How to build your own NFT Community in 7 simple steps

In the ever-evolving digital landscape, Non-Fungible Tokens (NFTs) have emerged as a powerful tool for building engaged communities. 

Brands build virtual communities leveraging these unique digital assets as exclusive membership passes.

This article will guide you through the NFT communities, highlighting the potential of NFTs and providing practical steps to leverage this technology for your brand.

A Quick Overview of NFTs

Web3 – the paradigm of the internet powered by blockchain technology – is known for offering users greater control and transparency, with NFTs being one of its most famous tools. NFTs are unique digital assets that can be bought, sold, and traded on the blockchain. They can represent anything from digital art and music to virtual real estate and virtual goods.

In particular, NFTs have revolutionized the concept of collectibles. Traditionally, collectibles were physical items people could hold, display, and trade. They were tangible symbols of status and often held sentimental value. 

However, the digital age has transformed this concept, introducing virtual collectibles that exist solely in the digital realm, such as skins in video games.

The advent of Web3 has taken this transformation a step further. With Web3, digital collectibles can be turned into NFTs unlocking a series of benefits:

• Immediate proof of ownership
• They can be seen and appreciated everywhere, not just when physically displayed.
• A very high sense of belonging due to their exclusivity. 
• Immediate logistics, sustainable tokenomics, and an evolving supply based on business strategy. 
• Limitless gamification mechanics. 
• Everlasting durability and high security.

What is an NFT Community? Why Should E-commerce Businesses Care About NFTs?

An NFT community is a group of individuals united by their interest in (and usually ownership of) a particular NFT or series of NFTs. These communities are often built around specific collections or themes, allowing members to interact, trade, and discuss their shared interests, notably on Twitter and Discord.

For e-commerce businesses, NFT communities offer a unique opportunity. They create a sense of belonging and status among their members due to the scarce supply of NFTs. Moreover, the demand is driven by owning a specific NFT that can provide access to particular communities or special perks, such as exclusive products, in-life events, discounts, etc. This allows e-commerce businesses to create an organic link with their customers.

The Current State of NFT Communities

NFT communities are characterized by their high levels of engagement, with members actively participating in discussions, trading activities, and community events. Brands that embrace NFTs and Web3 can become part of the early adopters, reaching a young, tech-savvy audience.

It is possible to distinguish three categories of NFT communities:

• Web3 native. These communities live around Web3 native projects; these include CryptoPunks, Bored Ape Yacht Club, and World of Women. 
• Brand native. These are communities formed around the brand. They can appeal to the broader Web3 community but usually onboard mainstream brand aficionados. (PMU, 9GAG, Bialetti, Alpine)
• A combination of the two. The most widespread way for brands wishing to enter the Web3 space is to collaborate with a prominent NFT collection. This way, they can leverage an already established and respected community to drive up interest in the project. (Adidas, Tiffany, Spotify)

Understanding the Appeal of These Communities

NFT communities offer a unique blend of social interaction, entertainment, and financial opportunity. They provide a platform for users to express their interests, showcase their collections, and potentially profit from their investment (when NFTs’ value appreciates). 

For brands, NFT communities offer direct access to a highly engaged audience, new revenue streams, and valuable insights into customer behavior. By understanding the appeal of these communities, brands can design more effective strategies to engage their customers, enhance brand loyalty, and drive growth.

5 Case Studies of E-commerce Businesses with Thriving NFT Communities.

1. Bored Ape Yacht Club: The Bored Ape Yacht Club (BAYC) is a prominent NFT project comprising 10,000 unique digital art pieces, serving as membership cards for an exclusive club. Owners gain access to various virtual events, parties, and community activities, fostering a sense of belonging and exclusivity. The project has attracted a vibrant community, becoming a status symbol in the NFT space.
2. Alpine:  Alpine, the French sports car brand, launched an exclusive collection of 100 NFTs to create a Web3 community, targeting wealthy young males and selling out in under 3 minutes. The limited NFTs and a partnership with Web3 brand Exclusible boosted FOMO and attracted a 50k+ community on Twitter and Discord. Holders of these NFTs gain access to unique experiences and products, including real-life Alpine events, signed Mini Helmets by Alpine F1 drivers, and Ultra VIP membership.

3. 9GAG: The entertainment giant is building its Web3 venture studio, Memeland, to “bring ownership to every community in the world.” They have designed a whole virtual economy around content creators, creating a virtuous ecosystem between content creators, brands, and their audiences.

4. Adidas: Adidas announced its entry into Web3 with the “Into the Metaverse” project in late 2021, launching its first NFT collection, Phase 1, in collaboration with Bored Ape Yacht Club. Targeting Web3 enthusiasts and Adidas fans, the project attracted interest from the beginning. They later launched the Genesis collection of virtual gears in August 2022, yielding Adidas $11 million.

5. Spotify: Spotify launched a pilot program for token-gated playlists reserved for Kingship – a Bored Ape group -, Fluf, Moonbirds, and Overlord NFT holders. The collaboration well displays the potential of experimenting with different communities and Web3.

The initiative aligns with the music industry’s potential for innovation through Web3, where NFTs could give artists more recognition.

How to Build a Winning NFT Community in 7 Steps

1. Define a clear roadmap with long-term goals: Set measurable long-term goals and map out the necessary steps to implement your program. This will provide a clear direction for your team and ensure that your efforts are aligned with your overall business objectives.

2. Think like a degen and embrace the Web3 space codes: Involve key Web3 influencers and select the channels that make sense for your project. This will help you understand the dynamics of the Web3 space and ensure that your approach resonates with your target audience.
   
3. Build a proper Web3 comms infrastructure: Define a straightforward gamified onboarding process for your audience and build solid channel architectures. This will ensure your community members have a seamless experience, enhancing their engagement and loyalty.

4. Secure key partnerships and collaborations with Web3 players: Build trust and increase reach within a qualified audience by partnering with key opinion leaders and projects. This will enhance your brand’s credibility and visibility, driving growth and engagement.

5. Get your technical specs right from the start: Choose the suitable blockchain and NFT marketplace, and ensure your tech team or partner can deploy a seamless minting process. This will ensure your NFTs are secure, reliable, and easy to use, enhancing the user experience and driving engagement.

6. Deploy at a larger scale: Once you’ve figured out what works best, extend your collections or deploy new ones for further activations. This will allow you to reach a larger audience and generate more revenue, driving growth and success.

7. Partner with the best to broaden your audience: Once you’ve built a solid reputation within the Web3 space, opportunities to partner with best-in-class Web3 players will open up. This will allow you to reach a larger audience and generate more revenue, driving growth and success.

Building an NFT community offers a unique opportunity to create engagement and exclusivity, resonating with new and existing audiences. However, it’s essential to do it right. This guide is designed to put your brand in the right direction toward Web3 and your brand’s NFT community.