With the rise of NFTs, creators and influencers have the perfect opportunity to strengthen their brand and expand their revenue streams — but most of them miss the mark completely.
Non-fungible tokens, or NFTs, have grown exponentially in recent years — although not everything is positive. The most expensive NFTs are worth millions of dollars, with digital assets from brands like Yuga Labs’ Bored Ape Yacht Club, Larva Labs’ CryptoPunk, and more becoming incredibly valuable.
However, NFTs, as much as they have grown, have become somewhat taboo even among skeptics and fans of those who wish to use them.
Their skepticism isn’t misplaced either: distrust of any new technology is likely, but one that busts banks for seemingly no real reason becomes an easy target for accusations of fraud, Ponzi schemes, money laundering, or really any other sort of financial misdeeds .
Content creators misunderstand NFTs
There’s no denying that a number of top influencers have made good money from NFTs, especially those who got in early. FaZe Clan co-owner Ricky “Banks” Bergstrom, for example, began his Web3 journey before the industry really took off, and as a result has an NFT wallet worth at least $10 million by his own estimates.
However, for most influencers, this is the main reason they have shown interest in NFTs or blockchain technology in general. While banks in Web3 may have plans beyond just redeeming NFTs, many don’t have the same mindset.
In the last year alone, there have been numerous crypto and NFT scams by content creators. In early March 2022, Banks spoke about YouTuber David Dobrik being accused of involvement in a $6 million “scam” by the Bored Bunny NFTs.
“I think it’s worth noting that I didn’t make this mistake just because I took the time to educate myself,” Banks explained at the time. “Many of these influencers accept deals that are offered to them by their management [because they’re] treated as a product campaign.”
Aside from the “scam” allegations leveled against creators promoting certain NFT projects, there are also those who create either their own cryptocurrency or NFT without fully knowing what they actually agree with.
“Utility” is an incredibly important word in the world of Web3. For any NFT project looking to onboard clients, or in this case influencers looking to build their brand with fans, it’s vital that they have something to offer in return.
The idea that you could just sell the NFT for more money than you paid for it (referred to as a “big fool”) or just help the influencer isn’t enough and does a complete disservice to the fans who support their favorite creators .
That’s exactly what YouTube collective Yes Theory found when launching their NFT. Fans were quick to call her out and criticize her decision. Her NFT is intended to fund the post-production of her documentary, Project Iceman, with said NFT also serving as a ticket to the film’s premiere.
The problem is that by the standards of their viewers, that’s not a rational justification for an NFT. Many of them are rightly wondering why they couldn’t just sell tickets as tickets. What good is an NFT in this scenario?
The key thing they did wrong was that they tried to implement the technology without understanding (by their own admission) NFTs or why they should be using them. They changed course and decided to offer only 50% of their tickets as NFTs, but the damage was already done.
Who gets it right?
While there are some notable instances where influencers and brands have let their fans down, others are finding ways to ensure their fans benefit.
The NELK Boys, for example, have their FULL SEND Metacard, a kind of membership for NELK’s followers. The plan for these metacards is to give holders priority access to merchandise and future NELK brands, including gyms, casinos, and more.
In the esports world, London-based organization Fnatic has similar goals for their NFT, which also operates as a membership program. Three membership tiers allow owners to earn varying rewards, including merch each year, mystery boxes, and “unprecedented access to your Fnatic heroes.” Esports fans are also usually hesitant to reach into their pockets, but NFTs, if done right, could be a solution to this industry-wide dilemma.
For dedicated Fnatic or NELK fans, these rewards are unprecedented. After a few years, they may have gotten their money back simply in the value of goods or membership costs, and that doesn’t include the value of the NFTs themselves.
This raises the question for many: Why does it have to be an NFT? Why not just a classic membership? In fact, it benefits both sides.
So why NFTs?
Ultimately, that’s the question so many people ask when these things come up. Why do brands and influencers need to make their memberships NFT?
A subscription is a logical and fan-friendly solution so that creators can get a better handle on their income and do not have to live by the rules of platforms like YouTube or Twitch.
By setting up a membership platform as an NFT, both creators and fans can benefit. Rather than “renting” a membership and ultimately losing every asset or benefit when the membership is terminated — or alternatively spending extortionate monthly fees for years to come — the one-time cost of an NFT grants you all available benefits until you decide to sell them your membership and offer at least the possibility of a return on your initial investment.
The fact is, there are still many NFT and Web3 skeptics out there on the internet, and that’s unlikely to change in the next few years.
When influencers want to use NFTs as a way to strengthen their brand, the last thing they want — and often the first thing many assume — is for it to act as a predator.
Simply “owning part of brand X” is not enough to justify a fan shaping an influencer’s NFT; There has to be some kind of intrinsic reward for being part of an exclusive club. While some know this, many don’t realize it – or don’t realize the opportunities NFTs offer their community at all.
https://www.dexerto.com/entertainment/nfts-could-be-perfect-for-influencers-but-they-keep-ruining-it-1811855/ NFTs might be perfect for influencers — but they keep ruining it