How Businesses Can Use NFTs to Boost Sales and Partner With Brands – Business Insider

how-businesses-can-use-nfts-to-boost-sales-and-partner-with-brands-–-business-insider

  • Amar Singh is the founder of an NFT art gallery that booked $9.8 million in revenue last year.
  • Singh works with artists to create NFTs for companies such as Christie’s Auction House and LVMH.
  • Business owners can capitalize on the trend by partnering with local artists and charities.

At the end of 2021, the marketplace for non-fungible tokens — digital pieces of art tied to blockchain technology — hit $41 billion, the blockchain data company Chainalysis said. 

Behemoth companies took note and capitalized on NFTs last year: Adidas partnered with the NFT collective Bored Ape Yacht Club, the digital-comic company Punks Comics, and the artist GMoney to sell almost 30,000 NFTs for $22 million in one afternoon. But you don’t have to run a big business to find lucrative opportunities with NFTs, said Amar Singh, the founder of his eponymous NFT art gallery in London.

Singh works with artists, including Rewind Collective and Guerrilla Girls, to create original NFTs for companies such as Christie’s Auction House, LVMH, and Givenchy. Those businesses eventually sell the NFTS, often to support a charitable cause. Last year, Singh booked $9.8 million in revenue, which Insider verified with documentation. 

To be sure, there’s still skepticism around NFTs: They’re speculative and volatile investments, and there’s potential for fraud and scammers. But Singh believes there’s not much difference between digital art and physical paintings. Anything that a community places sentimental value on has worth, he said.

“When it’s tied to a movement, something of sentiment, that’s important,” Singh added. 

Singh mapped out three ways small-business owners could use NFTs.

NFT exhibition Amar Singh Gallery did with Christie's that  supported Hillary Clinton's Vital Voices

An NFT by Rewind Collective at an exhibition that Amar Singh Gallery did with Christie’s that supported Hillary Clinton’s Vital Voices.
Amar Singh

Partner with local artists to find talent

Singh encouraged business owners to reach out to artists, especially ones in their communities, to discuss partnering and making NFTs together. This could include working with musicians to make sound NFTs, painters to create digital images, or authors to write literary NFTs — something Singh is working on right now. 

Additionally, entrepreneurs should seek out up-and-coming artists, Singh said. Partnering with emerging talent could turn lucrative if the artist later became famous, he added. One way to scout talent is cold messaging potential creatives on Instagram, Singh said.

Create a loyalty program to increase worth

NFTs should be both collectible and valuable for the customer, Singh said. One way small-business owners can increase the value of an NFT is by offering a membership card or loyalty program that gives store discounts or reward points to those who purchase digital artwork, Singh said. 

NFT exhibition Amar Singh Gallery did with Christie's that  supported Hillary Clinton's Vital Voices

An NFT exhibition that Amar Singh Gallery did with Christie’s that supported Hillary Clinton’s Vital Voices.
Amar Singh

For example, a local restaurant could sell an NFT of an exclusive piece of art or a never-before-heard song that a customer could either keep or exchange for certain privileges at the store, such as discounts on certain days or multiple cups of coffee, he added.

“This is a great way, at a low-entry cost, to bring your business into the NFT space,” Singh said.

Additionally, customers could also keep or sell the NFTs they purchased from businesses. 

Partner with charities to raise awareness

Singh said he often commissioned work from women and minorities to create NFTs that speak to sociopolitical issues, such as sexism. He added that he donated the profits from selling NFTs to organizations such as Vital Voices and the Andrea Bocelli Foundation.

If entrepreneurs are looking to raise money for a cause, they can also partner with charitable organizations to create NFTs. Recently, Ukraine’s government said it would issue NFTs to help fund its defense against Russia, after raising more than $30 million in crypto donations. 

“NFTs can empower charities,” Singh said. “If businesses get behind these initiatives, charities are further empowered, as are the communities who need help.”

Leave a Reply

Your email address will not be published.