The craze for NFT-related services is increasing continuously with time. Both businesses and individuals are seeing this sector as a vast opportunity to earn profits. At present, NFTs are everywhere and people from different industries such as celebrities, social media influencers, digital artists, entertainers, music artists, content creators, etc. are selling their valuable & unique work in the form of digital assets with the help of a leading NFT marketplace development company. Via this, they are now easily getting massive payrolls.
As an individual, you can also create your own NFT if you have some unique asset to sell. Various firms are also looking for a suitable idea to start NFT business that can benefit them in different ways. Here we have provided a guide to NFT and working including the top NFT business model. Check out more details further-
What are NFTs & How NFT Works?
In simple terms, we can say that NFTs or non-fungible tokens are unique digital assets that can’t be replicated, traded, or swapped same as other cryptographic holdings. These cryptographic assets are built and secured with the help of Blockchain technology. NFTs clearly define that they neither be interchanged nor switched due to their distinctive properties.
Though, cryptocurrencies and physical currencies are fungible that are able to trade or exchange with other currencies. There are various business enthusiasts who want to invest in this sector and are looking for a guide to NFT and working so that they can have a good understanding before stepping into the NFT market.
Let’s talk about how NFTs work-
- Most of the NFTs dwell on the Blockchain network ‘Ethereum’, a distributed public ledger to store transactions.
- NFTs are known as individual tokens recording the valuable data within them.
- These have a large set by the market and its requirement that can be purchased and put up for sale similar to any other physical asset.
- Unique data of NFT helps to verify it and also validate the asset’s proprietorship and token transfer between two vendors.
How Businesses Can Get Benefit from NFT ?
Businesses use NFTs as a technology permitting them to build an exclusive one-of-its-type asset. This helps ventures to deliver an amazing experience to their customer base. NFT marketplace on Ethereum and other decentralized Blockchain platforms are versatile while allowing you to create several assets related to images, videos, music, the virtual world, digital real estate, and others.
NFT is occurring as an appropriate brand-new marketing tool to develop USPs (unique selling propositions), improve customer engagement, and better interaction. Various famous business chains can be used as an example to use NFT marketing. It includes-
- Taco Bell– Recently, it announced digital Tacos via Rarible that depicts GIFs based on a Taco theme called ‘NFTacoBells’.
- Adidas– This famous brand used the NFT services by announcing virtual wearables in the Sandbox Metaverse. Adidas also owns a Bored Ape Yacht Club NFT.
- McDonald’s– It took the entry into NFT market by having an exclusive collection of McRib NFTs in November 2021.
- Samsung– This firm has stated its initiative of adding NFC support in their new lined-up TVs. Samsung has also bought a virtual land allotted in the decentralized Metaverse.
- Coca-Cola– In the year 2021, it put a single ‘loot box’ on auction with four exclusive NFTs editions. In the current year, Coca-Cola is having numerous new NFTs for varied purposes.
Though, NFT marketing is not the only niche enterprises can go for, there are various other sectors as well such as sports, entertainment, gaming, music, real estate, and so on. Choosing a suitable plan among all the standard NFT business plans will help corporations to earn more than expected. Before discussing this further, let’s get some understanding of the history of NFT business models.
Market Insights: Know About the Brief History of NFT Business Models!
Want to know how to start an NFT business with the help of an NFT development company? First, let’s get an understanding of how it all started. In 2014, ‘Quantum’ by Kavin McKoy was the first minted NFT on the Namecoin Blockchain. This NFT platform was built for collectors and artists to sell their work at suitable prices. It was focused on curating and releasing NFT collections and making them available to use for specific people. Here is the history of the NFT business model:
- In 2012, ‘Colored Coins’ came into existence that was issued on the Bitcoin Blockchain. It was developed to use the Blockchain for collectibles like digital assets, property, coupons, shares, and others. It was similar to current NFTs.
- In 2014, ‘Counterparty’ was launched by Robert Dermody, Evan Wagner, and Adam Krellenstein. It is an open-source, peer-to-peer financial platform built on the top of the Bitcoin Blockchain to help users to make their own tradable items or currencies. It was counted among early Bitcoin 2.0 platforms.
- In 2015, Spells of Genesis issued in-game collectibles via Counterparty.
- In 2016, a trading card game company ‘Force of will’ launched its cards on Counterparty.
- In 2017, there was produced a set of 10,000 different characters called ‘Cryptopunks’ by Matt Hall and John Watkinson. It was created on the Ethereum Blockchain to trade online. After this, there were also released CryptoKitties and Decentraland.
- In 2021, NFT went mainstream and gained popularity among people.
- Now, we can see people and businesses going gaga over this technology and using it most to buy or sell digital assets.
To get deeper analysis and details about the different NFT platforms and their services, below we have provided a graph that shows all the NFT platforms and their popularity in the USA in 2022. US consumers who bought NFT in early 2022, mostly have OpenSea in comparison to other platforms. After OpenSea, there were other platforms such as NBA top shot, Nifty Gateway, Foundation, etc. that topped the list. Look at the below representation-
Based on the above statistics, we can say that businesses that are adopting NFT marketing or any other field have not witnessed losses like other sectors. It is the most profitable domain for those who want to capitalize on NFT business ideas. What are you waiting for?
Here we have come up with the top NFT business models you can pick up from to start your venture. They are as follows:
Top 10 NFT Business Models
It is recommended to all business enthusiasts who want to start NFT business that they must have a unique idea to step into this sector even before hiring an NFT marketplace development company. What can be those unique NFT business ideas? Let’s discuss them below-
1. Develop an NFT Marketplace
Create your own NFT marketplace to sell digital assets, collectibles, unique items, and art. You can build your NFT marketplace on Ethereum, Polygon, Avalanche, or others. This business idea is the most adopted as it works similarly to a state-of-art auction system. It is easy to sell your digital assets and products via the highest bidding. Sellers are also allowed to list their products or artworks as per their suitable category that existed on the NFT marketplace.
To make the NFT marketplace development process easier, businesses can also take the help of a leading Blockchain development company to develop a secure & feature-rich NFT marketplace. Ensure the NFT marketplace is consist of different functions including listing, minting, transaction fees, etc. along with a smooth user interface & easy navigation. These will be helpful to compete against the major NFT marketplace including OpenSea, SuperRare, Rarible, Axie Infinity, and others that already existed in the market. It can also be counted as the most promising NFT business idea in 2023.
2. Launch an NFT Minting Platform
Having an NFT minting platform can be proven as the most amazing business idea to make money from NFTs. Several NFT marketplaces are currently supporting digital creators to mint their valuable works of art in the form of NFT. They can have suitable value for their artwork via trading them. The overall success and revenue of the market will be based on the amount of minted NFTs.
You can hire NFT developers to get help in launching an NFT minting platform including amazing features such as multiple categories of minting, smooth operability, and others. With the NFT minting platform, creators can’t only trade, they can also sell or purchase their assets and businesses can also pay artwork owners a fraction of future sales.
3. Be an NFT Broker or Artist
Similar to conventional cryptocurrencies, prices of NFT assets are highly volatile. It is the way brokers can make huge profits by putting the prices accordingly. Cryptocurrencies can be similar, but every NFT is one of a kind. Therefore, it becomes necessary for buyers to keep monitoring the stock prices while considering the pulse of crypto news to make a wise decision.
NFT can be considered a long-term investment. If you are looking to be a successful NFT agent or broker, you must own an exclusive NFTs collection and know how to sell them at the best price. How much you earn; this basically depends on your skills and work along with how you promote or market your NFT collection. To make it more inventive, try to mint, sell, and trade your digital content on popular NFT marketplace on Polygon, Ethereum, etc. These marketplaces can be anything such as OpenSea, Rarible, and others.
The popularity of these marketplaces makes buyers and sellers connect with the broker to sell or buy unique digital assets across the globe. They even help to get loyalty for a lifetime. To get succeed, brokers need to maintain a good fan following or client base by bringing them what they demand.
4. Start an NFT Staking Platform
The NFT staking platform allows users to secure their NFTs for a period to put up the reward or cash. It also depicts that liquidity does exist in the NFTs world. The NFT staking platform follows the PoS (proof-of-stake) theory to reduce energy costs unlike the concept of energy-intensive POW (proof-of-work).
NFT enthusiasts taking Blockchain development services to obtain an NFT staking platform where users can securely lock their NFTs. At present, it has also been a part of various play-to-earn Blockchain games including The Sandbox, Axie Infinity, and Splinterlands. You can also start with an NFT staking platform with the features like utility tokens, high annual NFT staking yield, an in-built lending mechanism, and others.
5. Create an NFT Community
There are a lot of people in the present time who are searching for NFT to fulfill their different purposes. So, don’t you think it is a perfect time to create an NFT community, you can also hire an NFT development company so that you can help people by giving them the proper answer to their NFT questions. NFT is a vast industry that still creates a lot of confusion in people’s minds. There are high chances to join the community by a large segment of people due to their curiosity and enthusiasm about NFTs.
Start with creating a platform where people are free to ask questions, answer them, have a discussion, share their ideas, connect, collaborate, etc. You can take the example of existing popular community platforms such as Discord, Twitter, and others. Follow their footsteps by viewing how they have established and gained a huge user base. Ensure your community platform includes features like premium membership, connect people, branding & marketing, polls, etc.
6. Have an NFT Real Estate
Integration of NFT smart contracts into the real estate world might improve the esteems it has got. It is also helpful to eliminate the mediators and establishments of this sector. With NFTs, people can buy or sell virtual or real-world land following a paperless process worldwide. The whole process is done on the Blockchain network worldwide. Get into the NFT real estate business to get rewards immensely and make huge profits.
Be it a virtual or physical realm, NFT real estate businesses are never going to disappoint you. With the help of a reliable firm, a business can have NFT smart contract development services to help them in businesses during NFT transactions to facilitate intermediary-less exchanges. The expansion of Metaverse into real estate has opened a lot of new opportunities for this business, thus, it will be the right choice to invest in it currently.
7. NFT Launchpad
NFT launchpads are platforms where NFTs can be minted, sold, marketed, and launched simply. It also facilitates new entrepreneurs and creators to acquire investment for their coming NFT projects with the help of INOs (Initial NFT offerings). Though, these NFT launchpads work similarly to IDO (Initial DEX Offering) launchpads. It can be one of the most promising NFT business ideas in 2023. In this, creators must fund their project before the minting process. This business idea is helpful to build start-ups in a sovereign and dispersed way.
If you launch the NFT launchpad, it can get benefits from a large number of digital creators keen to join the NFT space and support by the NFT enthusiasts. There are various main NFT launchpads existed in the market, they are NFT pad, NFTb, and NFTLaunch. You can also make your NFT Launchpad a huge success with the help of fundraising models such as IEO (initial exchange offerings), ICO, and Initial NFT offering.
8. NFT Loan Platform
Same to NFTs, Defi (decentralized finance) applications are also getting acquainted among business enthusiasts worldwide. With taking help of a prominent Defi development company, various ventures are trying to team up NFTs with particular Defi apps and an NFT loan is a fine example of it. The NFT loan platform works like a traditional loan service, the only difference is NFTs will be collateral to borrow cryptocurrency instead of any physical property.
It can be counted among the top NFT business models as the entire world is quickly moving towards the Defi systems.
Agreeing on NFTs as a loan guarantee brings more lending opportunities for those who are not happy with conventional crypto. It is also advantageous for investors to expand their portfolios. To get success in the NFT loan business, firms hire Blockchain developers to get the best use of smart contracts and Blockchain technology facilitating users to borrow money with the help of NFT collectibles without any third party.
Read More: Tips to Hire Blockchain Developer
9. Metaverse NFT Platform
It is a well-known fact that NFTs are the reason behind the advancement of the virtual world. Several virtual worlds are built on a Blockchain network where people can connect and interact using technologies such as AR, VR, etc. The Sandbox and Decentraland are some suitable instances of Metaverse NFT that have earned huge profits by selling virtual lands. Decentraland enables creators to develop a metaverse using Mana, an in-built currency.
You can also create a Metaverse platform with the help of NFT development services to deliver an amazing user experience. It can be done by providing access to virtual casinos, digital concerts, NFT galleries, and others.
10. NFT Gaming Platform
Do you want to create a gaming NFT marketplace on Avalanche or any other platform? Then, buckle up and it can occur as one of the best NFT business plans in 2023. Gaming sectors never fail to amaze people with their innovations. Among all, play-to-earn games are gaining huge popularity as players can earn there by using their skills. There are various in-game collectibles to unlock, and users can trade them on any other marketplace.
Several NFT gaming companies such as Enjin, Draper Labs, Alwaysgeeky, and Gala Games are working for years in this sector with a huge fan base and are suitable to take inspiration from. You can go for creating games of different genres with different earning mechanisms such as Move-to-earn (M2E), Play-to-earn (P2E), and NFT rentals. Before having NFT game development services, you must consider the gaming NFT marketplace development cost as it can be higher than you expected but will be worth it in the end.
These were some top NFT business models to kickstart NFT business in 2023. As we know, NFTs have been in the market for quite a long time now and it seems, it has no plans to be out soon. NFT services have the efficiency to be integrated with various other technologies as well such as Blockchain, smart contract, Metaverse, etc. that have benefited various associate businesses. This is the reason why several business enthusiasts are looking to invest in customized, ready-made, or white-label NFT marketplace development solutions.
NFT business is growing with time as more and more artists are coming forward to sell their digital art on this platform. If you are also thinking to give this niche a try, then don’t hesitate and do it now anyway! There are various firms out there that can help you create your own NFT platform. We, at SemiDot Infotech, also offer NFT development services for any business model you choose. Being an experienced cryptocurrency exchange development company, we understand all the requirements of a business that is eager to have an NFT marketplace that leads to high revenue and attracts users. Get relaxed and contact us right away!
Check out the below FAQs to solve queries related to NFT business-
- What are the most profitable NFT projects?
There are various successful as well as profitable NFT projects out there that are having a huge customer base. These include Axie Infinity, NBA Top Shot, CryptoPunks, CloneX, Bored Ape Yacht Club, and others.
- What type of NFT sells the most?
Among all the NFT types, Art is the most sold NFTs. It is also the most popular type of NFT among business aficionados that has the highest sold Beeple’s artwork ‘Everyday’.
- Is NFT business profitable?
Yes, it is the most lucrative sector where people can buy or sell their unique artworks as NFTs to earn money and profit. These digital artworks can be anything such as music clips, videos, images, memes, movies, and many more. These can be sold at a valuable price anywhere in the world.
- What is the best market to sell NFT?
OpenSea, Rarible, SuperRare, NBA top shot, etc. are some of the popular NFT marketplaces where artists can sell their NFTs instantly to get a suitable price. These NFTs include digital items such as audio files, music, videos, photos, and real-world objects.
- What are the most promising NFT projects?
Some of the most promising NFT projects comprise Axie Infinity, CryptoPunks, Art Blocks, CloneX, Meebits, Mavrix, RobotEra, Calvaria, and many more. Businesses can invest in these to get huge profits.
- Do NFT projects make money?
Of course! NFT projects do make money and that’s the reason why firms are keen to invest in this sector. Artists can earn by selling their artwork as NFTs which will help them make money. Also, they can create something digitally in the form of NFTs, it can be any digital item. By selling it, they can earn an immense amount of income.