How small businesses can benefit from NFTs?
Non-fungible tokens (NFTs) are digital assets that can represent anything from art and music to tickets and memberships. They are unique, scarce and verifiable on the blockchain, which makes them valuable and desirable. NFTs have been making headlines for their record-breaking sales and celebrity endorsements, but they are not just for collectors and investors. They can also be a powerful tool for small businesses to build communities, engage customers and grow their brand.
So, how small businesses can benefit form this new technology called NFT?
There are many ways that small businesses can benefit from NFTs, and here are some that I found interesting:
NFTs can be used to create loyalty programs that reward your customers for their repeat purchases, referrals or feedback. You can create NFTs that represent different levels of membership, perks or discounts and grant them to your customers based on their actions or achievements. For example, you can create an NFT that gives access to a VIP club, a free product or a special event and award it to your customers who spend a certain amount or refer a certain number of friends. This can help you retain your customers, increase their satisfaction and encourage them to spend more.
The metaverse is a term that refers to the virtual worlds and environments that are created and accessed through digital platforms. NFTs can be used to create digital assets that can be used or displayed in these worlds, such as clothing, accessories, furniture or art. You can create NFTs that represent your brand, products or services and sell them or give them away to your customers who visit these worlds. For example, you can create an NFT of a T-shirt with your logo, a painting with your slogan or a sofa with your pattern and let your customers wear them or decorate their virtual spaces with them. This can help you expand your reach, showcase your creativity and connect with new audiences.
NFTs can also be used to gamify your marketing and sales strategies by creating fun and engaging challenges, quests or competitions for your customers. You can create NFTs that represent rewards, prizes or achievements and give them to your customers who complete certain tasks, goals or milestones. For example, you can create an NFT of a badge, a trophy or a certificate and give it to your customers who sign up for your newsletter, share your post or leave a review. This can help you boost your engagement, generate referrals and drive conversions.
NFTs can also be used to improve your supply chain management by creating digital records of your products' origin, history and quality. You can create NFTs that represent certificates of authenticity, provenance or sustainability and attach them to your products as they move along the supply chain. For example, you can create an NFT of a certificate of organic farming, fair trade or carbon neutrality and link it to your products as they are grown, harvested or processed. This can help you reduce fraud, increase transparency and enhance customer confidence.
NFTs can help small businesses protect their intellectual property and prevent counterfeiting, which is a major problem in many industries. According to a report by the Organisation for Economic Co-operation and Development (OECD), the global trade in counterfeit and pirated goods amounted to $509 billion in 2016, which is equivalent to 3.3% of world trade. Counterfeit products can damage the reputation and revenue of small businesses, as well as pose health and safety risks to consumers. One example of how NFTs can help small businesses fight counterfeiting is the case of VeChain, a blockchain platform that provides solutions for supply chain management and business processes. For instance, VeChain has collaborated with Renato Cortese, an Italian wine producer, to create NFTs that verify the authenticity and provenance of his wines. Each bottle of wine has a unique QR code that links to an NFT on the VeChain blockchain. Consumers can scan the code with their smartphones and access information about the wine's history, characteristics, and certification. This way, they can be sure that they are buying a genuine product and not a fake one.
NFTs can also be used to participate in social causes that align with your values, mission and vision. You can create NFTs that represent donations, pledges or support and give them to your customers who contribute to your chosen cause. For example, you can create an NFT of a donation receipt, a thank you note or a recognition badge and give it to your customers who donate to your charity, sign your petition or join your movement. This can help you build goodwill, foster loyalty and make a positive impact.
NFTs can provide a new source of income for small businesses, thanks to a feature called royalties. Royalties are payments that are made to the original creator or owner of an NFT every time their work is resold on a secondary market. The percentage of the royalty is chosen by the creator and coded into the smart contract of the NFT. The smart contract tracks the sales and ensures that the creator receives their share. Royalties can generate a steady stream of income for small businesses, without requiring any additional work or investment. For example, if a small business creates an NFT of their logo or product and sells it for 1 ETH with a 10% royalty fee, they will earn 0.1 ETH every time someone else buys or sells that NFT in the future.
NFTs are a new and exciting technology that can offer many opportunities for small businesses to build communities, engage customers and grow their brand. If you are interested in exploring the potential of NFTs for your small business, you should do your research, plan your strategy, seek professional advice, test your ideas, learn from your mistakes, and the most important having fun along the way.
