By Forward, November 29, 2021
If you are a record label, here are the main steps to leave your work as an NFT, a unique digital token traded on blockchain.
An NFT (which stands for Non-Fungible Token) is a unique digital asset stored on the blockchain. But what does that mean?
It means that a digital file, whether it's a song, a piece of artwork, a trading card, or anything else, can be stored on the blockchain as a unique collectible. NFTs cannot be forged, copied, or deleted.
But can't someone take a screenshot or duplicate an mp3 file associated with an NFT? Yes, they can. But it is no longer an NFT.
The NFT is the digital certificate associated with the asset, which proves who owns it. And because it is "non-fungible" (which means it cannot be replaced) and is secured by blockchain, there is no way to duplicate it. If you buy an NFT, no one can take it away from you unless you decide to sell it.
How do I create an NFT for my music?
If you're new to the world of cryptocurrencies, you'll need to understand how they work...
Bitcoin is like digital gold, and Ethereum is like a virtual computer that does what programmers tell it to do (the programs that run on Ethereum are called smart contracts).
Right now most of the platforms that help you create and sell NFTs run on Ethereum, but some people believe that soon, smart contracts and NFTs will run as another layer on top of Bitcoin (the world's most secure computer network). More on this later.
So here's what you need to do.
1. Choose the right NFT marketplace.
Some platforms allow anyone to create an NFT (such as Rarible, Mintable, and OpenSea, which is also the largest secondary market) and others are curated, such as Nifty Gateway, Foundation, SuperRare, and Zora. The latter are either curated by the community and can only be invited, or operate on the basis of a selection process.
2. Take a look at the commissions on primary sales and the Royalties on secondary sales.
Most marketplaces keep 15% of the total price of primary sales (but Zora, for example, has no commission on buying or selling).
The process of paying a creator fee to artists (typically ~10%) each time a token is traded is automatic. Not all platforms allow this, and if a token is traded on another platform, the artist does not always receive a royalty. However, SuperRare and Foundation also offer royalties for secondary sales on OpenSea (10%).
3. Download a cryptocurrency wallet capable of holding your NFTs.
As NFTs are stored on the blockchain, you will need to download a wallet to access and store them. You can download cryptocurrency wallets as browser extensions, or you can also have them in apps for your mobile phone, which you can download from your app store.
We particularly recommend MetaMask as it is one of the best cryptocurrency wallets at the moment. It is easy to set up and use even with a very basic knowledge of crypto and is compatible with the vast majority of NFT exchanges.
When creating a cryptocurrency wallet, you will also need to set up a private key and a secret passphrase to keep your NFTs secure.
Your private key is like your password. It's a string of numbers and letters that allows access to whatever you have stored on the blockchain, whether it's Bitcoin, altcoins, or NFTs.
You can also provide it with a secret phrase. This is a list of 12 words in a specific order and can be used to retrieve your wallet in case you lose access. Make sure you write these words down and keep them in a safe place. Be very careful: if you lose your seed phrase, you will not be able to retrieve it.
4. Create and sell your NFTs.
Creating and selling your NFT should not be a difficult task. For this example, we have chosen the OpenSea platform. To sell an NFT on OpenSea go to the Menu, then select Account, and finally go to your Profile where you can choose which of your NFTs you want to sell. Choose your NFT and then tap Sell. This will give you the ability to set the price of your NFT and schedule your listing.
When you go to sell an NFT on OpenSea, you will notice that there are four different types of listing options available for you to choose from:
Fixed Price (Buy Now)
The fixed price option will list your NFT for sale at an immediate purchase price. This listing strategy is simple and good if you have a fixed price for the NFT you are selling.
Dutch Auction (Start high and end low)
When you list your NFT for sale using the Dutch auction strategy, you simply set a starting price and ending price and the duration of the auction. As time progresses, the starting price decreases until the set minimum price is reached.
Auction (Starting Price, or reserve price)
The auction option is the standard English auction. You simply list your NFT for a minimum price and then allow buyers to bid on it. You also have the ability to set a reserve price and can accept any bid you wish.
Bundle (putting multiple CFNs into a single package)
Bundling your CFNs is a good option if you want to sell more than one CFN to the same buyer. When you bundle multiple CFNs, only one transaction is required instead of several, which means the buyer saves having to pay numerous gas fees.
In terms of fees, OpenSea has made it very simple for users. They take 2.5% of each transaction that takes place. That's all there is to it. Apart from that,
5. Promote your NFT on social media.
Use social media. Twitter works well for the cryptocurrency community. Combine it with Instagram, YouTube, or other strong channels. In addition to attractive images, make a short and interesting promotional video that you can share on your social media and promote. Set a budget for promotion.
Reach out to NFT communities on Reddit and Discord. Do your research and find the right pages. If you have any previous connections with the cryptocurrency community, drop them a line.
Send the news to blogs, media, and influencers. Personalize the message, don't just copy and paste. Focus on those who have a strong social media following and can give you a boost.
Promoting your NFTs on social media is a vital part, so take the time to research and create a promotion strategy.