Innovative Affiliate Program for Generative NFT Launches!
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The launch of the GenNFTs Affiliate Program marks a pivotal advancement in the NFT landscape, aiming to inject transparency, accountability, and responsibility through affiliate commissions directly embedded in NFT smart contracts.
Note: The following content is extensive but groundbreaking and essential for the NFT domain! For those who prefer brevity, a condensed version is available here (also on Medium).
The principle of transparency is crucial in web3 technology, primarily driven by cryptocurrencies. The ecosystem relies on publicly accessible blockchains, which serve as ledgers for transactions over time. The code is unchangeable, and audit trails are typically available for anyone to review at any time.
However, discussions surrounding influencers in the NFT realm can often be negative, particularly about their compensation. Smaller projects frequently pay influencers to help build their communities, yet the return on investment can be minimal.
That said, ethical and reliable influencers play a significant role in promoting NFT projects, assisting founders in cultivating engaged communities of investors and collectors interested in their initiatives and visions. Our agency advocates for NFT project founders to allocate marketing funds toward the influencer ecosystem, recognizing the substantial influence these individuals hold in the space.
Furthermore, we believe that greater transparency benefits the entire ecosystem, which in turn positively affects influencers. As the NFT community adheres to responsible business practices, it gains legitimacy among regulators and the public, fostering wider acceptance.
Over a year ago, my wife, WendiDee, our CEO, posed the question: “Can we establish a system where we compensate influencers based on performance, similar to traditional affiliate marketing?” This inquiry sparked the development of a side project that has since evolved into the GenNFTs Affiliate Program, named after our company, GenerativeNFTs.io.
With the GenNFTs Affiliate Program, NFT team founders and influencers no longer need to rely on blind trust. Influencers aligned with an NFT project can expect guaranteed payment for their contributions, while project founders can feel confident sharing a portion of the sales with their affiliate partners. Everything is transparent on the blockchain!
From now on, the establishment of the GenNFTs Affiliate Program enables project founders, affiliates, and the NFT community to collaborate transparently, creating a mutually beneficial environment that promotes the growth of the NFT market.
Web2 Meets Web3: Understanding the Mechanism!
Our new web3 affiliate initiative, the GenNFTs Affiliate Program, modernizes traditional web2 marketing practices by integrating affiliate codes onto the blockchain. When an affiliate partners with an NFT project, they receive a unique link (referred to as an "affiliate link") to share through social media, websites, email newsletters, or any other preferred channels.
The unique affiliate link ensures that the affiliate receives credit for every NFT minted by visitors who engage through that link. If a visitor mints multiple NFTs, the affiliate is credited for all of them. For instance, if a visitor mints 10 NFTs via an affiliate link, the affiliate earns credit for 10 sales, multiplying their commission accordingly.
Celebrity influencers might opt to promote a collection they admire while also supporting their chosen charity. If the charity has an Ethereum wallet, we can ensure that all funds are directly transferred to the charity, enhancing transparency and trust.
A Practical Example: NFTGreetings.xyz
As a treat for our readers, here's a sneak peek at a side project we've been developing, currently in a soft-launch phase. This project is particularly engaging, as all NFTs on the site are affordably priced at 0.0075 ETH, but just 0.0065 ETH through an affiliate link, providing a cost-effective way to experience being an affiliate buyer on an NFT drop.
- Project Name: NFTGreetings.xyz
- Project Summary: A web3 greeting card venture featuring unique generative NFTs as greeting cards. We offer various card collections, each with hundreds or thousands of unique cards!
- Normal web address: NFTGreetings.xyz — This serves as the main site link.
- Special affiliate link: NFTGreetings.xyz?ref=jim — An example of an affiliate link. New affiliates will receive a similar link for other drops.
Setting Up Affiliates in the GenNFTs Affiliate Program
The setup process is streamlined and resides directly within the NFT drop’s smart contract. As the contract owner, I can create a new record, as illustrated below:
In this case, the affiliate reference for URLs is “jim.” This allows me to test the system as my first affiliate, creating the URL NFTGreetings.xyz?ref=jim.
I can then verify the affiliate details on the smart contract:
The information displayed is publicly accessible 24/7 on the smart contract, showcasing:
- affiliateFee: The commission rate in "wei" (the smallest unit of ETH). In this instance, my commission is 0.001 ETH per sale (approximately $2 USD).
- affiliateUnpaidSales: The count of sales credited to the affiliate, yet to be paid out.
- affiliateTotalSales: The cumulative sales attributed to the affiliate.
- affiliateAmountPaid: The total commissions paid to date in ETH.
- affiliateReceiver: The ETH wallet designated for the affiliate payments.
- affiliateIsActive: A toggle to activate or deactivate an affiliate.
As a reminder, a smart contract functions like a bank, holding ETH from sales until distribution. When payments are processed, the contract iterates through all affiliates, compensating them based on the outstanding amounts.
The GenNFTs Affiliate Program: A Win-Win for Affiliates and Customers!
It’s vital to highlight that we haven’t overlooked the customers. In addition to affiliates earning commissions, we aimed to ensure that customers benefit as well. Therefore, our contract includes both a promoPrice and a mintPrice setting.
The mintPrice reflects the standard price for those accessing the minting app directly, while the promoPrice offers discounts to customers who come through affiliate links. For NFT teams, we provide ample guidance and budgeting tools to facilitate this planning!
Let's continue...
On the dApp Side…
Imagine a visitor navigates to the NFT greeting card site and selects a card, perhaps from the "AI Hot Air Balloons" collection. My affiliate link (https://nftgreetings.xyz/?ref=jim) is relayed to the minting application (https://hotairballoons.nftgreetings.xyz/?ref=jim).
The minting app checks the affiliate link against the contract for validation. If verified, it displays the discounted minting price; otherwise, the standard price is shown.
Additionally, during the minting process, we include extra parameters compared to a standard mint function:
- The wallet address to mint to (as greeting cards can be sent to others, though buyers can mint for themselves).
- A value indicating whether this is an affiliate sale.
- The affiliate reference.
As expected, we verify the affiliate's status during minting. If the affiliate is valid, they earn credit for the NFTs minted in that transaction, and the minting proceeds.
Fund Distribution in the GenNFTs Affiliate Program
The payment process is straightforward: Each time the contract distributes funds (typically done periodically during a minting phase), affiliate partners receive payments directly through the smart contract, based on a specific affiliate program formula. Commissions are prioritized in the contract logic, followed by payments to the team using the OpenZeppelin PaymentSplitter contract.
Interested in Becoming an Affiliate or Learning About Upcoming Drops?
I would be thrilled to discuss your potential involvement in what could become a pioneering trend of responsibility, transparency, and economic growth within the NFT community. We have successfully deployed functioning affiliate registries in various contracts, including several greeting card projects. Additionally, I have several client projects in the pipeline that could benefit from the right influencer collaboration. These projects include:
- LAPiNC: A fashion-oriented initiative featuring 8,282 NFTs from a Hollywood costume designer and fashion illustrator. The artwork is stunning, and the roadmap is impressive!
- Spiritual Beings: A collection of 11,111 NFTs from a former Chief of Staff of Boss Beauties, aiming to gather uplifting individuals into a supportive community in web3.
- FrownyTown: Created by a professional illustrator, this collection of 10,000 NFTs features whimsical characters competing in a blockchain election. The artwork is exceptional!
- MightyMetas: 9,999 unique and charming 3D warriors focused on gaming and real-life collectibles.
- FirstApeWivesClub: A collection of 11,111 luxurious NFTs, poised for a successful launch thanks to an exceptional team.
- ChefBoiRDoge: Mixed Breeds: This Gen2 project has already launched, incorporating affiliate functionality.
Once affiliates are approved, Generative NFTs will provide essential information on verifying partnership terms as outlined in the smart contract. Our commitment to transparency ensures that everything is in order before any promotion on your part.
Legal Considerations: Ensuring Transparency and Compliance
For those monitoring legal aspects within the NFT realm, it's important to note the SEC's guidance regarding influencer promotions of crypto products, which mandates public disclosure of the nature, source, and amount of compensation.
In our view, the aforementioned criteria are adequately addressed. The “nature” refers to the affiliate relationship, a well-known business term denoting commission-based partnerships. The “source” is the smart contract (the drop's treasury), and the “amount” is transparently viewable in real-time on the smart contract.
Influencers and affiliates are responsible for their own due diligence and online conduct, but we are confident that our approach greatly enhances the current disorganized ecosystem. I encourage all influencers and affiliates to review the SEC's guidance and applicable regulatory frameworks in their respective countries.
Interested in Adding Affiliate Marketing to Your Generative NFT Project?
If you are planning a generative NFT initiative and want to adopt the GenNFTs Affiliate Program model, we’d be delighted to assist! Our expertise lies in generative art coding, smart contracts, and minting applications, so feel free to reach out anytime. :-)
Special thanks to tech innovator Sneha Mishra, founder of Social3Club, for her invaluable guidance and inspiration.
