As distant and as unrelated as it sounded a few years ago, NFTs are no longer in such a state. In fact, their market value reached US$40 billion in the last year, with 2023 holding a lot more promises. With that being said, NFT marketplaces have become profiting havens, accounting for most of the industry’s share during the NFT boom. The reason? Most creators opted to mint and listed their collectibles in them. Such an NFT marketplace solution typically wields its monetary benefits through a flurry of methods, which we will see in detail as we progress through.
NFT Marketplace Solution: A Walk-through
An NFT marketplace solution is where people can create and trade digital/physical goods backed by non-fungible token entries on the blockchain. Items from these platforms are typically verifiable and authenticatable through public blockchain records. Today, almost every public blockchain network contains these business platforms based on various niches.
While such a platform can be compared to a Web2 e-commerce platform, the elimination of servers and the addition of digital item ownership gives a new twist to how we perceive materialistic desires in the future. These platforms’ integrability with other applications adds to their importance in the internet of the future.
“It’s Time to Bring Forth Innovative Business Ideas to the Helm through NFT Marketplaces!”
Various Profiting Channels for an NFT Marketplace Solution
- Costs can be collected from sellers for minting NFTs in the platform’s NFT creation portal to ease the overhead expenses for the platform through such mints.
- Fees can be levied for listing NFTs in the NFT marketplace platform. This will be useful if there is some degree of intermediate vetting involved before listing NFTs for sale.
- An NFT marketplace solution can also charge fees for the successful sale of an NFT item. It is typically collected as a fixed proportion of the total trade amount.
- Buyers can be charged transaction fees for purchasing an NFT item, which is usually a percentage of the final proceedings.
- Sometimes, they can be levied minting fees if a seller has enabled “lazy minting,” where purchasers have to mint their NFTs before buying.
- Fees for premium services can be collected by an NFT marketplace business, offering unique access to some parts of the marketplace and other benefits.
- Creator royalties could be collected by the venture if the NFT seller had set a value (in some cases, opted in for royalties).
- Costs can be charged for featured advertisements to be displayed on the platform. Typically, upcoming NFT businesses use this technique to gain exposure.
- Some marketplaces can even levy fees for supplementary marketing campaigns on their social media handles and community networks for projects to reach a wider audience.
- Platforms can yield considerable profits through native tokens if they include community consensus for decision-making or crowdfunding features.
But, Overcharging Brings Adversities!
While the above leeways for NFT marketplaces to yield gains sound impressive, being too much oriented toward the business scheme of things in the consumer-focused Web3 might not be welcomed by everyone. With intense competition, an NFT marketplace venture can be easily ignored or, worse, brought down by online backlash if the platform places charges in many ways.
That is a reason why most businesses allow free minting and minimal costs for transactions to stay true to the consumer-oriented goals they promised in their roadmaps and whitepapers. Let us see some examples from popular ventures to understand them in detail.
Costs Charged by Some Prominent NFT Marketplaces
- OpenSea, the popular horizontal trading NFT marketplace, charges a flat 2.5% fee from the seller for every successful NFT transaction.
- Rarible, a governance-based NFT marketplace, levies 1% each from the buyer and the seller for each NFT sale. It also earns sizable profits from sales of its native token, $RARI.
- SuperRare, a curated art NFT selling venture, charges 3% fees from buyers for NFT sales, of which 10% goes to the creator as a royalty.
- Foundation, a similar digital art marketplace based on curated collections, takes 5% off every NFT sale, and creators can gain 10% off every secondary sale.
“Tomorrow Never Dies! But, Profiting Prospects Do! Think Wise and Run an NFT Marketplace!”
Blockchain App Factory: The Ideal Destination for Hatching an NFT Marketplace!
Hence, we have seen the income-generating pathways possible through an NFT marketplace solution. If you are inspired to create such a platform, Blockchain App Factory could be the perfect place to go. The reasons?
- Vastly Experienced Teams in End-to-End Development
- Creative Consultants
- Advanced Technical Stacks
- On-time Delivery
- Custom-made Business Solutions
- Capabilities to Create from Scratch and Whitelabel Software
- Multi-chain Compatibility
- Competitive Pricing
- Post-launch Technical and Non-technical Support.
Arrange a 1-1 meeting with one of our professionals to discuss and draft the action plan for your novel NFT marketplace venture to set sail beyond the visible horizons of Web3.