ARE NON-FUNGIBLE TOKENS (NFTs) GOOD FOR ARTISTS?

The Great Disturbance Luminous Art

NFTs can be really good for artists and in this article we look at 4 reasons why artists should consider them.

We assume you already know what an NFT in the art industry is – if you don’t please check out our article here.

Access to NFT Art Collectors

This is the obvious reason. Like it or not there is a generation who live and breathe tech and a proportion of this generation is likely to value your art – whether or not it’s originally in digital form.

If you are not in this market selling your art as NFTs then you are missing a market segment which your competitors may be active in and a set of consumers who could be very interested in your artwork – whether it’s a pure digital creation, a scan, an enhancement or even the original canvas!

Access to the Crypto Currency Market

The cryptocurrency market size is expected to grow from USD 1.6 billion in 2021 to USD 2.2 billion by 2026 – it’s not going away!

An artist selling their artwork as NFTs gives them access to these currencies and more consumers will begin using crypto as the concept of decentralized finance (currency not controlled by a specific government) becomes more widespread.

Provide visible control of digital downloads of your artwork

Digitally selling copies of artwork has been around for several years now but it’s not yet mainstream and one of the concerns is the lack of control over digital copies which can lead to depreciation in value of the artwork.

NFTs help significantly reduce that problem – especially when art is issued (“minted”) as a limited edition and the public domain copies are controlled with a watermark – who wants to print and frame a watermarked copy of art?

With an NFT you can stipulate how many copies will be minted and what rights the buyer has of a copy over the artwork.

The Mask Luminous Art Collection
The Mask by Michael Paul Bennett – Limited Edition NFT and Time Limited Digital Download

For example, you could issue a NFT and stipulate:

  • Only 10 NFTs containing this artwork will be issued.
  • Issues 2 to 9 will not be issued at a lower price than issue 1.
  • The buyer has the right to print and frame the artwork for their private enjoyment.

This controls the supply to 10 and encourages the buyers not to release the digital copy to the public domain as it could detrimentally impact on the long term value of their NFT (which they have the right to sell).

Generating a recurring revenue

A NFT is an excellent way of creating a recurring revenue business model as you can build in a royalty which you receive every time the NFT is sold. Say, for example you have listed an NFT for $100 and within the NFT you stipulate that every time the NFT is sold you receive 5% of the sales proceeds.

  • In sale 1 you receive $100 (less costs).
  • In sale 2, say it sells this time for $150, you receive $7.50, and so on.

Now imagine combing this with a limited edition of 10 pieces of the same artwork – this could create a significant long term income stream.

In conclusion, there are clear opportunities for artists to sell their art as NFTs. We’re certainly not saying they should be exclusively sold as NFTs – they shouldn’t as it’s an extremely difficult market to crack. Take a look at our blog here to see the different solutions and routes to market we offer for a single piece of artwork and don’t hesitate to contact us to find out how Download Artwork can help you gain a presence on the NFT Market place.