NFTs and creator coins have become media darlings of late. We love their potential too. What we don’t love? The technical jargon and explanations. So, let’s tackle the topic without any of that.
What are NFTs?
NFTs are vehicles to secure investors in one-of-a-kind content assets. Think of an NFT like a digital ownership certificate.
Content entrepreneurs could create (i.e., mint) an NFT for its debut blog post from 10 years ago or their most popular podcast episode. (Forbes recently did this with its specially created magazine cover of the Winklevoss brothers, owner of NFT auction platform Nifty Gateway.)
Are NFTs like crowdfunding?
Kinda. The people who invest usually believe in your brand. Most likely, they are your “super fans,” as Peter Yang calls them.
But NFT investors can reap a bigger benefit. They can get exclusive perks from the creator, such as tickets to their events, meet-and-greets, etc. (Kings of Leon recently sold its new album as an NFT. Its investors will see benefits like front-row concert tickets and a limited edition vinyl edition.)
Another big difference? The NFT creator can collect a royalty every time an investor sells the asset. (Note: You have to set up this stipulation when you create the NFT.)
What are creator coins?
While each NFT has a unique value, a creator coin can be exchanged for any other coin because they have the same value (i.e., like a dollar or a bitcoin.) And though creator coins can be bought for cash, they often are distributed on a non-cash basis.
Think of an entrepreneur’s creator coins like points earned through an airline’s credit card. The airline rewards the customer’s patronage with points that can be exchanged for their product. The program is designed to build loyalty among its passengers.
What’s the benefit of creator coins?
For entrepreneurs, creator coins offer a great way to build and grow a loyal community. Coin owners are more likely to feel a part of your content brand. That’s one reason we minted a creator coin ($TILT), which currently is a reward for audience members who get others to sign up for the newsletter.
Owners of creator coins can be treated like VIP subscribers. They can receive perks, like access to exclusive content or a VIP community channel. They also can have opportunities to spend the coins in exchange for products and services like an online course or one-on-one coaching.
Should I get into the token game?
If you see it as a get-rich-quick solution, don’t do it. Creator coins and NFTs are very long play, but they are important ones for content entrepreneurs.
How should I start?
First, you must have a solid foundation – an extremely loyal audience and following. After all, if you don’t have fans, who will want your creator coins or be willing to invest in your NFTs?
With a minimum viable audience in place, go the creator coin route. By issuing these coins, you develop a stronger community of people eager to get and redeem more coins. (Technically, you could sell your own creator coins in the marketplace, but don’t rely on that for a big income stream.)
Only when you have a large, rabid fan base, you could add NFT investors to your business. (Though don’t expect your first tweet to sell as an NFT for over $2.9 million like Twitter and Square CEO Jack Dorsey.)
Ready for the tech stuff? Check out this helpful content:
- Step by Step Guide for Creators (Creator Economy) – the title is self explanatory
- How to Create, Buy and Sell NFTs (Coindesk) – a great guide if you want to go into the NFTs business
- NFTs Explained (Verge) – a fun conversation focusing on the original art aspect
- NFT for Creators (Interaxis) – a helpful video that speaks to content entrepreneurs on the possibilities