You don't want to be the artist that pays to get a ton of work minted and then nothing moves. So how do you price your NFT art so it will actually sell? This can be difficult for newcomers to the medium especially after seeing questionable quality work go for really high prices. There's a lot of things to consider. Gas fees, transaction fees, the cost of making your work... and this is only the beginning.
When I first started making NFT art I didn't really know how to price my work correctly. I made two mistakes, I priced my editions way too high and put them on a platform that uses a proprietary wallet and cryptocurrency and so it was just not accessible to the everyday NFT collector. If you've been following along with my other articles posting about NFT art and blockchain my experiment into eco-friendly galleries did not work. So hopefully this will save you some pain and aggravation when you are just starting out. You can get a taste of success right off the bat instead of waiting for your work to sell and paying high fees for no sales.
I learned this from Blair Enns and his Pricing Creativity book. "... a good rule of thumb to start from is that option one should be somewhere within the client’s budget or expectation. Option two is the high-margin option you really want to sell, so it’s priced above option one, perhaps within the client’s budget range but perhaps not. Option three is there to make option two look good. "
To translate, it's best to have a three-pronged strategy that has work that is accessible to everyone, work that is a bit of a splurge, and work that caters to a luxury NFT community. How to price your NFT Art? We need to first consider how much do we have... hundreds of pieces or is it a one-of-one? This makes a big difference in the pricing. An example of a wide range collectible is 1/100. A mid-range pricier version is 1/10. A luxury or premium work of art is a 1/1.
Established Artist Pricing NFT Art
"Follower count, credentials, online visibility, accolades probably play an even bigger role than the greatness of the piece.- If your work is great and you already have supporters and are an established artist, price high." @DuncanRogoff Start at 1 ETH for wide range collectibles, 2 ETH for Mid-range, and 3 ETH for Luxury 1/1.
Emerging Artist Pricing NFT Art
If not, and you're just starting out here's the rough guide of where you should start. A wide range collectible should start at .02 ETH. This is low enough for almost anyone can afford, but it's still higher than gas and transaction fees so you can make some money. Mid-range starts at .06 ETH. Luxury/Premium starts at .1ETH
Additional Factors for Pricing NFT Art
The first piece in a collection or new style - add 10-15% to the total. These are considered key pieces and are more collectible, more desirable, and should command a higher rate.
Masterpieces, breakthroughs, and magnum opus. This is subjective and hard to label for yourself. We all have that one piece of work that maybe change the way we work or that we broke through a barrier that was holding our art back. Chances are if you think a work of yours is a masterpiece, someone else probably will as well. Add 15-20% to the total.
Genesis or Saturn Drops... keep these prices the same, but if you're able to bump up the royalty percentage please do. 15% royalty is totally fair on Genesis and Saturn Drops.
Private Rights vs. Limited Rights. 'Limited Reproduction Rights' means the artist is selling the full commercial rights to the reproducibility of the art. This means the buyer can use the art for commercial projects, which could include making prints, t-shirt designs, website/blog graphics, etc. This does not mean that the purchaser could sell their own secondary licenses for the piece, or could retokenize it themselves. Add 10-20% to Limited Rights work. 'Private' means the artist retains the full copyright to the art. The buyer may display the art as part of their collection or resell it on the secondary market. This requires no additional price bump.
Be Aware Of Schedule Of Ethereum Update (Hard Fork)
"If you are not an investor, you don’t need to follow tech news related to crypto so keenly. But being aware of Ethereum Hard Fork will definitely help your financial strategies.
Hard Fork is scheduled technical updates of Ethereum, to make future ETH transactions smoother and safer and to provide more customer-oriented transaction with lower gas fees. So theoretically, ETH price goes high before a hard fork, and then the gas price goes low when the hard fork is complete.
The schedule of hard forks is open to the public, so keep yourself updated and be ready for the next upcoming hard fork."
Also check gas prices here: https://ethereumprice.org/gas/
When To Raise NFT Art Prices
"Once your consistently producing work that gets into bidding wars you'll get what's understood as the floor. The floor is the base of where you should start pricing your items. As things progress, you can raise the purchase floor." GabrielDeanRoberts
Pay attention to the secondary market and not just because you get a cut from it. If your pieces are circulating and you see there is a demand, your new pieces will increase in value.
NFT Art Listing Strategy
- Buy It Now - This is best when the market is flat or declining but terrible in a hot market.
- Open to Offer - This hardest for collectors to figure out. Don't know when it will close and don't know what a reasonable offer would be. Best for high ticket resales like if you own a Beeple or something similar. Be prepared to be flooded w/ crap offers though.
- Auctions - These are best in a hot market for sellers because people have money to spend and want to win. If you list some for a lower price to get triggered faster you might get a 2nd bid easier. On the flip side, they are the worst for a flat or declining market for the seller. Great for buyers looking to get a bargain though.
- NFT market is currently tied to the cryptocurrency market. You as the artist may need to pay a little more attention to determine how to list your piece of work. Buy your ETH and mint when it is low. List, market, and promote when it is high. When it's flat, do more work.
Selling NFT art is not quite like any of the other markets out there. You have to do a bit of research and pay attention to the crypto market and the NFT market to decide how to price and list your art if you want to make a sale. If you are not an established artist you're going to have to work hard to network and get in front of NFT collectors. It's just like starting off new for the first time, because you are. It's a new market and it's going to take work, patience, persistence, and a smart pricing strategy to get your first sale. There's no such thing as easy money.