You don't have to worry about abandoning any of your current projects or switching things around. You can, instead, use NFTs to strengthen or even streamline some of your current strategies.

Business Use Cases for NFTs

We usually talk about use cases for NFTs in terms of things like access to events or communities. And that does currently make up the bulk of NFTs for businesses.

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Your NFTs can grant your audience access to a private, exclusive community with access to you or your services or products. It can also be used for tickets to events, book clubs, or special access to your calendar or booking program to schedule a special coaching session with you. And there are a few other uses that would benefit both you as the business and your community as buyers.

One of the more immediately beneficial use cases for NFTs is to promote social good that you value. Because the smart contracts coded into NFTs can include a split of any revenue ongoing in any number of ways, you can choose any charity or notable cause you want to support, and a portion of every sale and resale of that NFT will go to that.

And again, this isn't something that can be overwritten or changed. If someone decides that they no longer need access to your coaching community or book club, and they decide to sell the NFT that grants them access, they can't change the terms of that smart contract. The charity or cause you coded into that smart contract is still going to get its cut of the sale, as are you and any other beneficiary you coded into it. It can't get redirected, changed, or overwritten.

Another use case would be proof of attendance. Proof of attendance is an interesting use in that it's a way of incentivizing and rewarding your community for participating in the community. For example, you can send or gift people coins for attending a certain event. And then once they receive five of those attendance tokens, they receive access to something even greater.

It doesn't even have to be an event with tickets. Imagine hosting a podcast, and somewhere during the episode, you give your audience a secret word. Listeners can then go to your website to type in that secret word, and the first hundred or so people to do that are rewarded with an attendance token. After they've listened to so many podcast episodes and provided you with so many secret words, collecting attendance tokens along the way, you can grant them extra NFTs, more exclusive content not available to anyone else, or anything you'd like.

Businesses can also use NFTs as rewards for their current offerings. You can grant NFTs when people sign up for your newsletter, sign up for your course, attend your live group coaching calls, and just about anything else that you're already doing in your business.

As we alluded to earlier, you can create NFTs as a way to bring your audience in as co-creators of your community. As buyers of your NFTs, they'll help create the value of your community and the NFT attached to it.

Where NFTs Are Headed in the Future

Given the opportunities presented by NFTs, in the not-so-distant future, NFTs are going to become integrated into nearly all aspects of our lives. In return, NFTs are going to provide more purchasing power to the buyers while also providing businesses with added security and benefits.

For example, imagine if a fashion designer released an NFT for one of their designer bags. When you purchased that bag, you'd receive the NFT into your wallet as digital proof of ownership of that authentic bag. Later, should you ever decide to sell the bag, the buyer would no longer have to worry about whether that bag is authentic. The NFT is transparent on the blockchain so they could confirm the authenticity before making the purchase.

Car manufacturers can also benefit from NFTs. Imagine creating an NFT to go with each line of cars they manufacture and sell. Because the manufacturer would receive a percentage of the resale from those cars, that would encourage them to make it easy for people to do proper maintenance of those cars to help boost their resale value. And again, buyers would be able to see everything that's been done on the car thanks to the blockchain.

While NFTs are still largely talked about within the creative entrepreneurial, content creation, and community building spaces, the truth is that NFTs hold opportunities for nearly all businesses to grow and expand beyond their store walls and beyond their social media platforms. This is a chance to connect with your audience in a new way that will lift your audience and protect and lift your own value as well.

Brian Fanzo is a digital futurist, host of the NFT 365 podcast , and creator of the $ADHD coin . Explore Brian's wallet on OpenSea and find him on social channels as @iSocialFanz.

Other Notes From This Episode

• Learn more about VeeFriends , Ethereum , Solana , Rally , Beeple , TIMEPieces , Shaquille O'Neal Notable NFTs , CryptoDads , Bored Ape Yacht Club NFTs , OpenSea , ICY Tools , rarity.tools , and inBetweeners .
• Connect with Michael Stelzner at  @Stelzner on Instagram .
• Watch the interviews on the  Crypto Business YouTube channel .

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How to Make a Business Model for NFT (Non-Fungible Tokens)?

Business Model for NFT, the world, nowadays, is crazy about the business model. And it is clear that NFTs are big business, really big. However, there are skeptics who think that the NFT bubble may soon burst. Real estate companies, luxury fashion labels, sports leagues, and ……. are selling NFTs.  Sotheby’s, Christie’s, and Phillip; even these legacy Jewelry and art auction houses have entered into the business. This is, therefore, a trend worth exploring. Mark Cuban, a billionaire, is enthusiastic about NFTs. It can provide important new revenue streams for creators and small businesses, according to him. He advises to jump into the business. And what is the best time for it?

Table of Contents

Now! It’s time to act on to start with the right business model for NFT.

NFT Business Model: How to Make Money?

It’s time to understand the business and how to earn money using NFTs. We know that purpose of any business is to earn money. A business model helps in creating, developing, and maintaining a business. Hence, we are starting a discussion on the ways of revenue generation in the business model for NFT.

Selling NFTs is the most common means for businesses to make money in the ecosystem. NFT business model is an indisputable and undeniable choice as there is ample demand for virtual goods.  It also works very well.

Selling NFT

As mentioned earlier, selling NFTs directly to users is the most popular method for companies in the NFT ecosystem to generate revenue. Likes of video game publishers and game developers have already entered into the NFT business. Revenue earned from the NFT business has a lion’s share in the total income. Experts opine that selling NFTs directly to users will create money for the foreseeable future.

NFT Marketplace

A new way of monetizing the internet with digital collectibles

You need an NFT marketplace to start your business . An NFT marketplace is very similar to eMarketplaces likes Amazon, eBay, and Itsy. Sellers sell their goohttps://www.vardhamaninfotech.com/nft-marketplace-development-company/ds in these marketplaces. Similarly, NFT owners sell their NFTs in these NFT marketplaces.

NFTs are Etherium (Cryptocurrency) based smart contracts for a digital asset. These are unique, verifiable, indivisible, and immutable tokens created using blockchain technology. These NFTs represent ownership rights of a digital asset, artworks, etc. An NFT seller sells his or her NFTs in exchange for a cryptocurrency in the NFT marketplace. The marketplace owner charges a commission, usually 2.5 to 5 percent, from the NFT seller. There are plenty of sellers and buyers of NFTs. Hence, the NFT marketplace owner earns a handsome revenue as commission.

Schedule NFT Marketplace Demo

Business Model for NFT: An Overview

According to the English dictionary, Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets of the same type. Fungible assets simplify the exchange and trade processes, as fungibility implies equal value between the assets. And, as per the Cambridge dictionary, non-fungible means not easy to exchange or mix with other similar goods or assets.

Non-fungible or non-fungibility are not new concepts for the business world. However, non-fungible token (NFT) is a rather new business idea. Blockchain technology has converted the idea into big businesses. Hence, there is a need to know about the NFT business model.

What Do You Need to Know About NFTs?

Understanding non-fungible tokens.

Fungibility is a rather simple concept relating to the things people own and use in daily life. Dollars or rupees are simple examples of fungible assets because one can easily replace them with something identical. To clarify, you can replace a 100 rupees note with one serial number with another 100 rupees note of a different serial number. Both notes hold equal value. This fungibility of fiat currencies lays the foundation stone to exchange. And this exchange system is the basis of any business. Hence, all classic business models are based on the fungibility of fiat currencies.

Inversely, non-fungible assets are unique in nature. These are not mutually interchangeable. An art piece of a famous artist is not interchangeable with another art piece of a different artist. This very nature of non-fungible assets leads to the blockchain-based new business model of NFTs.

Non-Fungible tokens contain identifying information about these unique assets. Also, there was a problem of a lack of unity in traditional digital assets. Non-Fungible tokens solve this problem too, Blockchain technology helps in creating a unique and immutable identifying system of these unique non-fungible assets. Thus providing a simple way to transfer ownership and manage access to these NFTs.

Non-fungible digital assets have been existing since the digital era started. However, the tokenization of these unique assets has the potential to pave a way for new business model for NFT. It is essential to know about the characteristics and unique abilities of NFTs that differentiate them from traditional cryptocurrencies before we understand the NFT business model.

Characteristics of Non-Fungible Tokens

<h3 UniquenessMetadata describing the uniqueness of a digital asset differentiating it from all other assets are the basis of NFTs. The owners can describe large numbers of attributes in rich metadata that make the NFT special and identifiable. In the blockchain, this record is permanent and unalterable. As an outcome, one can validate the authenticity of the asset using this feature.

Validating authenticity is a challenge for high-value non-fungible assets in art, gaming, collectibles, and other virtual or real-world assets. There are, always, fakes.  The original function of NFTs was to verify digital art because they can function as certificates of authenticity. NFTs, help to protect these fraudulent activities. The very characteristic of blockchain helps negate counterfeiting and deceptive behavior. This reassures purchasers that their acquisition is authentic and original.

Validating the authenticity and Uniqueness characteristics of NFTs leads them to create a successful NFT business model.

Indivisible

We know that 35 percent of the famous Monalisa painting is meaningless. So, you cannot split the NFTs into smaller denominations. One can only hold, buy, and sell these as whole entities. However, there is a possibility that an expensive NFT can be bought in partnership and one can get a share of the same.

Though, technically one can create unlimited numbers of NFT, it is its scarcity that makes it attractive. That is what makes non-fungible tokens interesting for business. Increasing rareness enhances desirability and that is suitable for any NFT business model.

Moreover, NFTs solidify ownership rights. A non-fungible token paired with Blockchain technology helps to provide ownership rights to a digital asset. An NFT is also transferable. One can easily trade NFT ownership rights on a specialist market.

Now, we have some understanding of fungibility, non-fungibility, and non-fungible tokens (NFTs) along with the business model.

Besides this, there are many other ways to create revenue. Blockchain technology has opened up doors for more business opportunities. We will discuss these innovative ways to earn money using the business model for NFT in the coming blog post.

Written by Jyoti Kothari

Technology | business | nft, 0 comments(s), april 18, 2021, recent posts.

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Very nice blog, you have done here. So keep it up and help the visitors.

Thanks for sharing the informational blog post.

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Great article cleared allot of my doubts great job

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NFT Services: Top 10 Business Ideas That Will Take Off

August 26, 2021

All the craze around NFT services and shocking sums of money that appear next to this concept attract more and more entrepreneurs. Today, it is a common practice for digital artists and different creators to get their artwork transformed into digital assets and receive huge payrolls. Here we should mention Grimes, who sold a collection of 10 digital items for $5.18 million , and Banksy, whose artwork called “Morons” was destroyed and transferred to NFT .

However, artists aren’t the only ones who gain profits from the NFT services. With the rising demand, different NFT stores, startups, and applications appeared. For example,  Rarible , a decentralized marketplace and an NFT art gallery that allows digital creators to sell their creations reached  the price of $45,48 per token in less than a year.

In this article,  OpenGeeksLab is going to discuss the future of NFT for entrepreneurs, how businesses can create and sell NFTs, and go through the upcoming business trends in this niche. Let’s get started.

How Businesses Can Benefit From NFT Services

When it comes to the value of NFT for business, we should mention the ability of blockchain technology to make a unique digital asset. It allows entrepreneurs to offer their customers unparalleled experiences. Another advantage of NFT items that can be beneficial for your business is their versatility, meaning that you can deliver to your audience different kinds of digital art, be it music, images, or even the entire digital world. You can use non-fungible tokens to make new unique selling propositions, find new ways of interacting with your customers, and develop storytelling strategies.

If we look at non-fungible tokens in terms of marketing and promotion, their benefits for your business will be as follows:

• Improved brand’s loyalty and brand recognition.
• Higher customer engagement and additional interest in your offerings
• Personalized customer experience.

A great example of how NFTs can be used for promotional purposes is shown by Taco Bell. The brand launched a collection of crypto arts called “NFTacoBells.” It consists of 25 taco-themed GIFs published on the popular NFT marketplace Rarible. The whole collection was sold out within 30 minutes after its launch, and the maximum bid reached $3,646.

This way, Taco Bell took advantage of the powerful NFT trend to engage with their customers and increase the brand’s awareness.

It should be noted that NHT services can be helpful in other industries apart from marketing. Thus, you may positively influence the entertainment and event domains by tokening concert tickets. Tickets in the form of non-fungible tokens cannot be resold, which minimizes risks of profiteers buying them with the purpose to resell them several times more expensive.

Another industry where NFT services come in handy is physical real estate. Nowadays, we see many different intermediaries in this domain. These can be real estate brokers or lawyers. The implementation of smart contracts will make it unnecessary to rely on intermediaries and thus, makes the process of building a new property much simpler.

The list of use cases is unending. The NFT business model is quite new and requires some time to gain shape and attract new ideas. Right now, let’s dive into 10 NFT business ideas that will resonate all over the blockchain world very soon.

10 NFT Business Ideas for SMEs

The NFT business has a steep learning curve and resembles conceptual art more than a well-established trend. That’s why it’s hard to draw up obvious business plans that will blow up for sure. Still, if you have an understanding of blockchain and some guts to try, we’ve compiled a list of the top 10 NFT business ideas that may surge in 2022. Let’s break down each of them.

1. Create a White Label NFT Service

We use the term white labeling to discuss the situation when an organization purchases a generic product designed by another company and rebrands it by placing their logos, colors, and brand names. Shopify is the most famous example of such platforms.

The same strategy may be applied to NFT services. Using NFT services, you no longer need to build a custom solution from scratch. You can use any ready-made solution with multiple plugins and white-lebel capabilities. If you manage to create a global Shopify-like NFT platform with both sellers and buyers in mind, you’ll take over this niche for a long time.

2. Create NFT Collectibles

You can use NFT services to create a sense of scarcity by enforcing limited edition of specific digital assets. Thus, sportspeople, celebrities, and other public people create and sell collectible cards of themselves. For example, Wayne Gretzky, a Canadian hockey player, nicknamed “The Great One” launched NFT cards . Cards were divided by price levels with the cheapest one costing $12 with 5,000 copies and the most expensive one costing $1,500 with only 12 copies available. All cards were  sold out in minutes .

Still, collectibles should not necessarily relate to some person.  Opensea.io is a marketplace where users can trade their digital creations for Ethereum. The variety of digital assets there is truly impressive and includes pixel animals, samurai cats, digital sneakers, and many more. So it is a pretty sound idea to publish your collectibles there. To reach success with your collectibles, you should remember one thing: the more creativity you demonstrate, the higher profit you will get.

Here you can find everything, from creative logos to digital sneakers. The scope of your creations is limited only by your creativity. As it comes clear, the more creative you are, the more revenue you’ll generate.

3. Start an NFT Marketplace

NFT auctions are a gold mine in the world of NFT services. All operations with non-fungible tokens are carried out via such marketplaces. All popular  NFT marketplaces follow the conventional auction model. Their revenue model is also adopted from traditional marketplaces. These platforms charge predefined fees from each sale served via the NFT shop. For example, Rarible, a virtual NFT gallery, charges  2.5% fees in Ethereum or local RARI coins from each lot on auctions.

Like every other marketplace, your platform should have storefronts of goods and a convenient search system. Besides, it’s important to take care of thorough moderation of digital assets uploaded to platforms and provide a clear and concise interface for sellers.

Given the fast development of NFT art, building your NFT marketplace platform seems like a very sound idea that will bring you a great income in near future.

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4. Start an NFT Online Course

It is true that NFT services attract many enthusiasts. Still, this niche has a rather high entrance threshold. That’s why, if you understand NFT processes, you can start an online course to share your knowledge. You can start courses on an e-learning platform like  Udemy , launch your own platform, or even arrange real-life boot camps (don’t forget to wear a mask).

To better understand audiences’ topic involvement, let’s examine the  most popular NFT course on Udemy. The full course lasts for 3 hours and 40 minutes and is divided into 39 short lectures. Since its launch, this course has been attended by 1250 students. With a price of $25 dollars, you get a decent amount of money for your efforts.

Moreover, online courses may just be a part of your global strategy. Showing your expertise gathers people around your knowledge. Having gathered loyal users around your personal brand, you can run a YouTube channel, arrange training sessions, and become an influencer in this niche. With NFT services know-how, your possibilities are unlimited.

5. Start an NFT Cryptocurrency

Another NFT business model that requires a deep understanding on your part is NFT cryptocurrencies. Crypto protocols that revolve around NFT shopping, Video games, art, and related spheres are on the rise. For example,  AXS coins reached a $70 price out of nothing in less than a year. Axie Infinite is an NFT-based online game that uses the AXS coin to trade in-game creatures. Even though the main driver for AXS coins is a video game, this cryptocurrency became a stable source of revenue for developers of the protocol.

The hardest thing with this model is to understand the niche, provide value, and engage users. Even if you launch your NFT cryptocurrency, you will not necessarily become successful overnight without putting some meaning into it. Besides, the competition in the NFT market is high, so you have to invest time in a thorough analysis of your niche and understand what problems your protocol can solve.

6. Start an NFT Loan Platform

Non-fungible tokens turn DeFi lending platforms into a semblance of real-world pawn shops. The combination of these technologies allows decentralized lending platforms to accept non-fungible assets as collaterals. Take a look at  ETNA Network . Developers claim that they’re working on a solution that opens new interconnected possibilities for NFT in DeFi. Accepting non-fungible tokens as collateral opens lending possibilities for those uninterested in conventional crypto and helps investors diversify their investment portfolios.

Besides, ETNA Network encourages users to hold ETNA coins. This platform grants access to zero-interest loans for users who make collaterals with ETNA.

An NFT lending platform is a great use case that helps holders of emerging assets. NFT owners may experience problems with short-term funding, because of NFts’ current state and low liquidity. Combining loans with non-fungible tokens attracts more users to your platform.

7. Become an NFT Broker

Similar to traditional cryptocurrencies, prices for NFT assets are volatile, which enable brokers to earn on the price differences. However, what makes non-fungible tokens different from cryptocurrency, is that each item is unique so is its price. For this reason, monitoring stock prices will not work in this case.

NFT trading can be seen as a long-term investment. Antique traders buy assets knowing that their price will only increase over time. The same thing with non-fungible assets. Buying demanded lots, knowing how to put them in the right light, and when to sell them is what makes a successful broker.

8. Create Your Own Virtual Reality

NFT services allow creating something bigger than a digital platform. What about creating an alternative universe? Virtual worlds are on the rise now and provide you with an excellent opportunity to interact with your customers in a completely new, exciting way. So you should definitely consider this lucrative idea.

For example,  Decentraland , the platform that allows everyone to create “metaverses”, gathers large sums of money with its MANA cryptocurrency. Plots of digital land in Decentraland worlds are selling for  hundreds of thousands of U.S. dollars . Users create different virtual experiences like digital exhibits, NFT galleries, concerts, and share them with other users. Some people already have jobs in virtual worlds. Virtual gambling institutions invite virtual croupiers and pay them salaries in MANA. In their turn, croupiers serve real people that spend their MANA in casinos.

The  MANA currency itself experienced rapid growth recently. For less than a year, this currency’s price has quadrupled. From this standpoint, we are safe to say that being a god is a quite profitable way of living.

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9. Become an NFT Artist

One of the most obvious NFT business models that comes to mind. If you are a designer or have a creative background, you can take a chance and make your NFT art. We must warn you that the competition is high and not all assets are worth thousands of dollars. However, for every product there are consumers. If you’re confident in your abilities, create pieces of art or some other digital content, figure out all aspects of NFT minting, and put it on marketplaces like  OpenSea ,  Rarible ,  Atomic Hub , and  SuperRare .

Unfortunately, there’s no single source of truth on how to create content that generates revenue. Our main advice here is to be as creative as you can, gather an audience around yourself, and try to deliver the content they like. Surely, such prominent artists like Blake Kathryn ,  FEWOCiOUS , and Giant Swan serve as inspiration for you. But copying others’ styles is a road to nowhere. Develop your own form of art and make it meaningful. If you explore deeper, you’ll be surprised by the absurdness of some art pieces that are worth hundreds of thousands.

10. NFT Wearables

Wearable devices showcasing your NFT assets might seem like a crazy idea. Still, they may become the next big fashion trend. Take a look at  Eduardo Jaramillo and his concept of an NFT necklace. A young jeweler converted an ordinary Apple Watch into a stunning accessory that displays different non-fungible assets possessed by owners. Of course, this accessory is not a cheap one with a golden chain and a case encrusted with diamonds. However, Eduardo doesn’t plan to stop there and wants to make wearables affordable for everyone.

As you can see, you can utilize NFT services in the most unexpected aspects of everyday life. NFT wearables’ is an unoccupied niche and leaves room for maneuvering. Different audiences may find rigs, bracelets, and other NFT wearables very appealing.

NFT business models aren’t limited to these exact use cases. There’s so much to be tried. Video games, media services, reverse search engines, and more. Non-fungible tokens’ future lies in the hands of creative people that can find an appropriate utilization for this technology. When running out of ideas, you can analyze what other enthusiasts think and want to see. Bit Country provides a forum where users can suggest their ideas and vote for the most prominent ones.

Create NFT Service That Brings Value to Users!

Non-fungible tokens have been out there for quite a while and this trend doesn’t plan to go anywhere. Unlike other one-day crypto technologies, NFT services have many practical use cases and their potential will only grow over time. More and more digital artists appear on the horizon, while celebrities also dive into this niche to maintain an online presence and increase their net worth.

If you’re thinking about giving this niche a try, don’t hesitate  to contact us right away . We, at  OpenGeeksLab , will help you find the right development approach to any NFT business model you’ll choose. We use NFT’s potential at its full capacity to create a product that drives revenue, attracts, and retains users.

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Digital Nft Art Marketplace Business Plan

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Digital Nft Art Marketplace Bundle

• Description
• Executive Summary
• Products & Services
• Market Analysis
• Marketing Plan
• Management Plan
• Financial Plan

I. Executive Summary

Company description.

ArtifyNFT is a pioneering digital art marketplace that leverages the power of non-fungible tokens (NFTs) to revolutionize the way artists, collectors, and investors engage with the world of digital art. Headquartered in San Francisco, California , the company's mission is to establish itself as a leading global platform for the buying, selling, and trading of digital art NFTs, fostering a vibrant and trustworthy community in the rapidly growing NFT art space.

ArtifyNFT's platform offers a user-friendly and secure ecosystem for artists to showcase their digital creations, connect with a global audience, and monetize their work. For collectors and investors, the platform provides a trusted and transparent marketplace to discover, acquire, and manage their digital art portfolios. Through robust security measures, seamless blockchain integration, and a suite of premium services , ArtifyNFT aims to set a new standard for the digital art industry, catering to the needs of artists, collectors, and investors alike.

The digital art industry faces a significant gap where talented artists struggle to monetize their digital creations and reach a global audience, while collectors and investors lack trust and transparency in the digital art trading process. Artists face barriers to showcasing their work, building a wider fan base, and ensuring the authenticity of their digital art. Collectors, on the other hand, grapple with concerns about provenance, limited access to curated high-quality art, and inefficient payment methods. ArtifyNFT aims to address these pain points by providing a secure, transparent, and efficient digital NFT art marketplace that empowers both artists and collectors.

At ArtifyNFT, we have developed a comprehensive solution to address the challenges faced by digital artists, art collectors, and investors in the burgeoning NFT art space. Our blockchain-powered platform provides a secure, transparent, and user-friendly marketplace for buying, selling, and trading digital art NFTs, empowering the digital art ecosystem to thrive.

Our platform features seamless blockchain integration , a visually appealing and intuitive interface , advanced security protocols , and a range of premium services to enhance the user experience. We are committed to continuously improving and expanding our platform to ensure that ArtifyNFT remains at the forefront of the digital art NFT industry.

Mission Statement

ArtifyNFT aims to transform the way the world experiences and values digital art . By establishing a leading global platform for buying, selling, and trading NFTs, we strive to foster a vibrant and trustworthy community of artists, collectors, and investors in the digital art space. Our unwavering commitment to innovation, security, and customer satisfaction will drive us to redefine the future of digital art ownership and investment .

Key Success Factors

The success of ArtifyNFT, the digital NFT art marketplace, will hinge on the following key factors:

• Robust Platform and Blockchain Integration - Developing a user-friendly platform with seamless blockchain integration and robust security measures to enhance trust and confidence among artists, collectors, and investors.
• Vibrant Artist and Collector Community - Fostering a vibrant and engaged community of digital artists, collectors, and investors through personalized curation, enhanced visibility, and promotional tools.
• Innovative and Continually Evolving Features - Continuously enhancing the platform with new features and tools to meet the evolving needs of the digital art market and stay ahead of the competition.
• Targeted Marketing and Partnerships - Implementing effective marketing campaigns to attract artists, collectors, and investors, and establishing strategic partnerships with art institutions, galleries, and digital art communities.
• Experienced and Skilled Management Team - Assembling a highly skilled and experienced team with expertise in blockchain technology, digital art, and e-commerce to drive innovation and operational efficiency.

Financial Summary

The financial projections for ArtifyNFT demonstrate a strong and sustainable growth trajectory. The platform is poised to capture a significant share of the rapidly expanding NFT art market and deliver impressive returns to its investors.

The financial requirements for ArtifyNFT include a seed funding of $2 million , which will be used to develop the platform, acquire key talent, and drive marketing initiatives. The projected return on investment (ROI) is expected to be highly attractive, reaching up to 50% by the end of the third year of operation.

Funding Requirements

To successfully launch and scale ArtifyNFT, a total of $2 million in funding is required to fuel the initial product development, marketing efforts, operational expenses, and staffing needs.

II. Products & Services

Problem worth solving.

The digital art industry has witnessed significant growth in recent years, driven by the rise of non-fungible tokens (NFTs). However, many talented artists still struggle to monetize their digital creations and reach a global audience interested in unique digital art assets. Additionally, collectors and investors often face a lack of trust and transparency in the digital art trading process, hindering their ability to confidently participate in this burgeoning market.

The key challenges faced by digital artists include:

• Difficulty in establishing a secure and reliable platform to showcase and sell their digital artworks
• Barriers to reaching a wider audience of potential collectors and investors beyond their local or regional communities
• Concerns about the authenticity and provenance of their digital creations, leading to reduced trust and marketability
• Limited access to effective promotional tools and visibility-enhancing services to stand out in the crowded digital art landscape

On the other hand, collectors and investors in the digital art space often grapple with the following issues:

• Lack of trust and transparency in the ownership and provenance of digital artworks, leading to concerns about authenticity and value
• Difficulty in navigating the fragmented and complex landscape of digital art marketplaces, each with its own set of rules and processes
• High transaction fees and limited options for secure and efficient payment methods when acquiring digital art
• Challenges in discovering and accessing a diverse and curated selection of high-quality digital art that aligns with their preferences and investment strategies

These challenges create a significant gap in the market, where artists struggle to monetize their work and reach a wider audience, while collectors and investors lack a trusted and user-friendly platform to engage with the digital art ecosystem. ArtifyNFT aims to address these pain points by providing a secure, transparent, and efficient digital NFT art marketplace that empowers both artists and collectors.

Our Solution

At ArtifyNFT, we have developed a comprehensive solution to address the challenges faced by digital artists, art collectors, and investors in the burgeoning NFT art space. Our platform harnesses the power of blockchain technology to create a secure, transparent, and efficient marketplace for buying, selling, and trading digital art NFTs.

The core features of our platform include:

• Seamless Blockchain Integration : We have seamlessly integrated blockchain technology into our platform, ensuring the authenticity and provenance of every digital artwork. This provides artists, collectors, and investors with a trustworthy and tamper-proof environment for their transactions.
• User-Friendly Interface : ArtifyNFT boasts a intuitive and visually appealing interface, making it easy for users of all technical abilities to navigate the platform and engage with the digital art ecosystem.
• Robust Security Measures : We have implemented advanced security protocols to protect our users' sensitive information and digital assets, giving them peace of mind when buying, selling, or trading NFTs on our platform.
• Premium Services : In addition to the core marketplace functionality, we offer a range of premium services to enhance the user experience, such as personalized curation, targeted marketing tools, and exclusive artist showcases.
• Continuous Platform Enhancements : We are committed to continuously improving and expanding our platform, regularly adding new features and tools based on user feedback and market trends to ensure that ArtifyNFT remains at the forefront of the digital art NFT ecosystem.

By leveraging the power of blockchain technology and providing a user-friendly, secure, and feature-rich platform, ArtifyNFT aims to revolutionize the digital art industry and empower artists, collectors, and investors to thrive in the rapidly evolving NFT market.

Unique Selling Proposition

ArtifyNFT's Unique Selling Proposition (USP) sets it apart from its competitors in the digital NFT art marketplace. By leveraging blockchain technology, ArtifyNFT offers a secure, transparent, and efficient platform for artists, collectors, and investors to engage in the thriving NFT art space. The platform's key advantages include lower transaction fees, enhanced visibility for artists, and a trustworthy ecosystem that fosters a vibrant community of digital art enthusiasts.

• Secure and transparent NFT transactions powered by blockchain technology
• Lower commission rates to benefit both artists and collectors
• Comprehensive support and tools for artists to thrive on the platform
• Trustworthy and vibrant community of digital art enthusiasts
• Commitment to innovation and platform enhancements

Development Stage and Future Plans

ArtifyNFT is currently in the advanced development stage, having undergone several iterations and extensive testing to create a user-friendly and secure platform for the digital art NFT marketplace. The platform has been built on a robust blockchain infrastructure, ensuring the authenticity and provenance of each artwork, and has received positive feedback from early-access users and industry experts.

To date, the ArtifyNFT team has focused on developing a range of key features, including seamless onboarding for both artists and collectors, secure transaction processing, and advanced search and filtering capabilities. Additionally, the platform offers premium services such as personalized curation, enhanced visibility, and promotional tools to help artists and collectors alike maximize their experience and engagement on the platform.

As ArtifyNFT prepares for its official launch , the team has set ambitious milestones to ensure the platform's continued growth and success in the digital art NFT space. The following table outlines the key milestones achieved and future plans for the platform:

III. Market Analysis

The digital art and non-fungible token (NFT) industry has experienced a remarkable surge in recent years, driven by the growing demand for unique and verifiable digital assets. As the world becomes increasingly digitized, the need for secure and decentralized platforms to facilitate the buying, selling, and trading of digital art has become increasingly important.

• Industry Size: The global NFT market is estimated to be worth over $40 billion as of 2022, with the digital art sector comprising a significant portion of this market. This represents a remarkable growth from just a few years ago, as the NFT market has seen exponential expansion, with the total value of NFT sales increasing by over 20,000% in 2021 alone.
• Growth Rate: The NFT industry is expected to continue its rapid growth, with industry experts projecting a compound annual growth rate (CAGR) of over 30% from 2022 to 2030. This growth is driven by the increasing mainstream adoption of blockchain technology, the rising popularity of digital art, and the growing interest from both individual and institutional investors.
• Market Dynamics: The key driving forces behind the growth of the digital art NFT market include the increased accessibility of blockchain technology, the desire for unique and verifiable digital assets, and the growing interest in digital art as an investment asset. However, the industry also faces challenges, such as regulatory uncertainty, concerns over the environmental impact of blockchain technology, and the need for improved user experience and mainstream adoption.
• Key Players: The digital art NFT market is characterized by a diverse range of players, including established art galleries, independent digital artists, blockchain-based platforms, and emerging technology companies. Some of the leading players in the industry include OpenSea, SuperRare, Nifty Gateway, and Foundation, each offering unique features and capabilities to artists and collectors.
• Regulatory Environment: The NFT industry operates within a complex and evolving regulatory landscape, with various jurisdictions developing guidelines and policies to address issues such as taxation, securities regulations, and intellectual property rights. As the industry continues to grow, the need for clear and consistent regulatory frameworks will be critical to foster innovation and ensure consumer protection.
• Customer Segments: The primary customer segments in the digital art NFT market include digital artists seeking to monetize their creations, art collectors and investors interested in unique and valuable digital assets, and technology-savvy individuals and communities drawn to the decentralized and transparent nature of blockchain-based transactions.

Overall, the digital art NFT industry is in a strong position, with significant growth potential and opportunities for innovative platforms like ArtifyNFT to capitalize on the growing demand for secure and transparent digital art marketplaces. As the industry continues to evolve, the ability to adapt to changing market dynamics and regulatory environments will be crucial for the long-term success of digital art NFT platforms.

Target Market

The target market for ArtifyNFT, the digital NFT art marketplace, comprises a diverse group of individuals primarily aged 18-45 who are tech-savvy and have a keen interest in the growing NFT space. This target segment includes digital artists looking to monetize their creations, art collectors and investors seeking unique digital art assets, as well as art enthusiasts and gamers interested in the intersection of art and blockchain technology.

• Demographic Profile: The target market for ArtifyNFT spans a range of age groups, with a focus on individuals aged 18-45. This target audience is likely to have a higher education level and be employed in various professional fields, including technology, finance, and the creative industries. They are expected to have a relatively high disposable income, allowing them to invest in digital art and NFTs.
• Geographic Location: While ArtifyNFT aims to establish a global presence, the initial focus will be on the United States, particularly the San Francisco Bay Area and other major metropolitan regions where there is a strong concentration of tech-savvy individuals and art enthusiasts. As the platform expands, it will also target international markets, especially in regions with a growing interest in digital art and NFTs.
• Psychographics: The target market for ArtifyNFT is characterized by individuals with a strong affinity for technology, innovation, and digital art. They are likely to have a progressive mindset, are early adopters of new trends, and value authenticity and uniqueness in their art investments. They may also be active participants in the cryptocurrency and blockchain communities, seeking new investment opportunities in the growing NFT space.
• Behavioral Factors: The target market for ArtifyNFT is expected to be highly engaged with digital art and NFTs, actively seeking out new and unique digital artworks to collect or invest in. They are likely to be brand-loyal and seek platforms that offer a secure, transparent, and user-friendly experience. Additionally, they may be influenced by the opinions and recommendations of art influencers, bloggers, and their peers within the digital art and NFT communities.
• Market Size: The global NFT art market is experiencing a rapid growth, with the total market size estimated to reach $13.6 billion by 2027, growing at a CAGR of 35.0% from 2022 to 2027. Within the United States, the target market for ArtifyNFT is estimated to be around 5 million individuals, with a potential revenue opportunity of $500 million in the first three years of operation.
• Challenges and Pain Points: The target market for ArtifyNFT is seeking a secure, transparent, and user-friendly platform to buy, sell, and trade digital art NFTs. Many artists struggle to monetize their digital creations and face difficulties in reaching a global audience, while collectors and investors often lack trust and transparency in the digital art trading process. ArtifyNFT aims to address these pain points by providing a robust and reliable platform that leverages blockchain technology to ensure the authenticity and provenance of digital artworks.

In summary, the target market for ArtifyNFT is a tech-savvy, art-loving, and financially-capable group of individuals aged 18-45, primarily located in the United States and select international markets. By addressing their needs for a secure, transparent, and user-friendly digital art marketplace, ArtifyNFT has the potential to capture a significant share of the rapidly growing NFT art market.

Market Trends

The digital art and NFT (Non-Fungible Token) market has witnessed significant growth in recent years, driven by the increasing adoption of blockchain technology, the rise of digital collectibles, and the growing demand for unique digital assets. ArtifyNFT, as a leading digital NFT art marketplace, is well-positioned to capitalize on these evolving market trends and cater to the diverse needs of our target audience.

By aligning our platform with the evolving needs of the digital art and NFT market, ArtifyNFT is poised to become a leading global marketplace for buying, selling, and trading unique digital artworks. Through our commitment to security, transparency, and user experience, we aim to foster a vibrant and thriving community of artists, collectors, and investors in the dynamic and rapidly expanding digital art space.

Key Customers

The target customer base for ArtifyNFT is a diverse yet cohesive group of individuals who are deeply engaged in the digital art and NFT ecosystem. These customers can be segmented into three primary archetypes: Digital Artists , Art Collectors , and Crypto-Savvy Investors .

Digital Artists are the lifeblood of the ArtifyNFT platform. These individuals are highly skilled in creating unique and visually captivating digital artworks, ranging from dynamic illustrations and animations to interactive 3D installations. They are often tech-savvy, with a strong understanding of emerging technologies like blockchain and NFTs. These artists seek a streamlined platform that allows them to easily monetize their creations and reach a global audience of art enthusiasts and collectors. They value the transparency and security that ArtifyNFT's blockchain-powered marketplace provides, as well as the tools and services that enhance the visibility and promotion of their digital art.

Art Collectors are another crucial customer segment for ArtifyNFT. These individuals have a deep appreciation for digital art and are willing to invest in unique, one-of-a-kind NFT assets. They are typically tech-literate, and many are already active in the cryptocurrency and blockchain space. These collectors are seeking a trusted and user-friendly platform that offers a diverse selection of high-quality digital artworks, with the assurance of authenticity and provenance. They value the ability to easily discover, acquire, and manage their digital art portfolio through ArtifyNFT's intuitive interface.

The third key customer archetype is the Crypto-Savvy Investors . These individuals are actively involved in the cryptocurrency and decentralized finance (DeFi) ecosystem, and they recognize the investment potential of NFTs. They are drawn to the transparency and security offered by blockchain-backed digital assets, as well as the opportunity to diversify their investment portfolios beyond traditional financial instruments. These investors are likely to become enthusiastic advocates of ArtifyNFT, as the platform provides them with a reputable and streamlined avenue to explore the growing NFT art market.

Collectively, these three customer archetypes represent the core of ArtifyNFT's target market. By catering to the unique needs and preferences of digital artists, art collectors, and crypto-savvy investors, the platform is poised to establish itself as a leading global destination for the exchange of valuable and highly sought-after digital art NFTs.

Competition Analysis

To position ArtifyNFT as a leading digital NFT art marketplace, it is crucial to analyze the competitive landscape and understand the strengths and weaknesses of key players in the industry. This analysis will help ArtifyNFT identify its unique value proposition and develop strategic initiatives to gain a competitive advantage.

• Strengths: First-mover advantage, large user base, wide selection of NFT collections, strong brand recognition
• Weaknesses: High transaction fees, limited customization options for artists, concerns over platform security and user experience
• Market Share: Estimated to capture over 80% of the global NFT marketplace.
• Offerings: Peer-to-peer NFT trading platform, integration with various blockchains, curated collections, and limited-time releases.
• Pricing: Charges a 2.5% commission on all transactions.
• Positioning: Positioned as the largest and most established NFT marketplace, catering to a wide range of digital assets beyond just art.
• Strengths: Community-driven approach, support for emerging artists, user-friendly platform with features like royalties
• Weaknesses: Lower liquidity compared to OpenSea, less brand recognition, concerns over platform stability and security
• Market Share: Estimated to capture around 10% of the global NFT marketplace.
• Offerings: NFT trading platform with a focus on digital art, music, and collectibles, community governance model
• Pricing: Charges a 2.5% commission on all transactions, with an additional 2.5% creator royalty fee.
• Positioning: Positioned as a community-driven platform that supports emerging artists and provides creators with more control over their work.
• Strengths: Curated platform with a focus on high-quality digital art, strong reputation among digital artists and collectors
• Weaknesses: Limited selection of artworks, higher transaction fees compared to competitors, restrictive policies for artists
• Market Share: Estimated to capture around 5% of the global NFT marketplace.
• Offerings: Curated NFT marketplace for digital art, featuring limited-edition works by selected artists
• Pricing: Charges a 15% commission on all transactions, with an additional 3% creator royalty fee.
• Positioning: Positioned as an exclusive, high-end platform for the discovery and collection of premium digital art.
• Strengths: Exclusive and invite-only platform, high-quality digital art curation, strong community of artists and collectors
• Weaknesses: Limited accessibility, low liquidity, concerns over gatekeeping and exclusivity
• Market Share: Estimated to capture around 3% of the global NFT marketplace.
• Offerings: Invite-only NFT marketplace focused on high-quality digital art, with a strong emphasis on exclusivity and community
• Pricing: Charges a 15% commission on all transactions, with an additional 10% creator royalty fee.
• Positioning: Positioned as an exclusive, prestige-driven platform for the most prominent digital artists and discerning collectors.

By analyzing the key competitors in the digital NFT art marketplace, ArtifyNFT can identify opportunities to differentiate its offerings, address unmet needs, and provide a more accessible and user-friendly platform for artists, collectors, and investors. This analysis will inform the development of ArtifyNFT's unique value proposition and strategic initiatives to gain a competitive advantage in the rapidly growing NFT art market.

SWOT Analysis

The SWOT analysis for ArtifyNFT, a digital NFT art marketplace, is crucial in evaluating the company's strategic position and identifying key factors that can influence its success in the rapidly growing NFT art industry.

The strengths of ArtifyNFT, such as its blockchain integration, lower transaction fees, and experienced team, provide a solid foundation for the platform to differentiate itself in the market and build a loyal user base. These strengths enable the company to offer a secure and transparent environment for digital art transactions, which is a key concern for both artists and collectors.

However, the weaknesses identified, such as limited brand recognition and dependence on blockchain technology, pose challenges that the company must address to ensure long-term sustainability. Establishing strong relationships with a wide network of artists and overcoming regulatory hurdles will be crucial in mitigating these weaknesses.

The opportunities presented by the rapidly growing NFT art market and the potential for international expansion provide ArtifyNFT with significant avenues for growth. By leveraging strategic partnerships, social media marketing, and continuous platform enhancements, the company can capitalize on these opportunities to solidify its position as a leading digital art marketplace.

The threats facing ArtifyNFT, including intense competition, regulatory changes, and cybersecurity risks, require the company to be proactive in its approach. Maintaining a strong focus on innovation, staying ahead of industry trends, and ensuring robust security measures will be critical in navigating these threats and protecting the platform's long-term viability.

IV. Marketing Strategy

Marketing goals.

The primary marketing goals for ArtifyNFT are to establish the platform as a leading global destination for digital art NFTs, foster a vibrant and trustworthy community of artists, collectors, and investors, and achieve profitability within the first three years of operation.

• Capture 20% of the U.S. NFT art market share within the first two years of operation
• Achieve 100,000 registered users on the platform by the end of the first year, with a 30% annual user growth rate thereafter
• Establish strategic partnerships with at least 10 leading art institutions, galleries, and digital art communities within the first 18 months
• Implement targeted marketing campaigns to drive a 50% increase in website traffic and a 40% conversion rate for artist and collector signups within the first year
• Leverage social media influencers and art bloggers to reach a combined audience of 500,000 potential users within the first year of operation
• Achieve a customer satisfaction rating of 4.5 out of 5 stars, with a 90% customer retention rate by the end of the second year

Market Strategy

ArtifyNFT's market strategy is centered around capturing a significant share of the rapidly growing NFT art market in the United States and expanding its reach to international markets within the first five years of operation. The platform aims to establish itself as a leading global destination for buying, selling, and trading digital art NFTs by leveraging its unique value proposition and targeted marketing efforts.

Market Segmentation and Targeting

ArtifyNFT's target market is primarily composed of digital artists, art collectors, and investors aged 18-45 who are tech-savvy and interested in the growing NFT space. This target audience includes art enthusiasts, gamers, and cryptocurrency users who value the authenticity, security, and transparency offered by the platform's blockchain-based technology.

Geographic Targeting

The platform will initially focus its efforts on the United States, specifically targeting urban areas such as San Francisco, New York City, and Chicago, where the demand for digital art and NFTs is expected to be the highest. As the platform gains traction, it will expand its reach to international markets, leveraging strategic partnerships and localized marketing campaigns to cater to the needs of global artists, collectors, and investors.

Psychographic Targeting

ArtifyNFT's target audience is characterized by their interest in technology, a desire for innovation, and a appreciation for unique, high-quality digital art. They value transparency, security, and efficiency in the art trading process, and are drawn to the platform's ability to provide a trustworthy and seamless experience for both artists and collectors.

Competitive Positioning

ArtifyNFT will differentiate itself from existing digital art marketplaces by offering lower transaction fees, enhanced visibility and promotional tools for artists, and a robust blockchain-based infrastructure that ensures the authenticity and provenance of each digital artwork. The platform's user-friendly interface and personalized curation services for collectors will further solidify its position as a leading player in the NFT art market.

Strategic Partnerships

To accelerate its market penetration and expansion, ArtifyNFT will establish strategic partnerships with blockchain technology providers, digital marketing agencies, art schools and institutions, cryptocurrency exchanges, and legal advisors. These partnerships will enable the platform to leverage industry expertise, access new artist and collector networks, and ensure compliance with relevant regulations.

Marketing and Promotion

ArtifyNFT's marketing efforts will focus on building a strong brand identity and recognition within the digital art and NFT communities. The platform will implement targeted marketing campaigns, leverage social media influencers and art bloggers, and participate in industry events and conferences to attract and engage its target audience. Additionally, the platform will offer promotional tools and enhanced visibility options to help artists showcase their digital creations and reach a wider collector base.

Pricing Strategy

ArtifyNFT's pricing strategy is designed to strike a balance between profitability, market competitiveness, and fostering a thriving digital art ecosystem. The platform's overall pricing philosophy is to offer transparent, fair, and value-driven pricing models that cater to the needs of both artists and collectors, while also ensuring the long-term sustainability of the business.

Pricing Model: ArtifyNFT will employ a tiered pricing model that offers different levels of services and features based on the needs and preferences of its users. The base-level offering will be a commission-based pricing structure, where the platform will charge a 5% commission on each successful transaction made through the marketplace. This competitive commission rate is designed to undercut traditional art galleries and auction houses, which typically charge 20-30% commissions, while still providing a sustainable revenue stream for the business.

In addition to the base-level commission, ArtifyNFT will offer premium service tiers that provide artists and collectors with enhanced features and tools. These tiers will include options such as increased visibility and targeted promotion for artworks, personalized curation services, and advanced portfolio management tools. The pricing for these premium services will be determined based on the perceived value they offer to the users and the overall market dynamics.

Pricing Analysis: A comprehensive analysis of the competitive landscape has revealed that ArtifyNFT's pricing strategy is both competitive and advantageous. The platform's commission rates are significantly lower than those of traditional art marketplaces, which often deter artists from reaching a wider audience. Additionally, the tiered pricing model allows users to choose the level of service that best fits their needs, ensuring that the platform remains accessible to a diverse range of artists, collectors, and investors.

Discounts and Promotions: To incentivize early adoption and encourage ongoing engagement, ArtifyNFT will periodically offer promotional discounts and special offers . These may include temporary reductions in commission rates, discounted pricing on premium services, or exclusive access to limited-edition digital artworks. These strategic discounts and promotions will be designed to attract new users, retain existing ones, and foster a sense of community and loyalty within the ArtifyNFT ecosystem.

Advertising Strategy

To establish ArtifyNFT as a leading global platform for digital art NFTs, a multi-faceted advertising strategy will be implemented. The primary objectives are to build brand awareness, attract a diverse user base of artists, collectors, and investors, and drive user engagement and transaction volume on the platform.

Digital Marketing Strategies

• Social Media Campaigns: Leverage popular social media platforms like Instagram, Twitter, and TikTok to showcase featured artists, promote platform updates, and engage with the digital art and NFT communities. Utilize influencer partnerships, user-generated content, and targeted advertising to reach a wider audience.
• Email Marketing: Develop a robust email marketing campaign to nurture relationships with registered users. This will include regular newsletters, personalized recommendations, and promotional offers to encourage repeat visits and transactions.
• Search Engine Optimization (SEO): Optimize the ArtifyNFT website and content for improved visibility on search engine results pages, ensuring the platform is easily discoverable by users actively searching for digital art NFTs.

Traditional Marketing Strategies

• Print Advertising: Place strategic advertisements in art and technology-focused magazines, as well as local publications in key markets, to reach a broader audience of art enthusiasts and potential collectors.
• TV and Radio Commercials: Develop eye-catching TV and radio commercials that highlight the unique value proposition of ArtifyNFT and its featured artists. Target media outlets with a high viewership and listenership among the target demographic.
• Outdoor Advertising: Utilize billboards, posters, and other outdoor advertising mediums in high-traffic areas, especially in cities with a strong art and tech community, to increase brand visibility and awareness.

Public Relations Strategies

• Press Releases: Distribute regular press releases to industry publications, art blogs, and local news outlets, highlighting platform updates, featured artists, and significant platform milestones to generate positive media coverage.
• Community Events: Organize and sponsor local and national art exhibitions, workshops, and networking events to connect with the digital art and NFT communities, showcase ArtifyNFT, and foster relationships with influential art enthusiasts and creators.
• Partnerships: Collaborate with art institutions, galleries, and digital art communities to co-host events, cross-promote the platform, and leverage each other's existing audiences to expand the reach of ArtifyNFT.

Sales and Distribution

At ArtifyNFT, we have designed a comprehensive sales and distribution strategy to ensure our digital NFT art marketplace reaches and serves our target audience effectively. By leveraging multiple sales channels and distribution methods, we aim to provide a seamless and accessible experience for artists, collectors, and investors in the growing NFT art space.

Sales Channels

• Online Platform - The ArtifyNFT website and mobile app will be the primary sales channel, allowing users to browse, buy, sell, and trade digital art NFTs securely and efficiently. This channel will offer a user-friendly interface, robust search and discovery features, and secure blockchain-based transactions.
• Third-Party Marketplaces - We will explore partnerships with established digital art and NFT marketplaces to list select artworks and reach a wider audience. This will help expand our visibility and tap into existing user bases within the industry.
• Direct Sales - Our sales team will proactively engage with high-profile artists, art collectors, and influential figures in the digital art community to showcase the unique offerings of the ArtifyNFT platform and facilitate direct sales of premium artworks.
• Subscription-based Services - We will offer premium subscription plans for artists and collectors, providing enhanced features such as personalized curation, promotional tools, and exclusive access to limited-edition digital art releases.

Distribution Channels

• Blockchain Integration - ArtifyNFT will seamlessly integrate with leading blockchain networks, ensuring secure, transparent, and decentralized transactions for all digital art NFTs listed on our platform.
• Partnerships with Art Institutions - We will collaborate with art schools, galleries, and museums to facilitate the distribution and promotion of digital art NFTs created by both emerging and established artists.
• Social Media and Digital Marketing - Leveraging social media platforms and targeted digital marketing campaigns, we will drive awareness and engagement with the ArtifyNFT brand, featured artists, and their digital art offerings.
• Influencer and Community Collaborations - By partnering with influential figures in the digital art and NFT communities, we will amplify the reach and credibility of the ArtifyNFT platform, attracting a wider audience of artists, collectors, and investors.

Our comprehensive sales and distribution strategy aims to provide a seamless and accessible digital art marketplace for our target audience, while also empowering artists to monetize their digital creations and offering collectors a trusted platform to discover and invest in unique NFT art pieces. By aligning our sales and distribution channels with the preferences and behaviors of our target market, we are confident in our ability to establish ArtifyNFT as a leading global platform for the thriving NFT art ecosystem.

V. Management and Organization

Organizational structure.

ArtifyNFT's organizational structure is designed to foster a culture of innovation, collaboration, and efficient decision-making. The company adopts a flat, agile structure with a strong focus on cross-functional teamwork and empowered leadership at all levels. This approach aligns with the startup's mission to create a dynamic, user-centric digital art marketplace that can quickly respond to the evolving needs of its artists, collectors, and investors.

The Founder and CEO oversees the overall strategic direction and decision-making for the company. The CTO , CMO , and COO form the senior leadership team, each responsible for driving innovation, marketing, and operational excellence within their respective domains. This structure ensures clear lines of accountability and efficient collaboration across the organization.

The Technology team is responsible for developing and maintaining the ArtifyNFT platform, integrating blockchain technology, and enhancing the user experience. The Marketing team focuses on brand building, customer acquisition, and community engagement, while the Operations team handles customer support, financial management, and compliance.

This organizational structure enables ArtifyNFT to respond quickly to market changes, foster a culture of innovation, and align all departments towards the common goal of establishing the platform as a leading digital art marketplace.

Management Team

The ArtifyNFT management team comprises seasoned professionals with extensive experience in blockchain technology, digital art, and e-commerce. These individuals have a proven track record of success and are poised to steer the company towards its ambitious goals, fostering a vibrant and trustworthy community of artists, collectors, and investors in the digital art space.

Staffing and Human Resources Plan

The Staffing and Human Resources Plan for ArtifyNFT outlines the initial team composition and a strategic approach to expand the organization in alignment with the company's growth objectives. The plan aims to assemble a highly skilled and experienced team that can effectively drive the development, operations, and growth of the digital NFT art marketplace.

The ArtifyNFT team has identified key milestones to guide the management and organization of the business, ensuring steady progress towards the overall strategic goals. These milestones are specific, measurable, achievable, relevant, and time-bound (SMART), designed to drive the company's growth and solidify its position as a leading digital NFT art marketplace.

Key Metrics

To measure the performance and success of the ArtifyNFT digital NFT art marketplace, the following key performance indicators (KPIs) will be closely monitored:

VI. Financial Plan

Revenue model.

The revenue model for ArtifyNFT is designed to generate sustainable income through a combination of commission-based transactions, premium service offerings, and potential partnerships. By leveraging the platform's unique value proposition and creating a vibrant digital art ecosystem, the company aims to achieve profitability within the first three years of operation.

• Commission-based Transactions : ArtifyNFT will generate revenue by charging a percentage-based commission on each successful transaction made on the platform. This commission will apply to the sale of digital art NFTs, as well as any secondary market trades. The company's competitive advantage lies in offering lower transaction fees compared to traditional art galleries and auction houses, thereby incentivizing artists, collectors, and investors to utilize the ArtifyNFT marketplace.
• Premium Service Offerings : The platform will offer a range of premium features and services to artists, collectors, and investors, generating additional revenue streams. These may include enhanced visibility for artworks, personalized curation and recommendation services, promotional tools, and access to exclusive events or networking opportunities. By providing these value-added services, ArtifyNFT will be able to monetize its platform and attract users willing to pay for enhanced experiences.
• Partnerships and Sponsorships : As the platform gains traction and recognition within the digital art and NFT communities, ArtifyNFT will explore strategic partnerships with art institutions, galleries, and other relevant organizations. These partnerships may include revenue-sharing arrangements, sponsorships, or co-marketing initiatives, further diversifying the company's income sources and expanding its reach within the global art ecosystem.

Sales Forecast

The sales forecast for ArtifyNFT, the digital NFT art marketplace, presents a promising outlook for the next three years. Leveraging the rapidly growing NFT art market, the platform aims to capture a significant share of the market in the United States and expand its reach to international markets within the first five years of operation.

The sales forecast reflects the platform's strategic focus on commission-based transactions, which is expected to contribute the majority of the revenue. Additionally, the platform will generate revenue from premium service offerings, enhanced visibility and promotion, personalized curation services, and strategic partnerships and sponsorships. By the end of the second year of operation, ArtifyNFT aims to achieve a gross revenue of $5 million , in line with its financial and funding goals.

Establishing ArtifyNFT, the digital NFT art marketplace, will require significant startup investments as well as ongoing operational expenses. The startup costs encompass various aspects, such as platform development, legal compliance, and initial marketing efforts. Additionally, the monthly operational expenses will cover the maintenance and continuous enhancement of the platform to support the growing user base and community.

In addition to the startup expenses, ArtifyNFT will also incur monthly operational costs to ensure the platform's continuous development, maintenance, and growth. These expenses include but are not limited to the following:

Break-even Analysis

The break-even analysis is a crucial component of the financial plan, as it helps determine the point at which the business will start to generate profits. By calculating the break-even point, ArtifyNFT can understand the minimum level of sales required to cover its fixed and variable costs, enabling informed decision-making and strategic planning.

The break-even analysis shows that ArtifyNFT needs to sell 12,000 units of digital art NFTs to reach the break-even point, which corresponds to a revenue of $2,400,000. This means that the business needs to generate at least $2,400,000 in sales to cover its fixed costs of $1,200,000 and variable costs of $50 per unit. Once the break-even point is reached, any additional sales will result in a profit for the business.

This information is crucial for ArtifyNFT's management team to understand the minimum level of market penetration required to achieve profitability. The break-even analysis will guide the company's pricing strategies, marketing efforts, and overall financial planning to ensure that it reaches and exceeds the break-even point within the first three years of operation, as outlined in the business goals.

Financial Statements - Income Statement

The financial projections for ArtifyNFT's income statement show a positive trajectory over the next three years (2024-2026). The platform's revenue is expected to grow steadily as it captures a significant share of the rapidly expanding NFT art market in the United States. By leveraging the platform's seamless blockchain integration, user-friendly interface, and high-quality digital art offerings, ArtifyNFT aims to achieve profitability within the first three years of operation.

Financial Statements - Cash Flow

The cash flow statement is a critical financial document that provides insight into the company's ability to generate and utilize cash. It demonstrates the inflows and outflows of cash during a specific period, categorized into operating, investing, and financing activities. This section presents a projected cash flow statement for ArtifyNFT for the years 2024, 2025, and 2026.

Financial Statements - Balance Sheet

The balance sheet is a financial statement that provides a snapshot of a company's assets, liabilities, and equity at a specific point in time. It serves as a crucial tool for understanding the financial health and stability of a business. The balance sheet for ArtifyNFT is presented below, covering the years 2024, 2025, and 2026.

To successfully launch and grow ArtifyNFT, the digital NFT art marketplace, a total funding of $2 million is required. This capital will be used to fund the initial product development, marketing efforts, operational expenses, and staffing needs to establish the platform as a leading player in the rapidly growing NFT art market.

Exit Strategy

ArtifyNFT's founders have carefully considered multiple exit strategies to maximize the return on investment for the company's founders and investors. The exit strategy will be implemented at the appropriate time to ensure a smooth transition and continued success of the business.

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Frequently Asked Questions

23 NFT Ideas To Make Money [2024]

One of the hottest buzzwords around lately has been NFTs . You've probably heard it hundreds of times and almost always together with examples of people who are making lots of money thanks to it. Well, here is some good news: you can make money with NFTs too.

But let's back up a little and start from the beginning.

What are NFTs?

NFT stands for non-fungible tokens. And what does that mean? It means that these assets are one of a kind. One dollar bill is exactly the same as the next one. And one Bitcoin is exactly the same as another one and has it same value.

NFTs are different though. They are codified on a blockchain which means that they cannot be modified or duplicated. Creators mint NFTs, that's when they begin to exist. Afterward, these can be exchanged, sold, and bought. All of which is traceable thanks to the blockchain, where these movements are registered (with dates, price, and many other data).

But why is everyone talking about this?

To present a clear picture of how huge this opportunity is, according to CryptoSlam! -a website that tracks all NFT sales- just in the last 30 days the NFTs sales volume has been $2,8 billion dollars . Pretty crazy, huh?

There have been some wildly successful NFT projects that have raised interest from general media and generated huge amounts of money in sales. Cryptopunks is probably the most notorious project out there, launched in 2017. To give you an idea of its relevance, in just 7 days generates 15.228,77 ETH in transactions (47.716.761,90 USD). With a total of 500.000 ETH (1.5B+ USD) since its inception.

Bored Ape Yacht Club is a collection that has been a lot in the news. Besides the art, each of these 10.000 apes gives the owner access to a private Yacht Club. This project is a great example of how NFTs are growing into more than digital art and have expanded to include memberships, videogames and access to a metaverse.

Additionally, many celebrities and public figures have also embraced this trend and its possibilities. Snoop Dogg, Eminem, Tony Hawk, Lindsay Lohan, and many more have released their own NFT collections or supported others.

Want to find the best NFT business ideas to start in 2024?

We've put together 23 of the best NFT ideas to help you start an NFT business today. The main takeaway here is that around this huge trend many opportunities have risen, so you don't actually need to create your own NFT collection to start a business. If you're an artist, you should definitely keep reading because the opportunities for you in this space are endless. But when there's a gold rush, people who sell shovels tend to make lots of money. And this definitely looks a lot like a gold rush.

For each business idea below, we’ll show you real-world examples of other NFT businesses to help you see what it really takes.

Here's the full list:

1. Start an NFT community

How much you can make: $1,000,000/month

How long does it take to build: 5 days (?)

This is an awesome business opportunity that has blossomed within the NFT world. For those who don't know, practically every major (or aspiring) NFT collection has a huge online community. So the NFT enthusiasts are very familiar with participating in online communities. Not only that, they expect it to exist. And there's the business opportunity.

You could start an NFT business managing online communities for creators (it's easy to assume they won't have the time or the knowledge) or creating one and monetizing it.

Great news: To start, you only need a laptop and be familiar with Discord.

If you want to learn how others have built successful businesses around online communities, check out these case studies to learn all their secrets:

• Matt created a $180K/year learn-to-code community
• Courtlyn left her dream job to build a $5K/month community of creatives
• Steven and Ciaran built a community of 135K+ people around remote work

Wanna build an NFT community? Learn how:

2. Start a NFT marketplace

How much you can make: $30,000/month

How long does it take to build: 60 days (?)

A marketplace is a platform that enables trade in NFTs. Think Etsy for NFTs . Artists create their collections but they need a place to sell them and since most people aren't familiar with the technology behind (blockchain, smart contracts), these marketplaces are a very popular choice to sell artwork because they're secure and very easy to use.

The online marketplace OpenSea it's now worth $13.3B following a recent investment of $300M. Other successful examples are Rarible or the NBA Top Shot Marketplace .

Enabling these trades is key to this industry, try thinking about how you can improve current solutions and you could win big.

This video (2+ hours long) is a great place to start to get familiar with the technology and its possibilities.

Case Study How We Accidentally Built The Most Advanced NFT System In The World RMRK developed the most advanced NFT system in the world, generating $1 million per month in volume and $30k per month in revenue, due to founder Bruno's hack to put NFTs onto a chain without smart contracts. $30K Monthly Revenue $350K Startup Costs 3 10.4K

Learn how to build a NFT marketplace with this workshop:

3. Create an online course ($1.09M/year)

How much you can make: $350 — $1,000,000/month

How much does it cost to start: $2,000 (?)

How long does it take to build: 87 days (?)

This is an NFT business idea that is perfect if you're not an artist or a developer. What do you need to create a successful online course? To have more knowledge of a specific field than other people. As the world of NFTs is something relatively new, it is still very easy to learn about it and share it with those who know very little about it (most people).

Once you have the knowledge, creating an NFT online course and distributing it is tremendously simple. There are numerous platforms that will help you create the course, distribute it and collect the money from sales.

Learn more about starting an online course ➜

Case Study How This 28-Year-Old Couple Quit Their Jobs And Make $20K/Month Running A Blog Learn how one couple created a successful personal finance blog, The Savvy Couple, that now makes over $20,000 per month and has sold thousands of digital workbooks and courses, by focusing on purposeful content and optimizing their ROI with efficient time management. $20K Monthly Revenue $500 Startup Costs 21 28.5K

Look how such NFT course can look like:

4. Start an influencer marketing business ($48K/year)

How much you can make: $2,000/month

How long does it take to build: 101 days (?)

One of the main ways that NFT collections get the word out and get sold is through influencers. Lots of celebrities like Snoop Dogg , Neymar Jr or Gary Vaynerchuk have come forward and promoted or bought NFTs already.

But you don't need to have those super high-level connections to start an NFT influencer marketing business. Instead of trying to hire someone with 3M followers, you could contact several people with 50K followers. That's doable and will also spread the word, sometimes even better because these influencers with smaller audiences appeal to more specific user segments vs. those huge celebrities with very broad audiences.

So, if you're looking for an NFT-related idea to make money this is one that needs zero investment and can show results quickly.

Learn more about starting an influencer marketing business ➜

Case Study I Created A Two-Sided Marketplace That Helps Brands Find Influencers Afluencer is a two-sided marketplace that connects brands with influencers and helps influencers, creators, and ambassadors find paid gigs, with 6,500+ active influencer users and 1,000+ brand users yielding 100% YoY revenue growth. $2K Monthly Revenue $500K Startup Costs 3 3.83K

Learn more about NFT influencer marketing:

5. Become an NFT artist

How much you can make: $12,500 — $1,000,000/month

How long does it take to build: 19 days (?)

The raise of NFTs has opened many possibilities for artists of almost all disciplines. And that's why creators from widely different fields have embraced them.

1. New audience. People that were completely outside the world of art dealing have now bought and/or sold pieces of art thanks to NFTs.

2. Transparency. Thanks to smart contracts' technology, all the bidding history is recorded and public.

3. Future profits. Creators now will receive a percentage of future resales of their work (each previous owner does).

From unknown artists that were borrowing money and now have made $4M in one day , to the Japanese pop artist superstar Takashi Murakami or the comic artist Guillem March ; many artists have spotted its benefits.

The world is hungry for exciting NFT art right now, if you're a creator this is probably one of the most favorable scenarios you will ever experience.

How to become successful NFT artist?

6. Start a charity that accepts cryptocurrencies

NFT artists have developed strong ties with charitable causes. An increasing number of NFT projects have taken the initiative to donate a portion of their profits from sales to charities.

With NFTs selling prices reaching millions of dollars, their donations can be huge sometimes. NFTs are becoming a major force in charitable fundraising . By both pledging these generous donations and being vocals about the issues that they care, these creators are having a huge impact on the fundraising space.

As of November 2021, the 10 most charitable NFT projects have donated over $7.8M to support causes such as mental health, wildlife preservation, or education.

While traditional raising strategies can be challenging, developing ties with the NFT community can be extremely beneficial for nonprofit organizations .

If you're a nonprofit organization that wants to accept donations in the form of cryptocurrencies, this recorded webinar is a great resource to start from.

Learn more about crypto charity:

7. Start a blockchain services business

How much you can make: $1,000/month

How much does it cost to start: $7,050 (?)

How long does it take to build: 180 days (?)

A blockchain is a list of records -blocks- linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

Blockchain services are perfect for companies who want a better and more transparent way to organize their information. The blockchain can be used for practically every type of business transaction , not just NFTs and cryptocurrencies.

You can probably think of industries and applications that would benefit from this technology.

Examples of a successful blockchain services business:

• Block Gemini Technologies
• Juggernaut (JGN)

Here are some great videos on how to get started with a blockchain services business:

• How To Start A Blockchain Services Business
• How To Start A Blockchain Business

For further info, check out these books and products:

• Oracle Blockchain Quick Start Guide: A Practical Approach
• Blockchain For Business: 9780135581353: Computer Science

Learn more about starting a blockchain services business ➜

Case Study Empowering Nigerians To Learn Tech With Our $1K/Month Education Business "Case Study: Olidrel Hub, a Nigerian tech training platform, attracts over 80 interested participants with word-of-mouth marketing, receives initial investment of $2000, and aims to empower 2,000 youths in the next 5 years." $1K Monthly Revenue $4.1K Startup Costs 9 2.11K

How to start such business yourself?

8. Start a blog about NFTs ($313K/year)

How much you can make: $200 — $293,220/month

How much does it cost to start: $500 (?)

How long does it take to build: 44 days (?)

Time commitment per week: Min. 5 hours/week

Blogging is one of those activities that can be applied to almost every industry that you can imagine. Even though a new social network comes in our way with newer and quicker ways to create content, the truth is that blogs have been around for ages and they're going nowhere .

When a topic is so new and mostly unknown to the greater part of the population, Google is where they go to ask their questions about it. When a middle-aged dad wants to know " what the heck are NFTs " he googles it; but when an expert marketer that runs a Discord community has a specific issue she also goes to Google looking for answers.

As you can see, the interest in NFTs is growing non-stop, and considering that they're far from being mainstream, content consumption can only increase. Believe it or not, it's still early to start a blog about NFTs and make money with it . Comment on current news, share thoughts about upcoming collections, create guides,... the possibilities for releasing eye-grabbing content are endless.

The good news is that to start this type of business all you need is a computer.

And if you're still hesitant whether or not you can make money blogging about NFTs , read these case studies below of people who have done it before and learn from their experiences as a cheat code to start your blogging business:

• Michelle makes $100K/month with her blog about personal finance
• Katie's lifestyle blog brings a 6-figures net profit
• This $600K/year blog about books

Here are some great videos on how to get started with a blog:

• Starting A Blog In 2020 That Actually Makes Money: Tips For Beginners
• Make Money Blogging (How We Built A $100,000/Month Blog) 10 Simple Steps
• Start Your Own Blogging Business: Generate Income From Advertisers, Subscribers, Merchandising, And More (StartUp Series)
• How to Start a Home-based Blogging Business (Home-Based Business Series): Brett Snyder

Learn more about starting a blog ➜

Learn how to start a blog:

9. Start a cryptocurrency business ($729K/year)

How much you can make: $3,699 — $220,000/month

Examples of a successful cryptocurrency business:

• CoinMarketCap

Here are some great videos on how to get started with a cryptocurrency business:

• How To Start Your Own Cryptocurrency
• Starting A Cryptocurrency Company? You Probably Need This!
• Cryptocurrency Investing For Dummies: Kiana Danial
• Technical Analysis: Cryptocurrency Trading Basics - How To Start Making Money In Cryptocurrency For Newbies (A step-by-step, easy and simple learning system designed specially for beginners.)

Learn more about starting a cryptocurrency business ➜

Case Study Earning $32,000 in 30 Days With a Crypto-Filled USB Drive CBlocks is a cryptocurrency startup that generates random wallets of the top 100 cryptocurrencies, funds them, and ships them on a USB drive alongside software to manage them, with $32k made in the first 30 days and almost $3k on their second day from being featured in TheNextWeb, Forbes, The Outline & LifeHacker all within their first 3 weeks. $32K Monthly Revenue 9 13.6K

Here are some ideas for such cryptocurreny business:

10. Start a crypto cybersecurity system ($1.93M/year)

How much you can make: $91,000 — $230,000/month

How long does it take to build: 300 days (?)

Examples of a successful crypto cybersecurity system:

• Compuquip Cybersecurity
• Cybersecurity Conferences 2020
• Fidelis Cybersecurity

Here are some great videos on how to get started with a crypto cybersecurity system:

• How To Become A Cybersecurity Engineer?
• Cybersecurity: Crash Course Computer Science #31
• Beginners Guide: How To Become A Cyber-Security Analyst: Phase 1 - Fisma Compliance (RMF): Paul Oyelakin
• Phase 1 - How To Become A Cyber-Security Analyst

Learn more about starting a crypto cybersecurity system ➜

Case Study How I Started A $45K/Month Cybersecurity Consulting Firm For Startups Cybersecurity consulting firm Eden Data, launched in March 2020, scaled to four team members and generated over $45k MRR without large startup costs through their unique Virtual CISO offering, which outsources cybersecurity and compliance needs for a flat monthly price, rather than charging by the hour or for long-term commitments. $230K Monthly Revenue 14 35.6K

Learn how to start in this field:

11. Start a cryptocurrency exchange service ($440K/year)

How much you can make: $25,000 — $50,000/month

How long does it take to build: 150 days (?)

Examples of a successful cryptocurrency exchange service:

Here are some great videos on how to get started with a cryptocurrency exchange service:

• How To Start A Crypto Exchange Platform (Cryptocurrency)
• Launch A Cryptocurrency Exchange With Zero Coding!
• Programming Bitcoin: Learn How To Program Bitcoin From Scratch
• Launch an ICO. Successful Initial Coin Offering & Token Crowdsale: The Complete Guide to Prepare your Startup for Launching Successful Initial Coin Offering, raising Venture & Cryptocurrency Capital

Learn more about starting a cryptocurrency exchange service ➜

Case Study How We Built A Cryptocurrency Exchange With 200K Active Users SimpleSwap, a user-friendly and reliable service for cryptocurrency exchanges, attracts over 200,000 monthly active users with an average monthly revenue of $50,000 by offering a simple and convenient exchange process and superior customer support. $50K Monthly Revenue $0 Startup Costs 4 5.79K

Learn how to start your own crypto exchange:

12. NFTs for music

Even though the music streaming platforms are fairly new, these haven't improved the situation on how poorly designed is the royalties distribution system and how little are artists compensated for their work. Including some fairly popular ones. Fact: Most of Spotify's top 0.8% of artists earn less than $50,000 in streaming revenue.

Musicians and bands using NFTs could easily track sales (remember that the creator takes a % of every sale made in the future), compared to the difficulty of following up the number of plays on each streaming platform and remembering to request their payment. It's known that tens of thousands of dollars in royalties concept are never claimed to record labels each year.

But NFTs for music could also mean creating new kinds of products, not just songs. Remember when concert tickets should be beautiful and had awesome designs? Bands can now design cool tickets for each tour and give them away for free as NFTs to concert attendees. Collectibles, accessories for online avatars,.. the opportunities are endless.

If you're interested in selling music NFTs, this video is a good place to start.

And if you want to learn more about music NFTs, here is all you need to know:

13. Sell fashion accessories to metaverse users

How much you can make: $1,500 — $120,000/month

How much does it cost to start: $7,250 (?)

How long does it take to build: 272 days (?)

Although this is a fairly new concept, there is future potential for the fashion industry to be an important part of the metaverse.

The opportunity for the fashion industry : Users can spend money on NFT clothes and accessories for their avatars.

Selling 'virtual outfits' through the metaverse could very well generate an entirely new revenue stream for fashion entrepreneurs, designers, and brands.

Learn more:

14. Start a bitcoin crowdfunding website

How much you can make: $10,000/month

How long does it take to build: 365 days (?)

Examples of a successful bitcoin crowdfunding website:

• MicroVentures

Here are some great videos on how to get started with a bitcoin crowdfunding website:

• How To Start A Bitcoin Fundraising Campaign - Crowdfunding
• How To Create A Donation Website Like Gofundme - Crowdfunding Plugin For Wordpress
• Bitcoin For Dummies (For Dummies (Business & Personal Finance))
• Crack The Funding Code: How Investors Think And What They Need To Hear To Fund Your Startup

Learn more about starting a bitcoin crowdfunding website ➜

Case Study On Creating An Ecosystem For The Creation Of Tokens And Digital Coins MintMe revolutionizes the crypto-crowdfunding space by offering a platform for both token creators and supporters to earn money through token trading, boasting over 1 million users worldwide and attracting clients through direct engagement and continuous improvements. $1K Monthly Revenue $100K Startup Costs 1 5.75K

Check how such website can look like:

15. Start a bitcoin vending machine

Examples of a successful bitcoin vending machine:

• Lamassu Bitcoin ATMs

Here are some great videos on how to get started with a bitcoin vending machine:

• The Bitcoin Vending Machine
• Bitcoin Atms - How To Use Them
• How To Start A Bitcoin Atm Business: Creating A Business Inside Of A
• Bitcoin: Bitcoin Book For Beginners: How To Buy Bitcoin

Learn more about starting a bitcoin vending machine ➜

Learn how to start such a business:

16. Start a decentralized app

How long does it take to build: 350 days (?)

Examples of a successful decentralized app:

Here are some great videos on how to get started with a decentralized app:

• A Guide To Building Your First Decentralized Application
• Animated: Why Nobody Uses Decentralized Apps
• Decentralized Applications (DAPPS): An Introduction for Developers
• Learn Ethereum: Build Your Own Decentralized Applications

Learn more about starting a decentralized app ➜

Learn how to build such app:

17. Start a NFT cryptocurrency

How long does it take to build: 12 days (?)

Examples of a successful NFT cryptocurrency:

• CryptoKitties

Here are some great videos on how to get started with a NFT cryptocurrency:

• Nfts Are Your Best Opportunity To Get Rich In 2020
• How To Make Nft Art (And Get Some Rare Nft Crypto For Free!)
• Getting Started with Crypto Trading: Learn the Essentials of Cryptocurrency and How to Start Making Money Now: Sean Haddad
• Crypto Primer: How to Start Investing in the Runaway Cryptocurrency Bull Market

Learn more about starting a NFT cryptocurrency ➜

Learn how to start your own NFT cryptocurrency:

18. Become a bitcoin broker

Examples of a successful bitcoin broker:

Here are some great videos on how to get started with a bitcoin broker:

• How To Buy Bitcoin With Ease And Become A Cryptocurrency Broker
• How To Buy/Use Bitcoin? Best Brokers & Exchanges Explained ⌚⌛
• The Bitcoin Guidebook: How To Obtain, Invest, And Spend The World's First Decentralized Cryptocurrency: Ian DeMartino

Learn more about starting a bitcoin broker ➜

Learn how to become such broker:

19. Start a DeFi company

Examples of a successful DeFi company:

Here are some great videos on how to get started with a DeFi company:

• 5 Ways To Invest In Defi
• How To Make Money With Defi Simplified! 3 Easy Steps
• Startup: The Complete Handbook for Launching a Company for Less: Elizabeth Edwards
• Start Your Own Corporation: Why the Rich Own Their Own Companies and Everyone Else Works for Them (Rich Dad Advisors)

Learn more about starting a DeFi company ➜

Learn how to do this yourself:

20. Start a NFT loan platform

Examples of a successful NFT loan platform:

• coingape.com
• DeFi For You.

Here are some great videos on how to get started with a NFT loan platform:

• Nft Gem: Stater Finance Open-Source Lending Platform For Nft Assets
• Stater Nft Lending Platform Overview
• How to Start, Run & Grow a Part-Time Notary Public & Loan Signing Agent Business: DIY Startup Guide For All 50 States & DC: Richard Bailey
• Mortgage Loan Processing Training Manual: Heather L Hegle

Learn more about starting a NFT loan platform ➜

Here is a great example of such platform:

21. Start a NFT news site

Examples of a successful NFT news site:

Here are some great videos on how to get started with a NFT news site:

• The Video That Will Get You To Start Your Nft Journey
• Nft Tutorial: How To Buy, Sell, And Interact With Non-Fungible Tokens
• Media Training 101: A Guide To Meeting The Press: Sally Stewart

Learn more about starting a NFT news site ➜

If you want to start a NFT news site, check this awesome guide:

22. Become a NFT broker

Examples of a successful NFT broker:

Here are some great videos on how to get started with a NFT broker:

• Mastering Nft: Practical Guide For Beginners And Advanced: Alfredo Antonio de Candia
• The Nft Revolution: 2021 Beginners Guide How

Learn more about starting a NFT broker ➜

23. Write a NFT book

Examples of a successful NFT book:

• CryptoSlam!
• Dendy Cinemas

Here are some great videos on how to get started with a NFT book:

• How To Create Nfts (Non Fungible Tokens)
• The Abc Of Nft , Nutrient Film Technique : The World's First Method Of Crop Production Without A Solid Rooting Medium: Dr. Allen Cooper
• How to Start a Business: Startup Essentials-The Simple, Step-by-Step Guide to Successfully Start Your Own Business (Online Business, Small Business, Work ... (Business Startup for Newbies Book 2)

Learn more about starting a NFT book ➜

Learn how to write a book:

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• Small Business

5 Small Business Myths That Can Hold Your Business Back

Published on July 18, 2024

By: Danielle Antosz

Small business writer

• You don't necessarily need a lot of capital to build a business, but getting the right business loan can help.
• Business plans matter, but don't let the process of writing one stop you from starting your business.
• Don't try to market everywhere or offer low pricing to attract customers -- focus on providing value and marketing on channels your customers use.

According to the U.S. Small Business Administration, small businesses make up 46.4% of the private business market. This means despite the number of businesses that fail, millions of small business owners are growing and succeeding. You could be one of them.

1. You need a lot of capital to get started

Not all businesses have high start-up costs. In fact, most companies can be started with a few hundred dollars or less. Sure, if you want to build a unicorn software company or develop and sell a high-priced tech item, you might need a lot of start-up capital.

But most small businesses don't require millions from angel investors. Think about how you can start small and build over time. If you want to open a restaurant, maybe start with a food truck. If you want to build an accounting firm, begin by taking on a few freelance clients. Don't let the lack of capital stop you from getting started.

2. You should avoid debt at all costs

Debt isn't inherently bad. Debt taken on with a clear vision and solid plan can be the key to long-term growth. Being strategic about taking on debt can limit the risk of taking out loans.

Why a Business Credit Card Could Transform Your Small Business

These business credit cards that offer a convenient and efficient way to separate personal and business expenses, simplifying accounting and tax reporting.

Additionally, business cards can provide valuable perks such as rewards points, cashback, and expense tracking tools, enhancing financial management and the potential to help save money in the long run.

3. You have to follow a detailed business plan

You do need a business plan, but you don't need to spend four months writing out a meticulous 40-page business plan that covers every conceivable process, marketing strategy, and funding option.

Instead, spend a week or two writing out what services your business will offer, who you'll offer those services to, and how you'll find customers. Including information about processes and sales metrics can be helpful, but don't let the process of writing a business plan stop you from getting started.

I heard a phrase early in my career that really stuck with me: "Done is better than perfect." Keep that in mind as you write your business plan.

4. Marketing is all or nothing

Marketing is key to business success, but it's not an all-or-nothing game. You don't need to be on every social media platform, invest in search engine optimization , build an affiliate program, and land spots on your local radio station. In fact, trying to be on all the marketing channels at once is an excellent way to burn out and waste resources.

Think about where your customers are and focus your efforts there. For example, if you own a power-washing business, customers are likely on Facebook and NextDoor looking for referrals, not LinkedIn. In some cases, word of mouth might be a better strategy than paying for marketing. Focus on one or two marketing channels that make sense for your business and your customer base.

5. Low pricing is the best way to stand out

While low pricing might initially attract customers, it often results in razor-thin profit margins and is unsustainable. It might also cause customers to assume your offering is of lower quality than your competitors.

To attract customers, focus on providing quality products or services and excellent customer service. Explain the value your business offers and how it will improve their lives or make their jobs easier. If pricing really feels like a stumbling block, consider offering a short-term price reduction, like a discounted first service or a free consultation.

There are a lot of myths about owning a small business . While some of them are true, like the freedom that comes with being your own boss, some myths will limit your success. By adopting a more flexible and strategic approach to taking on debt, marketing, writing a business plan, and setting prices, you'll build a stronger, more resilient business.

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Danielle is a small business and finance industry writer based in Ohio. She writes about tech, finance, and small businesses for The Ascent and other industry publications.

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A federal court has now blocked Biden's new student-loan repayment plan in full, prohibiting borrowers from getting cheaper payments and debt cancellation

• The 8th Circuit on Thursday blocked the SAVE student-loan repayment plan in full.
• This means debt cancellation and cheaper payments through the plan cannot be implemented. 
• This also reverses the 10th Circuit's decision that allowed some of SAVE's provisions to continue.

A major repayment plan for millions of student-loan borrowers is once again blocked.

On Thursday, the 8th Circuit Court of Appeals ruled that the SAVE plan, intended to lower borrowers' monthly payments and give many of them a shorter timeline for loan forgiveness, cannot be implemented as the legal process continues.

It follows a series of legal challenges to the plan. Earlier this year, two separate groups of GOP state attorneys general filed lawsuits to block the SAVE plan, and at the end of June, two federal courts placed preliminary injunctions on the plan .

Just days later, however, the 10th Circuit appeals court granted the Biden administration's request to stay one of the rulings, allowing provisions that were set to go into effect in July — including cheaper payments — to move forward.

Thursday's ruling from the 8th Circuit blocked all provisions of SAVE in a one-sentence ruling: "Appellants' emergency motion for an administrative stay prohibiting the appellees from implementing or acting pursuant to the Final Rule until this Court rules on the appellants' motion for an injunction pending appeal is granted."

An Education Department spokesperson told Business Insider, "We are assessing the impacts of this ruling and will be in touch directly with borrowers with any impacts that affect them."

Related stories

"Our Administration will continue to aggressively defend the SAVE Plan — which has been helping over 8 million borrowers access lower monthly payments, including 4.5 million borrowers who have had a zero dollar payment each month," the spokesperson said. "And, we won't stop fighting against Republican elected officials' efforts to raise costs on millions of their own constituents' student loan payments."

Thursday's ruling was in response to the lawsuit led by Missouri's attorney general. Kansas is leading the other lawsuit to block SAVE, which it has requested the Supreme Court take on. SCOTUS hasn't yet said whether it will.

But the Education Department recently filed a response to the Supreme Court detailing the steps the department and borrowers would be forced to take should the SAVE plan be blocked. Solicitor General Elizabeth Prelogar wrote that if the plan couldn't be carried out, the department must put borrowers on forbearance as they recalculate new payments.

"Many have already received bills that reflect the decrease in monthly payments to 5% of their discretionary income," she wrote. "Many would experience intense confusion when they are told that their payments must be recalculated and that they must be placed in forbearance -- which would delay any eventual loan forgiveness."

The back-and-forth rulings have already prompted payment delays and confusion among borrowers. After the 10th circuit allowed SAVE's June provisions to move forward, the Education Department moved to direct servicers to begin processing the new, lower payments for borrowers. The department also clarified at the time that because of the lawsuits, payments wouldn't become due until July or August.

That timeline is now in flux, and borrowers will once again be waiting for clarity on the status of their payments and what will happen to their SAVE benefits now that the plan is blocked.

Watch: Why student loans aren't canceled, and what Biden's going to do about it

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Reporting by Nobuhiro Kubo, Tim Kelly; additional reporting by Mike Stone, Allison Lampert, Idrees Ali and Kaori Kaneko; Editing by Gerry Doyle and Sam Holmes

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Union Pacific's quarterly profit rises 7%

Union Pacific reported a 7% rise in second-quarter profit on Thursday, helped by price hikes implemented by the U.S. railroad operator.

Nasdaq tumbles 3% in worst day of the year amid tech-earnings rout

• US stocks tumbled on Wednesday, with the Nasdaq suffering its worst decline of 2024.
• Tesla missed earnings estimates for the second quarter, and Alphabet's YouTube ad revenue missed.
• More megacap tech firms are on deck to report results next week.

The technology sector led US stocks lower Wednesday, with the Nasdaq plunging 3% as it headed for its worst trading day of the year.

Investors fled the tech sector amid disappointing earnings on Tuesday, with Tesla missing estimates and Alphabet reporting that YouTube ad revenue fell short of expectations last quarter. Tesla shares were down more than 10% at 12:50 p.m. ET, trading at $220.85, while Alphabet shares fell 5% to $174.40.

"This is the fourth successive quarter of earnings misses, a first for Elon Musk's visionary EV maker," David Morrison, a senior market analyst at Trade Nation, said of Tesla in a note. "The question is how this will affect sentiment going forward? Will today's sell-off prove to be an isolated, knee-jerk reaction which quickly dissipates? Or could it poison the well as the Q2 earnings season picks up?"

Investors are eyeing a slew of coming high-profile earnings reports, with Meta, Apple, and Amazon on deck to present their financials next week.

On the economic front, Thursday will see the reveal of second-quarter GDP figures, and the Federal Reserve's favorite inflation measure is set to be published on Friday. The personal consumption expenditures index is expected to show inflation continued to cool last month, with prices rising by 2.5%. GDP, meanwhile, is expected to clock in at 2.1%, higher than the revised first-quarter reading of 1.4%.

Here's where US indexes stood shortly after midday on Wednesday:

• S&P 500 : 5,456.69, down 1.78%.
• Dow Jones Industrial Average : 40,015.58, down 0.85% (-342.51 points).
• Nasdaq composite : 17,469.09, down 2.95%.

Here's what else is going on today:

• There are four bullish signals pointing to more gains ahead for the stock market, Bank of America said.
• There's a big rotation from cash to stocks — and it could help push the S&P 500 up 17% by the end of the year, according to UBS.
• The stock market is approaching two catalysts that could help spark the next leg of the bull run .
• The Fed is going to cut rates only once in 2024 as shelter inflation is too high and the job market remains too hot, Vanguard said.

In commodities, bonds, and crypto:

Oil futures were up. West Texas Intermediate crude oil rose 0.9% to $77.65 a barrel. Brent crude , the international benchmark, was up 0.7% to $81.57 a barrel.

• Gold inched higher 0.4% to $2,417 an ounce.
• The 10-year Treasury yield dropped two basis points to 4.218%.
• Bitcoin inched up to $66,723.

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More From Forbes

Cybersecurity cya, spaving, and bad store labor math: retail insights.

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If you cut store labor by 10%, that's like cutting your store hours by 10%.

There have already been too many jokes about everything that happened last week, and I could constrain myself entirely to retail and still have a very healthy list of things that happened. Some of them are included below, but special shoutout to the global IT outage . This was not a retail technology thing, but retail is consistently one of the top targets for cybersecurity threats so it’s not at all surprising that everyone from Starbucks to Morrisons (a grocery retailer in the UK) and everyone in between had, at a minimum, a scary gut check if not having to scramble into all-out recovery mode.

In all things, not just retail technology, it’s tempting and easy to pass the buck – to shift responsibility to someone else. That’s especially so when it comes to cybersecurity, where, at least before last week, you could claim “If I don’t auto-apply the patch right away, it creates risk for us. But if I do auto-apply the patch immediately, even if it’s bad, it’s not my fault.” I’m not so sure that this claim will stand going forward, but it’s very easy to see how the whole chain of events unfolded, and it’s back to what is ultimately the weakest link in any security chain: the human element.

There also happened to be a lot of sales this week, driven by Amazon’s Prime Day, and a growing realization that back to school spending may now be inextricably linked to the shopping holiday. Oh yes, and consumers can pay real money for a day-pass to a Taco Bell-themed “early retirement community for the young at heart.” Let’s dive in!

Retail Economic Indicators

After the CNBC/NRF Retail Monitor and Deloitte both released their early takes on US consumer spending in June, the more “official” report came out from the US Commerce Department, and it was less optimistic than the other two, but by no means pessimistic. This is another one where you have to really pay attention and go beyond a surface level reading . May retail sales were revised upwards, and then June’s monthly sales came in unchanged to May’s. More importantly, year over year June sales were up 2.3%. A drop in auto sales (still impacted by high interest rates) was offset by a rise in consumer spending more broadly.

A Jungle Scout report found that 1/3 of consumers cut spending in the second quarter of 2024. That would match up with a 2.3% year over year growth, where spending did not outpace inflation. 84% of consumers said their spending was impacted by inflation. Baby Boomers were the least likely to increase their spending, but you could look at other earlier studies that pointed to Baby Boomers as the ones sustaining spending longer, so I guess they just can’t keep increasing their buying any more.

Google Confirms Bad News For 3 Billion Chrome Users—You Will Still Be Tracked

Here’s why biden says he dropped out—in first speech since leaving 2024 race, today’s nyt mini crossword clues and answers for thursday, july 25, retail tech & research data.

Dynamic pricing has been in the news a lot lately, between the Wendy’s fiasco and Walmart’s impending ESL deployment. At some point, someone was going to ask consumers what it would take to get them to accept dynamic pricing in retail, and NerdWallet, via The Harris Poll, delivered . According to their survey, 22% of US consumers say they would not spend money at a business that uses dynamic pricing. This was true for 29% of Gen X respondents, and 26% of Boomer respondents. This is funny because, considering Amazon’s Prime Day results, it’s very likely that a significant portion of these naysayers bought from Amazon, which deploys dynamic pricing all the time, including during the sale itself (see a red countdown until the deal is over? That would be a form of dynamic pricing). NerdWallet, to their credit, also pointed out that the vast majority of consumers are using dynamic pricing even if they don’t realize it. Notch up another win for “you can’t trust what consumers will say they do, until they actually do it.”

Retailers will do a lot to try to get consumers to spend, even when their confidence is low, the economy is or may be perceived to be bad, and inflation still bites. But with social media, consumers can catch on quickly to retailers’ tactics and tricks. The latest one is “spaving” – a portmanteau of “spending” and “saving.” According to Retail Brew : "In the 30 days ending June 30, there were 693 mentions of “spaving” on social media, an astonishing 34,550% increase over the previous 30 days, when there were just two, according to Hootsuite data…” This suggests to me that there is a growing awareness among consumers that this kind of promotion benefits the retailer, but does not necessarily benefit the consumer – and now, consumers are warning each other about it. But, it may also explain why consumers say they want to spend less and trade down, but keep ending up spending anyway.

Keeping on the theme of whether retailers really care about consumers or are just looking for ways to get them to spend more money, eMarketer published data from SellerApp that shows that customer acquisition costs in digital channels are back on the rise, and conversion rates are down. This is part of why Retail Media Networks are taking off.

During the pandemic, with stores closed, every retailer in the world whether newbie or totally digitally-savvy had to turn to digital advertising to win customers, driving up CPA to astronomical levels - $200+. The costs did come down as stores reopened, but they’re still running at least 2x the rates seen before the pandemic, and conversion rates have not improved (and the cookieless future offers no promise of relief). The ability to target shoppers is on the decline, so it will continue to cost you more to get in front of the right people.

According to the data, clothing, shoes, and jewelry have much higher than average conversion rates, around 5.5%. CPA for these categories is toward the lower end at $66 per customer. Automotive had the highest CPA at $78, but one of the lowest conversion rates of 1.4%.

This may explain why this article about the Apple Notes app and Gen Z took a depressing turn. It started out really interesting. Apple upgraded the Notes App, which can do lots more things than it used to. But Gen Z combined the app with the messaging stickers to take outfit selfies that can be stored and sorted and searched in the Notes app, basically accomplishing what millions of dollars poured into virtual closets did not. Cool.

Except that the depressing turn came when the article asked “How can brands get in on this?”, pointing out that because it’s a private app, brands had no opportunity to snoop on user behavior or monetize it. You could even point out that it’s somewhat anti-consumption because it helps users fall back in love with items they haven’t worn in a while vs. forgetting they own it and buying something new. But rather than trying to horn in on personal organization, a better question to ask might be “how do I win loyalty by being helpful and facilitating the use of something my customers find valuable?” – can you provide outfit selfie stations in fitting rooms? A green screen to make it easier to cut out the sticker? Provide stickers of items that customers buy so they can download and save them (wait, that sounds like an NFT). There should be plenty of ways for retailers to get value out of the trend without barging into their customers’ closets – or their phones.

I feel like this next story might belong under Economic Indicators, rather than Research Data, but here we are. A new study found that 97% of shoppers taking a GLP-1 inhibitor have reported that they have cut their spending, to the tune of an average of 11%. Snacks, prepared baked goods, candy, and sugary beverages saw the largest pullback. 27% said they had increased their purchase of lean meats. 19% said they increased their purchase of diet foods and meal replacements. Companies like Nestle have already said they’re working on new brands and choices that will appeal to GLP-1 shoppers. We’ll see if they can fit into those shoppers’ new desires and sensibilities.

Finally, NRF with Planalytics published a white paper on the impact that weather and climate have on retail sales. There was a lot of advice in the paper, but two data points stood out: the American Meteorological Society estimates that 3.4% of retail sales are directly impacted by the weather, influencing $1T of sales globally. And, 90% of weather-related sales volatility results from day-to-day changes in temperature and precipitation. My take-away is, yes we can see trends that will impact long-range planning decisions that retailers will have to make. But also, consumers will likely react most strongly in the near-term moment, which means that identifying when and where spending will be impacted most strongly will be very difficult, and even worse when it comes to having enough time to marshal a response.

AI & Retail

Amazon launched Rufus, a GenAI app, to all customers, and the company claimed that millions of customers used it during Prime Days. I admit, I tried it. But it’s still all garbage in, garbage out. I would’ve loved to have had a curated selection of Prime Days sales presented to me. However, my husband and my kids use my login (we never set up the family thing, don’t ask), so all the choices are garbage. Between my daughter’s cosplay component shopping, my son’s robotics hobby, and my husband’s vampire-level of shopping for UV protection, not only were the recommendations garbage, I can’t even trust the sizes because of my daughter’s choices. Rufus, I’m sorry. You were not the bot I wanted you to be. I hope those millions of shoppers found greater satisfaction than I did.

Last week Ben Evans quoted something older, but it was new to me and might be new to you as well: “Half of LLM’s will be turning three bullet points into three paragraphs and the other half will be summarizing three paragraphs into three bullet points.” Also, he noted that Accenture is making more money off of GenAI than OpenAI is. And I don’t like to quote them without links, but I wasn’t in a place where I could save it and now I can’t find it – but I saw something that showed that consumer use of ChatGPT fell in May. Why? Because school was out. Which tells you a lot about how much anyone will be able to really monetize those users – they’re all broke teens in school.

Retail Winners and Losers: Back To School Edition

And now it’s almost August and the first back to school students will be gearing up for their return in a few weeks or less. So this week’s Retail Winners and Losers section is a special Back to School Edition.

JLL came out early and hot with a survey that found that parents were planning on spending 20%+ more in 2024 than in 2023. Cooler heads prevailed after that, with NRF reporting less spend than last year (but close – see below), and now Deloitte is in the game reporting that spending on clothing will be unchanged year over year, but spending on electronics will be down 11%. Tech and apparel are most likely to be pre-owned purchases, with nearly 40% of families planning to purchase this way. Families also plan to shop at more stores – 4.7 in 2024 vs. 3.9 in 2023. In grocery, we’ve seen the number of outlets visited rise from 2023 to 2024, as shoppers head to more stores in order to cherry pick the best deals. Like NRF, Deloitte also found that consumers are shopping earlier, with 66% expecting to finish their shopping lists by the end of July vs. 59% expected that in 2023.

NRF’s survey led them to predict that BTS spending will be down vs last year – to $874.68 on average for K-12 compared to $890.07 in 2023. 55% of shoppers had already started shopping in early July, but 86% said they still needed at least half the items on their list. But the headline stat was that 85% of BTS shoppers planned to shop Prime Days sales.

Which is why it’s not at all surprising that Amazon cleaned up during Prime Days, spurring millions of shopping trips and racking up over $14B in sales over the two days, according to Adobe Analytics. It’ll take a little longer to find out if retailers like Target and Macy’s, who tried to pile on with competing sales, also benefitted, or if this was just all Amazon.

Store Innovations

I’m not sure that this is a store innovation per se, but I will say that based on past experience (the Bell Hotel), when Taco Bell says they’re opening an early retirement community called The Cantinas – for the old at heart – and selling both a weekend membership and a day pass, you know they’re going to go all out. Other than the tie-in to the Cantina branded menu items, and picking up on pop culture trends among Millennials in particular, I’m not sure what this has to do with Taco Bell, but I am certainly not the first to cover it and I won’t be the last – it’s open for one weekend in August in San Diego. And half the people buying the tickets will undoubtedly be the press.

I thought the Bell Hotel was hilarious, complete with sauce packet pillows in the rooms. They promoted The Cantina ticket presales to rewards members via the app, and they have plenty of images you can use when covering the topic. So full marks for pulling on all the levers to promote it. What would be even better is if they did one franchise makeover every year, HGTV style, so that all this effort lasts more than a weekend and benefits more than just Taco Bell corporate…

Finally, and last is not least here, an article whose title says it all: “Stores are struggling. They need payroll, not tech.” Shout out to Kit Campoy for saying what needs to be said. Yes, I’m a tech person and I’m particularly interested in tech in stores. But there’s no point in funding tech in stores if no one is there to use it.

It wasn’t that long ago that retailers learned (probably not for the first time) that cutting labor in stores is akin to cutting store hours. You cut 10% of store hours, and you’re cutting 10% of your selling capability in that store, just as much as if you cut the open hours by 10%. Coming out of the pandemic, it wasn’t about cutting hours so much as it was about holding the line on payroll costs when labor costs were rising. But the net effect is the same, and it got so bad that consumers noticed and now theft is rampant. And now it’s going to cost a whole lot more – a real show of force – to convince would-be thieves that their window of opportunity has closed. That’s just the obvious pain. There’s also the pain of abandoned shopping trips because lines were too long or shoppers couldn’t get or find what they were looking for. There’s the loss of loyalty and decrease in return trips because it’s too painful to go back. Those things don’t show up in this quarter’s numbers. And when they do become obvious it’ll be way too late, and cost way more than 10% of the labor budget, to put things right.

I thought we all knew this.

The Bottom Line

What did I learn this week? Retailers have the corporate memories of goldfish (about 5 seconds?). I mean, it’s probably true that all companies have this failing, but it was on full display in the retail news of the last week. When retailers focus on sucking up as much data about consumers as they can, even if it’s creepy, when they come to believe that promotions and discounts are the road to long-term customer loyalty (it’s not), when they forget that what differentiates stores from online is the people there, then you know that they have lost their way.

I think we’re stuck. We’re locking into consumers saying they won’t give more versus retailers saying they must cut their way to growth (which pretty much never works). The only way out of this is to see if interest rates coming down someday unlock greater consumer confidence, which translates to spending, which retailers reinvest in creating great experiences. But that’s a lot of expectation to put onto a rate cut – perhaps too much.

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