When I started collecting NFTs, I thought it was just a matter of buying things.
You buy a piece cause you like it and/or think it will accrue value, and then you simply hold it and maybe resell it at some point.
Or so I thought.
I now realize that there’s more to this game. Collecting, at its best, is often an active, hands-on, even creative pursuit — not just a passive one.
In the long run, the most successful NFT art investors will likely be “value-add collectors.”
This post will look at what a value-add collector is and how and why to be one.
What is a Value-Add Collector?
A value-add investor brings value to the companies they invest in beyond financial capital.
Similarly, a value-add collector delivers value to the creators of the NFTs they buy beyond the funds paid for them.
In short, they help their artists succeed.
In a similar vein, value-add creators deliver value to collectors and fellow creators beyond their artistic output.
Value-add collectors and creators are not fixed. Any collector or creator can learn to deliver more value.
Nor is it a binary, where one is value-add or isn’t. It goes along a scale. For example, I now add more value as a collector than I did in the past, and I’d like to learn to add yet more in time.
Why Be a Value-Add Collector?
Being a value-add collector is beneficial for several reasons:
By helping artists succeed, their work will more likely accrue value over time. This includes the piece(s) you’ve collected from them!
Artists that you haven’t collected from yet will prefer to work with you and may accept bids from you they might not take from other collectors.
Like attracts like, and by being a value-add collector, you attract value-add creators. This is a great thing, because value-add creators are more likely to grow and succeed in the long run. So those are the type of creators you want to collect from.
Generosity is repaid in unpredictable ways. It’s also rewarding in and of itself, since we are wired to derive fulfillment and energy from helping others.
Is it Necessary to Be a Value-Add Collector?
No.
Even collectors who simply buy pieces provide value. Capital can empower creators to focus on art and invest in tools and resources to advance their craft.
Collectors can also profit without being value-add. Especially, if they’re buying from already established, higher-profile artists rather than up-and-coming ones.
Still, I believe it’s in the best interest of collectors to add value beyond capital, whenever possible.
How Can I Be a Value-Add Collector?
Value-add collectors are generally long-term focused and collect works they love from artists who they believe in.
There are many ways a collector can add value; the following are just a few examples. It’s unlikely that any single collector will add value in all of these ways. Different collectors are able to contribute in different ways.
Share and Promote Artists’ Work
Share works from artists you’ve collected on Twitter and other platforms. This may include pieces you’ve bought from them as well as unsold works.
A curated Showtime gallery is also a great tool to showcase your collection and give your artists more exposure. I include my Showtime in my Twitter bio and often link to it.
Some collectors also host virtual galleries on platforms like CryptoVoxels or even IRL exhibitions in meatspace.
Other collectors host Twitter Spaces or Clubhouse panels with artists in their collection.
Provide Guidance on How to Navigate Crypto and the Market
A lot of NFT artists are new to crypto and Ethereum, and they may not be savvy with markets (though others are). As a collector, you have a unique perspective that you can share with artists.
For example, I often share tips on auction formats, how to price works, how to promote them, which NFT platforms to apply to or list on etc.
Respect UP ONLY Pricing
This means respecting an artist’s price floor by not selling his or her work on the secondary market for under their average sale price. I wrote more about UP ONLY Pricing here.
As long as you respect price floors, secondary market sales can be of great value to artists. The artist gets a slice of the sale on most platforms and more exposure for their work. And collectors typically reinvest profits in buying more art. It’s a win-win.
Connect Your Artists With Other Collectors and Creators
Connecting artists with collectors that may like their work or with other artists who have similar styles or interests can deliver great value.
Help Artists Get on New Platforms
Some curated NFT marketplaces value the input of collectors on which artists to include. So as a collector, you may offer to put in a good word on behalf of your artists when they apply to new platforms.
Lift Up Under-the-Radar, Up-and-Coming Artists
Collectors can have an outsized impact by collecting from new artists who haven’t sold yet or have only sold a few works.
Encourage Artists to Support Other Artists
Encourage successful artists to pay it forward and collect from other artists if they’re not already doing so. This creates value for everyone. Especially, if they’re supporting other artists in your collection.
Get Out of the Way
Sometimes the most useful thing a collector can do is…get out of the way and let an artist do their thing. Sometimes your input will be welcome and useful, but ultimately it’s up to artists to decide what to do with their work and how to approach the market.
A few more examples of things I’ve personally done:
On SuperRare, whenever I sell a piece on the secondary market, I provide an additional 10% slice to the artist. So they get 10% from me and 10% from the SuperRare contract. Since I’m usually reselling pieces for at least 2x the original sale, it works out great for both me and the artist.
A couple times, I’ve helped subsidize gas costs for new artists minting their first piece.
In one case, I sent a Ledger hardware wallet to an artist who lives in a country where Ledger doesn’t ship. He reimbursed me for the costs.
Thanks for reading. You may check out my collection here.