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. Keep reading to learn how businesses can use NFTs.
Several large companies have discovered the value of NFTs, such as McDonald’s, Coca-Cola, Taco Bell, Gucci, Diamond Supply Co., and The Hundreds, to name a few. Most utilize 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 to reward their brand advocates while 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.” Simply put, only enable 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.
Are you an entrepreneur yourself, and what to know about how businesses can use NFTs? Here are a few different ways in which you can utilize NFTs in growing your business:
Sell NFTs Tied to Physical Products
NFTs are typically virtual items, and to keep your customers engaged, a smart move is to incorporate the NFTs into physical products. An example would be when Nike partnered with CryptoKicks and rewarded customers with a digital pair of sneakers after purchasing the actual pair.
The entire creation process of NFTs doesn’t exactly cost that much, therefore, the returns can be staggering. Additionally, NFTs come with a smart-contract mechanism so businesses can declare a certain percentage of future profits towards the NFT if it goes into resale.
Create a Loyalty Program
Even before NFTs, brands have already established loyalty programs to reward their customers. Why not try to view NFT as a sort of loyalty card? To make the NFTs enticing for your customers, it needs to be laced with specific perks such as free delivery or exclusive merch, to give a few examples.
At the same time, implementing a loyalty program so your customers can accumulate points and exchange them for exciting prizes is also a wise decision to utilize NFT technology. This is a great example of how businesses can use NFTs to their advantage.
Launch a Fundraising Campaign
There are many reasons why a business would start a campaign: they’re expanding or simply want to raise funds for a social cause. Either way, an NFT campaign is a cost-efficient way of raising funds. Reward the generous people with ultra-rare NFTs as a token of appreciation for their donations.
Now that you understand how businesses can use NFTs, why not 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. A winning strategy is to find the best way to add value for your audience and build a community around your already established brand.
Why Use Fortress For Your Business
Creating and minting NFTs is easy with Fortress’ NFT studio. With the convenience of publishing public and private content, you can also create promotions for free drops that your loyal audience can claim. With Fortress, you can have your launch ready in just a few weeks, not months or years. Need more help? Feel free to contact our team here.