NFTs (non-fungible tokens) are much more than just dogs, monkeys and pixelated digital artwork on a screen and living on the blockchain. It’s a brand new way to connect with audiences, secure royalties and solidify and authenticate intellectual property through a decentralized and secure source, the blockchain.
Several large companies have discovered the value of NFTs and are dipping their toes in: McDonalds, Coca-Cola, Taco Bell, Gucci, Diamond Supply Co. and The Hundreds to name a few. Most utilizing the digital collectible aspect of NFTs, capitalizing on the proven theory that consumers will purchase items that resonate with their identities or social makeup. Other companies are getting much more creative and leveraging NFTs as a tool to reward their brand advocates, while also cultivating a deeper connection with the NFT buyers and holders.
How are they doing this? By granting their NFT/token holders early or exclusive access to merchandise, real-life events and more—the sky’s the limit when it comes to adding “utility” or perks to NFTs. It’s been found easy to strictly limit user access to: web pages with exclusive content, early access to certain releases, limited edition merchandise and more to token holders with a tactic called “token-gating.” To put it simply, only enabling access to certain web pages to users that own your company token. Creating a purpose or utility for the token, a sense of status for holders and a demand for them in the market.
So why embark on an NFT journey for your company or business? Not only does the primary sale of each NFT in your issued collection generate revenue, but so does the utility, if tied to your business model—not to mention the royalties in the secondary market for traders/collectors.
There’s a way for all brands, companies, agencies and artists of all kinds to benefit from the technology behind NFTs. Finding the best way to add value for your audience and building a community around your already established brand is a winning strategy.