What: Balancing core customers and web3 clients is an important part of ensuring a successful NFT drop, but that’s not all.

Why it is important: The best NFT projects have several things in common across creativity, audience appeal and value.

Brands that only see NFTs as a marketing stunt are likely to fail as they ignore the barriers to entry that core customers face when purchasing NFTs. Web3 natives also see low value in projects that are simply marketing ploys as they lack long-term value and utility.

Incorporating NFTs into the business model by addressing the long-term brand-building value offered to customers will be the most beneficial to companies looking to enter the space. This is demonstrated in the struggle to sustain interest in collectables which are typically virtual renderings of clothing.

Most successful NFT drops offer more utility and value, such as experiences linked to holding the NFT. Tickets to fashion shows have proven to not be enough to entice buyers. The NFT does not have to yield a financial profit but should justify the cost, whether that is through letting holders claim physical goods or offering future rewards. In the case of Tiffany’s NFTiffs, holders had the ability to buy a unique item made with luxury materials and craftsmanship that was not accessible to the public.

The promise of future rewards can also appeal to buyers if they believe they will receive more value over time compared to the initial price of the NFT. The market remains niche which is why many brands have seen better results by appealing to crypto natives, but this should still include appealing to core customers and maintaining the brand’s storytelling.

Loyalty programmes can certainly boost buyer appeal, but brands are warned about overpromising and underdelivering. Partnerships with established NFT series such as the one between Adidas and Bored Ape Yacht Club have also been proven to be helpful in entering the market.

Measuring success remains a challenge due to the impossibility of comparing different projects which have been released with various prices, goals and strategies. A thought-out marketing plan that includes multiple “crescendo moments” keeps holders and buyers engaged as well as maintains reliability in the potential increase in value.

NFT drop do’s and don’ts