Innovative Budgeting for NFT Projects with Influencer Marketing
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Chapter 1: Understanding NFT Budgeting
In the rapidly evolving world of NFTs, effective budgeting is crucial. This discussion will focus on how to allocate funds for your NFT project while leveraging affiliate marketing through influencers.
Last week, I shared insights that I believe could significantly impact the NFT landscape. The concept revolves around on-chain affiliate marketing, which, when embraced by the right NFT teams and influencers, could lead to remarkable changes. For more details, refer to my previous article. The pressing question is not if this will occur, but when it will happen.
Now, let’s delve into budgeting specifics, as my previous article didn’t cover detailed pricing strategies. Let’s assume that NFT TEAM A has piqued the interest of NFT SPACE INFLUENCER B. (Though our program accommodates multiple influencers, I will simplify the scenario for clarity.) A key question arises: How much ETH will the INFLUENCER earn?
To determine this, consider the number of available mints, the minting price for those using the affiliate link, and the commission allotted per sale to the affiliate. A budget overview would be structured as follows:
In this scenario, we have an NFT release of 10,000 tokens, with 300 reserved for team expenses and marketing, leaving 9,700 mintable tokens. The plan is to set the mint price at 0.09 ETH. However, as part of this affiliate initiative, two critical points have been established:
- Those who mint via an affiliate link will receive a discount, allowing them to mint at 0.08 ETH, providing a savings of 0.01 ETH from the standard price.
- For every mint made through an affiliate link, the affiliate earns a commission of 0.01 ETH.
To summarize: NFTs typically mint at 0.09 ETH (~$144), but can be obtained via an affiliate link for 0.08 ETH (~$128). Additionally, the affiliate receives a commission of 0.01 ETH (~$16) for each mint.
If we assume a complete mint-out via affiliate links, the project would generate a total revenue of 776 ETH, with 97 ETH allocated to affiliates and 679 ETH (gross) directed towards funding the project.
Industry Benchmarks
Research indicates that average commission rates in the affiliate marketing sector typically range from 5% to 30%. From my experience in corporate sales, a standard commission often falls between 10% and 20%. Given the unique nature of the NFT market, targeting the higher end of this spectrum seems reasonable.
It is essential to maintain transparency within this new affiliate framework. While influencers might demand higher commissions, reputable ones would prioritize the project's success over inflated earnings.
In the earlier example, the “cost” against a full-price mint-out (9,700 tokens at 0.09 ETH) without influencer involvement would be approximately 22.22%. This figure is challenging to quantify accurately, as, without influencer support, the likelihood of selling out is nearly nonexistent.
When considering actual revenues (9,700 tokens at 0.08 ETH), the marketing cost effectively drops to about 12.5%, as for every 0.08 ETH earned, 0.01 ETH is paid to affiliates. This might seem modest, but remember that affiliates are also providing their audience with savings.
The takeaway is clear: Affiliate marketing in the web3 space will (1) introduce much-needed transparency, (2) offer value to trustworthy influencers, (3) benefit their followers, and (4) enable NFT teams to secure funding, expand their reach, and foster community growth.
If you're an influencer with a significant following in the NFT arena (ideally between 50,000 to 100,000 Twitter followers or a larger presence on other platforms), and you believe that on-chain affiliate marketing can revolutionize the industry, I encourage you to explore the projects highlighted below:
The first video discusses the Easiest Affiliate Program to Earn Passive Income Online (2024). This program outlines how to effectively leverage affiliate marketing for sustainable income.
The second video focuses on "Leveraging Influencers and Affiliates for Omnichannel Success," providing insights into how these partnerships can enhance marketing strategies.
Chapter 2: Next Steps for NFT Influencers
For detailed information about our groundbreaking GenNFTs Affiliate Program—designed to bring transparency, accountability, and effectiveness to NFT marketing—please read on.
Jim Dee is a prolific writer, developer, and multimedia creator based in Portland. You can explore more about him, his projects, and his publications at JPD3.com. Thank you for your attention!