How to add utility to an NFT: the ultimate guide

If there’s one thing we know, it’s that the NFT market is exploding with creativity and innovation. NFTs have gone from being ‘just a pretty picture’ into soooo much more in no time at all, thanks to the brilliant creators and communities thinking outside of the box. And the key to success? Yep, you guessed it - utility.

Adding utility to a NFT collection can take a project to new heights by creating real-world value for your community. Whether it’s through exclusive access to new drops, amazing merch, physical in-store experiences or 1-1 meets with creators, utility can transform your NFT from a simple digital asset to a highly desirable and valuable commodity. 2023 is going to be ALL about utility and we’re here for it.

But where do you start? How do you add utility to your NFTs? Sounds tricky, right?

Fear not. 1. It’s easy and 2. We got you.

In this complete guide, we’ll dive deep into the different types of utility available, explore examples of successful utility NFTs (get ready for some serious inspo), and provide you with a step-by-step guide to creating utility for an NFT collection. Whether you’re a seasoned NFT creator, part of an existing community or just starting out, this guide has everything you need to take your NFT to the next level.

And, wanna know the best bit? With Tropee ANYONE can create utility for ANY collection. That’s right, we’re all about community and it shows. You don’t even have to have your own collection to get started.

So, are you ready to create the ultimate NFT experience? Let’s do it.

What is utility in the context of NFTs?

Back to basics for one sec. In simple terms, utility refers to the additional benefits or services that an NFT holder can receive in addition to owning the digital asset/collectible.

But really, it’s SO much more than that. Utility is the key to unlocking the full potential of NFTs. It's the X-factor that sets apart a basic NFT from a truly valuable and desirable one. While the concept of owning a digital asset is exciting itself, adding utility to an NFT takes it to a whole new level. It allows creators to offer something unique and valuable to their buyers, making their NFTs stand out in a crowded market.

Why are utilities important for NFTs?

By adding utility to your NFTs, you can create a sense of exclusivity and community among owners. Think of it as being part of the coolest club around. And forget about those paper hands; utility can incentivize buyers to hold onto their NFTs for longer periods of time. Plus, it opens up new doors for monetization and additional revenue streams for creators. 

So what are you waiting for? Let's add some utility to those NFTs and take them to the next level!

Types of utilities for NFTs

When it comes to adding value to NFTs, there are three main categories of utilities that you can explore. They are:

Creator-led utilities

This type of utility is provided directly by the creators of the NFT and can range from exclusive digital content to limited-edition physical merchandise. These types of utilities not only enhance the value of the NFT but also provide an opportunity for creators to establish deeper connections with their fans and community. Lacoste’s exclusive merch is a good example here. Or how about Alpine’s ‘let there be light’ signed mini helmets? You’re going to want one.

Community-led utilities

These are utilities made by the community, for the community. Community-led utilities tap into the power of collective action and create a sense of ownership and engagement, while using the talents of communities too! Check out Memester for inspo here. From exclusive clubs to newsletters and magazines, most of the Memester utilities are created by its community.

External utilities

Unlocking the power of external organizations, these permissionless utilities allow organizations to offer exclusive perks to targeted NFT communities like access to super cool events, limited edition merch or one-off experiences. For a great example, look no further than JokerClub’s targeting of Porsche NFT communities, where lucky holders had the chance to get their hands on luxury hotel stays and sought-after dining experiences.

By offering a combination of these types of utilities, NFT creators can create a multifaceted experience for their audience and unlock new levels of value and engagement. It's a dynamic and exciting landscape, full of creative possibilities and opportunities to connect with fans in new ways.

You’re also gonna wanna consider whether you offer physical or digital utilities. Some of this will depend on how quickly you can move, how much you want to spend - and how big you want to go. 

Top 10 utility examples you’re gonna want to know about

Right, let’s get down to it. We’re here to provide you with examples and get that creative process started. So, here are ten examples of how you can add utility to your NFT and increase its value. 

Let’s go!

1. Physical products. Think limited edition t-shirts or posters

Check out luxury fashion brand Prada for inspo here. First launched in 2019 (latest drop this Feb), the Prada NFT collection keeps delivering - not least in the shape of limited edition tees that everyone wants to get their hands on. And, let’s face it, having fashionistas and influencers wandering around with your NFT branding is pretty powerful advertising too. You’re also going to want to take a look at Tiffany’s Collab with CryptoPunks, seeing the iconic jewelry brand make an exclusive crypto pendant. We love it. And what about jeans legend G-Star RAW, who sent famous limited edition GNO rhinos to holders? All great stuff.

2. Promo or discount codes - money off FTW

Loads of smart brands got in on the NFT Paris bandwagon this year. The major event, which happened at the end of February, attracted thousands of loyal NFT fans and creators - and many brands offered pretty tasty discounts to their holders. In fact, this use case is so good that we wrote a whole blog on it. Check it out here.

3. Services - like online lessons or 1-to-1 consultations

Here’s where you can get really creative and show off your unique skills too. Take inspo from All Women Force, which is currently offering holders the chance to explore thousands of hands-on creative classes - FREE for the first month. Or how about regular masterclasses from legendary photographer Dennis Schmelz? Check it out here.

4. Access to IRL events. Think private dinners or exclusive parties

VeeFriends is a perfect example of trying to give physical utility to an NFT - and of a brand going BIG with utilities. The brand has managed to build a loyal community which converges during the VeeCon gathering, an annual event which gets everyone talking. The NFTs all give holders three years of access to VeeCon - which is essentially a huge networking opportunity, which has guaranteed the success of the brand. You’ve also got to check out the We Belong Here festival - another great example, built on Tropee.

5. Access to digital events, communities and groups

Check out the Axie Infinity initiative - a super cool collection inspired by Pokemon and monster games. If you invest in this collection you’ll gain access into the Discord, Marketplace and Mavis Hub Community. Digital utilities are often speedier, easier to get off the ground than their physical counterparts, and provide those all important immediate benefits. Want more inspo? How about this brilliant online gaming tournament? Great, right?

6. Voting rights - decide the future of a project

Ice Cube-backed basketball venture Big3 was launched in 2022, and promised ‘unparalleled’ benefits including licensing opportunities and a share in sale proceeds. And importantly, it offered the chance for holders to make important decisions about the collection - from the latest drops to details of meet and greet opportunities. Offering voting rights a la Big3 is a great way to get communities feeling like part of the action - and there are plenty more examples to be found on Tropee, too. More loyalty here we come.

7. Raffles - such as exclusive merchandise or experiences

What do we love? Free stuff. And we bet your community does too. You can run a raffle for your community pretty much anything — so it’s time to get creative. Check out Tropee’s own raffle for a bit of inspo here, or this great example of a monthly raffle by 8sian.

8. Allowlist opportunities to new projects - e.g. access to pre-sales

NFT allowlists are a list of wallet addresses that have been given special minting rights to new NFT projects. This right guarantees the option to mint one or multiple NFTs before their official, public launch date, often at a cheaper price. The team at Bored Ape Yacht Club (BAYC) has done this successfully time and time again, boosting loyalty and creating hype. No wonder they’re one of the most successful collections the market has ever seen.No surprise - Tropee users are getting in on the too. Check out Cartoons allowlist here.

9. Exclusive digital content - photos, videos, or articles

For fans of the AMC show The Walking Dead, the several Walking Dead NFT collections associated with the show remain big business. Walker Access Pass collection provides huge inspo, offering exclusive perks like access to digital autographs, new content, and BTS interviews. No wonder it sold out within 24-hours. Another great example is from Fightclub Holiday, who made five exclusive music tracks available only for its holders. 

10. Unique IRL benefits - free coffee or in-store discounts

Meet the NFT Subscription That Ships Free Coffee to its Members…..Yep, that’s right, free coffee FTW. Bored Breakfast Club and Yes Plz have partnered to create the first non-fungible token (NFT) coffee subscription and it’s no surprise their holders are loving the freebies they get every month on top of their paid subscription.

Also take a look at Lacoste’s recent campaign (powered by Tropee) in the Champs-Elysées Flagship store, where holders got exclusive access to the must-have polo shirt.  Can anyone say ‘sold out’?!

How to create utility for NFTs: our guide

So we hope you’re feeling suitably inspired. And now It’s time to get down to business with our step-by-step guide to creating the best NFT utilities and supercharging your collection.

1. Determine what type of utility you want to provide to your NFT holders

Before creating any utility in NFTs, you’re gonna need to work out the type of utility you want to provide. You’ll know by now that you can add a wide range of utilities to your NFTs, such as access to exclusive content, membership in a community, discounts on merchandise, or even voting rights in a DAO. The utility you choose should be relevant to your target audience and add value to the NFT. Check out our many blogs for (even more) inspo or contact us today for an exclusive FREE utility power session.

2. Identify the target audience for your NFT

Utilities aren’t ‘one size fits all’. In fact, using Tropee you can segment your community and reward holders in different ways depending on who they are and what they do.For example, you  might want to think about giving holders who own a certain number of your NFTs an exclusive utility which no one else can get. Or maybe you want to reward your community members who hold onto their tokens for a certain amount of time. The good news - all this is really easy with Tropee.

3. Consider the feasibility and cost of providing the utility

Once you have determined the utility, you need to consider the feasibility and cost of providing it. Depending on the utility, you might need to spend some cash - real life events and physical merch for example. Decide what you can afford to do, and what the returns might be.

4. Get online and get building

OK, so you’ve done the groundwork. Now comes the hard bit. The actual building of the utilities. Right?

Actually, no - you might be surprised to hear that it’s actually really easy. Like, a couple of clicks easy. Just jump onto Tropee and we’ll take it from there - get inspired, pick a template, and build exclusive experiences for your communities with our ready-to-go utilities. Or create your own from scratch - it’s your call.

5. Communicate the added utility to potential buyers and promote it

You can use social media, forums, or other channels to reach out to your audience and promote the utility. You should also highlight the utility in your NFT listing and make it clear how it adds value to the NFT. And remember to include the Tropee badge on your website too.

A final word

So, in 2023, the possibilities for NFTs are endless. By adding utility to your NFT, you can create a more valuable and appealing asset for potential buyers. As the market continues to evolve, the possibilities for utility in NFTs will only continue to grow. 

It’s an exciting time to be a part of this revolutionary space. And the team at Tropee can’t wait to embark on the journey with you.