Reddit product director Peter Yang posted on May 5 that NFT is better than traditional subscriptions and is the future of subscriptions.
Creators and brands can maximize their revenue by targeting different fan willingness to pay in three ways:
1. Ads can be aimed at ordinary fans who are unwilling to pay anything.
2. Subscriptions can target active fans who are willing to pay a small fee.
3. NFTs can target super fans who are willing to pay a lot.
But I now believe that NFT memberships are better than traditional subscriptions. The reasons are as follows:
1. Creators and their communities own NFTs
Imagine you are a live streamer on Twitch.
As a traditional subscription, Twitch sets your subscription price and revenue share. If Twitch decides to cut creator compensation, you won’t have an easy way to move your community to another platform.
With NFT membership, you can own NFTs in the community. No platform can dictate how you interact with your fans.
2. Creators can personalize NFT memberships
With traditional subscriptions, benefits and terms are usually pre-set. On Twitch, for example, you can only offer perks like custom emotes to paid subscribers.
With NFT membership, you can personalize your NFT:
- look and feel. For example, a collection of pfp (profile pictures) can be made that fans can show off to spread the word.
- terms. Can control minting price, NFT quantity and royalties for secondary sales.
- benefit. Allows NFT holders to access private communities, premium content, IRL events, and more.
Since NFTs are programmable, what is offered is only limited by your creativity:
- The NFT look and feel may change if fans perform specific tasks.
- An NFT could be a bundle that grants access to content from many creators.
3. Creators and their communities share the benefits
With traditional subscriptions, fans who support creators from the start see no benefit as creators become more popular.
With NFT membership, both creators and fans can share in the benefits as NFTs become more valuable in the community.
Disadvantages of NFT Membership
As the saying goes, “with great power comes great responsibility”.
Since NFT memberships give creators and the community control over their outcomes, it’s important to be aware of some common pitfalls:
1. Traders may snap up your NFTs and destroy the vibe of your community.
Traders can go into your community and snap up all NFTs without giving true fans a chance to share in the proceeds at all.
To avoid this, you can provide fans with a whitelist and set parameters so that one person cannot buy too many NFTs at once.
2. Fans can be excluded from NFT membership.
If all goes well, your NFT collection will grow in value as the community grows. As a result, new fans may be excluded (not to mention gas fees!).
To avoid this, you can issue follow-up NFTs at lower prices for fans who can’t afford the OG collection. You can also use L2 and other L1 chains to avoid gas.
3. Fans may react negatively to NFTs.
Unfortunately, many creators and fans have a bad impression of NFTs due to scams and people who want to make a quick buck. Therefore, if you pursue NFT membership without clearly communicating your value proposition, you may alienate some fans. Fans can see through your true intentions, so ask yourself this question:
Are you looking to make a quick profit or build a sustainable community?
How to practice
Let’s assume again that you’re a Twitch streamer:
- When you’re just starting out, you can rely on Twitch to grow your audience.
- Once you get to a certain size, you decide to invite fans to an owned community (Discord isn’t 100% owned, but it’s a tight proxy).
- Launched your first NFT membership collection based on community input. You decide the minting price, the number of NFTs and membership benefits.
- Fans who buy your NFT are motivated to spread your content because they also share the benefits. At some point, your OG NFT collection becomes too expensive for new fans to buy.
- You and your community decide to release a new collection of NFTs to attract more fans to become owners.
All in all, I think NFT memberships are the future of subscriptions, as they allow fans to share the benefits and allow creators to target the willingness of multiple fans to pay:
I think this is one of the most exciting trends in web3.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/opinion-why-nfts-are-better-than-traditional-subscriptions/
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