NFTs have the potential to be an important and effective tool in a digital creator’s tool chest. The built-in proof of ownership makes it easy for creators to mint different collectibles and engage with their super-fans.
You really need to take a step back and look at the bird’s eye view of this to understand the value of NFTs and the future of this space.
The internet has enabled economies of scale that were unimaginable for creators, and created niches that could not exist
Before the internet, creators had trouble reaching people beyond their geographic restrictions. As a result, they had to partner with central points of distribution (think newspapers, TV networks, record labels) and had their output restricted by the desires of those agencies.
In addition, niche groups were never able to gain traction because they didn’t have enough fans at a small geographic stage and were not able to get scale from those central points of distribution.
With the internet, those central points of distribution have been disrupted, and creators have more agency. Youtube and TikTok have allowed creators to make video content that would not have been allowed on any TV network. Twitter, Medium, and Substack have enabled people to write news and drop knowledge that may not have been supported by any newspaper or publisher. The open podcasting network and Soundcloud have allowed musicians and audio creators to share content that may not be allowed on any radio station or record company.
The internet has created powerful platforms for reach and scale but not for monetization
Creators on these platforms have been able to get massive reach, whether it’s people like Mr. Beast on Youtube with 55m subscribers or smaller creators with more niche audiences.
Until recently, it was very hard for creators with smaller followings (E.G Youtubers with 10–20k subscribers, newsletter writers with 100–200 followers, IG models with small followings) to make livable wages off of their content and work full time on their businesses.
In the last 5 years, monetization platforms for creators have grown tremendously. Platforms like Patreon, Substack, and OnlyFans have grown into multi-million dollar businesses by supporting these niche creators and helping them reach and provide exclusive deals and services to their super fans. Simply put, these businesses have allowed for creators to be supported by their 1000 True Fans.
NFTs come into the picture with these 1000 true fans. They can be turned into a digital badge of honor for super fans. They are the digital equivalent of an exclusive record, a one-off sneaker drop, or that limited edition trading card of your favorite sports player. Smart creators will leverage NFTs to mint exclusive drops and create collectibles for their super fans.