It would be a mistake to think brands are not interested anymore with launching their own NFT collection. The NFT market is precisely refining and maturing to make room for useful and large-scale projects.
While many brands are considering launching their own NFT collection, real points of interest, as with any new technology, are the risks and challenges to face. We have seen real good Web3 projects, giving the brands that have launched a legitimacy on the NFT subjects. We have also witnessed failed projects before they even got time to take off.
However, with the right approach and careful consideration, these risks can be mitigated, and brands can enter the NFT space with confidence and set themselves up for success. While learning from successful Web3 projects, it remains important to remember that there is still much to learn and explore with Non-Fungible Tokens. With a willingness to adapt and evolve, your brand will navigate the challenges and emerge as leader in the Web3 ecosystem.
Read more: NFT Utility & Rewards – The Ultimate Guide to Empower NFTs
6 mistakes you should avoid as a brand when launching your NFT collection
Launching an NFT collection is like embarking on a journey into the unknown. It’s easy to get lost when you have no vision, when your are not well accompanied, when you don’t seek fro the value you bring to your users. And before you know it, you’re stuck in a Web3 black hole.
Web3 is an exciting new frontier. However, it’s important to take a step back to develop a well-thought-out strategy. Before jumping into an NFT activation, you have to ask yourself the purpose of your initiative. And most importantly, you have to know the real value proposition for community members.
It’s not enough to merely be part of the metaverse or launch an NFT collection. Your action must be creative, inspiring, fun, AND useful. If your initiative is unclear, boring, or confusing, don’t expect it to resonate with the audience.
Relying on speculation
Typically two years ago, NFTs were mostly about selling overpriced and overvalued digital arts, leaving owners with nothing but valueless tokens. As a matter of fact, many NFTs have witnessed a huge drop in price upon resale, because of the overhype. When the price of an NFT was based purely on speculation, it led to an overvalued and underdelivering investment. With no real utility and questionable value, the buyer was left with a gaping hole in their pocketbook and an unredeemable asset.
So, when launching your NFT collection, it’s crucial to understand that most users no longer want NFTs just for the sake of owning them. The success of your collection will depend on delivering a truly meaningful and useful product, attracting a substantial core community members. In short, the focus is on delivering value to your audience.
In order to let your brand fall into the trap of , we have identified five critical mistakes that can derail your NFT collection launch and prevent you from joining the Web3 ecosystem with confidence.
Overlooking the utilities associated with the NFT
One of the biggest mistakes brands make when launching an NFT collection is overlooking the utilities associated with the NFT. Many brands launch an NFT collection without considering the potential use cases and benefits of the technology.
Gone are the days where NFTs were all about the more or less impressive data they represent. Currently, it’s all about what owners can concretely make use of them. When it comes to launching your branded NFTs, you have to make sure they will have a practical usability.
After all, what’s the point of an NFT if it doesn’t actually do anything? So, ensure your NFTs have real, tangible value for your audience. Before jumping into the NFT space, take some time to understand the different utilities and how they can add value to your brand. The best way is to collaborate with Web3 companies which will show you the path.
Brands providing real utilities to their NFTs
Besides, it is not about merely assigning random and not well conceived perks and letting them be. It is about a real mean in terms of utility. Wether it goes through a reward or loyalty systems, or exclusive membership to virtual and/or real-world events and clubs, Next-Gen clubs, such as the H3ritage Club from Le Bristol Paris. It can further go to offering NFT membership passes, accessing to real-life events, physical goods, or even royalties shared such as with BAYC, lifetime services, or rewards over a given period or more. The utility of your digital assets should be one of the core factors of your project’s and design.
Another example of a brand that leveraged the utilities associated with NFTs is Nike. Having been a great success, Nike patented “CryptoKicks,” in March 2021, a blockchain-based digital assets that would allow customers to verify the authenticity of their Nike sneakers and trade them on the blockchain. By leveraging the utilities associated with NFTs, Nike created a new revenue stream while also providing value to their customers.
Now part of Nike brands, RTFKT for instance has become far more than a virtual sneaker creator, they are merging worlds via the combination of digital and physical craftsmanship, powered by a creative community, groundbreaking collaborations and non-stop innovation.
Bringing no value to users with your NFT collection
NFTs are unique, and you must ensure as a brand to provide a clear value proposition for your collection. Many brands make the mistake of focusing solely on the NFT’s aesthetic value and forgetting about the actual value it brings to their audience. In the same vein, it’s not enough to simply create a collection of digital assets and hope that users will find them valuable.
Your NFTs need to offer something unique, compelling, and different from what’s already out there. Focus on creating an NFT collection that provides genuine value to your audience. This is where your branding and creativity can come into play. You need to make the best of your brand strengths and identify what will set your NFTs apart from others.
The point is to create a value proposition that resonates with your target audience. Whether it’s access to special and exclusive, if not more custom content, proof of ownership of a physical asset, your NFTs must offer something that people want. The challenge is to identity what your audience will appreciate. With so many great content and experiences already out there, it’s important to focus on delivering real value to the community.
However, even if your NFTs mainly offer art as their value, it’s still possible to stand out by creating digital collectible or piece of art that builds a deep bond with the brand. This is particularly the case when the art conveys a strong message.
Keep in mind that being unique and different is the key to success. Without a clear and compelling value proposition, your NFT collection is unlikely to gain traction and ultimately fail. So take the time to define what sets your collection apart, and communicate it convincingly to your community.
Disregarding your core audience
Considering your existing audience and how your NFT collection will fit into their interests and preferences is quite obvious. There is no need in creating an NFT collection that is entirely disconnected from your brand’s core values and users’ interests. Failure to consider the audience may result in a lack of engagement with the NFT project, even if it seems pretty good.
Besides, many people are still unfamiliar with NFTs. Non-Fungible Tokens are still a relatively new and complex technology, and not everyone understands them. Before launching an NFT collection, you need to ensure you understand your target audience’s knowledge and interest around Web3 ecosystem.
Do not let complicated technology scare away potential customers. Make it easy for them to get involved and enjoy your unique NFT collection. Because if your brand’s audience is unversed in NFTs, the collection may not generate the expected buzz or sales. Unless it is well designed for newbies and the process eased.
On the other hand, if the brand’s audience is highly knowledgeable about NFTs, the collection must be designed to meet their expectations and so on. A company having understood its audience for instance when launching an NFT collection would be the NBA Top Shot. This brand put in place an NFT marketplace which allows users to buy and trade officially licensed NBA highlights. This brand understood that its audience was highly interested in sports memorabilia and the blockchain technology. It then leveraged that to create an NFT collection that generated more than $500 million in sales in just a few months.
Overlooking legal issues and security when launching an NFT collection
Because the world of NFTs is a kind of lawless frontier, navigating the intellectual property of Non-Fungible Tokens can be a daunting challenge. There are no easy answers yet, as the legal structures for NFTs are still taking shape.
Fortunately high-profile cases are already underway. Some renowned entities are working hard to set legal precedents in the space. But it’s still up to brands to take the legal implications of selling their digital assets seriously. The better is to not consider the potential legal risks too late. It’s always better to seek legal counsel early on to avoid any possible legal complications down the road.
Even if it’s complicated to understand the regulatory framework surrounding NFTs. You have to make sure they are on set with legal issues and taxes. The same goes when you are to equip your brand with a Web3 collaborator. Because failure to comply with relevant laws and regulations may result in legal and financial consequences.
Security compliance
When it comes to the NFT space, security is not just a nice-to-have, it’s a must-have. NFTs are associated with high-value transactions, and every brand should be aware and take appropriate measures to secure their NFT collection with the right tech infrastructure. Unfortunately, the reality is that scams and hacking attempts are rampant, and NFT projects are prime targets.
Scams sabotage a brand image and erode user trust. They have a devastating impact on your bottom line. This must take all necessary precautions to secure their assets and protect their users. This includes using fully secure smart contracts, enabling multi-factor authentication, regularly updating security protocols, communicating with the community about identified scammers. Do not waver about getting helped by dedicated platforms such as METAV.RS, ensuring the security of your branded asset.
Not training your brand team on the Web3 subject
Finally, one of the biggest mistakes brands make when launching an NFT collection is not training your brand team on the Web3 subject. If as a decision maker you have a lot of knowledge about Web3, do not assume your team does too. In fact, most of them probably don’t.
The Blockchain technology pretty seems like a foreign language. And NFTs are part of the larger Web3 ecosystem, which includes blockchain, cryptocurrency, and decentralized applications. Brands must ensure their team has a solid understanding of Web3 and the technology behind NFTs to effectively launch and promote their NFT collection.
So launching an NFT collection requires a solid understanding of Web3 and the different aspects of the technology. Ensure your team is trained and up-to-date with the latest Web3 trends and developments to make informed decisions and avoid costly mistakes.
Gain a deep understanding of the Web3 concept, take the time to chat with experts, explore various perspectives. Learn about the platform and ecosystem, use cases, successful and failed projects, and the unique culture of this new world. METAV.RS for instance has designed a comprehensive acculturation program which will provide your team with the knowledge and tools they need to succeed in the fast-moving world of Web3.
Once you have a firm grasp of the technology and have addressed any potential risks, you’ll be well-equipped to embark on your Web3 journey and explore this dynamic new frontier.
Read more: 18 Utility ideas for Brands and creators to supercharge their NFTs
5 best tips to make it right when creating a branded NFT collection
With so many brands jumping on the NFT bandwagon, it’s important to create a collection that stands out from the crowd. Here are three tips to help you make it right when creating a branded NFT collection.
Create a Narrative
The key recipe of creating a killer NFT collection is the story. You have to weave a tale that captures your audience’s attention and pulls them into your world. Whether it’s your brand story, as Louis Vuitton did with its app game, or the inspiration behind your artwork, make it something your fans can get excited about. The story behind your project is what captures people’s attention and their wallets.
As a fashion brand for instance, you could take your audience on a journey through the design process of your latest collection. From mood boards to behind-the-scenes footage, give them a taste of what it takes to create a runway look. With such narrative like that, you can craft unforgettable experience for your users.
Make your NFT collection Limited
Betting on scarcity can as well stand as a great idea. By creating a limited edition collection, you make NFT something rare and valuable. Besides, a lot of people like possessing something exclusive.
So when setting up your NFT collection, think about limiting the number of NFTs you create. And to really take it up, consider creating different tiers of NFTs, with the most exclusive tier being the most limited. That way, your users will be clamoring to get their hands on that top-tier NFT.
Engage Your Audience
If you want to make your NFT collection a hit, you have to get your audience involved. They should feel involved in the design process. By doing this, you’re not just creating a collection of Non-Fungible tokens, you are building a sense of ownership and community around it. Everyone loves feeling like they are part of something special.
So whether it’s giving your fans sneak peeks of the artwork or involving them in the design process, keep them in the loop. This will not only build hype around the launch, but it’ll also create a loyal fan base that will keep coming back for more.
Make it easy for your customers
You need to make your NFT collection accessible to everyone. And that means removing any barriers to entry, like the confusing world of Web3. First up, you can offer a fiat payment gateway. Sure, not everyone is a crypto genius, but almost everyone uses a credit card. By accepting payments in traditional currencies, you are making it a no-brainer for your customers to get in on the NFT action.
And for those who are still feeling intimidated by crypto wallets, consider custodial wallets. Because, setting up a crypto wallet and remembering a passphrase can be really stressful. But with a custodial wallet option, you’re taking away the headache and making it easy for customers to hold and interact with their NFTs.
Provide a Web3 lexicon for the newbies. Make sure your customers are aware of the words you use. While trying to keep your language simple and accessible to everyone, provide a document for them to understand what you are talking about. The point is to embark them on a Web3 journey too. Nonetheless, the more people understand what you are offering, the more likely they are to buy in.
Partner with Web3 Agencies
Finally, Web3 agencies or startups are the experts in all things blockchain and can help you create a mind-blowing NFT collection. With their skills in smart contract development, or blockchain integration, they are able to take your NFTs to the moon.
Besides, with their insider knowledge of the latest trends and technologies, they will make sure your NFT collection stays ahead of the curve.
In a nutshell, launching an NFT collection can be a great opportunity for brands to engage with their audience. However, you must avoid as a brand common mistakes and leverage the full potential of NFTs. In that way you can create a successful NFT collection that provides value to your audience and strengthens your brand.
Confidently launch an NFT collection that engages your audience and adds value to your brand. And remember, launching an NFT collection is a journey, not a sprint. Ready to take your NFT game to the metaverse? Then it’s time to contact METAV.RS and enjoy the ride.
