Curator Economy with NFT: Best Practices for Developing a Product Strategy

Curator Economy with NFT: Best Practices for Developing a Product Strategy

The world of digital art has been revolutionized by the rise of Non-Fungible Tokens (NFTs). These unique tokens enable artists to monetize their creations while providing online art curators with a sense of ownership and connection to the artists. The NFT market has experienced unprecedented growth, with a market cap of $2 billion in the first quarter of 2021, compared to $250-350 million in 2020. This surge in popularity is evident in the fact that there were more than twice as many buyers as sellers during this period, with 73,000 buyers and 33,000 sellers.

One of the key benefits of NFTs is the ability for curators to co-create or co-own an artist's asset. As the value of the NFT increases, both the creator and the curator stand to benefit financially. This win-win structure has proven to be highly profitable for all parties involved. However, it's important to note that not every artist will necessarily become part of the NFT empire. The success of an artist in the NFT market depends on various factors, including their existing fan base, the uniqueness of their artwork, and their ability to market themselves effectively.

In contrast, developing a product strategy requires a different set of considerations. A product strategy serves as a guide to the future based on the information available at the time. It is a living document that should be revisited, revised, and expanded upon as circumstances change. Successful product strategies begin with a clear and concise problem statement. By understanding the problem you want to solve and for whom, you can identify the opportunity and determine its size.

Defining the problem is crucial in developing a product strategy. Consider some of your favorite products and the unique problems they solve in ten words or less. For example, Airbnb connects travelers with unique places to stay, Amazon allows users to find anything to buy online at a good price, and Coursera provides accessible quality online education for everyone. Understanding your audience is equally important. Knowing whose problem you are solving and who makes the decision to solve that problem will shape your product strategy. For instance, Facebook initially targeted college students, while PayPal focused on eBay sellers and small online sites.

It is advisable to win in one market before expanding to others. By focusing on a specific market, you can refine your product and gain a competitive edge. Once you have established a strong presence, you can leverage the capabilities you have built to enter adjacent verticals or experiences. A thorough understanding of the market is essential for success. This includes defining market segments based on behavior or needs, estimating the market size, and identifying the competition.

Identifying your unique value proposition is another crucial aspect of developing a product strategy. What sets your product apart from competitors? Consider examples like Amazon AWS, which offers computation capabilities at scale, or Apple iPhone, known for its human-centric design. Identifying your unique value proposition not only sets you apart from competitors but also contributes to the overall value you provide to your customers.

Once your product strategy is in place, executing it becomes the next challenge. Strategy is easy, but execution is hard. Many companies may have similar strategies, but what separates the winners from the rest is their ability to execute effectively. To ensure successful execution, it is essential to have a clear vision of where you want to be in two years and then break it down into manageable units. Each phase should have specific learning objectives that will inform the next phase.

Defining success and identifying potential risks are two key elements of executing a product strategy. Success should be measurable, enabling you to continuously monitor your progress towards your goals. Additionally, identifying potential risks and challenges allows you to proactively address them. Confidence is built through clear thinking and assessment in the face of adversity, rather than avoiding potential pitfalls. It's important to remember that a perfect strategy that cannot be executed is no better than having no strategy at all. The right strategy, at the right time, will often feel obvious. If it doesn't, it's worth exploring why the organization or the world may not be ready for it and what it would take to prepare them.

In conclusion, the curator economy with NFTs and the best practices for developing a product strategy may seem like unrelated topics at first glance. However, they both share common points that can be connected naturally. Both the NFT market and product development require a clear understanding of the problem being solved and the target audience. Additionally, the ability to identify unique value propositions and execute effectively is crucial for success in both arenas.

To summarize, here are three actionable pieces of advice for those interested in the curator economy with NFTs and developing a product strategy:

1. Identify the problem you want to solve and for whom. Understanding the problem and the target audience is the foundation for both the curator economy and product development. By clearly defining the problem, you can create a focused strategy that addresses the needs of your audience.

2. Focus on developing a unique value proposition. Whether you're an artist exploring the NFT market or a product manager developing a strategy, identifying what sets you apart from competitors is essential. Your unique value proposition will attract customers and differentiate you from the competition.

3. Execute your strategy effectively. A well-defined strategy is only valuable if it can be executed successfully. Break down your strategy into manageable units, define measurable goals, and continuously monitor your progress. Identify potential risks and challenges, and proactively address them to ensure successful execution.

By incorporating these actionable pieces of advice into your approach, you can navigate the curator economy with NFTs and develop a product strategy that sets you up for success. Whether you're an artist or a product manager, understanding these principles will help you thrive in your respective fields.