How To Make a Living From NFTs
If you are reading this, it means you thought, at least once in the past months, to transform your night and weekend passion into a real job.
Here is a simple business plan I put together. If well executed, it should allow you to live from NFTs only. There are lots of assumptions of course and there is no recipe for success, but I firmly believe it’s something that can be achieved.
How much do you need for living?
How much do you and your family need every month? Well, it strictly depends on your location, let’s start with something close to 3 ETH / month (could be low in some areas, could be high for other people).
1) you need to invest first (like in any business startup) and need some savings. Let’s say $14000 at the time of writing. Roughly 5.5 ETH.
2) to make 3 ETH / month in profit, it’s roughly 0.1 ETH / day
3) invest more or less 2.5 ETH in new projects every week (2.55 actually in the plan I put together), mint them. You will have roughly 3 left. You will need them for the week after, considering that we assume you will sell those you buy within the end of the week after. Say an average of 0.06/mint + gas. Mint 10 each. So it’s 0.6 / project + 0.2 gas (say). Could be better or worse, unfortunately you can’t choose the best time when to mint.
3) Start with 3 projects. Flip them immediately, by putting everything on sale for 0.12 (it’s an example, could be better or worse, depends on the project). Keep 1 item for each project, you will sell them later, once a month, hopefully at a higher price.
4) you will end up with 27 items for sale at 0.12 each. If you picked the right projects, you will sell them all within a week, making roughly 3 ETH and 0.5 in profit. We also considered an average of 7.5% total that you leave to the creator and OpenSea. The sooner you sell, the better is, of course.
5) convert the profit to FIAT and start again.
What makes the difference here:
- picking the right projects
- something can go wrong, learn and repeat
- you left some items for later, could be useful in a first phase in case you are picking the wrong projects or to sell additional items every month, in case the price goes up.
- gas and OpenSea fees make the difference
Consider that you are keeping lots of items over time that you can sell when the market is good and the project is taking off. Keep the entire proceedings as extra profit here and convert them to FIAT.
If you want to start big and have some money to invest in the first phase, then you can invest 5 additional ETH in blue chip projects. I would do @DeadfellazNFT and @LazyLionsNFT — 5 ETH more or less — These will be your long term investments.
Some months will be better than others and not everything will go as expected, not easy, but if you don’t start you will never know!
Please share your thoughts. Did you leave your 9–5 job to go 24/7 with NFTs?
This is not INVESTMENT ADVICE. Just some fun with numbers :-)
The Complete Business Plan
If you are interested in the full business plan, I will be sharing the spreadsheet in the next issue of my NFTgm.it newsletter.
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