How to Sell NFTs
How to Sell NFTs
The popularity of Non-fungible Tokens (NFTs) is on the rise. Almost overnight, a brand new market has formed to add to the global social and economic landscape. From works of art to viral videos, people are buying, selling, and trading NFTs — one-of-a-kind pieces of digital media.
With this exciting newly-formed market, more and more people want to get in on the action, whether to share their creativity with the world or have the bragging rights to a piece nobody else can claim.
The steps we lay out apply to typical NFT marketplaces, but the DraftKings Marketplace operates differently than the standard, decentralized crypto marketplace.
DraftKings offers a centralized platform that curates and manages NFT transactions between verified accounts. The method in which we transact provides much stronger security and protection to users.
Decide the NFT price & Create a Listing
If you’ve decided to create your own NFT, determining the value might be a little tricky. There's no set "sell this for that price" rule. The best course of action is to look up similar items and follow an average of their listed prices. Consider pricing conditions, such as the creator, similar NFT prices, the history of your NFT, and the current supply of your type of NFT. If you're competing with many other sellers offering the same item you are — or a similar NFT — it's going to drive the final price down for everyone.
Keep in mind that if you created the NFT you're selling, you can write royalty conditions into the sale, so any future sales send a kickback to you as the creator. If you charge too large a royalty, this might hold people back from reselling your creation.
Users are currently unable to initiate user-owned auctions on DraftKings. However, verified owners of NFTs on DraftKings Marketplace can list their NFTs for sale to other DraftKings Marketplace customers.
Examples of NFT prices & auctions
Here are some of the most common ways NFTs are priced and auctioned off.
Research similar NFTs and set a price. You may opt to haggle with potential buyers or set the cost in stone. You're able to set the currency type with many marketplaces. So, it’s entirely up to you whether you only want to accept crypto or cash.
With a timed auction, you place your item on the marketplace, listing a minimum bid — or you can opt for no minimum. You determine the start time and end time of the auction. At the specified time, a timer begins to count down. Whoever offers the highest bid when the time is up wins the item.
The declining auction — also known as the Dutch auction — involves setting a starting price. Every so often, the price automatically goes down. Whoever puts in the first bid for the item wins the item. The strategy behind this method basically boils down to the idea that whoever wants it the most will pay the most by striking first.
Unlimited auctions are the standard auction format. These auctions don't set a time limit on the sale of an asset, and the auction continues until you accept a bid. You can set a reserve, meaning the auction can't conclude until someone meets a predetermined price point.
Each marketplace operates differently when it comes to selling and setting auction conditions. Whichever exchange you use, carefully read their rules and guidelines for selling and auctioning off NFTs.
Writing a good description of your NFT
Consider your product description carefully. Be sure to include highlights of the piece itself. For example, if you're selling a digital painting you've created, touch on the motivation and mood of the work, showcase how the colors play with light, and so on.
If you're looking to resell another creator's NFT that you own, leave details about the creator, past owners, and any other interesting historical facts about the NFT.
About listing fees
Once you've minted your NFT, most exchanges give you the option to go straight to selling. Whether you've created a new NFT or are looking to sell one you own, most marketplaces charge a listing fee between $5 to $10.
Announce & Monitor your Auction
If you have an NFT you're ready to sell, you'll likely want to let the world know about it. The more people who get your message, the more interest you’ll generate. Take to social media and showcase your NFT. Add a link to take viewers to your marketplace entry, and then sit back and wait as the bids come in.
Other listing & seller fees
Listing fees aren't the only cost associated with selling NFTs. When minting, platforms charge a price for generating the token. The cost for minting varies depending on what functions you want to include and what marketplace you use.
Another element that goes into determining minting cost is the concept of "gas fees.” Since minting takes a lot of computational power, the exchanges incur greater resource costs for the added strain on their hosting provider. More NFTs being minted means greater cost to the marketplace, which is then passed on to the users generating tokens.
When someone purchases your listing, the marketplace also takes a 1% to 5% cut of the final sale price as well. Some also charge an additional amount for the first-time sale of an NFT, which usually works out to about 2.5%.
Unless you're selling your NFT for conventional money — such as dollars or pounds — NFT transactions are pretty straightforward and mostly automated on exchanges. Once the sale is determined, most exchange interfaces will lead you through finalizing the transaction through prompts and instructions. You agree on a cryptocurrency amount, release ownership, and the funds appear in your crypto wallet. It's usually as simple as that.
How much does it cost to sell an NFT?
Every marketplace has slightly different guidelines regarding how to sell NFTs on their platform and what their cut should be. Most generally charge a fee of around 5% of the final sale price and take the cut at the time of the transaction. Some might charge a flat fee on top of the percentage, so be sure to read up on a marketplace's guidelines before settling on their service for your NFT exchanges.
The DraftKings marketplace offers a space for safe, real-time transactions. Creators often enact a royalty fee, which usually hangs around 10%. Draftkings deducts a 5% fee from the final sale price, which is pretty standard for NFT marketplaces. With every sale, you'll typically net around 85% of the purchase price – though this may vary based on creator royalty fees.
Can I sell an NFT for real money?
Cryptocurrency works best on most decentralized exchanges and makes real money transactions fairly cumbersome. The biggest downside of exchanging NFTs for non-crypto money on standard marketplaces is that only the transfer of ownership registers on the blockchain, but the financial transaction doesn't. However, there are plenty of ways you can sell an NFT for real money.
DraftKings provides a centralized platform that removes the anonymity and uncertainty from real-money transactions. All exchanges are transparent — the seller and buyer know that the other has been verified and vetted by DraftKings, and the platform oversees all NFT-for-money transactions.