The NFT space is still young, transforming on a nearly daily basis. Zooming out, Web3 is impacting the evolution of the internet as a whole, disrupting business models and providing new opportunities for value creation. These levels of transformation are interconnected and complex, requiring new approaches to revenue generation and business growth.
As new projects and processes gain traction and the landscape evolves, creators must start thinking about long-term strategies to remain competitive and relevant. Taking the reins of your business model is how to make the biggest positive impact on your project’s trajectory. When the power is in your hands, you can more easily hone it to build a successful and sustainable NFT business.
Projects that don’t control their business model open the door to significant risks that damage the long-term success of their project. Given the nature of the NFT space and its near constant transformation, it’s so important to take control now.
The Risks of Not Controlling Your Business Model
Rapid change means unpredictability, which is not ideal for businesses that require consistent and scalable revenue. Blockchain and NFT technology is being developed daily, often impacting how and where revenue can be generated.
A recent example of this is Sudoswap, a new NFT marketplace that has proven secondary market royalties are never guaranteed. Sudoswap eliminates creator royalties, reducing platform fees to .5%. Traders save money compared to other platforms that implement a 2.5-5% fee. Opensea also updated its protocol recently, making royalty payments an optional layer within the overall platform fees.
These are critical developments, as many NFT creators mistakenly believed that passive income was guaranteed via secondary market sales of their work. Now, countless business models have been destroyed, requiring a new creative approach to monetization. The question becomes how projects can build business models that are sustainable and consistent, despite the lack of royalties or market conditions.
For many projects, dependencies exist around third-party marketplaces. These platforms hold the power to grant royalties, list NFTs and generate engagement. The challenge is that this power is immense, and businesses must seek ways to take it into their own hands. Without managing a hub for this activity, sacrifices are made that weaken control of business models and risk becoming unsustainable.
How to Take Control of Your Business Model
Creating a great product is only one facet of success in the NFT space. Seizing your business model requires strategy around customer experience, community management and growth. Lists of tips to build community and engagement can be found across the internet, but more future-proof options exist that go beyond discord channels and influencer collaborations.
Web3 infrastructure and services can equip creators and businesses with the tools needed to deliver incredible branded experiences and sustainably grow communities. Many projects deploy their minting site, mint-out and then push engagement to third-party platforms. Deploying a dedicated ecosystem for NFTs to be minted, traded, and sold, captures more value for your project and community.
Capturing and managing this value with your community keeps the control in the hands of your project. Not only will your community own the assets that are engaged with, but the platform they engage on. This positions you do continually develop and deploy branded experiences in one central location primed to grow alongside the success of your project.
Owning the platform that enables communities to transact and engage is very powerful. It might seem like a big undertaking, but the end result will empower your community to deepen engagement and gather in your project’s application. This takes control away from third parties and returns it to where the value is actually being created, your community.
Now is the time to mark your territory among Web3 projects and set up shop with trusted and future-proof web3 infrastructure. This is why Liteflow is fully dedicated to helping businesses to start building. We are focused on making it easy to take control of your business model and prepare for the future of web3. Interested in learning more, just reach out and let’s bring your ideas to life!