October 17, 2022 - By Hawke Partner

Are NFTs a Good Fit for Your Business?

Content, Latest, Web

This is a guest post from Verisart, an all-in-one ecommerce app that helps artists and businesses mint, sell, and tokengate to get started with NFTs and other Web3 opportunities! 

After seeing NFTs (non-fungible tokens) explode onto the world stage in 2021, you might be asking yourself, should my business sell NFTs? 

Over the past year, NFTs have made headlines for record sales, collecting frenzies and scams. When you look past the headlines, however, the technology that underpins NFTs has so much more to offer. From Coca-Cola to adidas, Louis Vuitton and Starbucks, brands are now embracing NFTs as tools for building communities, generating excitement and rewarding loyal customers. 

Starting out in the NFT space may seem overwhelming and difficult but as adoption continues to grow it’s becoming easier to find the tools you need to sell NFTs. 

If you’re thinking about launching NFTs for your business, we’ve broken down the process into three phases: 

  1. Why sell NFTs? Before you start getting your NFTs set up, take a step back and consider your NFT strategy. Keep reading to learn about your business can use NFTs in 5 different ways.
     
  2. How to sell NFTs? Selling NFTs has never been easier, thanks to Shopify and NFT minting apps like Verisart, brands and businesses can get set up in just one day.
  3. How to market NFTs? It’s important you set yourself up for success by creating a strong marketing plan. If you need advice on building a marketing strategy, agencies like Hawke Media provide easy access to marketing professionals. 

We cover the first two phases in this article and if you also need marketing inspiration, you can read 9 Ways to Promote Your Shopify Store for NFTs. Let’s dive in. 

Why Sell NFTs?

If you’re not sure if NFTs are a good fit for your business, here’s a quick look at 5 different applications that can help you grow your revenue and expand your community. 

Sell Digital Art and Collectibles

NFTs are most well-known for being digital artworks or collectibles. You’ve probably heard of NFT artists like Beeple or NFT collections like Bored Ape Yacht Club (BAYC). If you’re a business working with creators or a creative brand, this could be the right choice for you. From digital art to fashion, design and music, NFTs can be a great way of sharing creativity and building a new revenue stream. 

Giveaway Free NFTs 

Who doesn’t like giveaways and freebies? If you’re thinking of offering something extra to your customers, why not opt for an NFT? Last year, Twitter gave away 140 NFTs to 140 of its followers, fashion brand Salvatore Ferragamo giveaway 256 NFTs from an NFT booth in their NYC concept store and Patone gave away several of its first-ever NFTs for free.
Free NFTs can be a way of drumming up excitement about an upcoming launch or reaching a new audience. You won’t need to worry about shipping or fulfillment and the NFT will be theirs to claim as soon as they checkout. Giving out NFTs for free can be a great way of kickstarting your NFT strategy.

Go Phygital

Phygital refers to the If you’re already selling physical products, then going phygital might be a good bet. A ‘phygital NFT’ refers to a physical item that has an NFT counterpart, although the term is used to refer to a wide range of case studies. 

Phygital might mean creating a digital twin for your physical item or you could create an extension of the product in the digital space. Last year, Dolce and Gabbana sold a collection of 9 NFTs alongside actual couture for a total of over 1,800 ETH (around $5.7 million at the time of the sale). 

Phygital NFTs can help businesses selling physical products connect with their existing customer base while introducing them to the world of digital assets. If you’re running an e-commerce brand, this might be an option you want to explore. 

Build Community

Community is a big buzzword in the NFT space. The phenomenon of PFPs (an acronym for Profile Picture) has seen NFT collectors use their digital assets as their profile pictures to represent them in the digital sphere. You might have seen Twitter users with a Cryptopunks profile picture, for example. A new form of community building where collectors are easily able to identify each other. 

Beyond recognition, NFTs have encouraged new forms of connection, primarily through Discord servers where community members can engage with each other. Collecting the same digital asset is about more than ownership, it’s also a way of meeting like-minded people online. If your business is looking to engage with a digital audience, NFTs can provide a starting point for building your community and engaging with them in innovative ways. 

Reward Program

NFT ownership is easily verifiable online, making it easy to reward NFT collectors with exclusive access to merch, products, experiences and more. In short, NFTs can be a great way of setting up a new type of reward program. 

For example, Hugo Boss NFTs give collectors access to a 10% discount in the HUGO online store, as well as a set of special merchandise, experiences, content and more. Starbucks has created a whole new loyalty platform backed by blockchain. Combining its existing Starbucks Rewards loyalty program with an NFT platform, the company will allow customers to both earn and buy digital assets that unlock exclusive experiences and rewards.

Rewards can be provided selectively using tokengates which verify that customers own specific NFTs before allowing them to access the exclusive content or product. 

Many successful NFT projects often combine several applications to offer NFT collectors a fulfilling experience. For example, even if you’re not building a reward program, you might want to say thank you to your collectors by providing something extra. For example, Johnny Depp recently allowed his NFT collectors to claim an exclusive physical print

How to Sell NFTs

If you’ve settled on your NFT strategy, the next step is creating your NFTs for your customers to purchase or collect. One of the easiest ways to begin your NFT journey is to sell NFTs on Shopify. The Verisart Shopify App is an all-in-one app that allows you to mint, sell, tokengate and more! 

 Shopify is customizable, easy to set up and trusted – over 3.8 million stores have launched with the platform. Choosing to sell NFTs on Shopify is an easy way to make NFTs more accessible to your customers and community. You can accept card and crypto payments and your customers won’t need to create a wallet until after they check out. 

 Selling NFTs on Shopify doesn’t require any coding. Once you’re ready to go with the app, all you need to do is add your products and set up the NFT. Verisart offers minting on Ethereum and Polygon, you can create your custom contracts and earn ongoing revenue with royalties.

NFTs can provide exciting and interesting opportunities for you to grow your business and community in several ways. Don’t be afraid to think creatively and come up with your own ideas!