One thing is for sure: deciding how much to charge for your artwork in the traditional art market is a lot more difficult in the NFT market. When it comes to determining the value of a piece of art, the process can be frustrating and overwhelming.
Depending on the marketplace (and blockchain) it can cost you hundreds of dollars in gas fees to list your art .
So, how do you determine a reasonable price for your art without going broke?
We can learn from other successful NFT creators, but no one can tell us exactly how to do it because everyone has a unique background and experience in the space that led them to where they are now. The value of your NFT masterpieces can, however, be determined by following a few guidelines.
Rare beyond compare
When selling NFTs, rarity is an important consideration. Are there over 10,000 NFT editions of your work, or is it unique, one of a kind? Or, like CryptoPunks, are there 10,000 variations?
Your pricing strategy will be heavily influenced by the scarcity of your artwork. Most collectors view it as more valuable as a collectible rather than as an original work of fine art. You can experiment to see what sells the best. There are some artists who sell their high-priced, limited-edition artworks faster than their multiple-edition, lower-priced counterparts. What your audience is most interested in can be determined by trying out a variety of pricing and rarity levels.
Artists on the rise vs. OG creators
Artists who have a solid following outside of the NFT space may struggle when they first move in (unless of course they are celebrities or mega star artists). Consider charging a lower price if you’re just starting out as an artist and have no previous sales history. There is already a lot of competition in the NFT market and sales aren’t as super-heated as just a few months ago.
The importance of making and maintaining professional contacts cannot be overstated. If you want to connect with other artists and potential buyers in the crypto community, you must join Twitter and become active there. It will be much easier to sell your art once you have gained some traction in the crypto and NFT community.
Consistently raise your floor price
When you first enter the art market, it’s easy to overestimate your artwork’s value due to the abundance of Twitter posts about big sales and the success of artists. Many people think it’s easy to be a successful artist and sell your work for a high price because the news only shows the big sales.
For example I priced my first work on OpenSea at 6 ETH or roughly $25,000 at the time of listing. Never apologize for the price you feel your art is worth. If people don’t want to buy it, they don’t have to. So far, they haven’t so I’m either going to have to step up my Twitter (I hardly ever tweet), continue to be patient and hope someone stumbles upon my work, or lower my price.
That being said, If you’re just getting started, it’s best to start with lower prices and work your way up to a higher ‘floor’ price.
Collectors are also interested in NFT art as an investment, so they can sell it at a profit later. It’s not a bad idea to lower the price of the original so that it will rise in value when it is resold.
Creating long-term value for NFTs is becoming increasingly dependent on utility. More and more collectors are looking for more than just a piece of art they can admire for its aesthetic qualities; they also want to use the NFT for something else, have unique benefits attached to it.
A great example is the Merge collection by Pak.
Various markets and a wide range of customers are available. Divide your NFT artwork into two or three distinct categories in order to appeal to a wider range of potential buyers. Buyers looking for inexpensive NFTs, middle-priced multiple editions, and highly sought-after, rare artworks can all be accommodated.
If you don’t sell anything in the first few months, don’t beat yourself up or quit. With so many artists out there, it can take a long time to get noticed, especially when you’re just getting started. It’s fine if your first few pieces don’t sell for what you expected. You can raise the price at any time. Don’t give up.
Continue to create patiently. In fact, create for yourself, not for others. Take pleasure in what you are doing and learn in the process.
Check out different platforms
Despite the fact that Ethereum is still the most popular platform, there are now a number of other blockchain-based applications. Start with as many as you can and see what works best for your artistic style.
When using OpenSea choose Polygon, not Ethereum as your hosting blockchain. You can list for free on Polygon while Ethereum will charge you.
It’s possible to sell low-priced collectibles on non-Ethereum platforms, and high-priced NFTs on the most exclusive Ethereum-based platforms. On the other hand, don’t try to sell the same piece of art at two different price points at the same time on two different platforms.
You can check out how I started my NFT art journey here.
Ultimately, it’s up to you to determine the value of your work. Don’t be afraid to experiment and remember that many artists are also collectors, so it’s worthwhile to connect with the community and support each other. Continue to innovate and create, be patient and you’ll find your NFT niche.
Jay Speakman is a technology writer based in San Francisco, California. He writes on the topics of blockchain, cryptocurrency, DeFi and other disruptive technologies. Clients include Avalanche, Be[in]Crypto, Trust Machines and several blogs devoted to blockchain gaming. He will not rest until fiat currency is defeated.