#MusicBrainer: How an up-and-coming Nigerian music artist can get started and make money from NFTs. | LEGIT9JA

NFT! NFT! NFT! this acronym has been a trending topic around the world arts, finance, music and technology communities for almost a year now. If you’ve heard of this buzz and are wondering what it’s all about, then worry no more, you’re in good company as we’ll learn more together now.

NFTs have become the biggest recent craze in the global digital market, with many artists, creatives, entrepreneurs and musicians of all calibers taking advantage of this fascinating trend.

In the news space, there were mentions of several musical artists (international and local Nigerian artists) earning thousands, and in some cases millions of dollars through NFTs, which quickly caught the attention of independent, local and major label artists.

In Nigeria, several music artists have joined the craze to launch NFTs and crypto projects, here are some examples; Nigerian Musician BNXN (formerly Buju) who created an NFT project called “HeadsByBNXN“. He says his goal is to build a community around his fans, reward them, and connect with them better. The project is a collection of 10,001 unique NFTs of his face. Holders of this NFT would have access to physical and virtual concerts hosted by BNXN, merchandising items, and a portion of the revenue it derives from specific music projects.

Another example is the talented rapper, Barzini, who is the first Nigerian music artist to launch an NFT project with his second studio album. “Beloved Vol.2”.

In other news, Mavin Records/Rema, Jonzing World Singer announced that he will be launching an NFT project for fans based on his first album “Raves & Roses” released this year.

Even quite recently, Nigerian rapper Falz launched an exclusive NFT collection on the Binance NFT Marketplace online with the release of his new single, “Ice Cream”. Other examples of Nigerian music acts that have jumped into this craze include Don Jazzy, MI Abaga, Leriq among others.

Also read: Don Jazzy reveals how he made $300,000 in 10 minutes using NFTs.

But dear, without going too fast, let’s start with the concept behind this trend to catch you up.

First of all, what are NFTs? NFTs, also known as non-fungible tokens, are digital certificates that authenticate a claim of ownership over an asset, which can be art, music, a video clip, etc., and allow it to be transferred or to sell it.

In simple terms, you can think of NFTs in terms of collecting digital art for example; “You may have a copy of a famous painting in your house, but it would cost you a lot more to have the original! And in most cases, there will usually only be one original, or at least a limited number of them. Therefore, an NFT creates a new digital type of art rarity. This gives bragging rights to the original owners of an art collection.

On the other hand, what are musical NFTs? A music NFT is a certificate of ownership of a unique piece of audio or music that can be bought or sold. Thanks to NFTs, artists can claim full ownership of their music without having to share their projects with intermediaries like music labels.

Now, over time, there have been gaps and issues with how musicians generate most of their income. Right now, artists make a lot of their income through online streaming services, like Spotify, Apple Music, and Tidal. But after all the talent, creativity and hard work they put into their music, an artist only gets 12% of the revenue their music generates on these streaming platforms.

An artist only earns around $0.0006 per stream on these platforms, combined with only 12% of the revenue going to them personally. Therefore, if an artist manages to stream a song that has 100 million streams, the streaming platform will earn $60,000. , but the artist will only receive $7,200 of this income. And keep in mind that getting 100 million streams is no easy feat.

From the time you need to release a song to the time the artist actually gets paid for that song, it usually takes about 3 months.

Also Read: 5 Things You Should Not Do When Promoting Your Music On Streaming Platforms As A Nigerian Artist.

In the music industry, having cash is imperative, especially for independent artists who don’t make as much money as the big labels. They need to be able to reinvest the money they earn back into their business to have a good chance of achieving their musical goals.

This is where the genius behind the use of NFTs comes in.

With NFTs, music artists have started to seize the opportunity to create additional revenue streams. Since they can now earn huge sums of money by creating a single digital item (which could be a track artwork, a song or even a video clip) and decide to sell for the amount they want.

Take for example, quite recently, the Canadian pop musician and lover of Elon Musk, Grimes reportedly sold animations she made with her brother, Mac, on a website called Nifty Gateway for over $6,000,000! In February this year Grimes released ten exclusive NFTs that earned him millions. These NFTs mostly consisted of videos, some of which had exclusive songs.

So you see that artists can create a single digital item and decide whether to sell it exclusively or sell it as a copy. Then the world becomes their market. They can easily sell their NFTs to fans around the world, shipping logistics and fees excluded.

Also read: Artists here are 3 ways to reach a wider audience.

Now, how can a Nigerian music artist create, sell and earn from an NFT music collection.

Before talking about how much one can earn from music NFTs, it would be helpful to know about the different forms of music NFTs an artist can delve into. Below are a few different types of NFTs in the music space:

1. NFT songs and albums: More and more artists and musicians have started using NFTs to connect with their audience by releasing exclusive songs and records. Some Nigerian artists who have done this include Barzini with his album ‘Beloved Vol 2’Rema with sound ‘Raves & Roses‘ album, Falz with ‘Ice’ simple and BNXN with ‘Italy’.

2. Digital artwork and photos: Digital artwork and images may include limited edition album covers, posters and exclusive backstage concert images.

3. Concert tickets: Exclusive access to in-person perks, luxury items, and even concert tickets is one of the many use cases for music NFTs.

4. Video clips and animations: An example of this is the example of Pop musician, Grimes, who allegedly sold animations she made with her brother. The idea was that buyers would have certified copies of his animated clips that no one else would have.

In fact, here is how you can create, sell and make money from an NFT music collection as a Nigerian artist.

Artists can use sites like Nifty Gateway to create NFTs. They handle all the technology needed to ensure that you present them with an original work to distribute to buyers. You can apply for an account with them in about 10 minutes.

They will ask you for information such as your social media links, your portfolio, your email, the style of project you want to post, etc.

Additionally, if you are an artist looking to create your own NFT, you can sell your own unique NFT to your audience via Binance NFT Marketplace and generate additional revenue from your creations.

One interesting thing about NFTs is that the original creator can still make money through resale. Let’s say you only sell one original NFT for $10,000. And in the initial contract, you state that you will receive 10% of all future sales in perpetuity. If the second owner sells it to someone else for $20,000, you will be paid $20,000 x 0.05 = $1,000. Etc., etc.

Where do you sell your NFTs?

Besides Nifty Gateway and Binance NFT Marketplace, you can also sell your music NFTs on;

  1. Audius: Audius is another early mover, creating a space specifically focused on streaming unsigned artists to entice potential investment.
  2. Songcamp: is testing an innovative concept called Songwriting Camp, in which artists work collaboratively on songs from scratch, visual artists create cover art for those songs, and project officers “createand and execute a web3 distribution plan” for said music. The song is then sold as NFT 1/1.

How to make sure people want your NFTs.

It’s one thing to join the craze and create an NFT, and then it’s another to get people to like and eventually buy them. If there isn’t a lot of demand for your product, you can’t expect to cash in. In order to get demand from your target audience, you need to have the right marketing and promotion behind your brand.

So make sure you analyze your audience properly so you can create something they would like to buy. Then you step up your marketing and promotion game before launching your NFT project. You can contact the Legit9ja team for help with this.

Also read: Dear musical artists, here are five important people you need on your team.

Closing note.

Regardless of where you stand on NFTs and their role in the music industry, this is definitely a market to watch. The potential of NFTs as a source of revenue, but also a means of audience growth, is only in its elementary stages. As a Nigerian music artist, I advise you to jump on the NFT bandwagon to increase your income stream in a bigger way. With the way NFTs are disrupting different industries, we could see an era where artists reclaim full ownership of their work by foregoing intermediaries like music labels and streaming platforms to independently release their music to the public.