NFTs and the creator economy.
The creator economy has seen a boost following the entry of NFTs. It has made the industry discover a passive way of making income. The good thing about it is anyone with the ability to create value in the economy can leverage it .
The goal of this article is to see how NFT can increase the earning income of a creator.
What’s an NFT ?
It stands for non fungible token.
It is a digital asset that’s stored on the blockchain. It can be in the form of audio,text,gif or sound.
The term non fungible implies that NFT’s don’t have the same value. E.g Jack Dorsey tweet NFT cannot be exchanged for Gary vee “vee friends”. Each NFT has its own unique value.
They are also used to solve the problem of ownership.
What’s the creator economy?
Basically,It’s an economy for creators.
The creator economy is made up of people who produce content online and monetize it to earn a living. These are people who decide to utilize their passion or skills to create value rather than just consuming information. They include bloggers,social media influencers,artists,videographers,Youtubbers e.t.c.
Now how does NFTs fit into the creator economy?
Creators are known to make money through advertising,sponsored content and brand collaborations on their various social media platforms.
Last year,the creator economy was valued at about $1.3 billion. But most of the money made is going to middlemen and social media platforms.
Creators are always relying on brands and agencies to be able to make an income through their followers.
They are always at the mercy of social media algorithms. Most of the talented creators are not visible on the platform due to the ever changing algorithms leaving them in the dark side of social media.
This makes some creators unable to make consistent income online despite their hard work to create an audience online. This is rather unfair to the creators.
With the rise of NFT, it will give the creator control of their finances. It can be achieved in these ways;
▪️ They have the ability to mint an NFT of their work( it could be a song,tweet,painting) and earn money directly without an agency.
A musician kings of Leon generated $ 2 million from his album as an NFT within 2 weeks of release. If he had created it and put it on Spotify he would need about 400,000,000 streams of his music to make the same $2 million.
He leveraged on NFT technology giving him the power to make money from his audience in a short period of time.
▪️ They can also earn royalties from them: An artist lists his painting as an NFT and fixes a price to it. When it gets sold,the artist doesn’t stop earning amd this happens if the new owner decides to list the painting for sale.
The original artist gets a certain % from the money made. It enables creators to keep making money off their works even when it’s no longer in their possession.
Many creators are tapping into the NFT technology to strengthen their earning power.
I feel this is just the beginning. More opportunities for creators is just around the corner.