Innovations allow us to buy and sell almost everything, including cars, digital works of art, memorabilia, in-game assets, and even some historical moments. It is all possible thanks to NFTs. NFTs are rapidly becoming more and more popular, extending the capabilities of blockchain.
In this article, we will discover how to build an NFT marketplace and explain how to make money with it.
What Is an NFT Marketplace?
An NFT marketplace is a platform where people can trade digital assets. Thus, anyone can create single NFTs or launch NFT collections, buy and sell digital assets, or collect them. The most popular NFT marketplaces sell game characters, sports memorabilia, digital artworks, and even tokenized tweets.
How to Create an NFT Marketplace
Let’s see how to create an NFT marketplace and review all the stages more closely.
Identify a niche
Before you start building your own NFT marketplace, you need to decide on the type of your future platform. For instance, you can create a marketplace that will be dedicated to sports memorabilia, digital art, or real estate. You can also choose any other category that will make your marketplace stand out. Thus, you will understand what features must be there, create the right marketing strategy, and attract the target audience that is ready to buy.
Hire NFT developers
If you don’t have enough technical skills to turn your idea into reality, then you need to find a vendor to do that. You can hire a freelancer if the task is small or find in-house developers. But the best option is to hire an NFT company as it will allow you to concentrate on business tasks while the entire development process will be organized and managed by professionals.
Select features
At this stage, you need to decide on what features your NFT marketplace will have. There are must-have features such as sign-up and sign-in, user accounts, and notifications, as well as additional features that will make your platform stand out from the rest. They may be a unique storefront, advanced token search, NFT minting, etc.
Create UI/UX design
User-friendly and intuitive interface is the foundation for any web platform. Users should move through the entire platform with no problem, easily find the necessary information, and enjoy their experience from beginning to end.
Choose a technology stack
When it comes to NFT marketplace development, the entire process is usually divided into back-end and front-end development. Back-end development is in charge of the server side of the platform and its communication with the database and the server. Front-end development covers the creation of the graphic interface and all the tasks that allow users to interact with the platform and view its content.
When choosing technologies for your NFT marketplace, make sure you follow the best practices and keep up with the latest development trends.
Develop an NFT marketplace
When you’ve set all the requirements, the development team starts working to launch the marketplace. The whole process is usually divided into short sprints and milestones to get feedback on the results of each development stage.
Testing and deployment
At this stage, you are to make certain your NFT marketplace is bug-free and has no vulnerabilities, so users will have an enjoyable experience interacting with the platform. When every part of the marketplace is rigorously tested, then it’s time for the platform to hit the market.
After the deployment, you can track and analyze the performance of your NFT marketplace using special tools to find areas for improvement and upgrade the platform accordingly.
Promote and gather feedback
To launch the platform successfully, you will need a comprehensive approach that combines influencer marketing, paid ads, partnerships, SMM, and other strategies. When you’ve released the marketplace, gathering feedback from users is crucial. Thus, you will know what they like about the platform, what features it lacks, and how they would improve the overall experience with it.
Plan for ongoing development and support
The gathered feedback will help you decide how to develop your NFT marketplace further. NFT marketplace development is an evolving process that isn’t finished after the platform’s market launch. The plans may include investing in customer support, monitoring users’ feedback, maintaining paramount security, and beyond.
How to Make Profit from NFT Marketplaces?
To make money with an NFT marketplace, you can choose a monetization model or combine them. Let’s take a closer look at them.
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- Registration fees. If your NFT marketplace is large and popular, you can charge users for account registration.
- Commission fees. Your NFT marketplace gets gas (or listing) fees for the release of single NFTs and their collections, as well as fees for all token sales.
- Governance tokens. Some NFT marketplaces have their own governance tokens which are primarily used as rewards for those users who possess NFTs or buy or sell digital collectibles.
- Advertising. NFT marketplaces help creators or projects gain an audience, so they can earn from advertising. Promoting third-party resources on your NFT marketplace is one more profitable option. Moreover, you can add blogs and guides to expand your client base.
Closing Thoughts
At the moment, NFTs are gaining popularity and drawing the attention of vivid collectors who strive to obtain unique digital assets. So, starting an NFT business seems to be a promising investment.
Nevertheless, you must understand that NFT marketplaces differ from other eCommerce platforms. Thus, there will be more chances for you to succeed with an NFT marketplace and attract digital art enthusiasts.
