How much it cost to sell my first NFT (2021)
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- Опубликовано: 14 мар 2021
- Follow my latest NFT project: www.cryptofluffs.com - With the current cryptoart frenzy, a lot of people are talking about how much money they are making - but not a lot of people are talking about what it costs to list and sell their work. Today we're doing a bit of a reality check on the cost of doing business when it comes to selling an NFT.
Stay up to date on my latest NFT project:
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So basically artists are still getting effed like they always have been
Just sell 200,000 dollar nft's
@Daniel I don't think they have to make life changing work to get paid well (or maybe I don't know what you mean)
@Daniel by educating us on all that science and logic can't.
if this is what NFT is, it sounds hella stupid for selling it for that cheap.
Ya beeple in his interview said he lost almost 15mill in his sale. Gallery's cut afterwards
Thank you for this. This is basically the first question everyone needs to answer.
Not enough people are talking about this. At least your NFT sold, I’m still in the hole.
I just tried to buy my first NFT on Opensea -- it was around $5, and Opensea wanted to charge me $60 in gas. lol Do people have to pay gas fees when they *sell* a piece if the buyer isn't paying when they buy? I'm totally confused by the gas fee thing. I thought the gas fee only took place at the minting stage.
@@SolveForX it works different for different platforms , open sea kinda takes the gas fees from the buyer, where platforms like makers place and rarible charge the gas fees from the seller
@@deep8673 OpenSea charges a one-time fee for sellers at around $100 or sth (depending on current gas fee)
@@SolveForX gas fee actually represent how "crowded" the (distributed) servers are. On one hand it represents live supply-demand traffic. But on the other hand everything looks messy and inefficient, because your need to sell/buy arts have to compete with millions of other needs.
But at the end of the day, think about the gas fee as a premium for vising or listing your art at a semi-prestigious, local, physical gallery. If you are a not an established artist, selling NFT is going to be a gamble. If you are not a wealthy collector, buying NFT to resell is going to be a gamble as well.
@@SolveForX gas fees exist any time you have to use the blockchain or the blockchain has to be changed to accommodate your activity
alright, i'm not gonna touch NFTs then 😂😂
This sounds like a money pit unless you already have a strong social media following/fanbase.
Basically rich getting richer 😆
Exactly ! I started my own collection of something quite original I think, but I am a nobody and no where to efficiently share my link. I don't want to spam or bother people so this collection is deeply hidden in the NFT words where nobody can find it. Maybe that's part of the original concept, maybe not.
@@ModularIsl I would say, the most popular get richer. There are not especially rich but could be with NFT for sure.
that´s why they call it a pyramid scheme all over social Media - Strong Following = great Sales
@@SkyDread most artists are introverts popular just isnt a thing for us. its really a dry tunnel
Thank you for your transparency in sharing the reality of what to expect in true NFT auction from setup to conversion back to real money from the sale. Yours is the first video I’ve seen do this. More proof that there’s always a cost and no shortcuts to making money as an (employee, business owner, investor, self-proprietor trader, NFT artist) etc.
You break down some very valid points. One has to take these into account for pricing research before making an NFT. Putting your artwork into shows and on line cost money. Ain't nothing free about the artworld. I say this from many years of experience. Glad at least you didn't go into the negative to learn your value.
It is so important for people to shed real light on topics like this, as I have not seen anyone else bringing this up. Appreciated. Would love to know how you got the invite to Foundation in the first place!
I'm glad you're bringing this up. What doesn't get talked about. Congrats on your sale at least.
Thank you for this video, and you delivered it well. I didn't know the 'Minting and Listing' fees could add up soooo quickly.
Thank you for this breakdown Joseph, I've been curious about digitalizing and posting up some of my art images, this makes me re-think the whole thing more rationally.
Congrats on the first sale! Thanks so much for your vid, it has really provided good insight into the real costs involved.
Brilliant and much needed. Have been in art galleries for 30 years.
Why are artists always handed the short stick ? Someone's getting rich ... and yet.... nothing seems to change in this brave new world...
Capitalism
@@m_disulphide all countries are either capitalist or communist-in-name only.
@@vn88ttt Nordic Economic Model is a mix of capitalism and a very strong socialist component where people don't lose their entire life savings over one serious illness, like in the good ole USA. Freedom!!!!!
@@flickwtchr Wait until immigrants take enough advantage of that socialist components, and Nordic countries will be come good ole USSR.
@@vn88ttt You really need to educate yourself on Immigration and the real reasons behind it. Europe is wealthy because of the stranglehold it has on other nations so give me a break
I minted an NFT for free from Mintable. I want to know the advantages of paying for minting over the free ones.
Thanks for the info. The good part about NFTs right now is the hype - bringing it legitimacy. I'm a small artist, and when I'm ready to pay these outrageous fees, NFTs will still be around so it's all good. In a year, the hype will die down a bit and I won't get lost in the crowd.
Bro you are the legend we needed
You explained everything and this video was all we needed💚👍
Very insightful and very much omitted by the bigger artists taking advantage of this rush that fail to bring this information to light as they hype NFT as well as their next drop.
This is the art world. It's all about who you know.
Only thing you missed is how to get the money out. Let the escrow build across multiple sales and only get the money when you don’t notice the gas so much
And the IRS taxes and State taxes that must be paid... Around 30% of your profit.
True.
Sort of - a 30% gross profit margin is actually pretty good for retail sales if you have high volume or unit price and low overhead. (fixed) expenses. You can write off all of your business expenses against any gross profit for your business at the end of the year. The net effect of this is a reduction of the cost of your expenses by the percentage of the tax bracket your net income as a sole proprietor of a business lands you in. If it's 30% then if your net income was say $100k, you'll owe $30k in federal income tax, but you'd have to sell an awful lot of NFTs at a $62 a pop NET profit to owe the IRS $30k - 1,612 of them to be exact, and that assumes you don't have any other expenses like rent, materials, labor, and depreciation of equipment like furniture and computers and so on. His calculation only shows GROSS profit. COGS rules are fairly complex, and how you calculate profits and deductions depends on many factors, including the type of accounting method you select. Long story short, he's unlikely to end up paying much tax as a percentage of his art sales gross profits unless his profit margins and/or sales go through the roof (or to the moon). That's a good problem to have! Just make sure you keep track of and report your income and expenses to the IRS. You don't want trouble with IRS or your state tax board. A lot of successful artists get in trouble because of poor financial management leading to crushing tax liabilities or worse. I've used a CPA for years, and he's worth every penny.
@@TheWilliamHoganExperience
I read your entire comment.
@@TheWilliamHoganExperience All good points. I add "do not try to screw the IRS" ... as you said good record keeping and paying taxes is NOT bad...it means you have made $$$.
Wow! Thanks so much for the information
Amazing video, thanks for sharing the Reality around this hype NFT.
By the way, your work is magic!
Are all the fees based on the value of Ethereum at that point in time? So these could all go significantly higher as the price of Ethereum goes up?
thanks for the info, im about to release my first drop this week
That's makes great sense to avoid foundation..app. Fees on other apps are smaller. Btw, not listing for "too little" is not a solutions as the foundation's fees are set in % out of the selling price.
This video gives great insight into the full process of creating and selling NFTs. Thanks!
Excellent info as always. Thanks for sharing.
Thank-you JOseph for breaking this all down!
Thanks for this rundown!
super interesting - thanks for the insight. really appreciate it!
That's why DaVinci gallery is going to make the difference. Almost 0 fees for every transaction.
Thx for speaking about the 'dirty' side omitted from almost everyone who speaks about the NFT thing!!!
Damn dude. Thanks for this, it's eye-opening
It’s relevant but ETH will be replaced somewhat. There’s plenty of NFT projects opening for Altcoins and even USD/etc functions.
A good episode for newer ones. But if the sale price is higher, then the percentage would be not like that.
this is most helpful vid about nfts to date. thank you
This is an extreme example. Foundation has THE HIGHEST FEES of any platform out there, particularly because you are paying for an escrow service
HI and thanks for sharing your experience. What's the situation if a piece doesn't sell?
Ty for the info. This was a great job.
Ty Joseph, great video. I was going to Mint my first artwork today and it was $116... I am still in shock. So many struggling artists are trying to get into this and they are being robbed.
Thank you for doing this, really helpful to make everyone aware of the additional fees
You do realize you can code on the blockchain and mint your own art on your own website. You do not need to use these so-called, high-end art marketplaces. Just food for thought, don't get caught up with the mentality, oh the cool kids sold their work here so I need to do the same. I think a lot of artists are missing the big picture - the royalties! Think long term - build your audience - sell at a good price - make the royalty worthwhile. Anyways, I didn't mean to come off critical, you made a great video and I appreciate you sharing how much it costs to be on these art websites when in reality - mintable, open sea, or nifty gateway - it's the same thing.
Great video and exactly what I expected when I came across the topic myself :D The most important thing is, that you maybe not even be able to sell your art if you are not an famous artist...
Thanks a lot for the detailed information
There are ways to create the smart contracts (certificates of authenticity yourself) and store them in IPFS network. Then you would save the "minting" fee. Cannot really get rid of the other ones.
Great vid. Thanks !
lets say NFT fee is 500$
and you can sell it for millions
but no one is interested in buying your NFT
meaning you fell for a pyramid scheme and got scammed congrats you won yourself
You can mint your nft with rarible for free. It will only minted once your artwork is sold. And there's so many alternative blockchain that you can create nft which is cheaper gas but not that much user for exposure. Ethereum got a lot of users that's why it's so crowded.
Thank you for this video and information. It's important to see the real numbers about his this all works.
Thank you for this!
Hey Joseph, thanks for the vid. Good to get to hear what's on the other side of the coin. I heard a lot about the ability to get royalties for future transactions of your art piece. Is that possible as of now on any platform or is this future talk? Many thanks✌🏽
i read thats true on rarible and opensea too
Facts! Aren't you going to grab royalties on every sale of that art forever though? Maybe in the next few years it'll have grown to selling for $100k, you'll grab 10% or so of that right?
Question? To my understanding in the event an NFT resells the original owner/creator receives a percentage in perpetuity, does 'Foundation' impede or impact these terms? Congratulations on your sale! May this be the first of many to bring you success, thanks for sharing
This is very useful information which is basic and none would tell you in black and white as explained here. Thank you very much.
Hello! Can you make a video showing the process to apply for foundation? I noticed you sold well recently, $1000, that's cool!
Thanks for info! Only for first drop you need to pay all this fees or for every new drop what you list?
So, if I get it right, you still didn't count the fee to transfer the money from your crypto wallet to your actual bank. Right? I assume you didn't and just waited to have more ethereum in the wallet, but if you did, that would put you on red numbers.
Thank you! Thank you! Thank you for this video. Nobody is talking about this part. Seems most people are just trying to get everybody onboard (whether being a buyer or seller). This perspective is necessary. I haven't dived into selling something as an NFT for this very reason.
thank you so much for this video
And what percentage do you get if your NFT is sold again? How high would that resale price have to price be, and/or, how many transactions would you estimate it would take to make back all the money you put in?
Wow, just getting into NFT art, great video. So I presume the POS on ETH 2.0 will help with the (gas) fees once it arrives ?
it still very expensive.
So congrats on the first NFT sale and the $62.50 profit. The questions you didn't answer were: 1) How long did it take for you to make the art? and 2) How long did it take you to manage the sale? and finally 3) With those questions answered, what is your hourly wage and do you really believe it was worth your time?
It takes money to make money. Keep pushing through man - we got this!
When you mint multiples of the same token though you still just pay 1 minting fee right? Do you pay just 1 listing fees for multiples also or per token? Thanks
wow! numbers are the worst.
thanks for sharing this
Thanks for keeping it 100.
Cool video, man!
Hopefully with 2.0 ETH during this year Gas fees will drop a bit, at this days is totally insane,
Really good video thank you!!! Do the fees increase the higher you sell your stuff or is at a set amount? Im new to this so any useful information is much appreciated!
Basically, the gas fee increases based on Demand and supply. It is always best to note the gas fee before minting.
i'm curious. what guarantees the exclusivity of your NFT? what keeps someone from taking your art and reproducing/selling it?
Is this for every artwork I upload? Also, is it better to have a fixed instead?
Wow !!! Incredible info- Ty.... Now I see why most of the listings are 1ETh . or more
And I think That’s great Advice! Ty so much
mind is blown. Thanks!
So true! Thanks for sharing! Tbh, heard many negative things about Foundation taxing and it makes me down on the platform. Hope the industry will stabilize and all the greedy mafos will be flushed. It's only we - the artist, how sets the industry, so f***k that.
Short video but very good information. 👍
Does the fees get higher if you listed a higher price for your piece?
Thank you for sharing
Have you tried opensea? Only the first listing costs gas fee(??)
There are heaps of other sites which dont use ethereum or POW and have little/no gas fees because they use POS which uses way less energy - also foundation has infamously high fees, if you have a little look around, you can probably find a site which works best for you
Don't forget to pay Uncle Sam ;-)
Opensea may be an alternative for you as you can post items as Not For Sale and have people make offers before you even list an item that may or may not sell. (at least that's my current understanding).
Hey, Joseph. All those fees will repeat for each new piece you try to sell or are, among those, a fee that is a "one time payment" for you to open your account?
They repeat! OpenSea doesn't do the same crap as FoundationApp.
Great Piece Of Information
Really helpful, thank you for doing this.
@Joseph from LearnSketch com thank you but no.
Apologies for that, it was a spam account
You can decrease those fees by checkng gas price before minting and not cashing out with every single artwork, let them add up.
Are them fixed fees or in percentage? Cause if you then sell the NFT for an higher price that will cover the cost
Yet again, the people making the real money are the ones selling the dream(the platforms and people behind crypto tech) not the ones hoping to live the dream of actually being compensated for their time and skill.
87 usd is just first time you create and activate the account, i´ve listed 3 NFTs, no extra fees for me at OpenSea
Like no fees(minting/gas) at all after the first 87usd?
@@TheGodTheory13 I dont have any ETH on my metamask account since i´ve paid the first fee, and Im listing new NFT constantly, so I think is it.. lol After sell it I think it will be a fee but not for minting, just the 1st time.
@@robadormartinez499 after your art nft sold you need paid fee gas for selling fee?
@@leslukis idk never sell anything LOL but I think is a transaction fee yes, like any other token on a ETH chain, like a crypto-currency token one.
Great topic to talk about
As a web developer / software engineer, this gives me an idea of what kind of startup I should consider building...
Is this just for the site foundation? Or in general?
Wow, thanks for the info! This was very informative & even though there is rush of excitement for digital artists this is good to know that in the end it is just like when galleries ask for 50% commission but with NFT it is EVEN MORE! Never thought of the cost of energy it takes for cypto companies.
Should try openseas. You only have to pay gas fee the first time you list. After that the gas fee is tied to your sale fee, so one someone purchases your art, only then will it be minted.
It’s a lot better than these sites where you have to mint before you list.
Look up bsc gas prices.. Use trust wallet and the nft market place provided
thank you for sharing this
Witch site is the better? and with last fees
Is there a fee schedule for foundation for example for listing & minting ?
Where do you get nfts from?
Do the fees go up with a higher priced NFT? For example, if your NFT had sold for $1k, would the fees have remained the same as when it sold for $286.44.00 or would the fees have risen (?)
Just don't make NFT if your only a small time artist. Be real with yourself. NFT's are massive for those big name artists and big timers.
Thanks, gotta take that into consideration and charge more for your art. Also 15% is high look for another platform.
Wow,! I'm really shocked about the conclusion. Maybe I shouldnt wait at the Foundation voteupline haha! Thanks for the useful video. +congrats for making cool 3D's. Peace.