How Much Does It Cost to Make an NFT?
The hype around digital artworks and NFTs selling for thousands and millions of dollars is everywhere.
But has anyone ever told you how much it could cost the sellers? You’ll be surprised.
Okay, that’s an exaggeration. Profits are possible, but you have to be smart about it. And yes, we’ll also touch on that.
Estimating the Cost: Selling Non-Fungible Tokens
We don’t want to drop a hefty price, shock you, and discourage you from NFT markets. After all, we believe NFT is a promising avenue for artists who deserve financial recognition for their artworks.
The costs involved also vary from one NFT marketplace to another. Some are cheap, some are affordable, and some are unreasonably expensive.
But what’s similar across all platforms is that there are “hidden costs” people don’t talk about.
They include, but are not limited to, the following:
- Listing fee
- Minting fee
- Platform commission
- Gas fees
- Transfering of ETH to NFT wallet
- Converting ETH to digital wallet (bank)
We’ll let you gauge the fees through 3 different scenarios featuring varying NFT platforms for a fair assessment.
Scenario 1: The Famous Experience of Allen Gannett
If you’ve been researching NFT tokens for a while, you’ve probably encountered his name. He’s a creator who wrote a well-written blog narrating his experience as he minted and sold four NFTs.
He used the platform Rarible and a MetaMask Wallet. Note that he didn’t create the NFT artwork he uploaded. He went online and uploaded famous paintings from the Metropolitan Museum.
Then here comes the fees!
- Creating the collection (minting fee, gas fee): $997 or 0.67 ETH (depends on the traffic)
- Naming the NFT: $86
- Total for listing: $1,300 for just creating the listing
- Accepting the bid: $88
- The bid: $76
Technically, he did not make a profit. But we think his blog from this experience paid off.
Scenario 2: Joseph from LearnSketch․com
Joseph from LearnSketch.com created an elaborate Youtube video listing down the fees he paid.
The NFT marketplace he used is Foundation, which is known to be an expensive platform. A further fee and Ethereum charges are to be expected.
Here’s the breakdown:
- NFT minting fees: $87.53
- Listing fees: $62.19
- Commission fees: $42.97 (15%)
- Transaction fee: $31.25
- Total: $223.94
The transactions do not even include the final step yet, which is converting the crypto wallet ETH to real-life money.
He was able to sell his NFT token for $268.44. So, in essence, he made a profit of $62.50. And hey, that’s way more money than Allen’s nonfungible tokens.
Scenario 3: An NFT Marketplace That Lets You Earn
You’d be happy to know that the basic fee(s) are way cheaper for this last scenario. It’s friendlier to your bank account.
One NFT creator shared how they pay fees at a much lower cost using OpenSea. He was still charged with minting costs, but it was a one-time payment of $86, and he was able to mint dozens of NFT art in one go!
The commission fees are only 2.5%, which is relatively low. Other than that, you only have to worry about your gas bill, which isn’t a fixed price.
Why Do the Costs Vary…a Lot?
You may be wondering why the cost is so volatile. The leading variable cause is the gas fees.
Supercomputers power everything along with the Ethereum blockchain technology and Ethereum network.
The minting process, NFT metadata generation, NFT development projects, and other processes require a lot of energy. And these computers are powered by energy or electricity that involves gas.
On top of that, the traffic (amount of people) in the blockchain platforms and NFT marketplace also matters.
If there are several of you minting NFTs simultaneously, the minting cost will be HIGHER. Your gas charges will be more EXPENSIVE.
Why Is Non-Fungible Token a Big Hit?
We know what you’re thinking. If it’s so expensive and the cost is unreasonable, why is the concept of NFTs so hyped up?
Well, because digital assets are promising investments. As the online transactions boom, people are seeing the potential of the digital sphere.
Thus, many of the NFT artists are creators who sell digital art. The NFT market opened up opportunities for them, and we’re all for that!
Although sadly, some “NFT creators” are just “exploiting” the opportunities since fans are likely willing to buy Non-Fungible Tokens of their idols. Some don’t even create a new NFT; they grab online content for profit.
How Do We Sell NFTs?
We’ll briefly explain how it works for your reference. For the record, though, most platforms do provide a smooth interface. Don’t worry too much!
1. Look for an NFT Marketplace
First things first, use a platform where you can perform the transactions. Some build NFT marketplace on their own, but that isn’t very easy.
We suggest joining an NFT marketplace. They’re accessible and everywhere!
Here are some of the well-known NFT marketplace platforms for your reference.
- Nifty Gateway
- Axie Marketplace
We’d also like to point out that some marketplace platforms will charge your registration.
Each marketplace has its unique propositions. The best one will be a marketplace that’s compatible with your needs.
Asking the right questions will help you determine a good one for you:
- How much does it cost to sell here?
- How much traffic is generated?
- How easy is it to sell here?
2. Integrate a Cryptocurrency Wallet
Likewise, there are many popular NFT wallets out in the crypto market nowadays. You would need this as a buyer’s wallet while you transact in an NFT marketplace.
REMEMBER: No NFT wallet, no NFT transaction.
No matter how much money you have in your bank, you can’t buy and sell NFTs without cryptocurrency.
And to add, your wallet should always have ETH so you can mint NFTs or make an NFT. Be sure to secure your seed phrase and keep your wallets safe from attacks.
Some examples of NFT wallets are Coinbase, MetaMask, and Enjin.
3. Follow the NFT Marketplace Guidelines
Each NFT marketplace will have different instructions, guidelines, and steps. Most of these user interfaces are easy to follow.
Frankly, uploading and creating tokens on an NFT marketplace is easy. That’s probably why it’s easy to hook people into the whole NFT craze!
But this is where you should be wary.
The hidden costs in creating NFTs await you in this step. You may be surprised to see your charges piling up.
In a rush? Here’s a brief TL;DR of the NFT costs.
Depending on the marketplace you use, the selling costs will differ. It can range from $200-$1,300. Some platforms charge higher gas bills and commissions; some impose a one-time payment.
From the examples mentioned, these are the approximate rates:
- 4 NFTs sold on Rarible cost $1,300 (no profit).
- 1 NFT on Foundation cost $223.94 ($62.50 profit)
There’s no one answer to the question of how much does it cost to make an NFT?
It varies from one NFT marketplace to another, and the gas charges are highly volatile and impermanent.
But we hope this article gave you an idea of what to expect. We hope you feel more ready to conquer the NFT world!