How To Earn Royalties On NFTs

With NFTs in the spotlight, artists and content creators are discovering that these tokens can be very beneficial to them even after their initial sale. This aspect is particularly interesting and is known as NFT royalties. If you’re new to non-fungible tokens, you may be wondering what NFT royalties are.

What are NFT Royalties?

Royalties are an important mechanism that helps ensure content creators benefit from their work. You can earn royalties on your NFTs each time they are sold. Typically, you are paid a small percentage of every sale, after the initial sale of the NFT. Payments for NFT royalties are made indefinitely and occur automatically through smart contracts.

How NFT Royalties Work

Step 1: To earn royalties, one must first sell an NFT. To do that, create an NFT, choose an NFT marketplace to sell it on, set up a crypto wallet, buy some crypto for the gas fees, and place your NFT on sale.

Step 2: Sellers can indicate a royalty percentage during minting. This must be specified in the smart contract, which is a program that exists on the blockchain. After the smart contract terms are created, the royalties are transferred automatically each time a new sale is made. 

NFT smart contracts are not standardized and vary by the marketplace. However, royalties for NFTs are typically 5% to 10% of the selling price.