In this post, I will discuss how to set royalties on rarible. Rarible allows the artist to set royalty for even one NFT, unlike opensea. So you can set a royalty fee on a single NFT without creating a collection. Some NFT marketplaces do not allow artists to set royalty fees of more than 10%. But on rarible, there is no limit for royalty, you can set the percentage of your choice even 50%.
If you have created an NFT collection on some other platform so you can get royalties on rarible by claiming ownership of the collection on rarible. I will discuss how to set royalties when creating NFTs on rarible and when the collection is created on other platforms
Related: What Are NFT Royalties & Why NFT Royalties Are So Important?
Understanding Royalties on Rarible
If you’re looking to sell your digital art or collectibles as NFTs on Rarible, setting royalties is an essential step to take. Royalties are a percentage of the sale price that the original creator receives every time the NFT is resold on the marketplace.
Definition of royalties
Royalties are a form of compensation for creators, ensuring that they receive a share of the profits even after the initial sale. In the case of NFTs, the royalty percentage is built into the smart contract and is automatically paid out to the original creator every time the NFT is resold on the Rarible marketplace.
How royalties work on Rarible
When you set royalties on Rarible, you’re essentially agreeing to receive a percentage of the sale price every time the NFT is sold on the platform. This percentage is set by you, the creator, and can range from 0% to 100%, although most creators typically set it between 5% to 20%.
Benefits of setting royalties
Setting royalties has several benefits for creators. Firstly, it incentivizes creators to continue creating and releasing new NFTs on the platform, as they have the potential to earn money over the long term. Secondly, it ensures that creators receive a fair share of the profits every time their NFT is resold on the platform, even if they’re not actively involved in the resale process. Finally, it helps to establish a sustainable ecosystem where creators can be rewarded for their work, and collectors can feel confident that the value of their NFTs will appreciate over time.
Factors to Consider When Setting Royalties on Rarible
When setting royalties on Rarible, there are several factors to consider to ensure that you’re setting a fair and reasonable percentage. Here are some of the most important factors to take into account:
Market trends
One of the most critical factors to consider when setting royalties is the current market trends. If similar NFTs are selling for high prices, you may be able to set a higher royalty percentage. Conversely, if the market is saturated or there’s a low demand for your NFTs, you may need to set a lower royalty percentage to entice buyers.
Rarity and uniqueness of the NFT
The rarity and uniqueness of your NFT can also impact the royalty percentage. If your NFT is one-of-a-kind or has a limited edition, you may be able to set a higher royalty percentage. Conversely, if your NFT is part of a larger series or there are many similar NFTs on the market, you may need to set a lower royalty percentage to stay competitive.
Artist’s reputation and popularity
Your reputation and popularity as an artist can also play a role in determining the royalty percentage. If you’re an established artist with a strong following, you may be able to set a higher royalty percentage. Conversely, if you’re a new artist or relatively unknown, you may need to set a lower royalty percentage to attract buyers.
Cost of production
The cost of producing your NFT can also impact the royalty percentage. If you’ve invested a significant amount of time, effort, and resources into creating your NFT, you may be able to set a higher royalty percentage to offset your expenses. Conversely, if your NFT was relatively easy and inexpensive to produce, you may need to set a lower royalty percentage to remain competitive.
Time and effort invested in creating the NFT
Finally, the amount of time and effort you’ve invested in creating your NFT can also impact the royalty percentage. If you’ve spent months or even years creating your NFT, you may be able to set a higher royalty percentage. Conversely, if your NFT was created quickly or without much effort, you may need to set a lower royalty percentage to remain competitive.
By taking these factors into account, you can set a fair and reasonable royalty percentage on Rarible that accurately reflects the value of your NFT and helps you earn a fair share of the profits over the long term.
How to set royalties on rarible? Step-by-step guide
First of all, open your rarible account. You will have a create button on the top navigation.
Click on create and you will have a screen like this.
Choose your preferred blockchain to create NFT. I’m going to select Ethereum for this tutorial. After selecting a blockchain you will have two options.
You can choose single for creating one NFT and Multiple for creating a collection. In both terms, the royalty procedure will remain the same. After selecting single or multiple, when you scroll down you will have a field to set royalty fee.
Here you can set 0 to 50% maximum royalty fee for your single NFT or if it’s a collection.
How to set royalties on rarible if the collection was created on another platform:
First of all, find your collection on rarible and open this.
Claim the ownership of that collection and you will find an option to set royalties.
How to set Rarible royalties in smart contracts:
Most individual artists use rarible platform to mint and set royalties but big organizations and professionals prefer to mint and set royalties through the smart contract. Because smart contracts provide more options and customizations. The disadvantage is that, by default, royalties are not collected from some marketplaces. Rarible, OpenSea, Mintable, and others may have to be integrated to provide royalty collection functionality. If you are a developer you may find this resource helpful.
Rarible NFT royalties in your custom smart contract
Best Practices for Setting Royalties on Rarible
When setting royalties on Rarible, there are several best practices to follow to ensure that you’re setting a fair and reasonable percentage that accurately reflects the value of your NFT. Here are some of the most important best practices to consider:
Research the market
Before setting your royalty percentage, it’s essential to research the current market trends to get a sense of what similar NFTs are selling for. By doing this research, you can get a better idea of what a fair and reasonable royalty percentage would be for your NFT.
Be reasonable with the royalty percentage
While it’s tempting to set a high royalty percentage to earn more money over the long term, it’s essential to be reasonable with your percentage. Setting too high of a royalty percentage can make your NFT less attractive to buyers, as they’ll have to pay more every time they resell the NFT on the platform.
Communicate the royalty terms clearly to buyers
When listing your NFT on Rarible, it’s crucial to communicate the royalty terms clearly to buyers. Be sure to specify the royalty percentage in the listing, so buyers know exactly what to expect if they resell the NFT on the platform.
Regularly review and adjust the royalty percentage
Finally, it’s essential to regularly review and adjust your royalty percentage to ensure that it’s still fair and reasonable. As the market trends change and your NFT becomes more or less popular, you may need to adjust your percentage to stay competitive and attract buyers.
Final thoughts:
The most popular way of setting royalties is royalty percentage is not coded in the smart contract. You can follow these methods if you don’t know how to set royalties on rarible. I have covered both ways if you want to set at the time of creation or you have created your collection on another platform. If you are a developer you can follow the above link to set royalties in the smart contract.
Related: How To Set Royalties On OpenSea? A Step By Step Guide
