When you are creating your own NFT collection, what is the best way to decide a price?

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For example if you were trying to create 1/1's or a small batch of generative ones.


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Fantastic question!

If you're making 1/1s, the good news is there's already a very established, easy way to determine the price of the piece - leave it up to an auction, and let the buyers decide! Popular 1/1 platforms like SuperRare, Foundation.app, Nifty Gateway, and KnownOrigin, in fact, mostly only allow auctions - Foundation just started doing Buy Now listings, but this was a very recent development.

As for what the starting price of an auction should be - well, no lower than you'd be okay selling a piece for, but as for how high after that point - it really depends on what your market is willing to pay. For your first few pieces, ideally ensure someone is already willing to buy the piece before you list it - form connections with collectors privately and build a following for your art before listing anything, so that you have confidence in it selling as soon as you do drop it.

You'll have to work your way up to higher prices, as one of my very successful NFT artist friends likes to say - you have to earn high prices through consistent work. No world famous artist started out that way, selling their pieces for millions of dollars out the gate - start small, build a track record, and incrementally increase your starting prices and market rate that way as you go.

This goes the same for small batches of NFTs as well - Foundation has a great collection feature for precisely things like this. As long as we're not talking 100+, individual auctions work great.

Above that, if you're looking to maximize money from your sale, a Dutch Auction, where prices start high and automatically drop every x minutes, is a solid strategy employed by many highly in demand projects where it's very difficult to predict the precise amount the market is willing to pay, so the creators leave it up to the market to decide.

Hope this helps!

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Here is an article from a16z, a well respected VC firm, about the sweet spot of NFT pricing.

https://a16z.com/2022/03/31/nft-mint-data-early-decisions/

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so much depends on the goals of the mint and what the collection is. If you are building community you want to charge something realistic for your community members and also make it attractive for holders to remain in the community. If you are looking for a quick flip for generative collections, you can look at what others are shilling, check around on twitter, discords, and OS and do a lot of grinding to drive your price up.

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