Kings of Leon became the first band in history to release a new album as an NFT in 2021. It didn’t take long before other artists started to use music NFTs. NFTs include digital art, collectibles, and other 3D assets and music.
The way we see the music business is slowly changing as more and more creators use music NFTs. With music NFTs, the people who make music can have complete control and ownership over what they make. They can also make money from their work without going through mediators.
The fact that music NFTs bring musicians and their fans closer together is one of the best things about them. Through music NFTs (Everything You Need To Know Concerning The NFT Marketplace), fans can directly support and help their favorite artists grow. In contrast, artists can build stronger relationships with their fans and continue getting royalties from selling their works elsewhere.
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Top Earnings By Sound Artists
For comparison – 1 million streams on Spotify is roughly $4000 (rounded up).
To give you an idea on how powerful music NFTs are as a monetization tool for artists, here’s how many streams one would need to make the same amount as their NFT sales, assuming they own 100% of their work (most don’t).
In short, prominent crypto native artists earn 15x more from music NFT sales than from Spotify streams (or an average of 395x due to select artists not releasing most of their music on DSPs!).
For example, Daniel Allan earns an average of $9.5K per month in NFT sales while only earning an estimated $620 per month in Spotify streaming income.
This represents a 15x increase in earning power. Daniel would need to create a song with 2.5 million monthly streams to earn the same amount from Spotify. This gives artists a choice: create a song and get a million plays, or find 50 collectors to buy a Music NFT for 0.05 ETH. The earning potential is identical. It’s also worth noting that they’re not mutually exclusive! For example, DSPs and Music NFTs can generate an artist’s revenue. This is how NFTs change the game. It’s an entirely new source of income for creators.
What Exactly is a Music NFT? How to Buy and Sell Them
A music NFT is just an NFT with something to do with music. It can be a single song, album, video, or even a generative piece. A fruitful piece of music is a composition made with a computer program that adds random patterns, colors, sounds, or shapes. NFTs will change every industry, not just the art and music industries. That’s a big claim, but once you know how powerful NFTs are, you’ll understand why they’ve been getting so much attention.
Let’s go into the NFT realm and discuss what they are, why they matter to the music industry, and how musicians may begin selling them.
What's an NFT?
Non-Fungible Token, or NFT, is a unique digital asset stored on the blockchain. But what does that mean? It means that a digital file, like a song, piece of art, trading card, or anything else, can be kept on the blockchain as a one-of-a-kind collectible. NFTs can’t be copied, deleted, or faked. But why can’t someone take a screenshot or copy an NFT’s MP3 file? Certainly. But it’s not an NFT anymore.
The NFT is the asset’s digital certificate that shows who owns it. And because it’s “non-fungible,” blockchain can’t change and protect it. It can’t be copied. So if you buy an NFT, you own it until you sell it.
How to Buy Music NFTs?
The first thing an individual has to do to buy music NFT is to become familiarised with cryptocurrency. Apart from this, to make a purchase or launch music NFT, the most important thing to be kept in mind is supply and demand. Furthermore, here is what an individual need to buy music NFT:
1. Find a Platform that Sells Music NFTs
The best platform to buy music NFTs is Opulous, as with the help of this platform; an individual can immerse a real-world share of future music royalties in Opulous Music NFTs. Moreover, people can earn money from the music they love just by possessing them.
2. Download a Crypto Wallet Capable of Holding NFTs
As NFTs are set aside on the blockchain, an individual must download a wallet application to access and keep them. In addition, one of the best wallets is MetaMask, as it is easy to set up and use. Additionally, it is very compatible. Apart from this, every wallet has its address; it is just a bank account number.
3. Exchange Your Cash for Crypto
An individual can only buy NFTs with cryptocurrencies. The two well-known exchanges are Coinbase and Binance order to buy crypto. Moreover, buying crypto is very easy. All an individual has to do is trade their regular coin for Bitcoin, Ether, or any other altcoin, as there are numerous crypto exchanges.
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How to Sell Music NFTs?
Although the prices of NFTs (NFT Marketing Strategy) sold by celebrities can reach millions of dollars, those sold by beginners usually cost only a few dollars. Nonetheless, it can be a great way to raise awareness about your work and build a relationship with your fanbase, with the potential to earn money in the long run as your music becomes more popular. Following that, follow these five steps to sell your music NFT:
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A physical NFTs are a non-fungible tokens tied to a physical asset. These can be resold or redeemed
Step 1: Make Your Music NFT
There are three ways to produce and sell music once you’ve decided what to do.
• Make a live performance of your song.
• Make a studio-produced track.
• Create a music video.
Whatever option you choose, be prepared to spend several hours working with computer files and various recording programs to ensure quality. Remember that poor-quality NFTs do not make as much money as better-quality NFTs. Also, to avoid copyright infringement, make sure you create your music.
Step 2: Get a Crypto Wallet
A crypto wallet is a storage location for your NFTs and a payment method for gas fees. The gas fee is a transaction fee on the blockchain. The cost is paid to network validators responsible for securing, validating, and verifying blockchain transactions. As a result, before you begin creating or minting NFTs, make sure you have cryptocurrency in your wallet.
On the music NFT market, there are numerous crypto wallets. Metamask, TrustWallet, CoinBase, and Binance are among the most popular. Because most NFTs are based on the Ethereum blockchain, you must buy a utility token known as Ether or ETH to list and sell your music on an NFT marketplace. You can buy ETH with a credit card directly from these wallets by creating an account on their website or app.
Step 3: Select an NFT Marketplace
A digital platform for storing, displaying, buying, and selling NFTs is known as an NFT marketplace. There are numerous NFT marketplaces, each providing services ranging from creation to sales. However, the music NFT market leaders are Royal, Opulous, and OpenSea. The latter enables creators to mint their NFTs for free. Crypto is another popular user-friendly marketplace for NFT music.
Choosing a platform to list your NFT is entirely up to you. Creating an account requires the same steps regardless of which option you select. To begin, you must connect your cryptocurrency wallet to the platform. Then you can personalize your profile by adding your nickname, email, photo, and other information.
Step 4: Advertise Your Music NFT for Sale
Your preferred platform should have a section dedicated to music NFTs. Then, from your wallet, select the NFT you want to sell. Here are the four steps to selling your music NFT:
Make your collection: Even if you only made one NFT, you must make a collection. This is where you will store and organize your files.
Mint: The process of converting your digital files into digital assets stored on the blockchain as part of your collection is known as minting.
Upload: Now that your files have been minted, it is time to name and upload your NFTs. Remember that you cannot change the names once they have been uploaded.
Link: Add links associated with your NFT collection, such as your website and social media profiles, so that buyers can access your other work.
Step 5: Determine Your Price and Make Money Selling Your Music NFT
Before you sell your music NFT, you must first decide how many to sell. For instance, you can sell a single copy that gives one person all NFT music royalties and ownership or split it into several tokens to spread the wealth. After you’ve decided on the quantity, you must determine the NFT’s listing price. When it comes to pricing, you have three options:
• Open a bid and let the highest bidder receive the music NFT.
• Set a reserve price, and the highest bidder that meets it buys the music NFT,
• Set a fixed price and let the buyer purchase the music NFT without bidding.
Finally, set your NFTs for sale and earn money. Also, remember to promote your music NFTs on different social media platforms to increase your chances of getting discovered by investors.
What Problem does Music NFT Solve?
Even though there are no set rules for the partnership, up-and-coming artists can learn from how top artists have used NFTs. These things are:
1. Album Release
In February, 3LAU, an American musician who is very popular, sold his tokenized album for more than $11 million. Even though this number of sales might be unusual, other artists can learn from it. For example, you can sell limited copies of your album on-chain, which is a fun way to make exclusive content. Also, when NFTs are sold again, the artists get a cut of the money.
2. Beat Selling
As music NFTs, producers can now sell beats straight to buyers. Because NFTs can’t be changed, end users can buy these beats on-chain and use them right away or keep them to sell later for a profit. Every time a song is resold, the people who made it get paid a royalty.
3. Merch Sales
You can bring both virtual and real merch on-chain. They can be bought and sold by anyone. But, as usual, artists get a cut of all sales made after the first one.
4. Stock-type Layout for Distributing Goods
This is another way that NFTs can help the music industry, even though it has yet to be tried. For example, imagine that you sold 20% of the rights to your next album as NFTs. This means fans who hold NFTs get a cut of the money made off-chain from your music, such as streaming, TV partnerships, and merchandise sales.
Consider it a tokenized stock certificate that grants you ownership of the album. This way, you build an ecosystem around your work, which is good for you and your fans. Also, holders get access to particular things other people don’t get, like front-row seats, special concerts, listening parties, etc.
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1. Artists can Build an Active Community
Artists become their platforms. NFTs allow artists, especially new ones, to set up a system that lets real fans buy into their market.
2. It Makes it Easier for People to Join
NFT gives all power to those who make things. Any new artist can do their work on-chain, which provides them with more freedom and lets them avoid bad deals from record labels. Also, artists won’t have to upload their music to centralized streaming platforms and hope that enough people will stream it for them to make a lot of money.
3. Speeds Up Adoption
Changes in the music market that are good because of NFTs can overshadow the general adoption of crypto.
Even though the NFT space is still pretty new, labels, music industry techs, and companies need to learn how to level up. But they have potential.
SDLC, among other things, strives to link musicians with their faithful fans by offering a low-cost NFT platform for music. So come early and make your music NFTs with us.