3 Ways Entrepreneurs Can Expand Their Financial Portfolio Using NFTs

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Entrepreneurship is risky business. In fact, 90% of all startups fail within 10 years, but that doesn’t stop those who want to pursue their dream of becoming their own boss. Without risk, there can be no substantial gain.

The problem is that inexperienced entrepreneurs often make the mistake of putting all their money into one asset, and if that asset fails, they’ll lose it all. This is especially true for startups, as they require constant reinvestment in the business to help it grow.

How to make your business stand out from others and avoid failure?

Entrepreneurship is an investment, and the best investors understand that you never put all your eggs in one basket. Success comes from diversifying your financial portfolio so that if one investment fails, you still have others to rely on that can help you start a new venture.

As an entrepreneur, you always want your investments to contribute to the growth of your business. One such way to do this is by investing in NFTs (non-fungible tokens) because they not only diversify your financial portfolio, but they can also help your business gain recognition and become a household name. A win-win situation.

NFT investing for exclusivity

Everything a brand sells is meant to be an exclusive for its valued customers, a one-of-a-kind item not available from the competition. However, delivering a truly exclusive item can become a tough business when you’re competing against a slew of similar items, knockoffs and imitators who are ready and willing to take your one-of-a-kind idea and make it their own. .

The very definition of an NFT is non-fungible – this refers to an asset that is uniquely unique, with no other asset holding equal value. By attaching an NFT to your product or brand, you make it truly exclusive to your consumer because there is nothing else like it.

Using the power and reach of the internet, brands can increase their exclusivity by selling personalized digital items (NFTs) such as digital artwork, tweets, TikTok videos and more, allowing them to create a unique digital connection. with their consumers.

This doesn’t just apply to digital businesses, as even physical product companies like Taco Bell and Charmin are finding ways to increase their exclusivity with NFTs by incorporating digital assets into their product lines. Charmin released a collection of digital toilet paper on March 17, 2021, dubbed NFTP (Non-Fungible Toilet Paper), with all proceeds supporting the charity Direct Relief. Taco Bell partnered with Rarible NFT Marketplace on March 7, 2021 to mint 25 digital artworks that were each tagged as a “transformer taco”, with the owner of an original NFT receiving a $500 Taco Bell gift card. $ to spend anywhere.

The two companies listed above, along with several others, use NFTs to reach their consumers in the digital space. This increases their brand awareness across all platforms. Increased brand awareness leads to increased recognition and, of course, sales – something every entrepreneur aspires to.

Related: 3 Strategies Entrepreneurs Can Adopt to Boost Their Brand Awareness

Potential for passive income streams

NFT sales can currently range from 15,000 to 50,000 NFTs per week, according to data collected by NonFungible.com. This may have led you to believe that this is just a one-time increase in revenue, with each sale requiring you to reinvest in new NFTs to continue generating revenue.

However, NFTs have the potential to also create passive income for your business and/or business due to their underlying technology which allows for options beyond just selling for profit.

Some examples of using NFTs to generate passive income:

NFT royalties. As an entrepreneur, you are probably familiar with and may have already implemented the use of royalties in your business model. To put it plainly, one person pays another for the right to use and sell the product. This can apply to physical products, technology, intellectual property, and even resources.

Using the technology behind NFTs, the creator can set individual terms that impose royalties each time their NFTs change hands in the secondary market, creating passive income beyond the initial sale.

For example, the creator could set an indefinite royalty of 5%. Upon the initial sale of the NFT, and each time the digital artwork is resold, the creator will receive 5% of the sale price.

Due to the nature of digital transactions surrounding NFTs, creators use self-executing computer programs that automatically enforce contractual agreements. This allows the creator to avoid the legal process of executing and tracking royalty contracts, as well as manually tracking payments, as the process is fully automated.

By creating an NFT for your business or organization, you can create passive income through the use of fully automated royalties. This allows you to focus on other aspects of your business that need your attention.

NFT Rental. NFT rental is a relatively new concept that is gaining momentum as a source of passive income for NFT owners. Using blockchain protocols, NFT owners and creators can lease their digital artworks to interested parties for a specified term and price while ensuring they do not lose ownership of their assets. .

The reasoning behind someone who is willing to rent an NFT is vast and includes everything from being unable to afford a valuable NFT to wanting to show off the latest trend as a profile picture on social media. Museums and art galleries also recognize the value of digital art, and rentals can encourage NFT creators to feel more comfortable serving these venues.

NFTs are also becoming a go-to for businesses and organizations to use as early access tokens, exclusive content, merchandising, and concerts, as they require an individual to hold an NFT in order to gain access to the above. Someone may be more interested in renting an NFT for early access or access to an exclusive gig instead of buying one outright.

Entrepreneurs looking to expand their portfolio into assets that can generate passive income should consider the options available through NFT leasing.

Related: 17 Passive Income Ideas to Boost Your Cash Flow

NFT investment for charitable and humanitarian purposes

With more and more entrepreneurs and businesses eager to make a positive difference in the world around us, NFTs are quickly becoming a reliable and trendy way to raise money for charities and social projects.

This allows the entrepreneur/company to increase brand recognition by supporting worthy causes, raise awareness of how this organization is committed to positive change, and provide a tax deduction for donations charity to a business.

All of the above can help increase overall revenue streams, which of course is the ultimate goal of an entrepreneur.

Related: This Is Why It Pays To Be Charitable All Year Round

There are several opportunities for entrepreneurs to diversify their portfolios while expanding their brand, thereby increasing passive and immediate income streams. Remember that keeping all your eggs in one basket is risky business, so consider investigating how NFTs can help you expand your financial portfolio today.

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