I received a lot of requests to share information on how to price your NFTs, so here we go!
The most critical factors are COST + REPUTATION. I'll elaborate.
First, the difficult part: consider how much you need to make a living and break that down into working hours. Then, determine if your art is at the point where you can charge enough to make a living off of it while also considering that sales are not guaranteed. The cost of materials is also an essential factor to consider, and for more elaborate pieces, the value of the extra time put into it.
When pricing your NFTs, it's essential to think about a few things like rarity, demand, provenance, and the artist's reputation. This is similar to traditional art pricing, except your costs are slightly different. Instead of supplies, you have to take into account transaction fees.
Let's look a little closer.
Pricing traditional art:
· The artist's experience and reputation can significantly impact the price of an original painting. An established and well-known artist may command a higher price than a relatively unknown artist.
· The size of the painting is an important factor to consider when determining the price. Larger pieces cost more to create.
· The type of medium and materials used to create the painting can also influence its price. It depends on the costs and how much knowledge it takes.
· Lastly, consider the amount of time and effort spent creating the painting. This includes the artist's time and labor, as well as any expenses related to studio space, materials, and other overhead costs.
· The price of an NFT is based on slightly different factors, like how rare and popular it is and how much people think it's worth. (FOMO plays a massive role in NFTs)
· Consider the cost of creating the NFT: how much time and resources you have put into creating your NFT.
· Keep in mind that transaction fees are associated with selling an NFT. Between gas fees and platform fees, it can get costly.
Now I'll share with you how I went about pricing my NFTs and how it's developed in almost two years. Remember that crypto fluctuates a lot, so it is even harder to use your cost of living to calculate your numbers.
It can be challenging to price NFTs when you're new to the market. Despite having over 20 years of experience as an artist with impressive accomplishments (I can't be modest as I am trying to make a point), I positioned myself as a newcomer to the NFT world after failing miserably on my first attempt trying to price according to my IRL experience.
So, back to square 1, I launched a collection of 33 pieces, dropping four at a time and increasing the value with each drop. The first drop was at $ETH 0.03, and the last reached 0.21 (the collection took a few months, but it got sold out)
This strategy helped me establish a value my audience was willing to pay.
After establishing my floor (base price on your listings), I launched new collections with 0.25 as my reserve. With the bear market stretching so long, I had to pull back to 0.15 just to see some movement. You may also want to consider editions, and you can find more info in my previous newsletter.
If you plan on offering a bundle with a physical piece, you'll need to consider the costs of the physical piece and add it to the equation. While most collectors don't care about physical art, there is a market for it.
It's important to remember that the crypto market is volatile, and it's wise to have another source of income.
Overall, the pricing of art is subjective, but I hope with the information I shared here, you can find the right numbers to start listing your work.
Artist Spotlight - Victor Ribeiro
Please introduce yourself:
My name is Victor, and I'm a photographer from Rio de Janeiro, Brazil.
What's your Twitter handle?
How long have you been an artist?
What inspired you to become an artist?
I always had this drive within me
When did you start on NFTs?
How is your creative process?
I have 100 ideas, 90 suck, 5 are impossible, 3 sounded good but really weren't, I finish 2 and only 1 is really amazing.
Did NFTs change the way you create?
Offered me a place to create regardless of social media standards
What is the piece you are most proud of? Add a link.
The Seven Deadly Sins - Wrath https://foundation.app/@vvribeiro/foundation/130633
Do you have a drop coming that you want people to know more about?
My current photojournalistic series: A Body, A Dream, A Regret
Who are the people that inspire you on web3?
You, HugoFaz, Alejandro Cartagena
Who is your dream collab?
If you could travel in time, where/when would you like to visit and why?
The current state of the solar system before the travel of Jupiter, to see if there was a society before
Brazil World on Foundation
Thank you all for reading! And I invite you to view my first curated World on Foundation: Brazil. I care about the quality of the art and also about the humans behind it. I vouch for each of them.
The first sale went to the legend Cozomo de' Medici!
Have a wonderful week!