So, you’re an artist on enter, and you’re about to mint your first NFT. Congratulations! There are many things to consider, like price, multi minting and unlockable content, but in this post, we’re going to tackle that thing called “royalties”. What are they, how do they work on enter, what should your royalty percentage be? Keep reading to get answers to these questions, and more!

Crypto currency, NFTs and innovation

The crypto space has opened up a whole new world of exciting ideas and creativity. Things are happening at a pace never seen before, and innovative ways of earning an income is attracting a new type of investor. At enter, we are focusing on NFTs and their revolutionary properties, reaching far beyond what is available today. An NFT is an incorruptible proof of ownership, where every transaction is stored and visible on the blockchain, making it possible to include royalties on each and every sale, from here until the end of time!

What are royalties?

The definition of royalties is broader than what this post covers, but on enter, there’s only one kind – sales royalties.

Sales royalties give the creator of an intellectual property (IP) a percentage of the sales sum every time their IP is resold. While this can be difficult to enforce outside the NFT space, blockchain and smart contracts automate the process. Can’t get any easier than that!

NFT sales royalties on enter

When you mint your NFT on enter, you set a royalty percentage of between 0 and 20%. You choose it yourself, and these royalties follow the NFT every time it is resold. Once you’ve set it, it can’t be changed, so make sure you’re happy with the percentage!

Let’s say you’re an unknown artist (don’t give up, we believe in you) selling your works of art for $10 apiece. Some time goes by, and you’re finally well known (we always knew you would be)! All your $10 art now resells for $10 000! If you set your royalties to 0 % way back when, you won’t see any of that price gain, but if you set it to 10 %, you’ll get $1000 for each $10 000 resale!*

Out there in “the real world”, this never would have happened. All your early art pieces would have earned you only $10, while galleries, collectors and middlemen would have run away with the big money.

Passive income

Generating passive income is everyone’s dream. Earn money while doing… nothing! But figuring out how to get there can be really difficult. What’s your grand plan, where do you start, how do you go from active to passive income? On enter, it’s easy! Upload you NFT and set your royalty percentage. Then there’s nothing more you need to do to receive the royalties from each resale.

You will receive not only royalties, but also the extra reflections your earned royalties produce.

Thanks to blockchain and smart contracts, all royalties are deposited directly and automatically into your wallet when your NFT is resold. The crypto world really is fantastic!

How to choose your royalty percentage

There are many things to consider when choosing your royalty percentage. What works for one artist, may not for another, and vice versa. What should you do? We’ll try to give you some pointers.

The case for a higher percentage

The most obvious argument for a high percentage is that it will give you more money if/when your NFT sells. Great news for you as an artist if your NFT gets a lot of resales, 20% can really add up after a while!

The case for a lower percentage

It might be easier for you as an artist to sell an NFT with a lower royalties percentage, since the buyer will get a bigger amount of the sales sum if the NFT is resold. The increased chance of making money can be a nice incentive for investors to buy your art.

You could try doing some research. Do you have many NFTs that are similar? Try setting different percentages on each item and see what happens. Which ones sell easy, and which take some time or don’t sell at all? This might give you an idea as to what your royalties should be.

In the end, it’s up to you!

Split royalties for collabs and charities

With enter’s newest update, the possibility of splitting royalties was added. Share with collaborators, donate to other artists or even to your favorite charity! Just choose how you want to divide the royalties and let enter do the rest. It’s all automatic and goes straight to you and your collaborator/charity of choice without any hassle!

The receiver needs to have an enter user, but anyone with a BSC compatible wallet can easily create one in under five minutes.

You can also choose to split your royalties with the burn address, and thereby supporting the enter ecoverse.

Break it down in list form, please!

1.     Upload your NFT to enter.

2.     You as an NFT creator choose a royalty percentage of 0-20%. Keep it all for yourself or split with collaborators/charities/the burn wallet.

3.     Someone buys your NFT for the first time; you get 100 % of the sales price.*

4.     Your NFT gets resold; you get 0-20% of the resale price.*

5.     The sum is deposited directly and automatically into your wallet. You don’t have to do anything to receive your royalties.

6.     Sell, resell, repeat.

7.     Sit back, smile, enjoy the passive income.

Thank you!

We want to round off by saying that we really appreciate all the wonderful artists on the enter platform, the level of talent is mind boggling! This is only the beginning, for all of us, and we’re all working hard towards the same goal – enter as a game changer and NFT revolution!

Written by Ida

* Tokenomics apply.

https://www.enter.help/knowledge/royalties-and-collaborations-on-enter.art 

https://www.enter.help/knowledge/making-an-auction