Creating an NFT collection is very important regardless of whether you’re an existing business owner or not. Making your blockchain presence is the need of the hour, and embracing NFT adoption can only be made with the help of blockchain.
So if you’ve decided to embrace NFTs, you’ll stumble upon this question: how much does it cost to create my NFT?
This blog delves into the estimated cost of creating an NFT in 2022, the cost-deciding factors, and much more.
Back to The Basic
The course of NFT development begins from the ideation phase. After all, you create your NFT collection to make money (either in the short or long term), don’t you?
Here are a few questions that you need to have answers ready:
- Who are Your Target buyers?
- What’s the NFT type that you’re trying to create?
- What are the utilities the NFT offers?
- Which blockchain network do you prefer?
These factors directly impact the success of your NFT collection, let alone the cost involved.
For example, a non-fungible token (NFT) that provides more utilities needs more time to develop. Eventually – more the time (to develop), more the investment of cost and effort.
Mapping Your Target Community
It’s the buyers (or community in the web3 analogy) that will determine the success of your NFT collection. You need to identify the problem your NFT is trying to solve as it will help you map your target community.
For example, if you create gaming NFTs, it’ll appease the gaming community as well as NFT enthusiasts. Segregating the generic audience into a project-specific community will pay dividends in the long term.
Single Chain or Multi Chain?
One important factor that decides the cost to create an NFT is – do you want your NFT to be a single-chain collection or a multi-chain collection?!
The objective of both single chain and multi-chain technology is to facilitate information transfer between blockchains. While a single-chain NFT holds information on only one chain, a multi-chain NFT holds information on multiple chains, enabling a hassle-free transfer.
In-house Development or Outsourcing
The choice of whether to go with an in-house team or an NFT development company will have a great impact on overall cost. The decision should be weighed carefully as both have its own pros and cons.
If you’re on a tight budget and want to forego the frills in favor of adequate quality, the lesser cost alternatives are a good choice.
Consider the Additional Costs
Creating an NFT comes at certain direct costs and indirect (additional) costs. You will have to pay the minting fee – involving the transformation of a digital file into an NFT, the marketplace listing fee (to monetize), and much more.
When calculating the cost of creating an NFT, remember that taking the multi-chain approach to mint the NFT can result in significant cost variances.
- Gas fees – All blockchain processes necessitate at least one blockchain transaction, which costs gas fees.
- Listing fees – Some platforms will enable you to mint your NFT for free but charge you a fee to list it for sale.
- Selling fees – Some marketplace platforms charge the sellers with a fixed percentage of selling price.
- Set up fees – While listing and sell-on fees is common among NFT marketplace platforms, very few platforms charge some fee to register with them.
The supply and demand of the blockchain network determine transaction fees. The gas fee rises in times of strong need. Additionally, NFT designers should consider the volatile price of cryptocurrencies, which affects the costs connected with NFTs.
Minimize the Additional Expenses
Now that you know the direct and indirect costs involved in creating your NFT, it’s time to look at the ways to minimize the costs (while maintaining the efficiency):
While these fees are important and should be thoroughly researched, they are not the only consideration factor. It’s also crucial to analyze the demographics of the site’s users. As a result, paying a slightly higher charge can be worthwhile if it enhances the chances of someone buying your NFTs.
Gas is frequently one of the most expensive expenses. All transactions on the blockchain will be subject to these rules. However, establishing an NFT takes longer than transferring funds. As a result, you will have to pay higher gas prices.
- Your Chain choice plays a quintessential role in determining the gas fees. If you decide to go with Ethereum, you’ll have to pay some extra bucks.
- Being patient will help you save some bucks. If you need to mint the NFT urgently, you would have to pay extra gas fees.
- Diversify your NFT with multiple editions. In this way, you can save some bucks and sell the NFTs individually.
You should be able to get decent rates if you follow these guidelines. However, you won’t know how much you’ll have to pay until the transaction is completed. Furthermore, the value of bitcoin fluctuates often, making it even more difficult to forecast how much these transactions will cost.
The exact cost to create an NFT is still a ballpark figure. It will depend on two major factors: the NFT Development company and the blockchain network you choose.
Maybe, who knows, when you converse with an industry expert, you can ascertain the exact cost. But wait – I could remember one such industry insider who knows a thing or two about it. Would you fancy speaking with him?
If you have liked the overall topic of NFT's till now, then you would surely like to explore the resource material from toptal.com on NFTs for Designers.