NFT marketplaces have become a standard component of the crypto market where individuals can buy, sell, or trade digital assets authenticated and stored on a blockchain. As sellers make money trading NFTs on these marketplaces, the marketplaces also make money through these trades.
There is a lot of speculation about how NFT Marketplaces make money. Some people think that the platforms take a commission on every transaction, while others believe that the platforms earn revenue from advertising. However, both of these theories are partially correct. So, how do NFT Marketplaces make money? And more importantly, how do you make money with NFT? In this article, we will explore both of these questions in depth.
How Do NFT Marketplaces Make Money
There are several ways in which NFT marketplaces make money. The money made on these platforms helps maintain the site, pay the staff, and continue growing. Some of the common ways they make money include:
Fees Charged On The Platform
This is the most common way that NFT marketplaces make money. They do this in one of the following ways:
Commission on sales
This is where the marketplace takes a commission on each sale that is made on the site. For example, if someone sells an NFT for $100, the OpenSea marketplace might take a 2.5% cut, meaning they would make $2.5 from that sale. The commission charged on each sale can either be a percentage of the total sales or a flat fee.
Platforms such as Rarible charge 1% for the seller and 1% on the buyers’ side, while curated platforms such as SuperRare charge as high as 15%.
Listing fees
Another way these platforms make money is by charging listing fees for the NFTs sold on their site. Depending on the marketplace, the listing fee can be a one-time charge or a recurring one. This is generally a smaller percentage of the total sale, between 1-5%. The cost of listing an NFT often depends on the gas fee on the blockchain used to mint the NFT.
Subscriptions
NFT marketplaces also charge for subscription-based features. Users who subscribe to a premium account on the marketplace unlock additional features unavailable to free funds. Some of the common subscription features on NFT marketplaces include:
- dAPP customization features.
- Premium listing of the most valuable items.
- Advanced search options.
- Voting powers on the platform.
- Special membership status
These subscription-based features help marketplaces make recurring revenue, which is essential for long-term sustainability.
Advertising
Another way that NFT marketplaces make money is through advertising. Advertisers pay to have their products or services displayed on the marketplace in front of users interested in buying or selling NFTs. The amount of money that can be earned through advertising varies depending on the size and popularity of the marketplace.
NFT T-Bonds
T-Bonds work in a similar way to US Treasury Bond. Issuers sell the NFT T-Bonds to initial buyers for other cryptocurrencies at a discounted rate. The discounted price helps compensate for the non-liquid nature of the T-Bond. The buyer will then hold the T-Bonds for a certain period until certain conditions are met. They are then released to the crypto wallets of the buyer.
NFT marketplaces often act as the issuer of the T-Bond. The T-Bond can be a smart contract, ERC20 token, or any other type of digital asset.
How Do You Make Money On NFT
It’s now clear how NFT marketplaces make money to keep the platform running. But how do you make money with NFT? You aim to profit from your digital assets as an investor or creator in the NFT market.
There are several ways to make money with NFT, including:
Selling creations
One of the most common ways to make money with NFTs is by selling your art or other digital creations. If you create something in high demand, you can sell it for a high price and profit.
You can sell any digital asset, such as art and music, by creating a digital file and encoding it to an NFT. You can then list your NFT on an NFT marketplace and wait for someone to buy it. Ensure that when listing your NFT, you provide all the details, such as the title and price, to make it easy for interested buyers to find.
Investing in NFT
Another way to make money with NFTs is by investing in them. You can buy NFTs that you think will increase in value over time and then sell them at a higher price. This is similar to investing in stocks, except that you’re investing in digital assets.
To make money from investing in NFTs, you need to understand the market well and know which NFTs are likely to increase in value. You also need to be aware of the risks involved and only invest what you can afford to lose.
NFT staking
Staking is a process where you lock up your NFTs for a certain period in return for rewards. The dividends you receive depends on the type of NFT you’re staking and the length of time you stake it for.
NFT staking is an excellent way to earn passive income from your digital assets. It’s also a good way to support the development of a particular project or platform. NFT staking is a fairly new concept, unlike crypto staking. Consequently, it may require more research to understand how it works.
Invest in NFT startups
Many startups are working on developing new and innovative ways to use NFTs. As an investor, you can invest in these startups and help them grow. In return, you can receive a percentage of the profits or equity in the company.
NFTs have proved not to be a fad in the crypto market. Therefore, any NFT startup will likely succeed and make good profits. Therefore, being an early investor in these startups can lead to huge returns on your investment.
Conclusion
The NFT marketplace is a vast space with endless opportunities for users to make money. Whether you want to create your own NFT marketplace or make money on NFTs, these marketplaces provide the perfect platform for you. Research the perfect marketplace and start making money today.
