How to Make NFT Marketplace a High Revenue Model in 2024?
Discover proven techniques and cutting-edge approaches to elevate your NFT marketplace into a lucrative revenue-generating platform in 2024.
The NFT world has been brimming with record sales in recent times, as there is a comeback on the way in terms of sale volume. NFT marketplaces have been instrumental in supporting NFT trades by connecting creators and collectors in a better way. From a business point of view, NFT marketplace development has transformed on many fronts, including revenue streams.
NFT Marketplace Make More Revenue in 2024
Now, marketplace owners can reap hefty profits off their platforms using a variety of income pathways. 2024 is expected to be another year of evolution as NFTs and dependent businesses look forward to driving real-world utility as their unique selling factor.
NFT Marketplaces: The Condition in 2024
While the first half of 2023’s NFT space relied on 2021’s bull run, the latter half was an average outing, with trade volumes plummeting. Yet, the final few months of 2023 and 2024 so far have been kinder to the NFT marketplace space as trade volumes see a surge.
As said earlier, utility is set to become the buzzword of 2024 as more real-world brands begin their NFT ventures. Still, the age-old NFT products — artworks and PFP collections with blue-chip status, will remain stable in the market, given that NFT fractionalization is growing already.
According to Technavio’s recent press release, “the global non-fungible token (NFT) market size is projected to grow by USD 113,933.5 million from 2022 to 2027. The market is estimated to grow at a CAGR of 35.02% during the forecast period.” It is understandable that NFT marketplaces will have a huge say here.
How Do the NFT Community and NFT Marketplace Revenue Go Hand-in-hand?
While the question might look obvious and not-so-obvious, the NFT community has a big hand in NFT marketplace revenues. What you guess is correct; it is, after all, the community that participates in the NFT marketplace platform as buyers and sellers.
Having a strong community of active NFT creators and traders helps an NFT marketplace business immensely, as more trades equal more revenue. But how are such activity levels even possible? To keep the marketplace active, it is vital to have smooth and easy-to-use user interfaces offering sublime user experiences. If the user end works efficiently, half the work is already done.
Apart from that, the marketplace venture should make sure to stay in the limelight through advertisement campaigns targeted at both existing and potential customers. This includes customer support of some capacity, irrespective of the marketplace’s nature (centralized/decentralized), that can increase credibility and trust for the venture among the community.
Revenue Streams in NFT Marketplace Development
NFT marketplace development has constantly been improving the revenue streams to appeal better to entrepreneurs. Let us see some popular and unconventional revenue streams observed in NFT marketplaces.
- Marketplace Transaction Fees: Whenever an NFT is traded between peers, a transaction fee is levied by the NFT marketplace in addition to the blockchain gas costs. It is typically charged as a proportion of the trading costs.
- Marketplace Listing Fees: When a creator or seller wants to list their NFTs in the marketplace application, a fee is charged by the platform for the moderation process before putting them up for sale.
- NFT Minting Fees: Although this income stream is not used widely, fees can be charged for minting NFTs from sellers to register their products on the blockchain.
- Bidding Charges: During an NFT auction, every bidder can be charged a fixed fee for placing their bids for an NFT item, filtering unintentional bidders from the auction.
- Private Sale Charges: Fees can be levied for selling NFTs via private sales in NFT marketplaces, selling them to a close community. This can be useful in many cases.
- Marketing Costs: An NFT marketplace can expand its capabilities by providing NFT projects with in-app marketing assistance through social media, community posts, and featured adverts.
Where Do NFT Marketplace Ventures Spend Money?
While talking of revenue streams in NFT marketplace development platforms, it is essential to understand expenses determine the businesses profits. Firstly, there are necessary expenses for running a business — running end-to-end teams of professionals and managing physical and technological infrastructure. Also, the NFT marketplace venture should spend on marketing itself to the Web3 community and stay relevant to the trends to build its user base.
Shedding Final Thoughts
We have seen the various profiting streams possible in NFT marketplace development in 2024. While expenditure plays a significant role in running NFT marketplaces, overspending can undo all earnings from the revenue streams. Hence, marketplace owners often plan their business expenses properly while not compromising the quality of work.
If you are an entrepreneur actively looking to begin a profitable NFT marketplace venture, working with a seasoned NFT marketplace development company can be ideal, as it can offer unparalleled services to realize your business goals.
BUIDL an NFT Marketplace, and HODL Your Business Values to Emerge Successfully!
