5 Ways Brands Have Benefited From Utility in NFTs
Better conversion rates and more loyal customers are just some of the benefits of utility NFTs
The most useful items in our lives are often among our most valuable possessions — perhaps not in dollar value, but certainly for how they improve our lives. Cars make it easier to travel, technology makes it easier to communicate, and few people regret installing a bidet. The same goes for NFTs, which can significantly enhance our lives if they’re built with utility.
The best utility NFTs help their owners connect with brands, experiences, and communities in unforgettable ways. For organizations, tapping into utility NFTs presents a massive opportunity to build richer relationships with their core audiences and create new revenue streams. To show you how, here are some of the best utility NFTs available and the tangible benefits that they provide their owners.
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How Every Organization Can Benefit From a Utility NFT
First, it’s important to understand what qualifies a utility NFT as a “best” choice. The best utility NFTs don’t exhibit a specific quality. Rather, they demonstrate an understanding of Web3 and how it will affect the world. They don’t reinvent the wheel; they enhance what’s already there.
For example, millions of people enjoy sports. They have favorite teams, favorite players, and favorite jersey designs, but they haven’t had ways to express their love for those things outside of one-sided purchases. Utility NFTs allow a fan to make a purchase that connects them to the team they love via an exclusive experience, like a live Q&A. It’s fandom taken to the next level, in a way that takes the familiar — making a purchase as a personal expression — and makes it more exciting than it’s been before.
Autograph.io is a great example of how utility NFTs can function in the context of sports. Co-founded by Tom Brady, the platform hosts collections of utility NFTs that grant owners access to exclusive events, content, digital experiences, and more. It isn’t a niche platform of up-and-comers, either. Autograph.io is backed by some of the biggest names in modern sports history, with the likes of Tony Hawk, Wayne Gretzky, Simone Biles, and Usain Bolt sitting on the Board of Advisors.
Autograph.io NFTs have redeemable experiences called Autograph Signature Experiences that help evolve the fan experience beyond the traditionally one-sided relationship through “token-gated” content. The first of these was the Tom Brady 2022 Season Ticket, which allowed owners to RSVP for an end-of-season party being held in March 2023.
Building a community around a brand is one of the most effective ways for an organization to connect with its customers. The NFT community project Awesome Possums has done exactly that with its line of utility NFTs, which allows owners to join a Discord community of aspiring artists, entrepreneurs, collectors, investors, and more. The goal is to create a culture of collaboration among the NFT owners, providing them with a place to share ideas, receive feedback, and network.
In addition to providing a space for collaboration, the Awesome Possums NFTs’ utility is dedicated to social good. Owners get to vote on donating funds to charitable organizations, typically ones dedicated to mental health and addiction recovery.
Awesome Possums also has plans to launch its own addiction recovery charity, which will seek to cover 100% of the costs for addicts seeking treatment programs. On top of being a good thing to do, contributing to (or creating) social good campaigns is a powerful way for organizations to reinforce their brand values and create stronger customer relationships, which makes Awesome Possums a utility NFT worth emulating.
Flyfish Club was co-founded by entrepreneur Gary Vaynerchuck, who has been behind some of the most influential NFT projects available. The utility NFT gives owners access to a first-of-its-kind 11,000-square-foot restaurant in Manhattan. It’s a robust seafood-focused restaurant that draws influence from the world’s most illustrious dishes. There are two tiers of membership, with the higher tier giving members access to fresh fish flown in daily from Japan.
When Flyfish Club membership NFTs first went on sale, they started at 2.5 Ethereum each, but have since listed at higher prices. They’re an excellent example of the premium experiences a utility NFT can provide to members. Plus, New York is a major metropolitan hub, and having an exclusive membership for a high-end dining experience there is a lucrative business venture. There are plenty of reasons that someone may choose to resell their membership (and at a higher cost than what they paid), which generates royalty payments to the NFT’s creator.
Organizations can invest in utility NFTs at practically any level, though it’s best to think of them as a revenue stream rather than a business model — at least at first. The key is to identify the type of utility that will resonate with your consumer base, then design a utility NFT that meets those preferences.
Carefully considering the utility of your NFT isn’t solely about making your audience happy, though. NFT creators earn a royalty each time their NFT is sold, including on subsequent trades, so you want to encourage frequent swaps. When you approach designing utility NFTs, consider items that your fans would exchange frequently, as they would a trading card. If you aren’t sure where to start, a partner with deep expertise can help.
Dibbs is a leading provider of asset tokenization services, helping businesses turn their memorabilia into collectible-backed NFTs that can be bought, sold, and traded among fans globally. With insured, climate-controlled solutions, and experience across industries, Dibbs can help your organization penetrate global markets while deepening relationships with existing customers. Schedule a demo today to see how.