Thread by @wilxlee

3 critical rules to price ur nft collection
🧵👇

consider 2 big market factors before
the 3 critical rules to properly price ur collection
lets dive 👇

2 market factors

macro - broad crypto market landscape.
what is the crypto market sentiment?
crypto twitter, @APompliano + @WClementeIII
is where i gather my market pulse

how is ETH doing? this has direct impact on
the whole NFT market (why?👇)

https://twitter.com/wilxlee/status/1446009711355064320?s=20

ie. when crypto market is on the run,
all liquidity will be sucked out for meme coins.

when crypto market is on a side way/downward trend,
NFTs become an attractive alternative to park liquid.

consider market liquidity when pricing ur nft.

micro - specific NFT landscape.
what is the market sentiment of your project?
twitter, your own discord, other projects' discords
are there people talking about your project?
if so, what is the sentiment?

how abt other comparable projects
within ur niche and how did they price?
use this a guideline, but not as a definitive.
this should show u what the market would accept.

ie. consider the amount of attention
on your project (demand) +
the number of nft you are selling (supply)

high supply + low demand = 0
high supply + high demand = $
low supply + low demand = $
low supply + high demand = $$$

subjective, but a great benchmark.

now the 3 critical rules
1. NEVER compete on price.
2. NEVER charge too low.
3. NEVER work in an echo chamber.

1. NEVER compete on price.
there are projects that sell out at
FREE mint and ppl complain abt gas.
there are projects that sell out for
3E EACH and ppl are over the moon happy.

price is NEVER a value proposition.

if you fail to communicate value through your project,
that means you have not done your job.
this has nothing to do with your price.

ie. @thelittlesnft has 0 roadmap publicized
and no promises.

yet ppl still found value in it. where?

perhaps being the first project funded by @CyberKongz ?
being partnered with @RealSupDucks + @KaijuKingz ?
perhaps our rock solid community?
our execution? authenticity?

everyone has their own gauge.
pricing should never be one of them.

2. NEVER charge too low.
if you have a vision for a project and
a team to build out the project,
last thing you want is to sell through
a project and not budget enough run way.

that means 2-3 mths down the road,
you will need to fund raising again.

u end up compromising on some low level
derivative mint that doesn't drive true value
this becomes a downward never ending spiral.

if you compete on quality, price accordingly.
if you compete on flash in a pan, price accordingly.

ie @thelittlesnft we compete on quality.
quality of people, concept, art, execution,
vision, longevity, etc.
this is the reason why we will not be priced cheap.

3. NEVER work in an echo chamber.
now you have a price in mind,
don't just launch with it.
talk to your community.
establish focus groups and
see what they think.

the key is to hand select the ideal group
you are serving because their opinion
is the only one that matters.

ie: with @thelittlesnft we've talked to
multiple advisors and were initially
set on a 0.25E/mint.

however, after chatting with our ideal groups,
we realize the investment was not
matching the value which is why
we went back to adjust accordingly.

ALWAYS listen.

final thoughts:
there is no perfect price.
you just need to know your worth and
never compete on price.

if you don't trust your gut or
don't have the confidence,

remember:
theres always a market for gshocks and
theres always a market for rolexes.

all the best to you founders.
don't cut yourself short.
enjoy the ride
like+retweet if you want to learn more
on how to build a succesful NFT project

or if you want to see one being built
in real time check out @thelittlesnft🙂

much love🌟
wil