Music NFTs Explained: How To List and Earn From Music NFTs
Get ready to rock and roll with Music NFTs! This guide will show you how to list and earn from them. Musicians and collectors alike, it's time to turn up the volume and cash in on this exciting new market.
Music has evolved overtime in human history, from the traditional methods with musical instruments such as flute and horns to guitars, violins & Pianos to Smartphones and other smart devices that people can now use to create beats and rhythms for their songs.
From our traditional songs more and more genres of music with sophisticated and complex sounds have been made which has gradually changed the music culture and how people perceive music overtime.
This Post Contains
- What Are Music NFTs
- How To Upload Music NFTs
- How To Make Money From Music NFTs (Artistes & Investors)
In addition, how musicians get their music across to their audience has changed. In early human history for example, Musicians had to be physically present to perform Live and get their music across to people as there were no means of recording then.
From that we've moved on to records, tapes, compact cassettes, track tapes, and compact discs and now to downloadable streaming platforms such as Spotify, iTunes and Audiomack.
And now, the next big thing for the music industry is selling their albums and songs to their audience as NFTs.
What Are Music NFTs?
NFTs are immutable Unique digital assets stored on a Blockchain, they're non-fungible items that can be in the form of an image, an audio file, a video, a certificate, a receipt or Files containing information about physical assets such as Land or buildings.
NFTs can be used to validate, verify or secure assets digitally, in a way that prevents Counterfeiting.
Music NFTs are therefore Audio files stored on the Blockchain that allows Artistes to sell their songs, beats and other musical contents to their fans while solving the problem of counterfeiting in the process.
How To List Music NFTs
To Upload your Audio NFT you'll have to do the following things.
- Choose a blockchain: Choose the blockchain on which you want your NFT to be, Ethereum blockchain (ERC-721) is the best as it's the most widely used.
- Choose an NFT marketplace on which you'll upload your NFT and list it for sale, OpenSea is the largest NFT marketplace and the best for Music NFTs.
- Fund your wallet with the Cryptocurrency required for Gas fee: Ethereum for ERC-721 standard NFTs on OpenSea.
- Setup your Account on the NFT marketplace and connect your wallet.
- Upload your Audio file; Your recording, song or beat.
- Add cover art and title for your Music NFT.
- Add properties such as Genre of the Music, Topic and description.
- Enter external information about your Audio NFT; such as links to your Social media accounts or website and add information about your Music NFT.
- Mint the NFT: Once you've decided to mint your Music NFT you can add the quantity you want to mint and then create your NFT. The number of your NFT available will theoretically determine it's value.
- List your NFT for sale: Enter your Floor price (Starting price) and Develop a promotion strategy for your NFT so you can reach willing Investors and also determine your sales strategy. Make sure to determine whether people can buy through auction, name their offer or just buy for the listed price.
As the law of demand and supply applies the price and scarcity of your NFT on the market will affect its value. So make sure your Listing price relates to the number of NFTs you mint (You can't mint 50000 copies and expect people to buy one of it for $5000).
Related Post: NFT Marketplace: Best NFT Marketplace To Use In 2022
How To Make Money From Music NFTs (Artistes & Investors)
Musicians get only 12% of the money the Music Industry makes from Royalties, Advances, Live performances, selling merchandise and Licensing fees.
This sad reality has stirred up the need for research on how musicians can earn a huge percentage of the revenue realized from their own musical contents.
Musical NFTs address this problem of Artistes being ripped off as they are the sole owners and proprietors of the Albums, Songs and beats they upload on the blockchain allowing them to have full control of the Cryptocurrencies paid by their fans to buy those NFTs.
Without further ado, here are the ways in which you can make money from music NFTs.
- Listing/Buying an exclusive version of an Album has an NFT: To give you an example of how this works, Justin an American rapper can list his next Album as an NFT and offer an exclusive version to his loyal fans.
The rapper can mint 100 Copies of the Album and offer it at $10000 per NFT to Fans willing to buy.
With the incentives of being one of the first people to listen to the Album, having the rappers autograph on the cover art, a front row seat at his next Live performance and an exclusive catalog of the recording process of the album (Narrated by the rapper and only made available to the 100 Fans who bought the exclusive Album has an NFT).
An Investor can also profit from the NFT by reselling it to other fans who couldn't buy the NFT on time due to its limited availability, and are willing to offer more money to anyone who owns the NFT and are willing to transfer ownership at a higher price.
This will drive the value of the exclusive NFT up and would mean more profit for Investors who bought with the aim of Flipping the NFT.
- Album Crowdfunding: You're an upcoming Artiste or an established Artiste who just left a record label that was ripping you off. You can launch a crowdfund campaign offering your fans ownership of a percentage of shares of your Royalties or Label in exchange for sponsoring your next Album. Loyal fans will love the idea of being a huge part of your success.
For example, Ibn Inglor a Chicago rapper, raised $92,000 by selling various opportunities for fans including shares of his upcoming album’s royalties as NFTs.
- Creating & Selling Beats: If you're very good at creating beats, you can mint a recording of your beat on an NFT marketplace and promote it to popular musicians and DJs who might be willing to use it for their upcoming projects.
The only thing you need to do is make sure you mint only one copy so you don't sell to more than one person and lead to counterfeiting.
- Promoting Albums & Songs: Listing a music NFT on the blockchain is one thing, selling your NFT is another. The beauty of music NFTs is you can earn from it without actually being an Artiste or a DJ. You don't even need any special talent to make money from Audio NFTs. You can act as an Influencer who promotes Artistes unable to promote their music NFTs.
All you need is a community of NFT Investors.
Understanding blockchain technology and NFTs is important if you as an Artiste or an Investor will make money from Audio NFTs. Also understand that your good NFT isn't enough to make it sell, you need to be able to market it to the right audience with a very good Sales strategy.
In addition the success of music NFTs is dependent on the adoption of blockchain technology, Cryptocurrency and NFTs in general by Artistes as most are yet to see the potential of blockchain technology as a way of selling their digital items.