“NFT Collection Success. How a USP Can Moon Your NFT Floor!” (or utility, utility, utility!)
With the recent SEC news suing Stoner Cats for promising profits, this article is even MORE important! Provide a REAL USP to your NFT holders and not a promise of riches from resale, and you aren't offering a security, you're offering a PRODUCT! (check with your attorney of course)
“A Rising Floor” is a free newsletter & mastermind created to bring NFT collection owners and founders together to grow, learn… and raise the floor! Join here!
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- Be different
- The good old days
- Please sir, can I have some more
- Follow the leader
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Last week we talked about the first of 4 ways to bring your NFT collection to the public. If you missed that, you can grab it by clicking here!
The Universal Selling Point
If we had a time machine that we could hop on and plop back to 2020 or so, we could release a huge quantity NFT collection with NO utility, mediocre artwork, and no reason to buy it… we’d likely sell out in 11 minutes.
We’d hop back in the seat, push a few buttons, flip and jerk to whatever date the floor mooned, cash out, and retire. (maybe share a few beers along the way)
My wife would probably sing “Nick’s World, Nick’s World” right now. (I’m not joking) Still, with a few exceptions for one reason or another, the dream story above isn’t far from the truth. It happened. A lot.
When pfp (personal profile picture)NFTs first came out you’d think we were selling c-notes for singles they moved so fast… and in many cases we were! NFTs were new and exciting, FOMO was rampant, and we were living in the Bull!
Today, to launch a successful project, unless you want to gamble with your time, money, and even your reputation, you need something special. Really special. Preferably crazy special… ok… at least new and/or different.
In the NFT world, the term is “utility”. In the old days, we’d have called it a “Unique Selling Proposition”… or a “USP”. It’s certainly nothing new, but is now more required than not for an NFT collection.
If you’re involved in the NFT industry, my saying “adding utility” will probably suffice.
I could write an entire article to answer this question alone, but in a nutshell, a unique selling proposition or “unique selling point” highlights what makes you unique, or why someone should buy.
Be Different
It‘s the heart of your offer, the value you bring, and the problem that you solve. A great USP clearly articulates a specific benefit — one that other competitors don’t offer — that makes you stand out.
It shows why your collection is among the best. (It sounds like a tough nut to crack when I put it that way, doesn’t it?) But it’s accurate!
Having said that, it doesn’t have to be “the best” for everyone… it just has to be one of the best on the market for a large enough group to suffice. In fact, I feel the day will come when choosing a much smaller “niche” of people to promote your collection to will be the norm.
There are plenty of collections doing things like this already of course. One that stands out with a unique USP is “Bitcoin Machines” at BTC MACHINE.
Arguably the ordinal collection with both the biggest community and sheer collection size, (they’ve released over 200,000 ordinals!) their success initially came from (among other things) a reputation for “early and often” airdrops, combined with fomo and the “fear of missing something free if you look away” concept.
That was their USP, and it was repeated over and over in different ways by followers in the Discord… “crap I didn’t check here for a day and missed a free ordinal”!
They really pushed the button: “if you pay attention to what we’re doing and take action when we say to, we’ll load you up”. They’re now parlaying into an ordinal-based Web3 MMORPG that will surely be one of the first and most popular on BTC.
Like BTCM’s airdrops and staking have put a lot of NFT collections on the radar. However, while staking is good and airdrops can work… unless you find something with value/benefits to airdrop or pay as staking rewards, you’re still lost. (and staking might get weird in the future with the SEC)
So where does that leave us? With I dunno… a million other ideas?
As an example of something unique would be an NFT that provides a benefit or giveaway to golfers. It can offer golf discounts at top golf courses nationwide, a discount on golf balls, a few free balls a month, or free shipping from a golf club manufacturer. Someday this type of “collab” can be more important than a collab with other collections.
Another idea would be to create a travel or location-based NFT and give everyone who holds five of them a free 3–7 night hotel stay at an exotic location! This program charges around $40 a month and you can give away as many free trips as you like: https://advertisingboost.xyz . (yeah really, but the winner has to pay the room tax, lol)
Or give away a trip per week, or, or, or, or! How creative are you? What can you come up with, using affiliate offers, your circle of influence, or past contacts?
Something like this would certainly make you stand out, be different, and get people talking about you in other places. Be smart about it, pick a potential benefit that makes sense for your target… and keep calling potential allies until you find a deal.
Here’s a real-life example that’s different than the example above, but easily one of the best USP’s in history. This is the USP that catapulted Domino Pizza into the stratosphere and was worth hundreds of millions in sales. They’ve had others since, but it was something like:
Hot, fresh pizza delivered to your door in 30 minutes or less, or it’s free!
They started expanding and putting new locations in college towns… and the rest is history! They found a unique idea that solved a problem and gave people a benefit… or REASON to order from them instead of the competition. You should do the same.
The Good Old days
So we talked about the past, but why is it so much more important to have a USP than it was before? Why was it so easy to succeed a few years back, with or without utility or a USP? Here are a few reasons:
- Hype and FOMO (Fear of Missing Out): The early days of NFTs were marked by significant hype and even some media coverage. People often bought NFTs due to the fear of missing out on investment opportunities, without even understanding the long-term implications.
- Speculation and Investment: With stories of NFTs selling for astronomical prices, people rushed to buy NFTs in hopes of reselling them at a higher price later. (it got me to open my wallet!)
- Collectibility and Scarcity: NFTs introduced a new form of digital collectibility. Limited supply and the perception of scarcity, even if there was no immediate utility, drove collectors to buy NFTs.
- Early Adopter Mentality… or “FIRST”: Early adopters of NFTs were often the people who embraced the concept of early digital ownership. We see this now with Ordinals… people are betting large sums of moolah that the lowest inscription numbers will someday pay off big. :fingers crossed:
- Celebrity and Artist Involvement: The involvement of well-known artists, musicians, celebrities, and brands in the NFT space added legitimacy and attracted their fan bases to participate, even if the NFT did nothing.
- Community Building: NFT creators and projects often fostered strong communities around their collections. People wanted to be part of these projects from the ground up. Many of these were and are STILL successful because of this. Sadly, most without utility have fizzled.
- Finally, the obvious… we were riding the bull. Most NFTs were climbing in value, tokens were skyrocketing, and BTC and ETH (and many others) were hitting all-time highs. Everything seemed to turn to gold.
Of course, there are exceptions to each statement above… but it’s pretty consistent across the board that if the NFT does nothing, the floor price isn’t doing anything either. Most older NFT collections are now either dead and buried, or valued at less than 10% of their all-time highs. Boo.
The initial frenzy (and substantial losses that followed) has led to buyers being more critical and cautious, as well as requiring use cases, utility, and preferring founders to be “doxxed” before they open their wallets. I know I sure do.
Needless to say, if you’re launching an NFT project, standing out from the crowd — being different — giving them stuff — has become much more important.
I need to point out that all of those selling points above, the reasons the early NFT collections mooned so quickly back then are STILL selling points today.
We STILL need to (write these down!) create hype, FOMO, and speculation. There STILL needs to be collectability and scarcity, we STILL need to seek and find “firsts” that our collections push the buttons of, leverage celebrities and artists when we can, build an incredible community, and appeal to the charm of digital ownership…
Please Sir, Can I Have Some More
Unfortunately, it’s NOT ENOUGH anymore! You’re going to need more.
Now for the skeptics or people ready to tell me how you just sold out without anything more than .jpgs… I’m writing this assuming you’re launching a new NFT collection without any prior exposure or leverage.
In other words, this isn’t a new or second NFT added to a standing project, you’re not a famous artist, and you don’t already have a large social media following, celebrity status or some “ace in the hole”… you’re starting from scratch.
Hopefully you’re now convinced that you’re going to need more than a launch date and a pretty picture to succeed in the NFT biz. In case you’re not totally sold, here’s a more specific list sharing why a unique selling proposition matters for new NFT Collections:
- Cuts through the noise: With dozens of NFT collections launching daily and vying for attention, a well-defined USP ensures your collection captures the audience’s interest quickly. You. Must. Stand. Out.
- Establishes identity: A strong USP carves out a distinct identity for your collection, making it memorable and recognizable among the vast array of options. People will remember you and REFER you to others because your NFTs “insert your special offer or utility here”.
- Adds value: A unique selling proposition can significantly increase the perceived value of your NFTs, driving higher demand and potentially higher prices. Stack as many benefits/utilities as possible for the best chance of success, so buying/minting your NFT is a no-brainer!
- Connects emotionally: A compelling USP can build an emotional connection with your audience, fostering a loyal community around your collection, for example planting a tree for each NFT that’s minted.
Of course, like succeeding in any business, this is easier said than done. So let’s look at where to start, and go through a list of some things that will get your on the right track.
Identify your niche: This is something we don’t talk about enough in the NFT world where in the past creators could simply pick an animal or something similar and start creating. To succeed in the future, you’ll be better off “niching down” and finding a particular industry, hobby, or group of people to target with similar likes or interests.
Is it retro gaming? Nostagia? Cyberpunk? Golf or another sport? The environment? Fashion? Mexican food? Guitars? Business? Sales?
Imagine a guitar-related NFT collection that gave holders free sheet music for 3 new songs a month, or a collection portraying Mexican food that came with monthly coupons for Taco Bell meals!
Or, create a collection around something that can be delivered digitally, or teach something to holders weekly. An example might be to do a livestream weekly for holders teaching how to apply makeup, make the most delicious deserts, or write poetry! (or find influencers with a following in a niche and partner with them, you creating the NFTs!)
Next, research the market and understand what’s already out there. Identify gaps or areas that you can uniquely address within your chosen niche. Gone are the days of selling out 10,000 pictures of monkeys for $90 each “just because”.
Become a storyteller. Develop a compelling narrative around your collection. Whether it’s the creation process, inspiration, or underlying message, a good story can enhance the perceived value of your NFTs, and lead them right to your USP. Some might call this a whitepaper. Whatever you call it, don’t be boring!
You want your “story” good enough that your members will tell it to others and your community grows organically. Some of you might be old enough to remember the old Faberge’ Shampoo commercial; “you tell 2 friends, and they’ll tell 2 friends, and so-on, and so-on, and so-on”! It worked.
And then once you have your niche, story, and USP created, then partner with other artists, influencers, or organizations that align with your USP or “utilities”. Maybe you do it before launching, maybe after by adding it to an existing collection… but this type of collaboration will go a lot further than offering your people spots on some other program’s whitelist.
This is a topic we can go on with forever, but here’s a few more thoughts about your USP and some best practices.
- Be Authentic: Your USP should reflect your genuine passion and creativity. Stay in your lane, and do what you know.
- Keep it Clear: Ensure your utility is easy to understand and communicate. Avoid jargon or confusing messaging. Write like you’re talking to 3rd graders.
- Consistency: Your USP should be consistently reflected in your artwork, social media posts, ads, and any associated events or campaigns.
- Evolution: Allow your USP to evolve with time, while staying true to its core. Flexibility ensures your collection remains relevant.
In the ever-changing world of NFTs, a GREAT Unique Selling Proposition (er, utility!) can be the difference between your collection being lost in the crowd or standing in the spotlight. By carefully crafting your collection’s identity, you’ll not only attract collectors but also foster a community that resonates with your vision and will fight battles on your behalf.
This industry is in its infancy so you can craft your collection to be whatever you want it to be. Do something new. Do something bold. Do something different. Just DO something!
Until next week… if you need help, ask for it. If you don’t, prove it!
Deacon Z
PS — Like last week’s newsletter, this is a COMMON marketing strategy that for some reason has not made it to the NFT world. Take advantage. be FIRST!
A Rising Floor is a weekly newsletter and Discord Mastermind created for NFT and ordinal collection owners, staff, and founders, as well as NFT industry gig workers and anyone who wants to promote their NFTs. It’s a free source of news, NFT marketing help, and a place to communicate with peers for the advancement of the industry.
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