NFT…what?? You mean those pictures that I can just right click and save? My customers can’t afford to pay for a Bitcoin! Let’s clarify a few things…
First, do you know what an NFT is? More importantly, do you know what it isn’t? An NFT, or Non Fungible Token is a digital asset that exists on a huge ledger called the Blockchain. Imagine having a notebook in your place of business, and every time anyone in the world makes a transaction on the blockchain, your notebook, as well as everyone else’s notebook is automatically updated. An NFT is simply a verification that someone owns an asset, and no one else can own that asset, no matter how many images they steal from your NFT.
Second, an NFT does not have to be an image of an Ape or an 8 bit English Punk Rocker. Yes, there is artwork that is an NFT, but that’s not the main focus for your small business. The main focus will be what is called Utility. You know those discounts that you give your customers every now and then called coupons? Well that’s a form of utility in the real world. Customers gave you their address or email address, and you gave them something in return for free. That’s a form of utility, and that’s the secret weapon for NFT’s. If you can provide real world services, and combine that with a digital asset, you are officially in what called Web3. I will dive into a few examples.
Third, you don’t need Bitcoin at all. You don’t need to be intimidated by a $30,000 coin. In fact your customers can pay pretty close to the same price as USD with Polygon, or MATIC. It’s a coin that runs on the Ethereum Blockchain and it costs about $1 per coin at the time of writing this article.
Why do I need an NFT when I’m providing utility already?
One of the major differences between an NFT and something like an email list is that there’s a market for your membership. In other words, one of your customers can sell your membership NFT, and both the customer and you make a profit. For example, if the utility of your NFT is that you give away 1 free product a month at your place of business, a customer can sell their NFT to another customer, and now they would get that utility when their wallet verifies that they are the owner of that NFT. There’s no fooling the Blockchain. You can’t just photocopy an NFT and give it to a business and say that’s my NFT I want my utility, there are checks in place and verifications. That’s the best part about the Blockchain. There are so many ways that businesses can not only provide value, but receive value as well from NFT’s.
What is an example of Utility?
So your customers purchase some Ethereum, they mint your NFT at launch, now what? Well, that depends on the type of business you are. For example, if you'r a restaurant, you may want to create what's called a Lazy Mint, where your customers have an NFT that reveals itself in a certain period of time with something like free entree's throughout the year. This keeps your customer based entertained and almost guarantees that they will be dining throughout the year. They pre-paid for their utility. Another example of utility is access to events at your place of business. You have to think of something that would make people either keep or want to make some profit off of reselling your NFT. When they list it on something like Opensea, you get a percentage forever. So that means that when the NFT is then resold after that, you get a percentage as well.
NFT's are a bleeding edge way to give you a unique offering for your customers and reward them as time goes on. Utility is forever, and as long as you remember that, your audience will never be let down.
Did this help you?
The purpose of this blog is to help business owners understand what they are paying for when it comes to marketing. Share this with your business friends to help them as well.