Top 6 Mistakes to Avoid before starting an NFT Project
When you dive into the NFT space, you’ll find that most of the hyped NFTs are overloaded with scams. Before spending money on new initiatives or communities you should dig deeper and have an understanding of what you're investing in. Here are six mistakes you should avoid when starting an NFT project.
HIGH MINT PRICE
Since raising a project’s floor price is extremely difficult, many projects fail immediately after a high-priced mint
Generally speaking, projects with an art focus should price their mint between 0.04 and 0.08 eth, whereas projects with a utility focus should sell their mint between 0.08 and 0.12 eth
If your mint price is high, as many projects have done, you can still sell out a project, but the odds of translating that momentum onto the floor price are extremely difficult
And in some circumstances, a high mint price may be acceptable, such as when the team is made up of seasoned businesspeople working on original initiatives
2. UNDERESTIMATING THE COST OF THE PROJECT
You can't just “grind” your way to selling out a 10k PFP collection
This may have been somewhat possible in the recent past but now it's changed
The NFT space now has become a game where you have to “pay to play”
It is suggested to set aside $20-$30k for any NFT project, the majority of which will be spent on marketing
This number will definitely go higher as the competition increases
3. OVERPROMISING ON THE ROADMAP
Many projects underestimate the increase in the effort needed to execute the plan because delivering on the artwork and design is far simpler than delivering on the real roadmap
The roadmap should be divided into two halves, 1.0 and 2.0
You can control expectations this way and won’t feel under pressure to offer too much too fast
Always keep in mind that simple is best
4. TIMING THE MARKET
Timing is one element that could determine whether or not your project is sold out
Even some highly anticipated projects are unable to sell out when the time is not right
Even when the near future appears to be promising always schedule your rollout in accordance with market cycles
5. NOT FORMING THE RIGHT TEAM
The founding staff, which will serve as the project’s backbone, must be carefully assembled
Instead of getting worked up and including all your friends, organize a team with ideally no more than two founders
Make sure one of the founders is knowledgeable in coding, and the other is knowledgeable in marketing
Consider the question: What do you bring to the table
6. USING THE WRONG FORMS OF MARKETING NFT
Marketing is distinct from traditional business marketing because it primarily focuses on Twitter, Discord, and YouTube
While users on other platforms like Instagram and Facebook haven’t really fully embraced the NFT realm just yet, ads don’t work as they normally would and are also prohibited in some places like the USA
The greatest strategy would be to collaborate with Twitter influencers (thus the $20–30k investment) and direct those users’ followers to Discord
When you get around 10,000 followers on Twitter, it should be just enough to start collaborating with other NFT projects on free projects that will help expand the community
DISCLOSURE:
None of these articles constitutes financial advice. Articles are highly summarised to make it easy for the reader and save your time, so please DYOR further before putting your hard-earned money into any product mentioned.
Please note that the tech industry evolves rapidly and the info in this article is correct at the time of publishing. As Heraclitus said, “Change is the only constant,” so if anything sounds old or off, please holler on the socials or comment here so everyone stays peeled.
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