Digital Artists and NFTs

In this episode I discuss digital art. I go over Ethereum and non-fungible token art, crowdfunding, streaming, drop shipping, problems, and my opinion.

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Transcript

building an indie business in the center of venture capital. I am Alex Edmonds. Some people on the internet call me supremerumham. And this is the building an indie business podcast. Okay, so I'm continuing with digital art. I'm gonna be talking about digital art and NFT tokens and drop shipping as well crowdfunding streaming. I added a new section to revenue research problems. I'm talking about my opinions too. Okay, so let's get into it. So I wanted to talk about crypto art and NFT tokens. On the Ethereum blockchain. The reason why is because I noticed that sales of digital art have increased every month. Since July, 2020. Okay. So, NFT tokens stands for non fungible tokens. And what that is is a digital representation, digital representation of ownership. Okay. And so what that means is it. It's a digital proof that you own the art, or it doesn't have to be art, it can be even, like, something digital. Like, like a thing and a video game I forget what it's called a custom item and a video game, or even land at this point. The art cannot be altered or stolen which is something that happens with physical or. I was reading a story about how the honus Wagner baseball card is a very coveted baseball card in that community, and the value of one of the cards went down because someone trimmed the edges of it. And that alter the card and now it's not in mint condition, it's, it's altered right so the value of it went down on this art. The digital art, the NFT tokens on the Ethereum blockchain. So, the art can be sold. So I checked the prices and the highest amount or the most money made on one sale of art is $777,777.77. I think they just wanted all that sevens. Right. And then I also saw some art being sold for anywhere between $50 and $10,000. There's also custom items and video games that's been sold. So like an escape. When I played Runescape in like 2006, you could buy like armor, or weapons that were made in the game from someone. Now, now they sell that for physical dollars or not physical for money, right, not just the in game money but real life, money, or fiat currency, let's use that word. So these are big words to Alex. Right. So, the good thing about NFT tokens is that people can make money on the resale of the art. So, artists can grow following, and then have the art so quicker without following. And because there's only one of that art that increases the resale value, and they'll make money as the value of the art goes up. So, the art artists can sell their piece for maybe $100, and then someone resells that art for $200. Will the artists will get a percentage of that second sale. And as that keeps happening, the cycle of being resold. The artists will take a percentage of every, every time the sale happens maybe like 10%, there are some platforms that will let the artists choose how the percentage that they get to keep. Right. And this is very interesting to me because they're artists famous artists like boschi his art is selling for millions of dollars like $50 million his estate does not see a penny of that resale price or, dollars, let's say. And that's kind of messed up, I think, personally, because that's his work. Someone involved with him, or like a relative should be making money from that art. Right. Yeah. Um, to get away from Ethereum, and NF T's an artist can make money through drop shipping. And this is when you put your, your art on a platform and consumers can buy, as a T shirt, as a sticker, or a laptop cover things like that. And then the artist will make about one to $2 per item at the most five. And then there. This is very passive. So, The artist just has to put up the, the art once and then they'll still make money. And then there's there's SEO within these platforms. So, the more that they're pieces of art sells, then the more money they make, because the platform will show art that is favorable on the, on the platform. And then, because that art is being sold it'll rank higher. So, If I make art for always sunny. And then people start buying it by looking up always sunny. And I start out on like the third page. And then people keep buying it, and then it'll go up, it'll go to the second page. The first page, the top half of the first page the first line on the first page, and then we'll just keep going up and up. Right. And then there's crowdfunding is another way an artist can make money. So, the artists can set up a buy me a coffee page, and have their fans, give them money for their art, and in exchange. The artist could make personalized art for their, their patrons their funders, whatever you want to call them. And then I thought I saw a really interesting way, one that I am experimenting with myself for revenue research. tokenisation. So, what this is. And I'm still researching this, I, I'm in the process of setting this up. So, I would make a revenue research coin. And then I'd issue like 10,000 tokens, maybe, 20,000, and I keep like 5000, not 5 million of them. And then people who are fans of revenue research, they would buy some of the tokens for themselves. And then that would increase the value of the tokens. So let's say they all start out at $1. Then someone comes in, and they buy. Maybe 5000, not 5000. Maybe they buy 50. Right, so they spend $50 on the tokens, and the value of all the tokens goes $1 50. Right. So then I sell some of my tokens at $1 50, and that way I've just made money right this kind of like a stock for revenue research, without all the hassle of going public, which is something I might want to talk about in the future. Okay. So, during all this research. I've kind of been looking for the size of the art world. And I think the size of the art world is streaming. Because when you assassin is when you're looking for monthly payments. And with streaming. People can give the artist money every month for the entertainment that the streams will provide. Yes, and I will talk about this more in the my opinion section. Okay, so, um problems. One problem I have with wolf that I've seen with the art world and digital art, and NFT tokens, is that it's a very new concept, digital art like buying art is old, and it's it's a known traditional thing. But when you take it on the internet that adds a component that's new. And so, because this isn't a new concept. It might take a while for people to adopt. Even though sales have grown every month for the past. Let's say year. So, that might take some time to adopt. And then I talked about the resale value, but you never know when someone's gonna sell, sell, and the artist will get a piece of that resale value, so someone can hold the art for a year, and then sell, or you can hold it for five years, or 10 years. You never know and so you can't rely on the resale value to create income for yourself as an artist. Right. Another problem is fees. You'll never get around fees on the internet, cuz you have to do the transaction fee. The credit card fee, things like that. Right. Um, a Ethereum. So, most of these tokens are on the Ethereum network. And so to buy the tokens, you need to buy the art, you need to buy a Ethereum to purchase it. Right. And so, people might be very interested in buying the art on the Ethereum network, but they don't know how to buy Ethereum. And so they don't really participate in the digital art. Yeah. And also, price volatility. So, the price of Ethereum is very volatile, it'll shoot up to 1000, and then go down to like 700. So, my. I'm wondering if people will buy the prior when they buy the art. Will they buy the serum equivalent, or like the price equivalent. So let's say I buy a piece of art, for one Ethereum. Well people, and the price is $100. Will people buy the art for when I go to resell it will they buy the art for 1.1 Ethereum, or $110, which could mean that $110 might be, 7.7, Ethereum, that's something to consider. Okay, so my opinions. When an artist, puts their art on a. Yeah, on a port on a platform. The platform has an incentive for the art to get sold, because they get the transaction fee. So, that might help the artists, because that's one less thing the artist has to deal with. They just have to work on their art. And then they pay the fees. But the fees are a cut of the revenue. And that's an expense for the artists. So I'm wondering if it's better to be on a platform or to be selling your own stuff on the, on by by yourself like using the internet, using like social media to sell your art, or being on a platform, and having having the platform take a percentage of the art. Yeah, I don't, I don't know yet. Okay. And then there's a problem with streaming as well. When you stream on a platform streaming platforms are mostly for video games. So if you're looking for new people to watch your streams and become a member of your community, that might be tough to find people on streaming platforms that are interested in art. So that might be a little difficult. But your existing audience will definitely join in, and view your streams. Okay. So, digital art is a growing industry. And as the number of buyers grows, so will the price of the art, because there are more people. And they, there's, there's a price that they will see on on those art platforms. And they will be willing to pay that price as like their, their entry price you know what I mean. So, let's say, my art keeps reselling right and it goes from 100 to, like, five years, $200. So, the new people that join the art community in those five years will be willing to pay that $200, because that's what they see the prices as right it's not that $10 anymore it's $200. So, yeah, that's a benefit of the artists to the to the artists, sorry. Okay. Um, drop shipping. Drop Shipping is selling worthless garbage to people. No one needs a $5 sticker, or a $30 shirt on, drop shipping provides no real volume. But Alex. People want to buy t shirts. People want to buy those stickers. Well, here's the thing. If there are no stickers or t shirts to buy on these platforms, then they won't spend their money on them. Right. I'd rather have or no but I think it's better if the art is sold as is and that way they can resell that stuff and make money on it, or, you know, they it provides some value in some way. A t shirt sticker doesn't provide value. Okay. That's all I have for this episode. Thank you for listening. Have a nice day. Bye. Okay. That's what it is.