The fast-growing cryptocurrency world has created a new landscape for digital marketing, and with that comes a whole new set of challenges and opportunities. One area that has seen a lot of growth in recent years is the world of non-fungible tokens or NFTs.
As more and more businesses enter the world of NFTs, it’s essential to understand some of the common marketing mistakes that can be made and how to avoid them.
1. Not building a community
NFTs and blockchain technology, in general, rely on decentralization and open access. Gone are the days when companies could just buy their way to the top with a few well-placed ads. In order to be successful in marketing your NFT, you need to build a community of supporters who believe in what you’re doing and are willing to help promote it.
A relatively new way to do this is creating a Decentralized Autonomous Organisation, or DAO for short. DAOs are essentially communities of people who come together to fund and promote a particular project, sharing the rewards with all members.
If you’re not ready to commit to creating your own DAO just yet, there are other ways you can build a community around your NFT project. Some ideas include:
- Create a Discord or Telegram group for discussion
- Engage with other NFT projects and communities on social media
- Organize meetups or online events related to your project
- Offer bounties or rewards for community members who help promote your project
- Airdrop tokens (if applicable)
If you’re still doubting the power of community, take a look at the Bored Ape Yacht Club, which “Broke Ethereum” in April 2022.
2. Not creating value
When it comes to marketing your NFT, it’s not enough to create something beautiful or unique. You also need to back up that beauty or uniqueness with real value.
One way to do this is by creating something of value for other NFTs, such as a DApp that uses your tokens somehow or a marketplace where your NFT can be bought and sold. It helps establish your token’s worth and shows potential investors that other NFT holders see value in your token.
Similarly, you can also provide exclusive access to your club (FWB) or community to people who own your NFTs. This scarcity helps create a sense of exclusivity, which can drive up the value of your tokens.
3. Not having a distinguishable approach
▲Nike’s first NFT sneakers, picture from Decrypt, copyright belongs to the original author
There is so much hype around NFTs nowadays that one could argue that the market is oversaturated. In order to stand out from the crowd, you need to be creative and unique in your approach to marketing your NFT.
Nike, for example, just released “Cryptokicks”, the first digital sneakers powered by skin vial for the metaverse. Your avatar will be rocking fully customizable sneakers in the virtual world, and you can even trade them with other people.
But even if you don’t have the budget to do what a studio like RTFKT did, the team behind Nike’s Cryptokicks, there are still plenty of ways to get creative with your NFT marketing. Some ideas include:
- Using augmented reality (AR) or integrating with virtual reality (VR) seamlessly
- Using gamification to incentivize users
- Creating limited-edition and collaborative NFTs
- Partnering with artists or designers to develop collectible tokens
4. Not having a good plan and strategy
Like any type of marketing, if you don’t have a clear idea of what you want to achieve and how you’re going to achieve it, you’re likely bound to be unsuccessful. Before launching any marketing campaign for your NFT project, make sure you have a clear plan and strategy.
Going back to the story of BAYC, one of their secrets to success was having a clear idea of what they wanted to achieve. They didn’t just make an announcement in the forums and then expect everyone to automatically jump on board, hoping that hype alone would get them where they needed to go.
They built a community first and foremost, which was essential in getting people to invest their time and money into the project. From there, they had a plan and strategy for how they were going to launch their NFTs, which they stuck to.
Find Below Our Starting Pack of What to include in your NFT strategy
For NFT projects, a strategy could include your whitepaper, website or Dapp landing page, marketing materials, partnerships, and more. Presenting your roadmap is also common, as it helps stakeholders and investors get a better idea of where the company is headed in the long run.
Make sure you have a budget set aside for your marketing campaign, including paid ads on social media, blog posts, event sponsorships, and other costs associated with promoting your NFT.
Since you’re operating on the blockchain, your budget will also need to account for gas fees, minting costs, and other blockchain-related expenses.
Lastly, don’t forget to set some KPIs (key performance indicators) so that you can measure the success of your marketing campaign and make necessary adjustments along the way.
5. Not setting the right intention
Our last point is one of the biggest mistakes you can avoid when marketing your NFT, and that’s to lie about your intentions or being dishonest about what you’re trying to achieve. There are too many “get rich quick” schemes out there, and people are getting wise with them.
There are so many, in fact, that NFTs have garnered a bit of a bad reputation in the space, which means you’ll need to work twice as hard to prove your company is legit.
If you are simply trying to sell art, it would be unwise to promise huge ROIs or present your NFTs as securities. You could actually end up facing legal action down the line.
Instead, focus on creating a product or service that provides real value to users. Don’t make promises you can’t keep or exaggerate what your NFTs are capable of doing; focus on honesty and transparency in everything you do, and you’ll be much more successful in the long run.