The crypto space has seen a lot of changes over the past few years and one of those changes is the introduction of the NFT.
Previously, we had no idea about NFTs or what they represented. Today, we do, and it has made lasting impressions and has garnered the attention of investors who want to have a piece of it.
NFTs are digital collectibles that you can profit from when you sell them in marketplaces such as OpenSea but other than that, there is another way you can make profits and that is through royalties.
NFT creators can profit not just from the sale of their works, but also from royalties on subsequent sales.
In this article, I will walk you through how to sell and earn royalties on OpenSea Marketplace.
• You can earn royalty fees of varying percentages, such as 5% or 10%, as all you need to do is adjust the percentage on OpenSea.
• Royalty is another way of making a profit from NFT, sometimes even more than that gotten from selling the NFT directly.
• OpenSea is the world’s largest marketplace where users can discover, collect, and sell extraordinary NFTS.
• Receiving a royalty fee on an NFT doesn’t mean you own the copyright to that item, rather you own the NFT version that represents the item.
SEE ALSO: How to Sell NFTs Quickly on OpenSea
SEE ALSO: How Much Are Gas Fees On OpenSea?
How Royalties Work on OpenSea
A royalty is the right of the owner of a patent or intellectual property to receive an amount of money from anybody who exploits that asset for commercial reasons.
When an NFT is sold and the transaction is validated on the blockchain, the new owner receives digital proof of the transaction.
However, this does not imply that he owns the copyright to that item; rather, he owns the NFT version of it, which has been confirmed and can be sold by him.
The blockchain certifies the transaction, which serves as a digital receipt validating the ownership of the NFT, which is permanent.
In the case of conventional artwork, artists only receive profits when they sell the object; however, when an NFT is resold, the original creator of the NFT receives a royalty payment, which is a share of the profit and some times, depending on the percentage, the profits derived from these royalties might exceed the profits that were gotten from selling the NFTs at first.
Royalties and OpenSea Marketplace
In the case of works of art and musical compositions, artists have the advantage of obtaining royalties for further sales.
Sales are fed into the so-called “secondary market” owing to blockchain technology, which provides for safe traceability and the implementation of smart contracts, which allow writers to be compensated with a percentage of the selling price automatically and promptly.
The NFT code’s smart contracts enable the transfer of revenue for royalty payments to the creator each time the artwork is resold.
However, there is a dilemma with NFTs and their royalty payments: if the NFT is resold, maybe at a considerably higher price, through a different marketplace than OpenSea, automatic resale royalty payments may not occur.
The ERC-721 standard, which fueled the NFT market boom, is now being revised to allow for a more effective method of royalty payment that is not dependent on the platform that creates the NFT such as OpenSea, because the current system is almost entirely based on the decisions made by OpenSea and other marketplaces in aggregating the market and dictating the rules, primarily for their benefit.
How to Earn 10% Royalty Fees On OpenSea
To earn 10% royalty fees on OpenSea, all you need to do is simply go to your collection editor and adjust the percentage fee field to 10%.
Then specify the payout address where you wish to receive the fees. OpenSea is unable to split royalties to multiple addresses.
Please note that royalties also apply to primary sales, which are sales made by you.
For example, if you set a sale price of 1 ETH and have a royalty of 10% on the collection, you’ll receive 0.9 ETH from the sale (2.5% goes to OpenSea and 5% is in the royalty) and then 2-4 weeks later, you’ll receive the 10% royalty (0.10 ETH).
Royalties are distributed to the payment address specified in the collection editor.
To view your royalty payouts, go to the collection editor and click the royalties button on the top right.
This is all you need to do if you want to earn 10% royalty fees on OpenSea as the platform has made doing so seamless as one or two easy steps are all it takes to get it done.
Frequently Asked Questions (FAQs)
How do you split NFT royalties?
If you want to split NFT royalties, just click on the toggle button labeled “SPLIT”. Insert the wallet addresses of each collaborator and specify the percentage of the royalty to be assigned. You can split royalties between a maximum of 10 wallets.
How much does it cost to list an NFT?
You can list an NFT for as low as $300 or less though some sites will allow you to list it for free.
In this article, I have explained to you how you can earn a 10% royalty fee on OpenSea. Setting the percentage is quite easy as you can do it yourself without any help or you can follow the steps I listed above to get it done on the world’s number one marketplace.
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