Hi, my name is shinjurou and I’m an artist who joined the NFT space around the end of September 2021. If you are familiar with a certain red-haired vagabond, then you would know that the title of this article is a direct reference to what he wrote previously. I would suggest that you read what he wrote, as the information is extremely valuable to have.

Disclaimer: This is a very opinionated article, and you might not agree with some or most of my statements. This article will also contain some harsh reality facts. It is perfectly fine for you to disagree with what I have written here. If you do not agree with the things that are stated here, you are free to close this article and not look back on it.

Toxic Positivity

“Keep working hard and we are all GMI!”

“Be patient and wait and you will get your first bid!”

I think this type of toxic positivity encouragement can do more harm than good. It is very unrealistic to expect your artwork to get a bid if you don't understand who the people who will be collecting your artwork are, or how the current market actually works. You can work hard aimlessly at drawing for 10 years and still not get a bid if you don't understand the market.

If you are new to the market and do not have an extremely large following on social media or do not know anyone in the current community, and you set the reserve price for your Genesis at a high price (for example, 1 ETH), I can say with 100% certainty that this artwork will never be collected, even if you wait 10,000 years. Consider stopping the toxic positivity encouragement. If you want your art to be collected, you need to be realistic, research the current market, and discover the audience who are willing to collect your artwork.

“Collectors are rich people with nothing to do and too bored so they collect artworks from artists.”

This sentence is 100% FALSE.

While this might be applicable to some whale collectors, the majority of collectors who consistently support small artists are not whales. All of them have a spending limit.

If these words sound unconvincing, please take a look at the "Trending Collectors" section on Foundation.

Here are some comparisons and mathematical calculations on the topic.

Whales collectors

Farzin at #1

Total Spent: 2,997.75 ETH
NFTs bought: 366
Average price for an artwork to be collected:
2,997.75 / 366 ≃ 8.19 ETH

PleasrDAO at #2

Total Spent: 2,760.40 ETH
NFTs bought: 3
Average price for an artwork to be collected:
2,760.40 / 3 ≃ 920.13 ETH

Collectors who consistently support small artists

path at #12

Total Spent: 346.89 ETH 
NFTs bought: 301 
Average price for an artwork to be collected:
346.89 / 301 ≃ 1.15 ETH

robekworld at #13

Total Spent: 333.69 ETH
NFTs bought: 457
Average price for an artwork to be collected:
333.69 / 457 ≃ 0.73 ETH

This means that:

There are currently approximately a large number of artists and a severe shortage of collectors. It is entirely impossible for them to collect your artwork if everyone prices everything at more than 1 ETH. Since 1000 artists x 1 ETH per NFT = 1000 ETH, this is clearly impossible for the supply and demand, since both of the highest collectors for the anime genre “Total Spent” only reach up to less than 350 ETH.

You also need to take note that path is currently the highest ranked collector for the total amount of ETH spent in the anime genre, and Path's "Total Spent" is much lower than Farzin's (346.8988 ETH versus 2,997.7596 ETH).

Note: Even though the average purchase price per piece for robekworld and path is around 0.7 to 1 ETH, this does not mean you will be able to sell at that price. Most likely, 80% of artists will have to list lower, sometimes even as low as 0.1 ETH, to be able to attract sales.

Why are whales willing to instantly spend >100 ETH on an artwork, but not purchase from a small artist at >1 ETH?

1. Whales are investors. They won't collect an artwork that won't yield them profits, unless the whale is a Picasso fan and the artist is also Picasso, in which case profits don't even matter.

2. Whales will not collect artworks from small artists because collecting artworks from small artists is unlikely to yield any profits if the artist does not become the next Picasso. Therefore, investing in small artists is likely to be a huge loss for whales.

3. There are a large number of flippers in the whale market. The reason these whales do not hesitate to instantly spent over 100 ETH for an artwork is because they know full well they will be able to relist this artwork in the future for secondary sales and make a profit.

Other than the specific case where you magically get very lucky and a whale immediately notices you as you enter the space, expecting a huge sale at the start for your artworks is virtually impossible.

Why do some artworks priced below 1 ETH get collected faster than others, even though they are the same price or even lower?

The higher the cost of your NFT, the more likely buyers will approach it as an investment, rather than just supporting the artist. If you list it high, consider the question, "Am I worth investing in?"

In the NFT marketplace, the value of an artwork is determined by the collector, not the artist.

All collectors have a priority list of artworks they want to collect. Artworks that get collected instantly will be due to one or more of these reasons:

• The artwork is perfectly suited to the taste of that collector.

• The artwork has a deep meaning that resonates with the collector's values.

• The artwork was created by someone who has a deeper connection to the collector than any of the others.

• Other than the reasons mentioned above, the artwork was also priced reasonably for the collector's budget.

Only after collectors have collected the artworks that are at the highest priority on their list will they consider looking at other artworks and collecting them for the following reasons:

• The artwork fits the taste of that collector, but it is not as high a priority as their first choice.

• Since these artworks are not at the top of a collector's priority list, they will only collect them if the artwork is priced reasonably within their budget for secondary choices.

If your artworks have been sitting there for months with no bids, I suggest you lower your prices or consider switching to selling editions instead of aimlessly minting new 1/1s on Foundation. Otherwise, you'll just end up wasting all your money on gas fees.

Why are there bid wars on other people's artwork, but no one is collecting mine?

Bid wars will only happen when this artwork fits the top priority of multiple collectors, not just one specific collector.

The consecutive bidwars on Naoki Saito's artworks created the illusion that all collectors are whales and that every small artist will be able to have their artwork instantly collected at a high reserve price without actually researching how the NFT market works.

This is a space where value is determined not only by art skills, but also by the meaning of the artwork and the artist behind it.

It is impossible for an artwork created by an unknown artist, which only serves to satisfy their own preferences and holds no value to influence others or empower their lives, to be instantly collected at a high price (for example, greater than 1 ETH).

There are reasons why Naoki Saito's sales were so high compared to other artists in the community, even though this artwork was his first on the marketplace.

Important facts about Naoki Saito’s success

1. Naoki Saito is a major artist in Japan. He is known for his artworks created for the Pokémon Trading Card Game, Hatsune Miku merchandise, and as the main illustrator and character designer for the game Dragalia Lost.

2. Naoki Saito has a Wikipedia page dedicated for him.

3. Naoki Saito's influence was so significant that after he entered the space and made a video about it on YouTube, it caused a huge wave of Japanese artists to enter the space and follow in his footsteps.

Big artists like Naoki Saito will also attract some collectors who are buying to invest, which increases the chances of bid wars happening. At the same time, Naoki Saito rewards all bidders with multi-edition stamp NFTs. This means that some bidders might not have the intention of winning the auction, but will bid just for the stamp because his stamps are valuable.

But XYZ on Twitter said scarcity and 1/1 is important?

While every other tweet that collectors make on Twitter seems to emphasize heavily on the importance of scarcity and 1/1s, these rules don't apply to everyone. These rules are only viable for big artists and whale collectors. 1/1 artworks are only valuable when the collectors are investors who want to profit from collecting that artwork by flipping it at a later date from secondary sales. However, the current collectors who actively support smaller artists are not whales or flippers. If people are not buying your work as an investment, then scarcity doesn't really matter.

Earning a smaller amount at a higher rate is better than waiting for many consecutive months or even years to earn a large sum. The waiting will slowly make you question your art skills and values, and it can affect your mental health.

It is recommended to only mint 1/1s on Foundation or major marketplaces when you are already mentally prepared for the possibility of waiting many years before someone makes the first bid on your artwork.

If you don't want to experience the mental exhaustion of the wait, then consider listing your artworks at consistently low reserve prices and listing your artworks as editions.

Only list your absolutely best artworks at a high reserve price and prepare yourself mentally to endure the waiting game.

Cheap > Expensive

Here are the reasons why cheap is better than expensive when selling NFT art:

1. Earn a reasonable amount in a shorter time. If you set the reserve price of an artwork on Foundation at 0.5 ETH, then you are eliminating all the possible chances for others with a lower budget to collect your work. Setting the reserve price at 0.025 ETH at 20 editions will still yield you the same amount that you will earn from that 0.5 ETH price. (0.025 ETH x 20 editions = 0.5 ETH)

2. Boost your confidence. Having more collectors collect your works at a lower price will also boost your confidence. This is a subtle way to tell you that a lot of people actually love your artwork. These collectors will also be able to show off your artwork on Twitter or Oncyber galleries.

3. Broaden your reach. Editions at lower prices will also help other artists to collect your art too, and not just collectors. This means that you’ll be able to broaden the amount of possible collectors tremendously.

4. Save gas fees. There are artists that started high but have to keep reducing the price because it didn't sell. Doing this on Foundation will cost you gas fees. Using a platform with a Dutch auction function will fix this.

5. Encourage price discovery. By starting low, people will bid up if they think it's worth higher. This increases the chance for a small bid war.

6. Make your work look more desirable. Many people bidding will make your work look more desirable, even if the bids are low.

It's okay to mint your low-cost 1/1s on Foundation, despite the higher gas cost and 5% fee. There are some benefits to doing so.

1. Largest network of anime art collectors. Foundation has the largest network of anime art collectors, so you're more likely to be discovered there than on other platforms.

2. News feed. When a collector bids on something, it shows up in the feed of everyone following that collector. This means that your work could be seen by a lot of people, even if they're not following you.

3. Front page. Getting multiple bids, even if they're low, can increase your chances of being featured on the front page of Foundation in the "Trending auctions" section. This is a great way to get exposure to a wider audience.

Every collector you gain is an extra chance of retweets and promotion. When you have a large group of collectors, they're more likely to support you when you move to other platforms with lower fees.

This doesn’t mean that you should start mass-producing artworks at a high speed so you can put everything at lower prices with no regard for the details. Art quality and consistency DO matter in order for you to attract collectors. Being able to improve your skills will have a better result in the long run than constantly putting out sloppy work.

The best option to mint your artworks as editions currently would be to use Manifold’s Claim Page.

When you can afford to and feel ready for the challenges, you can start planning and working towards the high-price market to become a top NFT creator. Otherwise, you should list at a reasonable price.

Examples

These are examples of two artists who are excelling in the current 1/1 market by offering all of their artwork at affordable prices, with great quality, and receiving consistent bids on their work.

kalmahul

kalmahul is an artist who sets the reserve prices of his artworks very low, despite their high quality. He has listed 109 artworks on Foundation and has a large number of unique collectors at 71. In total, his artworks have sold for 17.5708 ETH. This is because small, consecutive sales are more likely to accumulate into a larger sum than a single, large sale that happens rarely. kalmahul's Twitter account does not have a significant follower count.

Your.Yeh

YourYeh’s collection is priced at very affordable prices, from 0.02 ETH to 0.04 ETH. Due to her consistency and improvements, every single one of her new drops sells out in seconds.

Vera’s Julio #1 was YourYeh's first artwork in the collection. If you look at the timestamps, you can see that YourYeh minted the first Vera's on October 3, 2021, but Julio #1 was collected on October 21, 2021. Vera's did not become a success overnight. This was due to YourYeh's consistency and hard work.

There are benefits to having a large number of collectors by setting your artworks at an affordable price. A large number of collectors can boost your confidence and motivate you to create future artworks.

Even if your artworks are collected at a lower price than another artist's, it does not mean that your artwork is inferior. Comparing yourself to others is not helpful for your self-confidence or mentality.

Collectors may only be able to put in a low bid because that is the maximum amount of support they can offer you at this time. Every collector has their own budget and limitations.

Not everyone will succeed

As harsh as this may be, this is just reality.

Not everyone will be successful. Not everyone will get what they want. Only those who put in effort will become successful. And the only ones who will rise above the ordinary are those who put in far more effort than most people. There are also people who put in all their effort but still cannot attain anything.

Supporting each other

Since collectors have limitations, having artists support each other can help the art community grow. There are only so many artists that collectors can afford to support. It is possible to actively help each other instead of waiting for collectors to become your saviors.

There is something called a ripple effect. If you help someone now, then someone that person knows who makes a higher sale than you previously might help you back in the future, or vice versa.

Maintain the Ecosystem

The NFT market is still in its infancy, so there are fewer consumers than there are creators. Many people in this space are working tirelessly to integrate NFTs into the world and make them ubiquitous.

However, the day might come when the current collectors who are at the center of the ecosystem might not be here anymore. As harsh as reality is, everything will come to an end one day. While we have these collectors supporting our current creators, there is no guarantee that they will still be here in the upcoming 50 years. The only way to maintain the current ecosystem is for new collectors who share the same visions as these collectors to join the space, or for the current artists to become future collectors themselves.

Anyone who is only an artist at this moment could become a collector one day. It is possible for you to support others the same way as the current collectors are supporting you. If the cycle ends, then we will no longer be able to see creators being able to make a livable wage in the future.

A message for collectors

To all current collectors who want to give drawing a try, please do so! Drawing is a very fun activity if you enjoy the process.

I firmly believe in the philosophy that "everyone can draw."

"Everyone can draw" is different from "everyone can draw well." Art skills only develop through consistent practice and require a huge amount of patience and dedication. "Everyone can draw" means that anyone can start drawing if they give it a try and learn how to align certain brushstrokes to create the shapes that will eventually form the final drawing. You don't have to be good at it right away, but the more you draw, the better you will become over time with consistent practice.

I particularly love this video:

I absolutely love seeing collectors take an interest in drawing! Here are two specific cases:

• Ligaratus recently reached out to me with questions about digital art.

• Aziz made me a drawing as a present for the Anifriends Secret Santa 2021 event.

The current NFT space is one where everyone can actively encourage each other to improve their artworks. Everyone is a beginner at the start, but skills are obtainable with consistent practice. It’s entirely possible for someone who has never even picked up a pen before to start drawing and become good at it after a few years.

The prime example of this is Vincent Van Gogh, who made his first painting in 1881 when he was 28 years old.

Final note

I hope this information will help all current artists stay mentally healthier in the space with more realistic expectations.

I hope everyone has a good year in 2022! 🎉

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I’d also like to thank rwx.eth, shiomu.eth, ligaratus.eth, morello.eth, KaijuKing779.eth and abdulaziz.eth for all the insights and help that they have given thus far. This article wouldn’t have been possible without you guys.

I’d like to thank robek for the Featured Image artwork (thank you for drawing me burning down the town of hopes and dreams) and being my main inspiration in the space. 50% of the proceeds from this article will go to robek.

Huge thanks to rwx.eth, shiomu.eth, ligaratus.eth, and morello.eth for providing feedback and proofreading this article. I would also like to give an honorable mention to saltseacake.eth.

I would also like to thank rwx.eth, shiomu.eth, ligaratus.eth, morello.eth, KaijuKing779.eth, and abdulaziz.eth for all of the insights and help that they have given me thus far. This article would not have been possible without you guys.

I would like to thank robek for the Featured Image artwork (thank you for drawing me burning down the town of hopes and dreams) and for being my main inspiration in this space. 50% of the proceeds from this article will go to robek.