In recent years, a broad range of sectors, from art and gaming to fashion and real estate, have recognized and harnessed the potential of NFTs for digital ownership and unique asset representation. As of 2022, the global NFT market size across all segments was valued at an impressive USD 20.44 billion, showing no signs of slowing down.
In fact, experts predict a compound annual growth rate (CAGR) of 34.2% from 2023 to 2030. Alongside this growth, Statista estimates that the number of users in the NFT segment will reach a whopping 19.31 million by 2027.
In light of these promising figures, building your own NFT marketplace emerges as a lucrative move.
At present, the NFT landscape is primarily dominated by third-party marketplaces in terms of trading volumes. According to Dapp Radar’s Q1/2023 report, a total NFT trading volume of $4.7 billion was recorded, with top NFT marketplaces like Blur and OpenSea contributing significantly to this figure. These marketplaces alone generated $4.1 billion of the total trading volume.
This scenario might raise a question: If most transactions are already occurring on these established third-party NFT marketplaces, why should one consider launching their own platform?
In this article, we will delve into why you should consider creating an NFT marketplace for your assets to unlock new opportunities in the ever-evolving blockchain universe.
Benefits of having your own NFT marketplace
Upon a more detailed examination of Dapp Radar’s trading volume data for the last 30 days, we observe a significant representation of custom NFT marketplaces intentionally designed to boost one particular project.
As evidenced by these marketplaces that belong to top NFT projects, including Crypto Punks, Mobox, Axie Infinity, and NBA Top Shot, the potential benefits of creating your own NFT marketplace are manifold. These projects have created native NFT marketplaces tailored to their audience’s unique needs, and as a result, they can
- take control of their user base,
- reinforce their brand identities,
- design custom user experiences,
- target specific niches,
- connect with users directly and drive engagement,
- increase loyalty and
- unlock new revenue streams.
Building your own NFT marketplace could be the key to unlocking these remarkable benefits for your business, as well.
Why white label NFT marketplaces?
There are two primary routes you can take to create a custom NFT marketplace: developing it from scratch or opting for a white label solution.
If you choose to build your NFT marketplace from the ground up, you’ll need to design, code, and test the platform yourself, with a team, or in collaboration with an NFT marketplace development company. This approach demands substantial technical expertise and can result in considerable costs, both financially and in terms of time.
Cost-effective turnkey solutions
White label NFT marketplaces are pre-built platforms designed to simplify the process of brands breaking into the market. As the user of these out-of-the-box solutions, you are freed from the technical complexities. They are ready to launch or ready to deploy, significantly accelerating your marketplace’s time-to-market.
In other words, white-label solutions empower you to reap the advantages of owning an NFT marketplace in a shorter timeframe and at a reduced cost.
Establish a unique brand identity that sets you apart.
White label marketplace solutions allow for using custom domains. You can also customize the marketplace’s design and user interface to reflect your brand’s identity.
Available customization options will depend on the marketplace provider you choose. Most providers have built-in customizers for selecting brand colors, typography, logo, and overall layout.
Some providers go a step further and include additional customization options, like the white label marketplace provider NFTKred which enables advanced control with custom CSS in addition to the standard color selection options and logo uploading. 10Clouds allows marketplace owners to create custom designs using the platform’s API and developer tools.
White label marketplaces enable tailored user experiences.
White-label marketplaces also offer the opportunity to create user experiences explicitly tailored to your audience.
An engaging and seamless UX for NFT collectors is critical. The marketplace should facilitate an intuitive journey for users to explore, purchase, and display their NFTs. Consider, for instance, Altura’s white label marketplace solution. Its infrastructure empowers store owners to feature specific collections, simplifying the discovery process for collectors searching for new NFTs. Furthermore, collectors have the freedom to personalize their profiles, adding a layer of individuality to their experience.
A dedicated NFT marketplace can naturally intertwine NFT asset trading with your existing business website. Take, for example, the marketplace of Apeiron Planets, a space-themed play-and-earn game. Players have the ability to trade in-game assets that are essential for participating in the main gameplay. Moreover, users have the option to merge NFT assets to secure demo passes, allowing them to engage in the game, all seamlessly managed within the ecosystem of the same marketplace.
Target a specific niche with a custom NFT marketplace.
Another way to create tailored user experiences is to focus on a particular niche. By doing so, your marketplace can offer specialized knowledge and expertise, leading to a deeper understanding of the unique characteristics of NFTs within that niche.
For example, art platforms can curate NFT collections that better resonate with their audience. Quantum Art is an excellent example of this. It’s a photography-focused Web3 platform that releases weekly NFT drops handpicked by its expert team, spotlighting the works of globally recognized artists.
Similarly, Cadabra — Canon’s forthcoming photography-focused NFT marketplace — will feature curated collections across several categories, such as wildlife and sports.
Capella, an NFT marketplace with a focus on GameFi, recognizes that Web3 game assets require specific utilities beyond the standard ERC-721 tokens. Consequently, it will introduce semi-fungible tokens (SFT) designed explicitly to meet the needs of blockchain games.
Altura, another company specializing in Web3 gaming, also develops novel solutions for in-game assets, including smart NFTs that adapt their properties based on a player’s progression. If creators initially mint smart NFTs through Altura, they can integrate them into their white label NFT marketplaces.
In the luxury retail space, the lifestyle platform Meflex is developing a bespoke NFT marketplace that aims to connect collectors and influencers and feature limited-edition influencer items.
By zeroing in on a specific niche, your platform can differentiate itself from more general NFT marketplaces. This can help your business stand out and attract users who are specifically interested in the niche, potentially leading to a larger market share. To facilitate this, you can team up with a white label NFT store company that develops tailored experiences, like Maticz, which designs solutions across diverse categories such as music, art, games, metaverse, sports, and photographs.
How white label solutions help you build a Web3 community
A niche-focused white label marketplace stands a greater chance of attracting an engaged audience, as creators and collectors within that niche are more likely to interact with the platform. This can foster a strong community and drive user engagement.
A dedicated NFT marketplace can be beneficial for creating a sense of community for several reasons. You can communicate directly with your audience and cultivate a community centered around shared interests and objectives.
- Exclusive content: Your marketplace can serve as a hub for exclusive NFTs that are only available to your community. This can instill a sense of exclusivity and ownership, encouraging community members to interact and engage with each other.
Consider, for example, the NFT marketplace of the Associated Press. The store was launched in partnership with the NFT marketplace service Xooa. The AP releases “Pulitzer Drops” every two weeks, including limited-edition Pulitzer Prize-winning images. In addition, some NFTs contain unlockable content, such as high-resolution photos that NFT owners can print for personal use.
- Reward and loyalty programs: Implementing such programs can motivate users to sustain their involvement in your marketplace. These programs can offer a range of perks, like discounts, whitelist spots, airdrops, or token rewards, all of which can boost customer loyalty.
For instance, Aetsoft’s monetization tools can be used to execute NFT giveaways, run contests with prizes, and initiate a referral system. The NFT marketplace provider also supports store owners with marketing support and promotion on social network channels.
- High-quality customer support: Offering top-notch customer service can help establish trust and build strong bonds with your users. Attentive and responsive support can make users feel heard and valued, leading to increased loyalty.
Unlock hidden revenue opportunities with a white label NFT marketplace.
White label NFT marketplaces enable brands to monetize their assets in novel and previously inaccessible ways.
It’s possible to make profits through diverse revenue streams. However, your overarching monetization strategy will strongly depend on your business model and the specific audience you aim to reach. A crucial consideration in this equation is identifying the key features your chosen service will incorporate into your marketplace. You can integrate multiple revenue streams by partnering with a company experienced in designing custom solutions.
Here are several methods often used by custom NFT marketplaces to fuel income generation:
Marketplaces typically charge a percentage-based fee on each transaction made on their platform, which can include buying, selling, and trading NFTs.
This is often a default feature provided by the marketplace provider. For example, NFTICALLY’s “store fees” feature enables marketplace owners to collect a fee on every transaction executed through their stores.
Listing and selling NFTs
Another way to generate revenue is through listing fees, where NFT creators or traders pay a fee to list their NFTs on the marketplace. This fee may be a flat rate, or it may depend on the listing price of the NFT.
There are multiple approaches to selling NFTs, and by exploring various listing strategies, you can optimize your sales process.
Providing an array of selling options beyond instant sales is critical to maximizing your potential revenue. That’s why white label NFT marketplace companies offer a plethora of in-built features.
NFT stores built with Turnkey Town can integrate bundle listing, thereby eliminating the need for listing assets one by one. Users also have the opportunity to trade multiple NFTs from a single collection and participate in auctions. Another company that supports auctions is Inoru.
Another custom NFT marketplace service, NFTify, includes a “mystery box” feature, enabling a randomized distribution of NFTs within a collection.
Some white label NFT store services, such as Xooa, also support concurrent listing — a feature that permits the simultaneous listing of NFTs on your own NFT marketplace as well as on OpenSea.
A royalty refers to a percentage of the secondary sale price of an NFT that is paid to the original creator. By incorporating royalties into your NFTs, you can secure profits from all future sales, not just the initial transaction.
For example, NFTically allows for adding royalties at the collection level, ensuring that all NFT assets within the same collection are subject to the same royalty fee. NFTify also allows for setting royalty fees. Xooa has an advanced resale royalties rules feature.
Many NFT projects require collaboration amongst various parties, including creators, developers, galleries, causes, and marketers. The concept of revenue splitting allows each stakeholder to receive a portion of the proceeds generated from NFT sales, ensuring everyone is fairly compensated for their contributions. This not only fosters a collaborative environment but also attracts more talent and increases the platform’s overall value.
White label NFT marketplace providers facilitate revenue splits. Nftically, for instance, implements this through its “Payout Groups” feature, which allows for sharing earnings between multiple stakeholders by listing their wallet addresses and defining a revenue distribution ratio.
The diversity of payment methods offered in your marketplace plays a crucial role in facilitating widespread adoption. The white label marketplace company NFTify grants store owners the flexibility to accept payments in widely recognized cryptocurrencies and even accommodates the integration of custom tokens unique to the project.
However, considering that many people are still hesitant to pay with crypto, it’s a good idea to enable payments in fiat currencies. Some white label NFT services with fiat payment support are Nftically, Blockchain App Factory, Inoru, and Turnkey Town.
Partnerships, advertising, promotional opportunities, and subscription fees
By focusing on a specific niche, your marketplace can build relationships and partnerships with artists, creators, and organizations within that niche. This can lead to exclusive collaborations, limited edition NFT releases, and other promotional opportunities.
Like other online platforms, NFT marketplaces can also make money through ads on their website, as exemplified by Inoru’s “display ads” feature.
Moreover, NFT creators can pay for additional promotions on the marketplace, such as featuring their creations on the front page to enhance visibility and attract more collectors. Marketing services like those offered by Blockchain App Factory cater to this need.
NFT stores can also offer premium subscription plans that grant access to exclusive content, advanced features, or reduced transaction fees. Users seeking these advantages would then subscribe on a monthly or yearly basis.
The bottom line
In conclusion, the potential advantages of creating your own NFT marketplace are plentiful. Building such a marketplace not only ensures that your business stands out through a unique brand identity but also allows for tailored user experiences that resonate with your target audience.
By choosing a white label marketplace, you opt for a turnkey solution that drastically reduces the complexity of the process, saving you time and resources. This cost-effective solution doesn’t have to compromise on personalization or distinctiveness. You can build custom platforms designed to target specific niches and foster an engaged community of users.
The innovative nature of NFTs paves the way for unlocking new revenue streams, thereby expanding the financial horizons of your business. Ultimately, investing in your own NFT marketplace could be a transformative decision that pushes your business to new heights of success.