Hear me out… NFTs and digital collectibles are positioned as a way for artists to be fairly compensated for their hard work. This is especially freeing in a world where artists aren’t often able to make basic living costs. Digital collectibles have been a great alternative even in this bear market and still support artists more than their traditional methods have. But if this is your first NFT drop, it should be free.
But if this is your first time doing a drop, it should be free.
Cultivating and Nurturing Your Fan Base
The whole point of having digital assets is so you can cater to your fanbase directly. You get to go straight to them, avoid the platforms or processes that charge enormous fees and they get to support you directly. But that’s about building a relationship and that’s rarely done overnight. Offering a free NFT drop can be an effective way to engage your audience, incentivize them to sign up, and establish a connection before asking for money.
You’re also more likely to see wider adoption, and people who may be excited about having their first digital collectible can be on this journey with you. This is the first of many, so once you’ve brought on all the people interested, you can focus on what’s next with monetization in mind.
The point isn’t to have a one-and-done
Take the pressure off
If you haven’t heard the term “rugged”, consider yourself lucky. It’s a commonly used web3 term for getting scammed, and was thrown around quite frequently in the bull market*. Too many projects or individuals sold their collectibles with big promises, took their profits and didn’t deliver.
Here’s what else they did — they ruined their relationships and reputation. While there was a fair share of mis-intentioned people, there were likely many who were just too in over their heads.
By coming in with a free drop and not over-promising utility or returns, you alleviate a lot of these concerns. A free NFT drop allows you to gain experience without the pressure of having too much money involved. This can help you and your fanbase build comfort and confidence for your future, bigger drops.
Lowering the Barrier to Entry
At a recent panel, an artist asked how to approach selling a digital collectible when most of his existing fanbase doesn’t have any experience with NFTs or crypto. I know he’s not alone.
A free NFT drop also helps your audience feel more comfortable with the buying process. If it’s their first time purchasing NFTs, focusing on a smooth experience is essential.
It also means any first-time collectors have a lower barrier to entry and don’t have to worry about figuring out how to fund their wallets. In some cases, you could be the reason they create their first wallet.
Is this going to put me out? — Estimating the cost of a free drop
I know you might be thinking — “Is this another thing I have to pay for?”.
Offering a free digital collectible doesn’t mean it’s free to you, but it doesn’t mean it has to break the bank either. Here are two things to consider to optimize your budget and resources.
1. What you’re offering — What does this digital drop include?
Your first NFT drop doesn’t have to be a high-value, utility-backed item. It can be a simple digital collectible with an appealing image. It’s always a good idea to offer something that gives back to your community, like a chance to get your merchandise, potential VIP tickets to your next show or even a chance to have a studio session with you! These don’t have to break your bank, a free drop with a giveaway is enough to get you started.
2. Technicalities — Choose the right blockchain.
The technology may seem scary, but there are tons of platforms and companies that have made it accessible to do these drops for a very small price (ex. PoAP).
If you’re going about it on your own, most of your fees may be related to gas fees or transaction fees. Big names like Ethereum are known for their relatively expensive gas fees, but alternatives like the Polygon or Arbitrum network are a minor fraction of the price.
IRL Collective: Your Support System for NFT Drops
The IRL Collective aims to support artists interested in digital collectible drops by making them accessible and tying them to in-person events. If you’re interested in exploring NFTs, feel free to reach out to us on social media or through our website’s contact form. You don’t have to navigate this new territory alone – we’re here to help.
*Bull market: A period where market confidence is high, prices and valuations are typically much higher and investor demand soars.