Contemporary Art on Web3: How to Monetize Creativity?

Every person strives for financial well-being, and creative individuals are no exception. However, is it possible to ensure a decent standard of living from art alone in the modern world? Let’s find out!

Why do artists find it difficult to make money?

Perhaps it’s no secret that creative individuals often face financial problems. Not all artists make a living solely through art. Many find a “serious” profession to provide for themselves and their families and engage in creativity only in their leisure time. Why does it happen?

The subjectivity of art plays a significant role in this. Individual preferences vary widely, and this subjectivity can make it difficult for artists to find an audience or generate consistent sales. As a result, they find themselves in a “financial swing” when one work sells well, and after creating another, small installment loans for bad credit come to the rescue.

It is also worth talking about the following aspects:

• Market saturation. Standing out and getting recognition in a crowded environment is a major hurdle, especially for new artists.
• Limited exposure. It is difficult to find an audience and potential buyers without access to established galleries, exhibitions, or online platforms.
• No business skills. Understanding pricing strategies, negotiating contracts, and other organizational tasks can seem overwhelming to creative people.

• Dependence on intermediary. Many artists rely on galleries or agents to display and sell their work. However, intermediaries often take a large percentage of sales, leaving artists with a smaller share of the proceeds.
• High production costs. Creating art requires investment in materials, studio space, and sometimes even special equipment. Covering these costs before generating sales revenue without a dedicated creative budget can be a financial struggle.

What are NFTs, and how do they help artists make money?

NFT (Non-Fungible Token) is a type of digital asset that, using innovative blockchain technology, allows you to record ownership or confirm the authenticity of an item. This feature makes them ideal for providing ownership of artworks such as images, music, or videos.

Today’s artists are using precisely this innovation to profit from their work. How does innovative technology help make a profit?

1. Ownership and authenticity. Using NFTs is a secure and transparent way for the artist to confirm the artwork’s authenticity, and for the buyer — to record ownership. It is valuable in digital art, where reproductions can be easily made.
2. Smart contracts. NFTs often use smart contracts with terms written in code. Artists can include resale royalties in these contracts, ensuring receiving a percentage of sales whenever an NFT changes hands.
3. Direct sales to collectors. NFT technology allows artists to sell their work directly to collectors without the need to work with galleries or auction houses. It enables creators to control their pricing and sales strategy while saving money on additional reseller fees.
4. Global availability. Without a doubt, NFT art allows artists to introduce their work to as many people as possible without having to rely on exhibiting in physical galleries. Any user with an Internet connection and cryptocurrency can participate in the purchase or sale of NFTs and bring profit to the author.

What are the most famous and expensive NFTs worth your attention? First, we should remember the legendary digital work of art — “Everydays: The First 5000 Days” by Mike Winkelman (Beeple). To date, this NFT is considered one of the most conceptual and expensive: in March 2021, it was sold for $69 million.

Many users, even far from Web3, have probably heard about cryptopunks. Rare CryptoPunk #7804 sold for over $7 million.

By the way, not only works of art but also tweets can be sold in the NFT format. For example, co-founder and former CEO of Twitter, Jack Dorsey, sold his first tweet as an NFT for $2.9 million.

Another amusing option to monetize art is to sell blockchain game characters as NFTs. For example, virtual cats from the popular CryptoKitties project are sold for significant sums, and the most expensive ones cost fans hundreds of thousands of dollars.

Yes, like any other market, the NFT world is dynamic. Yes, the cost of work can fluctuate within significant ranges and cannot always be explained logically. However, this technology deserves the attention of artists, providing the opportunity to conquer a global audience.