While starting and launching an NFT collection might seem simple, there's a lot more to it than what meets the eye.
It's not as simple as creating some layers, piling them up, then selling them.
A lot of education and learning must be done throughout in order to get the process right.
Many NFT collections fail because the founders overlook key elements and factors that are vital for the project's success.
Founders often perceive this as nothing more than a short-term gig that'll make them a quick buck.
Many business owners might find solace in the NFT industry due to the synergy between the two.
When I started to pinpoint the similarities myself, I started to see how incredible this opportunity could be.
In this article, I want to analyse 5 key elements of a successful NFT collection.
Does your NFT project have these elements?
The artwork is the main pillar of any NFT collection - it's the first thing NFT collectors see when they're thinking of investing in a collection.
That is why it's so important that you make sure you put a bit of time and effort into creating your NFT artwork.
Not long ago, a collection launched and managed to reach over 100,000 Discord members in under 24 hours due to the design of their artwork.
I've seen a bunch of collections launch terribly designed collections in the hopes of succeeding.
Although we can all agree these collections do not have the best artwork in the NFT space, they're successful for completely different reasons.
Cryptopunks is one of the first collections on the Ethereum Blockchain giving them an iconic feeling.
Veefriends is owned by one of the most influential people in the entrepreneurial space, Gary Vee.
With 10s of millions of supporters globally, it's no surprise that Gary Vee's collection was successful.
On top of that, Gary has added benefits. His NFT's utility gives holders once in a lifetime opportunities like having dinner with Gary himself.
You might be starting with a small following - don't worry, you can be just as successful without the millions of followers.
However, make sure you don't solely focus on the artwork, there's a lot more than just the art itself.
Creating a successful NFT collection doesn't always come down to the collection itself.
A large part of building a successful NFT project hinges on the team behind the project.
After news spread about the success many NFT projects were seeing, a lot of people came into the NFT community simply to make money and leave.
It doesn't work like this - collectors know exactly when collections are only here to perform a 'rug pull.'
Yesterday, I tweeted something on Twitter that said:
"The amazing thing about the NFT space is, with a little bit of effort and passion, everyone can win.
So instead of going around scamming people, put in the extra bit of effort and reap the long-term rewards.
We're still extremely early in the NFT space, a lot of people have never heard of them yet.
This gives almost anyone an opportunity to win, as long as they put in the work and are truly passionate about what they're doing.
The evolution of technology is forcing everyone, no matter who you are, to learn new things - in order to succeed with NFTs, you must be willing to embrace that 'learner mentality' and do what it takes to make your project the best it can be.
Whenever there's a genuine team behind an NFT collection, investors can see this and they'll decide to join in on your journey, because they know that if they do, it'll pay them back tenfold.
As an NFT collection founder, don't worry about short-term gains - there's a ton of money to be made in this industry, especially when we look over the mid-long term.
Stay patient, keep learning, and try your best to make your project successful.
The most important factor that leads to a project's success is the community itself.
It's simple supply and demand.
Think about it like this - you create a collection of 10,000 NFTs.
If no one is interested in your NFTs, the demand for your art is virtually zero.
Therefore, when the demand is very low, the price is naturally going to be low as well since no one is willing to pay for it.
However, when you take the time and effort to build a super-engaged, super active community, the demand for your project and your art skyrocket.
People will be fighting to get whitelisted into your project, and so the price will reflect this increased demand.
Since there are only 10,000 NFTs in your collection's circulation, not everyone is able to own a piece of the pie.
In economics, when the supply is lower than the demand, there's a 'shortage,' and in a shortage, prices increase.
Think back to the start of the pandemic when the price of bacterial hand gel shot up.
Not only does the community lead to the value of your collection increasing, but the hype also ends up driving more and more people through the door, growing your community exponentially.
A lot of first-time NFT project founders focus too much on the collection itself and neglect the community aspect.
This is like building a business and forgetting about customers - you need to build a brand, not a business.
Since we're early in the NFT space, building a community is much easier than you think - I've written an article on marketing your NFT collection that will help you understand the best strategies to use to build a big, engaged community.
When people mint your NFT collection, they're essentially becoming your investors.
Thousands of people have bought your NFTs and are putting their trust in you to deliver.
They want to see new things happening with your collection that involves the community and drive the overall value of the collection up.
The Bored Ape Yacht Club, one of the most successful NFT projects, has a current floor price of 93 ETH, equivalent to $229282.20.
That means that the cheapest Bored Ape NFT currently costs 93 ETH.
Collectors who bought their Bored Ape for 40 ETH, as an example, have almost made a 150% return on their investment.
So why is the Bored Ape Yacht Club so popular?
There are a lot of reasons, mainly being that the Bored Ape team was very innovative in their approach.
They were one of the first collections to introduce the idea of 'mutations,' and it lit a fire under the NFT community.
Everyone wanted a piece of the pie - even celebrities.
Over time, a culture was developed, and it's become a trend to be an 'Ape' by owning a Bored Ape NFT.
Celebrities as big as Neymar (the football player) have joined the Bored Ape Yacht Club because of this cultural development.
See unlike many collections, the Bored Ape Yacht Club has put time and effort into developing their collection over time.
Instead of launching 10,000 pieces of art and disappearing off the face of the earth, they have released more collections, (Mutant Apes, Kennel Club) and have been actively hosting events online and offline, getting their community involved.
This is why developing an ambitious roadmap for your collection is important - however, you need to ensure that your roadmap is something you're confident you can fulfill.
There is no reason to create a roadmap or whitepaper which outlines unrealistic expectations - some collectors will realise you're lying, while others will give up on your collection once they realise you're not fit to bring that vision to life.
Ambition must be a challenge to you, yet something you know you can achieve.
No matter what project I enter, I always think ambitiously, because I know it's something I can achieve.
That's why our NFT roadmap is, by far, the most ambitious roadmap I've seen in the NFT community.
Not only that but there are more and more things in the works following our first launch, in March 2022.
After your collection is fully minted, you should take time to celebrate this massive milestone, then get straight to work on fulfilling your promises.
Never stop developing your collection - the competition is fierce, and everyone is hungry to take the throne.
Now let's say that you've created a collection of 10,000 NFTs... what should you do now?
Many people believe that creating an NFT collection is a 'get rich quick scheme.'
They simply create art, and people start flocking to buy it.
While many teams out there treat it as so, it's far from it - in my eyes, building an NFT collection is as difficult, if not harder, than building a business.
A lot of the factors one must consider when building a business must also be considered when building an NFT collection.
You need the product - the artwork.
You need the long-term vision - the roadmap.
You need the marketing.
You need the customers - the community.
Without the marketing and the community, there's no point in having an NFT collection, it will not go anywhere.
Luckily, I've come to this industry from a marketing background, and so I know a thing or two about marketing.
Although I spoke about 7 marketing strategies, you only need 1-2 to be successful.
To mint an NFT, you must usually pay something called a 'gas fee' - these are extremely high on the Ethereum blockchain, and so a lot of people are happy to enter giveaways in order to secure a spot on a project's whitelist.
One of the entry requirements could be to tag 3-5 friends, from here, it's a simple snowball effect.
If you've got more budget to spend, you can run paid marketing in order to fast-track your growth.
Combine this all with our first point - amazing artwork, and it'll be a breeze growing a large and engaged NFT community that hype up your collection.
The Golden factor
Every day, there are dozens, maybe even hundreds of new NFT collections popping up on the radar.
Everyone wants a piece of the massive pie that NFTs have created.
There's almost no differentiation in the offerings of these NFT collections - everyone's simply copying each other.
In order to build a successful NFT collection, you must do something that's different, something that brings a sense of innovation to the NFT space.
Back in 2017, the breeding feature that the Crypto Kitties provided was revolutionary.
Today, there are tons and tons of collections offering this feature.
Not long ago when the Bored Ape yacht Club introduced their serum airdrops, it shocked the NFT community.
Nowadays, almost all collections are implementing a mutation feature after their initial collection sells out.
It's no longer as fascinating as it used to be.
What we're seeing is that the most innovative NFT collections are likely to be the most successful.
This is because they're bringing a breath of fresh air into the community.
People are getting tired of seeing apes in every collection.
People are getting tired of seeing 'we're working with Marvel artists.' (Yep, apparently, everyone is working with someone from Netflix, Disney, Marvel, etc).
People are getting tired of the same, old NFT collections being repackaged and sold by different people.
In order to ensure you're successful, you need to do something differently, think of ways you can differentiate yourself from the other collections.
At Crypto Apes Club, we're building a story-driven NFT collection that will eventually become the digital Disney.
The plan is to build a massive NFT ecosystem online, and offline.
We have plans to make industry-shaking change happen, but it all starts at one point.
Make sure you join our Discord group to stay ahead of the curve. Official marketing begins soon.
You might not have the knowledge or resources needed to do big things yet.
This only brings us back to the previous point on constant development.
Selling out your first collection isn't a sign to start slacking, it's the point where everything gets real.
This is where you must put on your running shoes, and get to work.
NFTs have given us an opportunity our ancestors would die for - let's make the most out of it!
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Till next time,