Author: Peter Yang, product director of reddit and founder of Odyssey
Compiled by: aididiao
Chris Dixon published in 2021《NFTs and a Thousand True Fans》In this article, the author shared how to use NFT to realize from 1000 loyal fans. Subsequently, in the field of Creator economy, the use cases of NFT began to multiply. One typical use case is NFT membership: fans are required to hold a specific NFT to join the community and enjoy privileges. NFT members can help creators strengthen their brands and build more valuable communities. At the same time, fans can also benefit from the development of the community.
In the future, NFT members will become a profit-making way for creators comparable to advertising and subscriptions.
Next, we will discuss the advantages of NFT members, how they are used in practice, and how creators and Web3 startups use NFT members to expand their influence.
Although all NFTs are digital assets stored on the blockchain, different types of NFTs can play different roles. For example, PFP NFT can be used as avatar, while NFT members can be used as tickets for exclusive teams such as concerts. The project party or community only needs to check whether the user address has NFT on the blockchain network to determine whether they have specific rights.
More and more creators use NFT members to build communities, and therefore get involved in Web3. For creators, NFT members can replace the traditional subscription and advertising based charging model in a variety of ways.
Creators can get more income from NFT by subdividing the willingness of fans to pay.On traditional platforms such as youtube, for users who are not willing to pay for content, creators can only make profits through advertising; For users who are willing to pay a small amount of fees, creators can make profits through subscription; For some loyal fans who are willing to pay more, the creators do not have a good way to make profits. For fans with different willingness to pay, creators can launch different types of NFT. For example, the creator canLoyal fansLaunch limited edition NFT for target users or ordinary NFT for general fans.
NFT helps creators segment user groups based on willingness to pay
Creators can get more benefits from NFT by reducing the platform bonus.The traditional platform will draw a large part of the revenue from subscriptions and advertisements, and can change the rules at will without the permission of the creator. If NFT is used, creators can retain most of the profits they get from selling NFT (please refer to《The NFT Mint Sweet Spot : Data on Early Decisions》）You can also get additional income from royalties.
NFT can directly motivate early supporters and help creators succeed.On the traditional platform, early fans will bring a lot of necessary help and encouragement to creators, and even lay an important foundation for their subsequent success. However, it is difficult to prove the identity of early supporters, and it is unlikely to bring tangible returns. NFT provides fans with a way to prove their identity as early participants. Creators can prepare extra benefits such as special activities for early fans. When creators achieve greater success, their NFT price will usually increase significantly, and early holders can get greater benefits.
The creator cannot directly control the price of NFT after casting.Although the creators can set the initial NFT Mint price and their share in the secondary royalties, they cannot control the future price changes of NFT. If the entire NFT market collapses, the creators may eventually earn less income than the traditional channels. Speculators may also buy creators' NFT and raise the price, resulting in no opportunity for real fans to participate. To solve this problem, creators can make a white list of fans during early casting, or prohibit individuals from buying too many NFTs at one time.
If the value of NFT is not clear, the creator may lose the support of fans.Fans hope that NFT members can provide long-term utility, so creators need to clarify the value brought by NFT members to avoid disappointments to fans. If the NFT project is started without specifying how to provide value to NFT member holders, the reputation of creators may be damaged and fans' support may be lost.
NFT member community governance is an arduous task.Community governance is an important way for creators to realize their content production plan. In order to reduce the workload, creators can hire professional teams to keep the community active, and encourage fans to spontaneously maintain the community environment and expand the community influence. As the core of the creator brand, the creator also needs to pay attention to the development of the community at all times.
How creators use NFT members in practice
What are the minimum requirements for creators to distribute NFT membership? A successful community typically consists of three components:
Let's look at three examples of NFT member communities.
Creator: Nader dabit founded Web3 on YouTube Developer Education Channel, attracting a large number of fans. He then launched developer Dao, which aims to accelerate the education and influence of Web3 builders.
Community: developers and their fans bought Developer DAO NFT, which enhances the attraction of NFT members.
Practicality: being a member of the community is the main advantage of the NFT. Members help each other in organizing activities, developing projects and recommending jobs.
How does the NFT membership program provide long-term benefits? The following figure provides some examples.
Creators and communities are experimenting with NFT membership programs in new ways. With the accelerated development of this trend, creators who jump from web2 to Web3 need additional help in the whole project construction:
Introduce NFT members to fans
Work with community members to create value for NFT members
Many companies are already coping with the above challenges and hope that more creators and communities will use NFT members to create value and share benefits.