Measuring the success of different projects is difficult, as each issues different amounts of NFTs at different prices and with different goals, such as short-term sales vs. long-term brand building. Some clearly resonate, others may bring in money but quickly fade from memory, and still others may not sell at all.
But the best NFT projects have a few things in common, such as creativity, appeal to a clear audience, and value beyond price. While during last year’s hype brands could get away with selling almost any NFT, today their quality and utility matter more as NFT prices and trading volumes fall and their novelty has long worn off.
Here’s some advice on your own NFT launch:
Collectable NFTs are over. Brands must now ensure that their NFTs offer greater utility and value, such as the ability to claim an exclusive physical item or use it in a wider ecosystem of products and brand experiences. RTFKT, for example, produces virtual goods to wear the CloneX avatars he created with artist Takashi Murakami or redeemed for a physical version.
The value should match the price. Of course, this added value must also justify the attached price tag. Even entry to an event like a fashion show may not be enough if buyers don’t think it’s worth the cost.
Reach out to the right audience. As the NFT market is still a niche market, fashion brands have often achieved better results by reaching out to the crypto community. Non-Web3 users also face barriers to purchase due to the steps typically required, including obtaining a crypto wallet, receiving cryptocurrency, and going through a complex minting process to obtain them.
The narrative matters. Gucci and RTFKT successfully teased the launches in a way that made customers want to know more. The Gucci 10KTF collaboration focused on creative director Alessandro Michele visiting a master named Wagmi-san in the fictional city of New Tokyo. RTFKT fans spent weeks solving puzzles to find out what was inside the mysterious cube called MNLTH. (It was a brand the first digital sneaker from Nike.)
Don’t just do it for the hype. If you think NFTs are a marketing tool, they’re going to fail. If you think that NFT and web3 will be part of your future business model, then you can succeed.