How Are NFTs Used in the Business Landscape?

How Are NFTs Used in the Business Landscape?
Photo by Arthur Mazi on Unsplash

NFTs are fast becoming mainstream for personal investors, and, in this article, we’ll explore the ways in which the business world is getting on board with non-fungible tokens…

In recent years, we’ve seen an increasing number of headlines concerning personal investments in non-fungible tokens (NFTs). And, so, it is perhaps inevitable that, in 2022, the business world is becoming more and more interested in this form of investment. 

That being said, it is important to do your research and even consider consulting an nft lawyer before investing, to ensure they’re right for your business.

In the article, we’re going to be talking about what NFTs are and how businesses are helping themselves a slice of this lucrative pie.

What are NFTs?

Non-fungible tokens are digital representations of real-life, physical, or digital items. In their most common form, NFTs are digital items such as artwork, music, and software. These digital assets are stored on a blockchain and can be bought and sold securely. 

The rise in popularity of NFTs has been meteoric and, in April 2022, history was made when a prestigious auction house, Christie’s, sold a piece of art by Beeple, named ‘Everydays: The First 5000 Days’ for a staggering $69.3 million

It’s little wonder then that businesses across the world have decided that they’d like a piece of the NFT action. While most businesses can’t expect to earn the same kind of eye-watering figure as the Beeple piece, there is certainly a significant amount of money to be made through this new kind of investment. 

How can Businesses Use NFTs?

Photo by Floriane Vita on Unsplash

Below we’re going to take a look at some of the ways in which businesses can use NFTs to their advantage. 

Investors

A considerable number of businesses are using NFTs to attract investors to their services in a number of ways. This includes businesses offering NFTs as an incentive for getting on board as an investor. Businesses are also presenting ongoing rewards for investors in the form of NFTs as well as shares in the business as a whole.

This can become a lucrative proposition should the business become successful. Most new businesses struggle to gain investors and so many are looking for new and unique ways to do this – and NFTs certainly fit the bill here. 

Marketing

Some businesses are using NFTs as a marketing tool by offering free products or services for each purchase of an NFT. NFTs can also be in the form of tickets to a webinar or event as they have the added bonus of being easily sold if the holder finds that they are unable to attend. 

The business world is more competitive than ever before and finding new ways of reeling in customers is at the forefront of every marketer’s mind. The use of NFTs can help by offering something that none of a company’s competitors yet have. 

Loyalty Programs

Photo by Andrey Metelev on Unsplash

Loyalty programs are still big news for businesses in every sector and of every size. Due to the perceived value by the customer (often coupled with the low cost of the offering), loyalty programs are far from over and NFTs can help here. Some companies are choosing to offer NFTs as a reward to their loyal customers. This not only helps to retain existing customers but is also a tool to be used to attract new ones. 

Membership Programs

For some time now, membership programs have been used as a way of appealing to customers by offering discounts, rewards, and exclusive offers. In fact, these are so popular that it’s a rare moment that you’ll log onto a website without immediately seeing a pop-up inviting you to join the company’s membership scheme. NFTs can be used here to great effect in presenting member-only offers and opportunities which can be easily traded or sold. 

Collectables

For companies which sell physical products, NFTs offer a golden opportunity to expand their business. An example here would be, perhaps, a bookseller who, in addition to selling books and ebooks might also offer the original manuscript of a book in NFT form. By offering NFTs as collectables, a business can quickly and easily increase its revenue by doing very little. 

How to Get Started with NFTs

If you’re already familiar with a blockchain and digital currencies this will help.  However, you can get started with NFTs with little to no experience and, the process is generally as follows: 

  • Choose a platform to sell your NFT on –  there are a few of these available so you may want to familiarise yourself with them first.
  • Set up a wallet – this is a cryptocurrency wallet which will support the blockchain protocol on which NFTs are built. These are usually fairly easy to set up and, you can usually find plenty of help and tutorials on both the platform and on other online resources. 
  • Create your NFT. This is undeniably the trickiest part of the process. It is therefore worth taking your time to think about exactly what it is you want to create.  

If you’re entirely new to NFTs and blockchain, it’s recommended you seek some professional help, to ensure that your business services are as attractive as possible. 

Research and Due Diligence

As well as attracting investors, and offering customer incentives and loyalty programs, NFTs are a great way of presenting your business as modern and forward thinking. In a digital age, investors are often young entrepreneurs and, so, a tech-based modern approach can be extremely useful in attracting these people. 

While NFTs can be extremely effective for business, you should always first do your research to figure out whether this kind of offering is right for your business. For instance, NFTs may not be suited to a company where the customer base is older and perhaps less au fait with technology.

Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained legal professional. Be sure to consult a lawyer/solicitor if you’re seeking advice on the law. We are not liable for risks or issues associated with using or acting upon the information on this site.


The content published on this website is for informational purposes only and does not constitute legal advice.


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