As cannabis distributors, you know all about CBD and THC, and maybe even THCV and CBDA — but what about NFTs?
NFTs is a term that is definitely not a cannabinoid but instead stands for “nonfungible tokens.” Some cannabis entrepreneurs think NFTs are the next big thing for drawing attention to new products, attracting new customers, and even creating opportunities for additional sales.
Tied directly to the new financial concept of cryptocurrency within blockchain technology, NFTs are often sold in the form of unique digital art as part of the latest developments within the metaverse. These tokens, which have created a market within themselves of collectors and forward-thinking consumers, are digital assets that can be integrated into any industry or business.
Without fully understanding the concept, many people fear this creative part of an unregulated and decentralized currency technology exists just for scammers. But there is a growing list of examples in which cannabis NFTs and other tokens can be a valuable and interesting new part of a digital inventory.
NFTs for Small Business: What Has Worked
NFTs are no longer relegated to the sidelines (like the cannabis industry once was before legalization efforts began). Instead, Business Insider reports that the NFT market reached $41 billion in 2021 — almost the same value as the entire fine art market.
Some examples of big businesses using NFTs successfully include:
- Bored Ape Yacht Club partnering with Adidas shoe company to allow access to new products
- Under Armour’s NFT virtual sneaker in honor of Golden State Warrior Stephen Curry
- Entrepreneur Gary Vaynerchuk opening an NYC restaurant that demands an NFT purchase to visit
Things are just beginning for the cannabis NFT market. Cannabis lifestyle brand Califari recently launched NFTs that are animated cards depicting popular strains like Sour Diesel, Granddaddy Purp, and Northern Lights.
Tips for Creating NFTs
Cannabis distributors can find success in creating NFTs for small business, too. The key to success is creativity.
Try Something New
When designing your NFTs for sale, first look at what other cannabis distributors have done. Then do something totally different. There are so many things that haven’t yet been done, and now’s the time to try something new. Work with artists who are just gaining popularity or looking for exposure.
Connect the NFT to Your Audience
Once you’ve researched to see what’s out there, find out what your current customers are interested in. The more you listen to your target audience, the more likely you’ll be able to meet their needs and interests — while attracting new customers, too. When you’re marketing your NFTs, think about ways to increase the rarity of the items in a way that speaks to your audience. Perhaps they’d enjoy collecting an entire series of NFTs and trading among themselves.
Attach a Value to Your NFT
Between the time you’re investing and the talents of the artist, there is real money associated with NFTs. Compare your NFT drops with others and determine a value for your item. This will make it easier to integrate these new inventory items into your current portfolio of offerings.
Work with a Cannabis-Focused Financial Firm
Whether you begin offering NFTs within your cannabis business or not, it’s important to work closely with a financial team who understands the unique situations and circumstances of the industry. Learn about other trends and how you can grow your cannabis business by clicking on Bespoke Financial’s cannabis business blog today.