NFTs are really popular right now. It is so hot that OpenSea, the most popular secondary market for NFTs, soared to unprecedented heights. In August, OpenSea generated $3.3 billion in sales, up from $325 million in July – a 900% gain!
But, here’s a familiar tale.
Many NFT developers struggle to grow and sustain an NFT community. And one trendy hack is Influencer Marketing. Influencer marketing continues to hit new revenue highs with the rise of creative social media sensations, and it’s much more powerful than it may appear.
NFT Influencers wield power to sway digital assets’ worth based on their recommendations. According to a report, 82% of people base their buying decisions on the recommendation of a trusted influencer. Think of it this way. A single NFT user recommends an NFT to thousands and millions of friends (followers).
Once an influencer promotes an NFT, it’s exposed to a much larger audience. And as a result, it attracts investors and boosts community engagement. But how can influencer marketing boosts NFT community engagement? Keep reading to find out.
How to Use Influencers to Drive Engagement in an NFT Community
The easiest way to use influencer marketing is to pay the influencer for posts. Referrals have historically been among the most effective marketing strategies. If someone has a challenge and a friend speaks about a great solution, there’s a great chance that they’ll buy it.
Influencer marketing is similar but has a larger scope. For example, when an influencer tells fans/followers how great a project is, there is every chance the specific audience will convert because they trust the influencer.
Several models promote water bottles, proteins, supplements, and similar products on Instagram. They are paid per post. You don’t have to be a large corporation to benefit from this form of marketing.
So, if an NFT developer is paying an influencer with 500,000 followers $800 per post to promote their community and the average NFT valuation is $50, now the numbers begin to stack up in their favor.
Assuming an influencer’s post generates $5,000 worth in minted NFTs, that’s a deal anyone would probably do all day. Ever wondered how minting works in the nft crypto world? Read our article NFT Minting and Rarity Rating.
Therefore, leveraging influencer marketing is an accomplished marketing strategy for NFT developers to:
- Reach a bigger audience and build trust for their NFT communities.
- Grow their social following.
- Increase website traffic
- Generate more qualified leads, and
- Drive sales and actions during airdrops
Compensating Influencers Through the NFT Project
As paid ad costs skyrocket on platforms like Instagram and YouTube, NFT projects must find newer ways to thrive. That’s where influencer marketing comes in!
Partnering with influencers can be cheaper than paid ads and is more effective as you can tap into the influencer’s loyal following.
NFT developers and influencers are forging long-term relationships. Long-term partnerships are not only more appealing to influencers, but they also yield a better ROI. As a result, the influencer marketing industry is expected to grow from $13 billion to $15 billion by 2022.
However, like any partnership, influencer marketing should be mutually beneficial. For example, if the NFT project is the only party benefiting from the partnership, no influencer would likely want to associate with it.
And if they do, they would be reluctant to commit their significant following.
There are several ways that influencers can gain compensation through the NFT project. These may be:
- Free NFT or discount. Why not offer someone free NFT or fantastic discounts in exchange for a shout-out? That’s rampant across different sectors and niches. For example, NFT developers can send an asset to social media influencers for free, and in return, those influencers would display the NFT in their posts.
- Commission. Here’s a win-win situation since both parties have a stake in the outcome. An influencer gets paid to share an NFT project with their audience, and any sale generated will result in a specified percentage commission paid to the influencer. That is often the best arrangement, provided the commission structure is fair.
Why Develop a Strategy and Run Campaigns for an NFT Drop?
The NFT world will continue to gain popularity. And if NFT developers want to get the best bids, they’ll need a comprehensive marketing strategy to advertise their work and build interest around their projects.
Furthermore, the NFT market is inundated and cluttered due to its growing popularity, creating rivalry among sellers and resellers. As a result, anyone who wants to sell their pieces, and for a high price must stand out and demonstrate why people should desire their work.
Also, they need to spread the word and ensure that people can access their work easily. That is where the marketing strategy steps in.
Effective marketing is about creating demand, then identifying and interacting with a target audience before nurturing and guiding them towards an ultimate goal, which in this case is bidding on an NFT project.
However, before promoting a specific NFT, developers require a strategy/roadmap to ensure they optimize their resources and get the most growth from their marketing efforts.
So, when an NFT project is adequately promoted, it can go from the regular average Jack to superstardom in a flash. All that’s required is a solid marketing strategy. In addition, if the buzz and hype are well drummed up and the right people become aware of the NFT collection, it can transition into the big leagues overnight.
NFTs are the latest gold rush. And, new NFTs will be launched as people become more knowledgeable, resulting in increased competition and the need for NFT marketing to drive sales.
Furthermore, connecting with an NFT community is critical to the successful marketing campaign of any crypto asset since making users feel part of a greater whole is among the best and most effective approaches to establishing rapport.
A marketing strategy must contain variety and engagement to remain attractive during the launch, sales process, and after. In addition, consistent community support will assure immediate and long-term value, and leveraging influencers can help developers reach their goals.