NFT for Musicians: A Detailed Guide About Music NFTs
Are you a musician or are very familiar with the industry? Do you want to earn money on music? Today, many musicians make revenue with NFTs. In this article, you will find out everything the music world needs to know about non-fungible tokens and their benefits.
Table of Contents
What is a Music NFTs?
Music NFTs are digital tokens are a type of non-fungible tokens. The owner of a Music NFT has exclusive rights to the music, album artwork, videos, and content. But the tokens are not only for songs and albums, musicians can sell their autographs, images, listeners, song lyrics, and anything related to an NFT.
If you are a musician who is looking for an alternative way to make money with your music, the opportunities that NFTs present are what you need.
Nowadays, non-fungible tokens are a source of income for a lot of artists. Once an artist creates or mints an NFT, they can sell it for a certain price on NFT marketplaces that allow musicians to not only sell their music, but videos, album covers, concert tickets, or anything related to their fans.
What are The Benefits of NFTs for Musicians? 🎼
NFTs have numerous advantages for musicians and the musical community. And why not make use of the web platform if it allows you to present and sell your work in a novel way while earning money? We can observe that a lot of artists use digital resources. The benefits of NFTs are as follows 👇:
- On the NFTs platform, you may get rid of extraneous middlemen and third parties.
- Music NFTs and blockchain help establish ownership rights.
- NFTs allow controlling and tracking of secondary market income.
- Instant and automatic payments.
- Transparency between all parties.
- Immutable and permanent platform.
- Resale revenue.
How Can Musicians Create an NFT for Music?
Creating your own NFTs is a great way to grow your brand and make money.
Making NFTs for music is the first step in entering a new field. The following steps will explain how to make music tokens: :
- Create a digital file for the music. Upload your digital file to a blockchain platform that supports NFTs.
- Create a contract. In this contract, you specify the terms of your sales, such as the price of the music or related token and the delivery time.
- Mint your NFT for free. For presenting your music file, create a special and unique token.
- Connect your crypto wallet to your blockchain app.
How to Price Your NFTs?
- Creation costs
- Minting costs
- Selling costs
- Marketplace fees
- Tools costs
- Additional costs that may arise later
- The type of asset
- The supply
- Do your research, including market and competitors’ research.
- Choose a target audience.
- Choose a marketplace.
- Consider the costs.
- Set your tokens to a unique value.
- Choose the fixed price, auction, royalties, or a combination of these.
- Calculate the costs.
- Set an appropriate price.
How Can Musicians Make Money With NFTs?
The music industry has undergone some changes in recent years and the way musicians make money has also changed. Now, Metaverse, blockchain, and NFT technologies present new opportunities and open new markets for musicians or industry-related people to make money. All they need to do is understand their audience’s needs and create unique and interesting content.
Here are several great ways for musicians to make money with NFTs:
- Release NFT album
Instead of releasing a separate song, you can create an album NFT, which will have additional benefits. This will help to create an attractive bundle for buyers.
- Profits from secondary sales
Most NFT music marketplaces allow creators to get their percentage from secondary sales. For instance, if you set the royalty for your NFT at 5 percent every time your digital work is sold to a customer, 5 percent of the actual sales price will be paid to you.
- Work with other musicians
It is a brilliant idea to partner with other NFT artists or musicians. It allows you to enlarge your audience and sales.
- Create NFT DAOs
Being a member of a DAO and owning NFTs are not the same thing. Your fans become investors and shareholders through DAOs. DAO allows you to establish relationships with your followers, allowing them to be a part of their favorite artists’ progress
- Offer special goods with your NFTs
Several artists present music NFTs with exclusive goods such as signed CDs, backstage passes, exclusive videotapes from live shows, etc.
- Sell NFT tickets
You can sell the tickets for your concerts and live shows. It is impossible to generate another copy of tickets on the blockchain because NFTs are unique on the blockchain. The secondary market for concert tickets is very large, and it is a great chance for artists to make royalties on secondary market ticket sales.
Listing the NFT on Leading Marketplaces
After creating an NFT, the second step is listing it on leading marketplaces. There are several listing types that we introduced below:
- Fixed-price Listings
The seller sets the price and keeps the item listed until someone buys it or the seller cancels it. The price will not change as it is fixed and finalized.
- Declining-price Listings
Declining-price Listings are also known as Dutch auction listings, allowing setting above the market’s average price, then gradually decreasing the cost.
- Highest-bid Auctions
Also known as an English auction, this listing type helps the creators to sell their NFTs above the market’s average price. The seller sets a starting price and reserve price. After this, the bidding process starts, and the price goes up until the time is up and the owner sells it for the highest price. If the reserve price isn’t reached, the seller can decide not to start another bidding.
How to Promote Music NFTs
Famous artists already have vast fans and big audiences, and it is easy for them to develop their NFTs and make a buzz about them on their Instagram and other social media channels. Their base fans help artists promote their tokens and attract new buyers.
And what about new musicians? For them, selling NFTs is very difficult, as they do not have many followers and must invest more in marketing and promotion. But there is always a solution. Many artists cooperate with fans to promote the NFTs. Artists can share a part of the sales with the fans or give the fans live tickets to shows to capture followers.
If you want to promote your NFT, we have collected a couple of practical ways to do so:
- Use social media channels. Social media is a great platform to make yourself known. Artists post their works on all social media channels.
- Ask your friends and colleagues to support you
- Collaborate with influencers. Most influencers have many loyal followers who trust their opinion. To increase awareness of your creations and yourself, influencers are here to help you.
- Write PR articles about your NFT.
How Much Money Can Musicians Earn with NFTs?
The Music NFT industry is one of the largest in the industry. Most popular NFT sites give “an average sale” price very high. Rankings listings start at $2,400 to $5,800.We already mentioned that musicians earn money from secondary sales. The royalty rate typically ranges from 5 to 10 percent, but it frequently goes up to 20 percent.
And in addition, the market for music NFTs is expanding. According to the research group Water & Music, the direct sales of music NFTs reached over $12.6 billion in 2022. Although it’s doubtful that all the money went to the artists because platforms collect fees and partnerships divide revenue.
How to Buy Music NFTs?
Many people today buy NFTs for various reasons; some buy to resell, some to support their favorite artists, some to use or add them to their collections, etc. Regardless of why you want to buy, here is how you can purchase music NFTs:
- Acquire a wallet and fund it
- Open a crypto exchange account
- Buy Ethereum (most marketplaces for these collectibles accept only Eth tokens as payment).
- Transfer Ethereum into a crypto wallet
- Find an NFT Marketplace, where you can choose the NFT you want
- Connect your crypto wallet to the NFT marketplace
How to Sell Music NFTs?
Many people buy NFTs for various purposes, and reselling them is one of the reasons. To sell your NFTs, you need to know the process.
Remember that if there is a demand, there is always supply. Offer your NFT to people who are ready to buy it. We can’t say that selling NFTs is easy, but it will be much easier if you know where and how to sell them. Here is a short guide for you:
- Download a crypto wallet
- Choose an NFT Music Platform
- Create an account
- Create a collection
- Upload your music
- List NFT for sale
The Most Expensive Music NFTs
Music royalties don’t compare to the money made from selling digital collectibles. Most music NFTs have super high prices, and many musicians make a lot of money selling their works. Here are the most expensive ones:
- 3LAU, Ultraviolet Album, $11.7 Million
- Steve Aoki, ‘Dream Catcher,’ $4.25 million
- Kings of Leon, ‘When You See Yourself, $2 million
- RAC, ‘YOU’, $708,000
- Doja Cat’s Single Edition $118.000
- Mike Shinoda, ‘One-Hundredth Stream’, $30.000
- Jacques Greene, ‘Promise’, $20.000
Music NFT Marketplaces to Sell/Buy NFTs
NFT platform is an online place where musicians sell or buy their works. To accomplish your aim, you will need an NFT websites. Here are the best ones:
- NFT Showroom
- Origin Protocol
- Nifty Gateway
The Future of Music NFTs
One of the NFT industry’s fastest-growing subfields is music. If you’ve been paying attention to NFT news, you’ve probably seen plenty of unique, imaginative, and even crazy NFT drops. This is just the beginning of a new start in the music world.
Considering all the opportunities, the NFTs music industry gives, we say that music NFTs have a bright future. There are many reasons why the future music NFT is promising. First, this field lets musicians make more money than they earn in real life. Many musicians are starting their careers in the NFTs world every day. This means that this industry is expanding very fast.
Second, new services are entering the NFT world every day, where they give new opportunities to musicians to create and sell their music.
The third reason is that music NFTs are available for everyone. You don’t need programming knowledge to create, sell or buy NFTs. This makes it easier for people to start working with NFTs.
Through music NFT DAOs, musicians and fans can develop an even stronger connection. All of this indicates that the music industry has limitless creative possibilities.
We already mentioned the benefits of NFTs for musicians, and today many of them take advantage of those to make money. They earn and have opportunities to become more famous on online platforms. The NFT industry is fast-growing, meaning musicians who are a part of it will see their careers grow rapidly. It is also becoming easier to use.
So, after reading the article, the process is very simple and easy for everyone interested in creating, selling, or buying NFTs.