This is to show project founders how to build a successful NFT project in a few steps, using successful NFTs as case studies.
Despite the popularity of NFTs, there are many that have performed below expectations because the project founders missed one of these steps. So, if you’re planning to build a successful NFT or metaverse project, here are some of the steps that you should take.
Define The Use Case of Your NFT
Bearing in mind that people use NFTs for specific reasons, it is important that your NFT is tailored to meet a specific use case for the people who would want them.
It is important at this point to know who your target users are, the purpose of your NFT and how it is going to serve the needs of those who would buy them.
Build A Strong Brand
A strong brand is a critical aspect in building a successful NFT. Even if a project has defined its users and created a product that meets the demand of these users, it would be difficult to market the NFT to people outside this demographic without a strong brand.
Make your brand compelling and it’ll help push your project, making it more sustainable. Strong branding is essential in promoting an NFT.
A good example of an NFT with a strong brand is the NBA. The fact that the NFTs were linked to actual players and teams gave it a strong branding as users sought to acquire the NFTs that they believe that the players or teams would perform well in the season.
Choose A Blockchain
Every blockchain has its uniqueness in terms of ease of use, speed, security, cost and scalability. All blockchains are not born equal but it is also important to understand the tradeoffs that you need to make to get the best out of your NFT project.
Who are the users of your NFT? Would they afford a high cost blockchain such as Ethereum? The ease of building an NFT on the blockchain should also be considered. Some blockchains are easier to deploy decentralized applications and NFTs on than others.
Also consider the gas fee for minting of the NFTs. Would artists and third party users easily afford the cost of minting if you decide to enable third-party minting on your NFT platform?
Blockchains with higher fees would mean that the entry barrier would be higher. Higher minting and transaction fees are indications that the blockchain has many active users. Many developers are also building on it. It is also important to note that such bigger, more established but more expensive blockchains would have more developer tools and would be easier to deploy your project on them.
What Marketplace Would The NFT Be Launched?
The marketplace is the location where users buy, sell and interact with NFTs. Bear in mind that the biggest marketplaces are also selective in the blockchain that they support. Be sure that the blockchain that you use for your NFT project is supported by the marketplace that you hope that the buyers use in accessing them.
In terms of technicality, more established blockchains give the developer team more tools to work with but they are also competitive.
The NFT Design
In designing the NFT, it is important that the design takes cognizance of the theme of the NFT. A successful NFT should be designed bearing the end users in mind. What does the user want and what are they willing to pay for? What is the utility of the NFT and what rights will the users have?
The business concept of NFTs sometimes incorporate rare designs. These are higher quality designs than the generic and confers higher benefits on the user. It is just like the VIP club of sorts.
The rights of the buyer and the utility gives the users confidence on what their benefits are.
Technical Considerations
Among the Technical factors to consider in an NFT development is the storage. Storing the NFT on-chain is more expensive but safer. Investors in high-end collectibles would want the assurance that they can be stored in a manner that prevents unauthorized access. Central storage such as with the use of IPFS can also be considered for less expensive NFTs if need be.
NFT metadata storage can also be compromised if there are issues with the smart contract. This is why it is of essence to avoid faulty codes. Oracles come handy in changing NFT metadata.
The Minting Structure
A transparent minting structure creates confidence in the potential users. Just like in an ICO, some projects phase their minting in stages such as presales and main sales. This may hinder quick access and revenue flow necessary for the project to gain traction.
Low mint price would keep the NFT within reach of many collectors. This however may not translate to high revenue that the project may need. The issue of ownership and rights can also be worked on to ensure that the price of the NFT doesn’t spiral out of control in the secondary market after the initial owners decide to sell.
To ensure the randomness of mint, it is important to optimize the smart contract behind the NFT. This ensures efficient computation during minting. This effectively reduces the cost of minting, especially while using blockchains with high minting fees.
Building A Community
A strong community around a project is a progress indicator. It is important to attract people to the NFT project and also keep them. This is why active engagement is essential. Some effective ways of attracting and building a community is through social media.
Influencers can play an active role in accomplishing this. However, the use of wrong influencers is counter-productive. In this way, having a roadmap and following through with it is a worthy strategy. Also, employing the services of a media manager who understands the art of engagement is essential in building the community.
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