How Much NFT Money Can You Earn on Creating NFTs?
We have seen rapid growth in the NFT space over the past few years. I can surely say that it’s a great way for artists to monetize their works and earn more income, so it’s not a surprise that there has been growing interest from digital creators looking to tokenize their art to reach a wider audience. No matter if you are against NFTs or not, let’s agree that for many artists, this is a lucrative opportunity, bringing in significantly more money than traditional methods, as well as providing more creative freedom. However, not everyone gets rich quickly, as becoming a popular NFT artist still takes time, effort, and perseverance. In this article, I will explain approximately how much you can earn by creating an NFT.
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How Much do NFT Creators Make?
Actually, this is difficult to answer as there isn’t a specific price for creating an NFT, as it depends on several conditions. But, most importantly, NFT creators can decide to charge a flat fee for their work, while others may sell their creations to the highest bidder during an auction, and others may decide to give away their NFTs for free. Ultimately, digital artists must decide how much they want to charge for their NFT work.
The typical royalty percentage usually ranges from 5% to 15%. On most NFT marketplaces, the creator can choose a percentage of royalties, and payments are made automatically on each subsequent sale on the secondary market.
The average income of an NFT artist can be around $94,793 per year. The price estimates are based on anonymous submissions from NFTs and website users like you and compiled from past and present job postings. Once your submissions have been reviewed by the community, you will have access to all sales and income reports.
If you’re an aspiring artist looking to get into NFTs, you’re probably wondering how much you should charge as an NFT artist, which is fair for you.
Per Hour
According to ZipRecruiter, the average hourly NFT artist rate in the US as of August 16, 2022, is $19.91. In the United States, the salary of most artists ranges from $12.59 (25th percentile) to $18.51 (75th percentile), with ZipRecruiter reporting that the hourly rate of the best NFT artists is as high as $27.40 and the worst, only 6.25 dollars.
Depending on the skill level, region, and years of experience, the typical salary range for an artist can vary significantly, indicating they may have more promotion opportunities and higher income.
If you are on Upwork, you can find third-world countries artists who value US artists off the market and are willing to create NFTs for a fraction of the price. Meanwhile, the best NFT artists can charge tons of money for their services if they have a proven track record of quality, saving project owners a lot of time and headaches.
Per Piece
If the NFT project is a collection, you may be asked to draw many small pieces. While it’s easier to set a price per hour and just get the job done, an alternative might be a price per piece.
For example, $1 per hat, $2 per shirt, and $3 per glass. This form of agreement is not so much about a market price as it is about an agreement between the artist and the client.
Royalties
This is a risky option as there is no guarantee that an NFT piece or collection will ever sell or take off, but it is a great source of income if it ever takes off. NFT projects are unstable and can fail from the start. To evaluate yourself as an artist, you need to become a partner in the project and share the royalties.
The royalties encoded in the smart contract of each NFT are the basis of all trading and the primary method by which artists make money. Every time an NFT changes hands, the artist gets a cut. This applies to both special items and collections.
When it comes to collections, you can have an entire team that recognizes royalties as well as platform transaction fees. Try the old business trick where you offer a royalty higher than you actually want and then “compromise” the price you want.
If you just want to create your own artwork and sell it yourself, we have a short and simple guide on how to create, buy and sell NFTs for beginners.
When asking how much money NFT artists make, it’s important to consider the many factors behind the answer. Art, in general, makes money, and NFTs are a great way to monetize talent. There are many factors that determine the success of NFTs, and many more factors that explain why most NFT projects fail. However, we live in the age of the creator economy, and now is the perfect time to do so.
How Much Money Can NFT Artists Make Per Month?
A new study has found that the top 30% of NFT artists earn more than the UK minimum wage, the top 20% earn at least £80k a year, and the top 10% earn enough to be among the top 0.5 cent earners’ income in the UK, according to the IFS thresholds.
A study by cryptocurrency and blockchain website Crypto.news analyzed the past 30 days of NFT sales data from 2,675 NFT collections on CoinMarketCap in order to establish the average NFT artist salary, using currency conversions from July 12, 2022.
The analysis showed that over that specific period of time, the average price of NFT art was £196.06 per piece of art. The average 30-day sales of the NFT collection is £35,878.98 based on the average NFT price and average sales of 183 sales per month.
With monthly sales ranging from £6,700 to £34.9m, the top 20% of NFT artists can earn at least £80k a year from sales. This means that successful NFT artists can earn as much as a sales director or lawyer, according to wage data from ONS.
The top 10% have earned more than £34,000 in the last 30 days, which puts them in the upper 0.5% income threshold in the UK, according to annual estimates.
However, the average monthly earnings are £102.08, with the bottom 35% of NFT collections producing zero sales and the top 30% earning at least £1,395 from sales, which is the monthly minimum wage in the UK.
The top 25% earn at least £3,174.79 per month or £18.32 per hour from NFT art collections, with an average price of £725.25 per artwork for this quartile. These calculations are based on a 40-hour work week using sales data for the last 30 days.
What's the Best Starting Price For an NFT?
As a rule, a request for 1 ETH is a perfect price for a starter. However, you can always change the NFT price at any time. If you find that your audience cannot afford 1 ETH, move down to a lower price.
By setting the average price of NFT compared to the one recently sold on the market, you will have a better chance of avoiding the overpricing error when launching NFT.
What Determines When an NFT Price Rises and Falls?
The more you mint coins, and the faster you sell them, the higher the minimum price in the secondary markets will be. Thus, searching at an affordable price and within a range of similar pieces of art will yield the best results. An excellent metric to consider is market capitalization. This is the total number of recent NFT values from certain collections.
Some Factors Drive Prices to Go Higher
Although these prices rise and fail, there are usually several factors that can affect their rise. Here is a list of examples:
- Good News
The common saying, “Good news travels fast,” rings true when it comes to launching NFT projects and raising prices. For example, an NFT backed by donation directly to charities or non-profit organizations is a great way to support social causes, promote a positive message and gain popularity.
- Active Community
Discord is a great way to build a loyal fan base and connect with NFT’s other holders. If you find that your NFT collection is gaining popularity on social media or has a solid community that makes everyone feel involved, the price can skyrocket. Some go as far as creating rivalries to inspire a tribal movement. Starship and Alien World, for example, are games to make money with incredible communities.
- Attention
Sometimes even small attention can boost your sales. For example, if you join a community on Twitter where everyone is talking about different cryptocurrencies, and a friend calls out your collection of NFT, that attention can drive up your prices.
- Timing
Go to OpenSea and find the NFT collection you are interested in. Find “volume traded” at the top and click on it to view a list of the latest sales made in the collection.
Use the filter to sort by the last seven days, 90 days, or more to determine how often sales are made and at what prices. For further analysis, you can also check the 90-day average price and take volume. If you see NFTs being sold within a few hours, this suggests that this is a healthcare project with a lot of popularity and interest.
On the other hand, if you see months or weeks going by before a sale, the NFT project may not be well maintained or promoted.
Why Does Floor Price Matter?
The floor price is an indicator of the status of the NFT collection project. This is often the lowest price for a particular NFT. Use this number to determine the price of NFT for future projects. If you set the NFT at a floor price, buyers will assume that this means you want to sell quickly.
You should go to Open Sea and then use the “Buy Now” option for a specific NFT project. Move further using the “Low to High” sorting option. Once you get an idea of which NFTs are selling at the bottom, you need to consider how fast they sell to determine your own NFT price.
If the floor price is .02 and it has multiple (3-5) identical minimum prices, this suggests that it is probably a reasonable price. However, if there is only 1, this shows that the floor price is still flexible, and you should keep track until you can determine the exact floor price for that collection.
You can use an online tool called “NFT Price,” which lists up to 300 top NFT projects and the latest floor prices. Projects similar to Bored Ape Yacht Club NFTs have high floor prices in secondary markets. This tool can also analyze other blue-chip NFT projects.
This is how people can find collectibles that sell for millions of dollars. Try sorting the graph by “Last 7 days”, “Last 14 days,” “Last 30 days,” and “All-Time” to get an idea of the NFT project comparative example, as you can expect to see the price interaction.
Why Can NFT Price Make or Break Your Project?
Not all NFT vendors believe that price affects the overall success of your project, but they may be optimizing for a different purpose, and creating a profitable NFT project is not what they want to do. If you think about the costs involved in minting, listing, and selling NFTs, you will quickly realize how important it is to get the price right.
This also explains why you can’t purchase NFTs for less than $300 most of the time because the artist won’t be able to cash in on the sale since there are so many gas fees.
Overall, if you take the time to think about how much art you will be selling and what the floor price should be, it will save you from the headache it will create in the future if you don’t.
Conclusion
When you first hear about NFTs, it may seem too difficult or impossible for you to enter the market on your own. But with some careful research, diligence, and creativity, it’s more achievable than it looks.
While most NFT artists aren’t going to be millionaires, there’s a lot of interest and money swirling in the space. This means that there are many opportunities for artists to generate significant income from their work.
