Cointime

Download App
iOS & Android

Budgeting for NFT Projects With Influencer Marketing Assistance Via On-Chain Affiliate Marketing

Last week, I announced something that I firmly believe will rock the NFT space in a major way once word gets out and the right combination of (1) an NFT drop team and (2) the right NFT space influencer(s) adopt this. I’m speaking about on-chain affiliate marketing in the NFT space.  It’s not a matter of IF this will ever happen; it’s WHEN. 

That all said, I want to discuss budgeting, as I didn’t get into many specifics in that article about actual pricing strategies and recommendations. So let’s start with the premise that NFT TEAM A has caught the interest of NFT SPACE INFLUENCER B. (Our program allows for multiple influencer affiliates, but I’m just keeping it simple here.) The question is: How much ETH would the INFLUENCER earn?

The answer is that this is a function of the number of available mints, the minting price for those who mint via the affiliate link, and the commission paid out per sale to the affiliate. A budget, therefore, would look like this:

So, in this scenario, we have an NFT drop of 10,000 tokens, with 300 help back for team/marketing/etc., leaving 9,700 mintable tokens. The team’s plan here is to mint them at 0.09 ETH each. However, as a part of this special affiliate program, the team has accepted two important points:

  • First, anyone who mints via an affiliate link will get a discount. In the above case, those people can mint at 0.08 (a 0.01 savings from the “street price”). After all, not only should the affiliate benefit from such a business partnership, but hxtis or her audience should benefit also.
  • Next, for any mint that happens via an affiliate link, the affiliate will receive 0.01 ETH in this scenario.

So, to summarize all of that: NFTs would normally mint out at 0.09 ETH (~$144) each, but they can be minted via an affiliate link for 0.08 ETH (~$128) each, and furthermore the affiliate would receive a 0.01 ETH (~$16) commission for each mint.

When you calculate the entire mint (assuming a 100% mint-out via affiliate links), the project would generate 776 ETH in total revenue, with 97 ETH going to the affiliate(s) and 679 ETH (gross) going to fund the project.

Industry Norms

Most web sites covering affiliate marketing report that average commission rates in the affiliate marketing industry range from about 5–30%. That’s a pretty wide range!

But I can tell you from personal experience in corporate sales that a 10–20% commission is also pretty standard. Add a little premium for the NFT space, and I think it’s fair to target somewhere on the higher side of the 5–30% range.

Keeping mind that a major component of this new affiliate program is full transparency, I’d further assert that, while influencers could demand much more than I’ve budgeted in my example, any reputable one would not do so because any reputable one would want the project to succeed.

Ergo, in this example case shown above, the “cost” against a full-price mint-out (9,700 tokens @0.09 ETH) with zero influencer involvement would be about 22.22%. However, it’s tough to properly quantify such a thing because, without influencer involvement, the probability of most otherwise unknown sets selling out is (unfortunately) almost zero.

In terms of actual revenues (9,700 tokens @0.08 ETH), the marketing cost was actually more like 12.5%. (For every 0.08 ETH coming in, 0.01 went out to affiliates.) That may sound a little low, but don’t forget that the affiliate has passed along the same amount of savings to his/her followers.

So, I’ll let you do any analysis you’d like on that side of things, as there are many ways to look at all of this data. The bottom line is this: Affiliate marketing in web3 will (1) bring a much-needed level of transparency to the space, (2) provide value to reputable influencers, (3) provide value to reputable influencers’ followers, and (4) allow NFT teams to fund projects, reach wider audiences, and build out communities.

NFT
Comments

All Comments

Recommended for you

  • BTC Falls Below $81,000

    Market data shows that BTC has fallen below $81,000, currently priced at $80,990.32, with a 24-hour increase of 1.23%. The market is experiencing significant volatility, so please ensure proper risk management.

  • Anthropic Plans IPO Valuation of Up to $1.5 Trillion, Asian Investors Shift to Crypto Derivatives

    On October 28, Bloomberg reported that AI company Anthropic plans to go public with a valuation that could reach $1.5 trillion, and intends to invest approximately $800 billion in building computing infrastructure, benefiting companies like TSMC, SK Hynix, and Samsung Electronics. Due to strong subscription demand and related restrictions, it is challenging for Asian investors to participate directly, leading them to invest indirectly through crypto derivatives. OKX and Binance have launched perpetual contracts linked to Anthropic's valuation, while contracts on Hyperliquid's EntropyIO platform implied a valuation of about $1.88 trillion at one point. The report also noted that Anthropic's path to profitability remains uncertain, with high AI investment costs and intense industry competition, meaning such proxy investments could also be affected by factors from other industries.

  • Completion of 800 Billion Yuan New Policy Financial Instruments

    According to information from the China Development Bank, Export-Import Bank, and Agricultural Development Bank, as of October 28, the new policy financial instruments for 2026 have all been issued, totaling 800 billion yuan. Among these, the China Development Bank issued 365 billion yuan, the Export-Import Bank issued 120 billion yuan, and the Agricultural Development Bank issued 315 billion yuan. (Xinhua News Agency)

  • Iran: Qatar Has Not Proposed New Plan to End Hostilities with the U.S.

    On October 28, according to Reuters: A senior Iranian official stated that Qatar has not proposed a new plan to end hostilities with the U.S. Several ideas put forward by Qatar are unacceptable to Iran. Iran's uncompromising policy on nuclear issues remains unchanged.

  • DBS Survey: 88% of Large Enterprises Have Used or Piloted Tokenized Currency

    On October 28, CoinDesk reported that DBS Bank commissioned EY to conduct a survey of 422 financial executives from large enterprises across 11 markets, each with annual revenues exceeding $500 million. The results showed that 88% of respondents have either used or piloted tokenized currency, with 24% having deployed it at scale, 43% having limited rollouts in certain markets, and 21% in pilot or proof-of-concept stages. Among the tools being used or planned for adoption, stablecoins accounted for 63%, tokenized deposits for 53%, and tokenized money market funds for 52%. Additionally, 71% of respondents indicated that real-time cross-border payments have improved or are expected to improve within two years. However, regulatory uncertainty, security risks, and challenges in system integration remain significant barriers, with approximately 64% of respondents hoping that banks will serve as a unified entry point into the tokenized currency ecosystem.

  • Short-Selling Address 0xb15b Liquidated 13 Times in Nine Days, Incurring Losses of Approximately $1.14 Million

    On October 28, data from on-chain analysis platform Lookonchain revealed that a trader created a new wallet, 0xb15b, nine days ago, depositing 1.25 million USDC and shorting ETH. Over the following nine days, this address was liquidated 13 times, with a total of 18,080 ETH liquidated, amounting to approximately $43.9 million, resulting in an actual loss of about $1.14 million.

  • AI Competition: Cash Flow Leaders Gain Advantage as Microsoft and Google Face Earnings Test

    On October 28, the stock price trends of Microsoft and Google have diverged significantly since their last earnings report. As the pressure of massive spending on artificial intelligence increasingly impacts corporate profits, Wall Street is scrutinizing the returns on AI investments from both companies. As major players in the AI field, both tech giants are set to announce their earnings after the market closes on Wednesday. Recent stock performance indicates that investors currently seem to favor Microsoft. The market anticipates that Google's free cash flow will be negative in both 2026 and 2027, while Microsoft's free cash flow is expected to decline in the current fiscal year ending next June, before recovering growth.

  • Netanyahu's Camp Secures 54 Seats After 70.7% of Votes Counted

    According to Israel's Channel 12, after 70.7% of the votes have been counted, Netanyahu's camp has secured 54 seats, the Eisenkot camp has obtained 47 seats, and the Arab parties have garnered 19 seats.

  • U.S. Optical Communication Stocks Rise Pre-Market, Mavenir, Corning, and Lumentum Up Over 2%

    On October 28, U.S. optical communication stocks saw a collective rise in pre-market trading. Among them, AXT Inc, MaxLinear, Credo Technology, Coherent, Applied Optoelectronics, Viavi Solutions, Ciena, Mavenir Technologies, Astera Labs, Corning, and Lumentum all increased by over 2%.

  • Seagate Technology Falls 4% Pre-Market, SK Hynix Rises 8%

    In pre-market trading, Seagate Technology is down about 4%, as the company's quarterly earnings guidance falls short of analyst expectations. NXP Semiconductors is down approximately 8%, despite a 19% year-over-year revenue increase in Q3 that exceeded expectations; however, the Q4 guidance is below expectations. SK Hynix is up about 8%, with the company's operating profit in the third quarter soaring sevenfold year-over-year, announcing an epic shareholder return of one trillion Korean won.