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The term “web design” refers to the process of planning, organizing, and editing content online. On the surface, it seems like a simple enough concept. However, the reality is what we consider “web design” can change over time, influenced by our perception of the “web.” 

In 2022, a professional web designer might create custom websites from scratch, but they may also be responsible for: 

  • UX Design: Creating elements focused on user experience
  • App design: Building digital components of a website or online experience.
  • Theme design: Creating visual tools for supplementing web design. 

Web design isn’t just about making a site look attractive anymore. The definition goes beyond the aesthetic to include a complete consideration of the functionality, performance, and abilities of countless assets we engage within the digital world.

What is Web Design? The Definition Today

Web design is the practice responsible for creating a website’s overall look and feel or web asset (such as web and mobile apps). It involves the process of planning and building elements of your project, from structure and layout choices to graphics and presentation. 

Web design has various components that work together to create the final “experience” of a website, including graphic design, interface design, user experience design, search engine optimization, content creation, etc. These elements determine how a web asset looks, feels and performs on various devices. 

Though the definition of web design in 2022 has evolved, it’s still different from web development, which refers to the actual coding which makes a website work. When you’re building a website, you’ll need web design and web development. 

Elements of Web Design in 2022 

When designing a website, modern designers need to consider two overlapping concepts: the overall appearance of the website and its functionality. The proper connection between these elements will maximize the site’s overall performance and usability, and make a design more memorable (for all of the right reasons). 

Let’s break down the elements of web design into its visual and functional components.

Visual Elements of Web Design

Visual elements of web design influence how a design looks. The various visual components of a design should still follow the basic principles of graphic design. In other words, designers should be thinking about contrast, balance, unity, and alignment simultaneously. The visual elements of web design include: 

  • Written copy and fonts: A website’s appearance and the text on the site often go hand in hand. Designers need to work together with content writers to ensure written copy makes sense structurally and uses the correct fonts for legibility. 
  • Colors: Colors for web design are usually chosen based on factors like color psychology, which demonstrates a color’s ability to affect how someone feels, and branding. Most brands have specific colors they use consistently throughout their visual assets; this helps create a sense of cohesion and unity in designs.
  • Layout and spacing: Layout and spacing influence how content is arranged in an app, website, or another visual asset. The right layout helps to create a visual hierarchy, guiding a viewer through a page and drawing their attention to the correct information in order. Spacing helps to separate components on a page and create legibility. 
  • Images, icons, and shapes: Images, icons, and shapes help convey significant amounts of information. The right ideas and icons can strengthen a brand message, direct a customer’s attention using a web app, and bring context to a design. 
  • Videos and animations: Videos and animations are becoming increasingly common in today’s web design strategies. Videos can include 360-degree videos, which help immerse someone in a space, video streams, and short content clips.

Functional Elements of Web Design

Functional elements in web design are the practical components designers need to consider to ensure websites and assets work as they’re supposed to. A website, app, or any other web asset needs to function correctly to be accessible to users.

Functional elements of web design may include:

  • Navigation: The navigation elements of a website or app are among the main components determining whether a site is functioning properly and ensuring a good user experience. Audiences need to be able to move around the app or website quickly. 
  • User interactions: Your site visitors may have multiple ways of communicating with your web app or website, depending on their device. You’ll need to make sure people can scroll and swipe on smartphones and tablets and click on desktops. If your website has VR or AR elements, you’ll also need to consider these immersive components in your design.
  • Speed and performance: While web development elements can also influence a web design’s speed or performance, it’s also essential for a designer to show elements of the composition don’t weigh down the functionality. Designs need to load quickly and correspond with the demands of browsers on various devices.
  • Structure: A website’s structure plays a critical role in user experience and SEO requirements. Users need to easily navigate through a website without encountering any issues like getting lost or ending up on broken pages.
  • Compatibility: A good design should look perfect on all devices, from a wide range of browsers to the various devices users might leverage today. 

What Does Good Web Design Look Like in 2022?

More than ever, achieving high-quality web design is crucial to success in any industry or landscape. More than half of the world’s population is active online. If you’re not appealing to this audience correctly, you’re missing out on endless opportunities.

Notably, while elements of good web design can be subjective, such as which themes or colors someone might prefer for their website, the underlying foundations of strong web design are the same for everyone in 2022.  

Good web design is any design that looks good, performs as it should, and delivers the best possible experience to your target audience. Effective web design should include components like:

  • Effective use of white space for organization and structure.
  • Clearly presented choices and navigation options for the user.
  • Clear calls to action to drive user activities from one page to another.
  • Limited distractions and a straightforward user journey. 
  • No clutter or unnecessary components irrelevant to the needs of the user. 
  • Responsive, flexible design accessible on any browser or device.
  • High-quality content and images are designed to hook a reader’s attention.
  • Appropriately sized fonts and legible typography.
  • A good balance between images and text on a page. 

Other elements like eye-catching imagery and professional photography can help your web design stand out. Using the right building blocks, like a strong color palette and the right shapes or icons in your design is helpful. 

Of course, there is some scope for variation in good web design. A web designer in 2022 needs to be able to adapt their use of the various essential elements of design to suit a specific target audience or the unique identity of a brand.

What Doesn’t Work for Web Design in 2022?

Just as web design elements seem to appear consistently in all excellent examples, there are also parts of web design we’ve left behind over the years. Simpler, more straightforward designs have replaced cluttered spaces, flashing images, and endless animations. 

The focus in 2022 is on creating an experience that’s simple, engaging, and intuitive, capable of speaking to the right audience without confusion or being visually overwhelming. In most cases, some of the top components to avoid include:

  • Clunky performance: Non-responsive website design, slow pages, and other examples of clunky functionality are a no-go in 2022. Websites need to be quick and responsive.
  • Distracting content: Flashing images, animations, and complex backgrounds are a thing of the past for a good reason. Websites today need to be clean, simple, and clear. Any elements which don’t add to the value of the design should be removed.
  • Generic content: Filler text, irrelevant stock photos, unclear buttons, and links can be removed from today’s website designs. A web design should be specific to the audience’s needs and the brand’s identity. Generic components don’t work.

Creating Web Designs in 2022

Today, the underlying definition of web design has a lot of similarities to the definition we’ve known for several years already. Creating a great website or web asset still requires focusing on user experience, aesthetic appeal, and functionality. However, today’s web designers generally have more components and different devices. 

Web design in 2022 is about creating high-quality experiences for customers that can support various environments and devices. The best web designs are aesthetically appealing, functionally reliable, and capable of adhering to the latest trends in web creation, like augmented reality, 360-degree video, and ultra-high resolution. 

 

Featured image via Pexels.

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Acquiring a new customer is difficult, but retaining an existing one is even more challenging. Yet, statistics show that efforts focused on retention bring way more value. 

For instance, according to SmallBizGenius, 82% of companies agree that customer retention is cheaper than acquisition. Apart from that, 65% of a company’s revenue comes from existing clients, and increasing the investment in retention by only 5% already gives you a boost in profits by 25% to 95%. Impressive, right?

So what should you do to reach such results? 

One component that impacts brand-client relationships is website design. This article will give you three design tricks that will encourage your customers to come back to your site more and more. 

1. Rethink Your Website Structure

It is hard to imagine a website visitor who would spend more than five minutes (usually it’s way less) trying to figure out the navigation system on your website. If you have a loaded, complex site structure, you will not retain a customer. 

Take Craigslist, for instance. Its navigation is not user-friendly, not to mention that it took over 30 seconds to load when the acceptable average load time should be no more than 1.7 seconds:

Here’s what proper website navigation presupposes:

  • Subordination should not go deeper than three levels.
  • A website should include eight horizontal categories max. 
  • The structure should be symmetrical. 
  • The menu should not be overstuffed with too many locations. 

Since we mentioned Craigslist, let’s take a look at its competitor AdPost, which has a better website structure:

Instead of listing all the product categories on the front page, like Craigslist, AdPost added them to the search menu, thus making the design more user-friendly and making the navigation cleaner. 

2. Make Your Site Multilingual

If you have visitors coming to your website from around the world, you should not assume they know English. A survey by Weglot found some interesting results regarding the attitude of buyers to shopping on international websites:

  • 52% of websites are in English, but English reaches only 25% of global users.
  • 56% of visitors say the website information in their language is more important than the price.
  • 73% of customers say they prefer to shop on sites in their own language. 

So, there is no doubt that having your website localized to several languages can increase customer retention, especially considering the last stat. 

To understand the proper practices of making a website multilingual, look at the examples of the best language learning apps. For instance, Preply has a drop-down menu where you can choose from multiple language options, including Polish, Ukrainian, German, and many more:

Translating your website to different languages will help the visitor understand the value of your product better. However, before you invest in localization, make sure you study the data on customer behaviors to understand which languages your audience speaks. 

3. Invest in Custom Illustrations

Some companies don’t bother much with designing their websites, especially when it comes to custom elements, such as visuals. However, research has shown that the focus on branding in website design increases customer commitment and e-loyalty, as a result. 

Moreover, in the world of billions of websites, you need something that would help your business stand out. And custom illustrations are among those features that contribute to your site’s uniqueness. 

Just take a quick look at the Emiozaki Web site. It includes personalized illustrations and animation created in the form of a tablet that substitutes the navigation menu:

This website reflects the brand’s tone and style, and animation adds emotion to UX. Apart from that, it’s also an excellent example of structuring a website. 

Or, if you would like an example of a less loaded design, take a look at this personal portfolio by Victoire Douy. It also includes animations that add interactivity to the design. For instance, you can play with the shadow of the girl’s hand:

So, if you want your website to attract more customers and encourage them to hang out for longer, take the creative approach. Hiring an illustrator is, of course, costly, but it will help your site stand out. 

Wrapping Up

As you can see, you’ll have to put in a lot of work to bring forward website design that increases online customer retention. You just have to employ our three best practices. Let’s quickly recap them:

  • Rethink your website structure; it should make the navigation easier. 
  • Consider making your site multilingual; you’ll retain more international visitors. 
  • Invest in custom illustrations to help consumers differentiate your brand from your competitors. 

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Amazon Web Services (AWS) is the biggest cloud platform in the world, with over 200 features. In this article, we break down 10 AWS services that support at least some SQL syntax, talk about their use cases, and give examples of how to write queries.

Service Description SQL Support Use Case
RDS Postgres, MySQL, etc. Full Small-medium web apps
Aurora Serverless databases Full Serverless apps
Redshift Data warehouse Full OLAP, Petabytes of data, analytics
DynamoDB NoSQL database Some – PartiSQL Ecommerce, building fast
Keyspaces Managed Cassandra (key value) Some – CQL Messaging
Neptune Graph database Some – openCypher Social networks
Timestream Time series database Partial IOT, Logging
Quantum Ledger Cryptographically verified transactions Some – PartiSQL Finance
Athena Ad-hoc queries on S3 Some – CTAS Historical data
Babelfish MSFT SQL Server on Aurora Full .NET

The table above shows how SQL support varies between the services. A graph database cannot be queried in the same way as a classic relational database, and various subsets of SQL, like PartiQL, have emerged to fit these models. In fact, even within standard SQL, there are many SQL dialects for different companies like Oracle and Microsoft.

Source de l’article sur DZONE

Most of us are concerned about our public image, right? It matters a lot how people see and think of us. Export the same sentiment to a brand instead of a person. That’s what brand reputation is all about!  

Yes, it’s that simple – the public’s perception of a brand constitutes its brand reputation. And since the internet plays a significant role in public perception nowadays, a brand’s online reputation essentially drives brand perception.

If we come at it from a slightly different angle, it’s the sum of all ideas and emotions a customer or client associates with a brand while interacting with it at any stage. It includes everything, from what kind of customer services they get when purchasing goods or services to after-sales services the company provides. Reputation management is usually done via social media, emails, and online chats.

(Remember, you shouldn’t confine brand reputation only to a brand’s customers or end-users. It includes all stakeholders’ opinions of a brand. It can be anyone from customers to retailers and shippers to manufacturers.)

In short, brand reputation is the most vital intangible asset for any organization striving to make it big in today’s cutthroat market.

What’s The Importance Of A Strong Brand Reputation For Today’s Businesses?

It wouldn’t be wrong to say that nothing affects every stage of the marketing and sales funnel, like a brand’s reputation. Whether it’s awareness, interest, evaluation, commitment, sales, or reputation, a strong brand reputation will only supplement it.

Recent research reveals that about 94% of consumers say that their likelihood of frequenting a business increases if it has positive reviews. Conversely, 92% say that their chance of patronizing a business decreases if it has negative reviews.

Now, let’s look at various factors that make working on your brand reputation important.

Market Trust

Strengthening brand reputation earns your business the trust factor, making your brand a more viable choice for existing and prospective customers. It helps them place their faith in you, believing that your brand is here to thrive and fulfill any promises it makes.

Moreover, it’s a fact that people prefer buying goods and services from a brand that enjoys a solid reputation, especially if people in their social circle use its products.  

Higher Sales

You can’t be far from the truth if you believe brand reputation only yields intangible business gains. It lends you tangible improvements as well, most importantly, in the form of higher sales volume, which translates as higher profits.

All this can’t be achieved without the push from a strong brand reputation, helping the brand carve a niche for itself amongst tough competition.

Customer Loyalty

When a brand succeeds in earning a higher trust level and a positive reputation, the customers are more likely to remain loyal. And, will continue to buy products and services from it, refuting various incentives by the competition, such as discount packages & low prices.

Customer loyalty also leads a brand to a host of other fringe benefits, i.e., demanding a premium price after some time.

Competitive Edge

One thing is for sure, the level of competition in the market is always going to soar higher and higher. And it’s almost impossible for a business to make its way through it without a competitive edge. That’s where a positive brand reputation can make a business’s life easier.

Having the edge over the competition means your potential for catching new customers increases exponentially, helping your brand claim more of the market share.

Word of Mouth

Happy customers remain one of the most significant assets of a brand, especially in this digital era. They serve as brand ambassadors, and if they’re happy and satisfied, they’ll pass the word on, advocating for the brand for free.

It not only leads to increased brand awareness in the market, but it also paves the way for a business to improve its sales and profit margins over time.

What Are The Best Strategies For Managing Your Brand’s Reputation Online?

We’ll keep our focus on the ones proven to be the most effective, starting with:

Staying Ahead of The Curve

Being proactive is among the primary requisites for today’s brand managers. They should be thinking ahead of their competitors and the target audience. While branding online, the margin of error is relatively low, and any slipup can lead to a ripple effect in nullifying the brand’s positive image.

The best way to cope with such a situation is to embrace the mistake quickly and be upbeat enough to resolve the issue immediately rather than have a wait-and-see attitude.

Be Specific About The Deliverables

Social media has played a phenomenal role in educating today’s customers, making them very intelligent and demanding at the same time. It has opened up infinite mediums and channels to get alternatives for almost everything.

That’s why brands need to be very specific in delivery time and after-sales services to avoid earning themselves a bad name in the market. Most experts recommend the “under promise and over deliver” approach to avoid disappointing your customers.

Establish Yourself as An Authority

If you have complete faith in your offerings as a business, knowing that you’re the best in the market, you better be loud and clear about it. It will help you catch immediate attention from your target audience, increasing your brand awareness and your potential to bag more sales and revenue.

Let’s talk about the quality of the product as an example. If you believe that the quality of your product is the unique selling prospect, you must let people know about it. Flaunt this factor with full force, vigor, and authority.

It will help you establish your brand in the market as an authority, and your target market will start looking up to you for the best and the latest on it.

Be Consistent and Assertive

As they say, consistency is the key. If you do it right, your brand reputation will go beyond the lifespan of your brand. People will relate to your brand positively even after your business shuts down.

However, this demands the next level of consistency from your business. You have to make sure you deliver your best in all aspects of branding your business, from the quality of the products and services to the level of customer service you offer.

It doesn’t work well if you outperform your competition by miles for the first time and then step back from delivering those high service standards. You roll your sleeves up and get to compete yourself if you believe you’re outdoing your competition so well.

Deliver on Your Promises

You cannot overstate the significance of delivering on your promises if you want to make the most of your brand reputation. Nothing brands your business better than a bunch of happy and satisfied customers.

And, delivering on your promises consistently is the least of what you need to do to win over your customers to the level they turn into your unofficial brand ambassadors.

Value Feedback

It would be best if you realign your thinking this way. 

Who are you producing your products/services for? Your clients/customers, of course!

What if it’s not working well for them?

Redo your product/service to the requirements and likings of your customers. Otherwise, your business will earn you nothing but a bad name in the market.

You have to realize the importance of listening to your customers, gathering customers’ opinions about what’s not working for them and what areas they would like to see improved. 

Learn to accept and respect your customers’ grievances, praises, issues, tips, or any feedback they give you about your product or service.

You’ll upscale your brand’s reputation considerably if you start doing this.

How Can Influencer Marketing Help You Grow Your Brand’s Reach

Influencer marketing is the concept of branding your business through influential people and opinion leaders in the industry rather than engaging your business directly in doing so. They also brand indirectly, setting a practical example rather than advocating verbally for it.

Research reveals that 94% of marketers using influencer marketing find it highly effective, potentially increasing the ROI 11% times higher than conventional marketing.

Brands that indulge in influencer marketing associate themselves with influential personalities resonating with their message, driving it across their target market in a manner that a large number of people develop an affiliation toward it.

Influencer campaigns help brands tap into an existing community comprising their influencer’s dedicated followers, compelling them to tilt toward a brand they use. Most of us have observed how renowned YouTubers, Tiktokers, and bloggers proactively advertise different brands to their followers.

The increased penetration of a rapidly growing number of social media platforms also helps the influencers garner a solid following and significantly impact the communities that follow them.

They are like a part of the family for their followers, who value their opinion and try to imitate them in what they do and how they do it.

Conclusion

With the competition getting steeper every passing day, earning the trust and business of your target market is becoming a challenging task for most companies. It makes branding even more imperative.

Make a great customer experience your top priority, also keeping a focus on the customer and employee retention and customer feedback to establish yourself as a customer-centric brand. 

Though it might take some time, it will surely help you grab your target market’s attention and respect in the long run. Once you achieve that, you’ll see sales and profits soaring accordingly.

 

Featured image via Pexels.

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When new technologies arise, we first adopt them for their technical value. If that value proves out, then we reach the magic “crossing the chasm” moment: when a technology jumps to widespread adoption through proven business value and goes mainstream. 

Some technologies, a very select few, make one more jump forward, however — from mainstream to existential imperative. 

Source de l’article sur DZONE

Creating and sending business proposals can be a lot of work. However, if you have the right tools and knowledge, you can quickly create and send high-converting proposals that your clients will love. 

This article will explain how to create a fantastic business proposal that looks great and gets signed quickly. Although we’re focussed on design, our tips apply to every industry and type of business.

1. Know When to Talk About Yourself

One of the most common mistakes people make is starting the proposal by talking about themselves. 

You might be surprised to know that clients spend the most time on the introduction chapter, so it’s essential to use it right. You need to set the right tone by explaining to your clients how your solution will help them achieve their goals. 

They want to hear the benefits and feel assured that you’re the best choice for them. If you start the proposal by talking about your company and the values you believe in, you’ll lose the attention of your clients. 

In most cases, the clients have already researched you and know the points you make in your PR releases.

Once you explain your process and the time scales, you can introduce your team and talk about the company. Just make sure it’s short and sweet. 

2. Divide Your Proposal into 6 Sections

Sending a one-page proposal will only confuse your clients and won’t incentivize them to reach out. The best way to format your proposal is to create six sections. 

This should include:

  • Introduction
  • Process
  • Timescales
  • Pricing
  • Next steps
  • Terms and Conditions

You need to showcase what their future could look like if they work with you, listing all the benefits as well as explaining the next steps. You need to write down what happens if they don’t agree with some parts of the proposal, what will happen when you reach an agreement, how much they have to pay, and more. 

Be clear on your follow-up process to speed things up. 

3. Use a Dedicated Proposal App

If you’re someone who fires up MS Word and hopes for the best, your proposals probably don’t get a lot of traction. That’s because you’re spending too much time reinventing the wheel. The best jumping-off point for your proposal strategy is choosing the right app. It will help you automate and speed up the whole process. 

Different solutions suit different people, but some of the features you might want include: 

Digital Signatures

The digital signature option helps you get your proposals signed faster and turns your proposals into legally binding documents. This significantly reduces the agreement time since your clients no longer have to print out your documents, scan them and send them back.

Integrated Payment Methods

Speed up your payment process by choosing the proposal software that has a payment option that allows clients to pay as soon as they agree to your terms and conditions. It can significantly decrease the time it takes to get paid. 

Sales Tool Integration

For an even more straightforward sales process, select a proposal tool that has native integrations with your sales CRM and other sales tools. 

Proposal Analytics

Proposal analytics can help you in the follow-up process. They show when your proposal was opened, on which device, and how much time the client spent on each of the sections. 

Content Library

The content library lets you save any part of the content (text, pictures, videos, terms and conditions, pricing table) for easier access in the future—no more copy and pasting huge chunks of text. 

An Easy-To-Use Editor

In order to be able to create any documents with your proposals software, their editor needs to be very easy to use. If the editor requires design experience, look for a better one.

4. Let’s Talk About Price

When it comes to the price section, there are two significant things you need to look out for: the name of the section and the format of your price.

Naming your pricing section pricing, expenses, or something along those lines cheapens your proposals and makes it seem like a regular invoice. Try naming the section ROI or Investment. It will evoke positive feelings with your clients because if they think of working with you as an investment, they will know that a return on investment is a part of the deal. 

The way you format your prices won’t make or break your deal but can help you speed up the proposal process. Firstly, you need to figure out if you’re going to charge by the hour, based on the value of the project, based on the commission, or something else. 

Once you reach a decision, you have to format the prices in an easy-to-understand and short way. Many companies try to upsell their clients at the very start of their business relationship and create proposals with three different packages. 

We believe that the way you present your prices should be the same as the way doctors prescribe medicine. You need to be the authority on your prices and tell the client what type of package fits their needs. If you leave it up to your client to pick the right package, it will just lead to confusion, and you’ll have to do the extra work to explain the difference to them.

Bonus Tips

Web-based business proposals speed up the signing process. If you make your proposals printable, it will lengthen the time your clients take to agree to your terms and sign them. Make sure your proposals are web-based and have a digital signature option. 

Another tip is to send your proposal as quickly as possible. As soon as you meet with your client and hear them out, start working on your proposal. 

Our last tip is to send your proposal at the beginning of the week. If you send it on a Friday, it will negatively impact the time it takes to get your proposal signed.

 

Featured image via Pexels.

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With all the marketing aplomb of basement-coders worldwide, NFTs were named with an acronym that does little to clarify their utility.

You probably know by now that NFT stands for Non-Fungible Token; what is perhaps less clear is what “Fungible” actually means; in this context, it means interchangeable.

Consider an ounce of platinum. That platinum is fungible, meaning it can be exchanged for any other ounce of platinum. Now consider a piece of jewelry made from one ounce of platinum. That jewelry is not interchangeable with any other ounce of platinum; it has the same core materials, but it has unique characteristics that may be artistically valuable, such as shape, or craft. The jewelry is non-fungible.

The letter that actually matters in NFT is T for Token. Tokens are little chunks of a blockchain that is a universally agreed dataset. You don’t need to know how it works any more than you need to understand how a computer processor works; you just need to know it’s in there.

Like any new technology, NFTs are surrounded by propaganda, counter-propaganda, skepticism, evangelism, and Facebook-confusion. In this post, we’ll look at some of the common misconceptions so you can develop an informed opinion.

1. NFTs Are Bad For The Environment

We’ll tackle this one first because it’s the classic argument leveled against anything in the crypto-space, whether Bitcoin or NFTs, and it’s nonsensical.

The root of this myth is that cryptocurrency transactions use vast amounts of electricity, the generation of which is terrible for the environment. The answer is threefold:

Firstly, electricity is used to run computers that maintain a blockchain, such as Ethereum. The blockchain is maintained whether NFTs are minted (registered) or not.

Secondly, NFTs tend to be minted on blockchains like Ethereum that are moving to less resource-intensive models, blockchains like Solana that already have less resource-intensive models, or blockchains like Algorand that are already carbon-neutral.

Lastly, the fact is that electricity is not inherently planet-killing. Renewables like solar and wind are perfectly capable of powering the grid; it’s just that power companies make higher profits by burning fossil fuels. That swanky new electric car you’ve bought so you can drive guilt-free is fuelled with fossil fuels on the power company’s end (and that’s before you consider the damage done getting those minerals out of the ground).

Until the computer you’re using is solar-powered, repairable, and upgradable, anything digital is terrible for the environment; NFTs are as bad, but no more so, than anything digital.

2. NFTs Are Just [Insert Patronizing Economic Metaphor Here]

NFTs, and crypto in general, are frequently referred to as a Ponzi Scheme. In the 1920s, Charles Ponzi duped investors into handing over cash. Returns were paid to early investors with the income from new investors. Early investors made a lot of money, and later investors lost everything.

One of the key characteristics of a Ponzi Scheme is that it’s a confidence trick that presents itself as low-risk. NFTs as an investment are widely understood to be high-risk. Calling NFTs a Ponzi Scheme is an excellent way of letting people know you don’t know what a Ponzi Scheme is.

In the 17th century, the price of tulip bulbs reached astronomical proportions. The Dutch tulip trade was a complex economic investment system that eventually collapsed, thanks in part to a global pandemic. Ever since, Tulpenmanie (Tulip Mania, in English) has been a byword for an economic bubble.

NFTs are frequently linked to Tulip Mania, thanks partly to the prices and the expectation (or hope) that the market will collapse. However, if you drive through the Netherlands today, you’ll see vast fields of tulips. They’re not being grown because they’re worthless.

While demand may fluctuate, it doesn’t fluctuate as much as media hysteria implies. And ultimately, tulips are nice.

3. You Can Buy And Sell NFTs

This is where pedantry plays a role. You cannot buy and sell NFTs; NFTs are the vehicle by which you conduct transactions for digital (or, in some cases, physical) goods and services.

If you have software installed on your computer, you probably have a license key. The license key identifies you as holding certain rights over that software, such as being allowed to use it to produce digital goods of your own. The license key is how the company identifies you as the individual to whom it has sold those rights.

NFTs are license keys for digital goods that are recorded on a blockchain instead of being held in a single database.

4. NFTs Can Be Easily Copied

When I was a kid in the 90s, I would record music off the radio with a tape player. I’d make mix-tapes and give them away. I was, in every literal sense, pirating music. And it wasn’t just me; home-taping kept the cassette industry going for decades past its use-by date. Despite this, the music industry did not collapse.

Art is even easier to copy than music because there’s no risk of a vapid DJ wittering over the intro to I Wanna Be Adored.

On my morning commute, I pass a shop that sells art prints. Around 80% are screen prints of Marilyn Monroe. They are original prints made by an artist and sold for not inconsiderable amounts. Not one of those pieces diminishes the quality, importance, or financial value of Andy Warhol’s Marilyn Monroe prints in New York’s MoMA.

The difference is that MoMA’s Warhols have provenance — they can be tracked to a time and place and authenticated as by Warhol. Precisely the same provenance that NFTs provide digital artists.

5. You Can Get Rich From NFTs

Earning money, potentially a vast amount of money, is one of the main driving factors behind the boom in NFTs.

But the truth is that while it is possible to make a lot of money — some NFTs sell for millions of dollars — most NFTs sell for a modest amount.

If you are an accomplished artist with original ideas, you may make money from selling your art as NFTs. If you are an accomplished trader capable of recognizing quality, you may make money from buying and selling NFTs. However, very few people get rich.

6. NFT Resale Rights Undermine Value

NFTs have many potential uses, but the earliest adoption has been in digital art. The main economic benefit to artists is not just an easy way to sell their art but a widely accepted royalty system in which the original artist receives a commission every time the artwork is resold. It represents the ongoing investment the artist is making by continuing to produce and promote their work.

It might seem a strange way to approach ownership, but resale rights are not new in the art world. In the EU and the UK, the resale rights of artists are legally recognized. In France, the legal rights of the artist or the artist’s descendants to be compensated from the sale of artwork have been established in law for over a century.

Despite high-profile artists like Robert Rauschenberg fighting for resale rights, and legislation in New York and California supporting the concept, resale rights are still not recognized in the US.

NFTs introduce a fairer system that grants the same rights to all artists, that Europeans already enjoy.

7. NFTs Are Worthless

Anything with value, whether physical currency, NFTs, or a block of wood, only has value because two or more people agree it has value.

The most expensive baseball card in the world is reportedly a mint-condition Honus Wagner, priced at $3m. It might be hard to understand why anyone would pay $3m for a piece of cardboard with an image of a 1950s sportsman on it, but apparently, someone would.

All goods, all the things we spend money on, are worth what we agree they are worth. To me, a tulip bulb is worth more than a baseball card, but who knows, perhaps you don’t like tulips.

There are plenty of flaws in the systems that use NFTs, and there are plenty of detractors, but if you want to create and sell artwork and someone wants to buy it from you, NFTs are an excellent way of facilitating that transaction.

 

Featured image via Pexels.

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