Pros and Cons of Music NFTs
Web3 is reframing the creative economy as we know it. One of the easiest entry points for artists and fans alike is the world of NFTs.
However, many musicians are still wary about the prospect of NFTs and what they mean for their art and brands. These assets have plenty of potential, but they might not be the right fit for every musician.
Below, we’ll take a clear look at the pros and cons of music NFTs so that you can determine whether they make sense in your current music journey.
What Are NFTs?
You can check out our full guide on NFTs here, but essentially non-fungible tokens are any digital asset that exist on a blockchain. Each NFT has its own data and identification code, making every minted NFT unique.
In the same way that you can sell a physical art piece, NFTs can be bought and resold for varying amounts of value. There are no limits to what an NFT can be so long as it’s uniquely crafted by you, it’s up for grabs. Musicians can mint songs, Metaverse merchandise, cover art, album liner notes, and anything else they can think of that will bring value to their audiences.
Pros of Music NFTs For Artists
There’s no question that NFTs can potentially rake in a ton of value for musicians and artists. Here’s why you should consider NFTs as a creator:
Music Is Monetizable At Any Stage In Your Career
Arguably the largest benefit of music NFTs is that they effectively cut out the middlemen of the music industry, allowing artists to earn support directly from their fans. NFTs break down the historic gatekeeping of the entertainment industry, so you don’t have to “make it big” to financially support yourself as a musician. If you can cultivate a dedicated fanbase, you can earn a living off of your art.
Music NFTs are Investments For You and Your Fans
NFTs provide a direct support model for artists that also serve as investments for your fans. Your fans can enjoy the NFT piece on its own, but also resell your NFTs down the line as you progress in your career. Some minting spaces even provide resell commission to the original artist every time an NFT is resold, creating infinite passive income streams for artists.
NFTs Are The Future of Funding
Imagine minting the demos of your tracks and using that NFT to fund the creation of the full project. NFTs make it possible for musicians to fund their own creations, so long as they can build a fanbase. They can also be used as social capital, as recently demonstrated by artist Salem Ilese’s Crypto Boy. Whether you want to fund your music project or raise awareness for a cause you believe in, NFTs turn music influence into action.
NFT Serve As A Form of Niche Marketing
NFTs don’t just hold monetary value – they hold social value, too. NFTs pave a new way for people to discover your music in niche spaces that can help you earn dedicated fans faster. Musician NFTs become social badges for fans to find like-minded people in and outside your community.
Cons of Music NFTs For Artists
While NFTs can work wonders for artists, they might not be the right path for every musician out there. Consider the following before jumping to mint your music:
Not All NFTs Are Climate-conscious
Perhaps the biggest downside to NFTs is that some are detrimental to the environment. Creators need to make a conscious effort to mint NFTs in carbon-neutral spaces to prevent NFTs from adding to an already hostile environment.
NFTs Aren’t Community Builders On Their Own
Outside of the bidding process, NFTs aren’t necessarily community builders, especially when compared to other Web3 projects like Music DAOs or even social token communities. NFTs require strong communities in order to hold value, but they don’t inherently build tight-knit groups on their own. You need an existing audience in order to earn from NFTs.
Web3 Has More Barriers To Entry For The Average Audience Member
While Web3 continues to be pushed more into the mainstream, there’s still a large subset of culture that’s wary of the space, especially when it comes to NFTs. Depending on your audience, you might have to put in a lot of leg work to help your fans understand the space and your interest in it before they can even consider purchasing one of your mints.
NFTs aren’t for everyone, but for the right artists, these assets have the potential to make a full-time career sustainable for any musician who’s willing to cultivate a community. Regardless, these assets are here to stay and will continue to elevate the music industry as we know it.
At Controlla, we’re crafting music technology and interactive experiences to help you connect with your fans as a producer or music creator.
We're launching Season One, allowing artists to transform unreleased songs into interactive games catered to their audiences. They can give it away, sell it to create extra income, or include it as a value-add for top fans. It costs nothing, but space is limited, so act fast and apply for consideration in Season One!