Collecting is not the only way to enjoy NFTs; selling can be just as fun. Of course, selling NFTs is also how you can potentially make some money. Depending on what sort of experience you are looking for and how creative you are feeling- you can either mint and sell your own freshly minted tokens or re-sell other people’s art through secondary channels.
In this simple guide to selling NFTs, we look at how to do both, as well as discuss the pros and cons of various selling options. It is actually a lot simpler than you might think.
- The platform you choose to sell through is vital to your success. Check the policy on gas fees and listing fees before you commit.
- There are two channels on most platforms: the main marketplace for new NFTs and a secondary market for previously owned tokens.
- Details are good- the more properties and information you add into your NFT description, the easier it is to find.
- Never sell something that you do not have intellectual ownership of.
- Auctions offer unlimited price potential but may take longer to sell.
- Fixed-price selling is quick, but you could miss out on a higher offer.
Selling Your Original NFT Artwork
If you already saw our guide to creating your own NFT, then you are already halfway there. Listing your NFT for sale is just the last step in the creation process. In case you didn’t read it yet, here is an overview of how to create an NFT to sell.
- Pick Your Place and Connect Your Wallet
The first step is picking a platform: you want to sell your art in the best possible place. Weigh up the reputation of a marketplace, the average fees it charges, the previous success similar artists have had there, and what blockchain it operates on.
Ethereum is by far the most popular NFT blockchain, but it also carries some of the highest fees. You need to make sure you have a compatible wallet with sufficient funds connected to your account before trying to list an NFT for sale.
Selling on a budget? Try using the Polygon Network on Opensea.io– the gas fee-free section of the industry-leading marketplace.
- Design Your Token
This is the creative part. Use whatever digital medium you desire to create a file for your NFT. Make sure it is entirely original and exactly how you want it to look before you upload it to the platform of your choice.
- Create a Collection and Upload to the Blockchain
Each NFT needs to be part of a collection, which you need to name and create a file for. Do this before uploading any art, so it has a place to go. After that, all you need to do is select the file you want and upload it. You then need to enter a few details to help boost your chances of selling, then pay to send it off into the wild for interested buyers to snatch up.
Optimizing Your NFT for Sale
Let’s look a bit closer at the selling process. Once your file is successfully uploaded into your collection, you are asked to add details, properties, links, and descriptions. All these details are designed to work almost like tags to help the right buyer find your piece. Take the time to make sure these details are optimized with all the best keywords.
You should also choose a good cover photo and name for your collection to make it stand out when people are browsing. Being noticed is the only way to make decent money from selling your NFTs.
Next comes the pricing. Try to be realistic in your expectations, but don’t undersell yourself. If you know exactly what you want and believe it is an accurate valuation, you can list a fixed price. Otherwise, register your NFT for auction.
Fixed-Price VS Auction
Ah yes, the big question: do I put a price out there and wait for the perfect buyer to come along, or do I try my hand at an auction where anything can happen? Well, it is a tough one, but it comes down to several things:
- How time-sensitive is this sale? If you need it sold quickly, you can set a reasonable fixed price and hope it gets taken off your hands. If you have a higher price in mind, quick selling may not be so easy. At an auction, you have the power to set the time frame so you can ensure a fast sale.
- Are you sure you know the value? Setting a fixed price could be restrictive. Someone out there could be willing to pay a lot more than you are asking, but you can never know if you set the price. On the other hand, a fixed price gives you a certain level of assurance about what you can get. If nobody starts the bidding competition, the price could remain stagnantly low.
- What does the market look like at the time of sale? Have a look at your marketplace- are there a lot of fixed price pieces in your price bracket that has been sitting there for a while? What sort of bids are artworks in the same genre as yours getting? The best an understanding you have of how others are faring, the more prepared you are to set yourself up for success.
Pros and Cons of Fixed-Price Selling.
- Knowing what you want and going for it
- No uncertainty about what price it is going to sell for
- Easier to plan finances for future NFT investments
- Potential for quick sales
- Could sit a long time if the right person with the right funds doesn’t turn up
- Puts you in one price bracket
Pros and Cons of Auction Selling
- Full control over the time frame
- You decide whether or not to accept a bid
- Set a minimum reserve price
- More flexibility on the price range
- You need two interest bidders to get the price up
- If you don’t limit the time it can drag on for months
- Some people do not like to shop at auctions
Whatever selling route you decide to take, be sure to double-check your settings before listing. You should also be open to changing strategy further down the line if needs be. Another thing to consider is what royalty fee you want to charge should your work ever be re-sold by the buyer.
When you have decided on a selling option, set your price or reserve price, and alter the time frame if you have gone for an auction. Lastly, click the button to list it! Depending on what marketplace you are using, you may be charged a fee at this point, so don’t be alarmed if funds are removed from your wallet.
Re-Selling an NFT
The other side of NFT selling is when buyers decide to re-sell a token they bought from someone else. Investors and traders looking to turn a profit but who are not very creative use this method a lot, and so can you.
Re-selling an NFT is almost the same as listing a newly minted work for sale, except it is already in your wallet. You click on the token, go to the option to sell, then set your prices, etc. Again, you can choose between a fixed price and an auction.
Where re-selling differs, apart from the whole separate marketplace, is the bounty payments and royalties. Bounty payments go to the platform and to anyone who refers the successful buyer to the token. They vary but are usually between one and three percent. You can tweak these settings on most marketplaces.
Additionally, the original artist is entitled to royalties from any further selling of their work. They set the royalty fee when they first list the NFT for sale, and it is non-negotiable.
It is up to you whether or not to accept a big, but some marketplaces have an automatic acceptance over a certain amount. On Opensea, for example, if the highest bid is over 1 ETH when the auction ends, it is accepted straight away. If it is less, the seller has the option to take it or try again.
Buying and selling NFTs goes hand-in-hand, with most collectors trying their hand at both. The more you learn about the NFT world, the most interesting and exciting it becomes. Selling NFTs is a step many buyers want to take, and we hope this guide makes it a little easier.