NFT Marketplace is the trending business model in the crypto world as it offers a million-dollar income structure. In general, the NFT marketplace platform acts like a normal store and auction platform where the users can easily tokenize and trade several assets like video, gaming, music, art, and more. Having such a huge market for virtual products, the NFT Marketplace paves the way to extensive revenue models that provides significant investment opportunities and better outcomes.
Now, In this blog, we'll see about how does NFT Marketplaces generates revenue.
How Does NFT Marketplaces Makes Money?
The primary revenue-driving factor for an NFT Marketplace is its fees structure. Every marketplace platform charges some set of fees for every activity happening within the platform. Now let us have a look at such charges that are mandatory in several popular NFT Marketplace platform.
NFT Minting - NFT minting is simply a process of converting any kind of asset into a new digital asset that is represented in the form of a non-fungible tokens. Only by doing this an asset can be traded in an NFT Marketplace.
To do so, the user has to take their desired asset and convert it into an NFT with the help of NFT Marketplace. For this activity, the marketplace platform will charge a certain amount of fees from the user.
Listing Fees - After creating any kind of assets like a photo, artwork, video, music etc into an NFT, the user has to showcase their NFT in the marketplace platform so that the interested buyers could make a bid on that particular asset. In order to list that NFT, the platform would charge a listing fee from the user.
Transaction Fees - Once an NFT has been listed out and open for a sale, then several interested buyers would make a bid on that NFT. When the owner of the NFT agrees to trade the NFT to a specific bid and the buyer intends to make the payment, a percentage of 2 to 2.5 from the final sale price of the NFT will be charged by the platform as a transaction fee.
Subscription Fees - However this is not a mandatory fees model, several major platforms do follow this fee model to generate revenue. This subscription fees is nothing but an extra charge in order to provide some add-on features for the users of the platform such as having a special preference in listing an NFT or having access to liquidity pool dashboard etc. The users who wish to hold a premium membership can pay up this extra fees and benefit from the special privileges offered by the platform.
NFT T-bond - This NFT T-bond is another effective way of revenue generating model which works similar to U.S Treasury bonds. This bond will allow the users to sell tokens that are locked until their maturity period. It can also be used in staking for earning rewards and can even be traded on several secondary markets.
Revenue Models of Top NFT Marketplaces
OpenSea - The major revenue of this particular marketplace platform is its transaction fees. This marketplace platform charges about 2.5 % of the selling price for every sale happens within the platform. This transaction fee is charged only for the buyer. OpenSea also generates more revenue through its registration fees. Everytime a new user signing up in OpenSea has to pay the platform. When it comes to minting, the users must pay for the first time they mint an NFT.
Rarible - Unlike OpenSea, Rarible provides a free minting facility to its users. When it comes to transaction fee, this platform charges about 2.5% of transaction fee from both buyer and seller for every transaction made. Rarible also generates revenue by exchanging it native token $RARI.
SuperRare - This marketplace platform charges its buyers about 3% of transaction fee on every transaction they make. Similar to Rarible, this platform also yields revenue by exchanging its native token which is termed as $RARE.
Apart from these, there are several other successful NFT Marketplace platform are out there in the market which makes its returns in millions.
Now that you are aware of how the NFT marketplace generates a hefty revenue, the next wise move would be reaching out to a professional NFT Marketplace development company so that you can have the required assistance in turning your idea into a highly lucrative marketplace.
We, Developcoins, an expert in the NFT industry, have created extensive successful NFT revenue models. In order to extend your income model, we can help you in developing the finest NFT Marketpalce platform.
Whatever your business ideas might be, we are here to assist you to make it into a reality and help you make a hefty revenue out of it.