Do Artists Get Paid When An NFT Is Sold?


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Yes. Artists do get paid every time an NFT they have created is sold from one to another. Artists don’t get paid if they haven’t set a royalty percentage for the NFT they have created or minted.

As digital art, collectibles, and other creative works are increasingly sold as non-fungible tokens (NFTs), it’s important to understand how NFTs work. In this article, we’ll explore how artists get paid when they sell NFTs.

We’ll also look at blockchain technology as a means for enabling payments to creators who sell their works through NFTs while discussing some potential challenges they may face along the way. Finally, we’ll examine why selling artwork via Non-Fungible Tokens can be beneficial for both established and emerging visual artists alike.

Benefits Of Using NFTs To Sell Artworks

Creating an NFT from an artwork offers many benefits compared to traditional methods, such as:

  • Increased security due to its immutability
  • Transparency since all transactions are recorded on the blockchain
  • Faster payments through automated processes (no middlemen (banks, payment processors))
  • Lower transaction fees than those charged by banks or payment processors
  • Ability to easily transfer ownership without needing third parties involved
  • Potential long-term passive income streams through royalties when others use your work with permission from you, the creator/owner.

NFTs are a revolutionary way for artists to monetize their work and have already opened up many new opportunities in the digital art world.

How Do Artists Get Paid With NFTs?

NFTs (non-fungible tokens) are digital assets that can be used to represent ownership of unique digital items such as artwork, music, and videos. NFTs have become increasingly popular in the art world as a way for artists to monetize their work and get paid for it. NFTs allow artists to set prices according to market demand, giving them more control over how much they earn from their creations.

Royalties From Sales

When an artist sells an NFT, they typically receive a percentage of the sale price in royalties. This is usually around 10-20% (though this can be anything as it’s up to the creator to determine the %), but it can vary depending on the platform or marketplace (OpenSea, Magic Eden, etc.) where the NFT was sold.

OpenSea has a roof of 10%, whereas Magic Eden on the Solana blockchain does not have such limits. So it depends on the marketplace what kind of royalty-% you can set for your NFTs. You might even do a free giveaway but then set a high royalty percentage to get some passive income.

Royalties are paid out automatically via smart contract. Your NFT “lives” inside a smart contract, and this smart contract is also where the royalty percentage is determined. When someone buys an NFT, the sale goes through the smart contract and whatever is written in the smart contract is what will happen with the sale.

Licensing Fees For The Use Of The Artwork

Artists may also choose to license their artwork for use by other people or companies who want to use it in some capacity. Licensing fees can range anywhere from a few hundred dollars up to thousands depending on what type of usage rights are being granted and how long those rights will last.

The licensing fee is usually split between both parties, with the artist receiving most of it while still allowing others access to their work without having to purchase an actual copy of it themselves.

Artists are able to sell original works by creating them as Non-Fungible Tokens (NFTs), as well as limited edition digital collectibles such as stickers, trading cards, t-shirts, and other merchandise (that might or might not live inside some Metaverse) related to their artwork.

Adidas, for example, is selling items in the metaverse, and in some cases, you can claim physical products with the NFT you have acquired.

These items can be sold directly through platforms like OpenSea or Rarible using smart contracts enabled by blockchain technology. Collectors may find these digital collectibles more desirable due to the additional features they offer, such as special abilities or bonuses that make them unique and rarer than regular prints available in online stores.

NFTs are a great way for artists to monetize their artwork and get paid royalties or licensing fees when their work is sold. When you add the fact that NFTs can also grant different physical or digital items when owned, the NFT space truly is a new way to experience artwork online.

How Does The Blockchain Enable Payments to Artists?

Smart Contracts And Automated Payments

Blockchain technology enables payments to artists through the use of smart contracts. Smart contracts are self-executing digital agreements that are stored on a blockchain network, allowing for automated payments without the need for third-party intermediaries. This allows artists to receive royalties from sales quickly and securely.

Transparency And Security Of Transactions

The transparency and security provided by blockchain technology make it an ideal platform for making payments to artists. All transactions on a blockchain network are visible to all participants in the network, ensuring that all parties involved can trust that they will be paid promptly and accurately.

Since data is stored across multiple computers in a decentralized manner, there is no single point of failure or vulnerability that malicious actors could exploit.

What should be remembered, though, is that not all blockchains are decentralized, even though the general assumption is that all blockchains are decentralized. Decentralization isn’t achieved if the validator nodes are run from a centralized cloud platform such as Google Cloud or Alibaba Cloud.

Decentralized platforms such as Ethereum (one of few) provide users with the ability to trade digital assets directly without relying on any centralized authority or intermediary service provider. This gives artists more control over how their work is used and sold.

Additionally, these platforms often offer lower transaction fees than traditional payment methods like credit cards or PayPal, making them an attractive option for buyers and sellers alike.

Challenges Faced by Artists When Selling NFTs

When it comes to selling Non-Fungible Tokens (NFTs), artists might face some challenges. The lack of understanding of the blockchain technology and processes involved in selling NFTs leads to difficulty in establishing credibility as an artist on blockchain platforms. These obstacles can be difficult to overcome, and we haven’t even discussed the fierce competition the NFT market already has.

Transaction fees on some blockchains can be high (Ethereum does suffer congestion from time to time) when buying and selling artworks using cryptocurrency. Compared to traditional payment methods such as credit cards or PayPal, these transactions are usually low-cost.

However, the transaction fees vary depending on the blockchain that is used; this could affect an artist’s profits if they choose one platform over another.

Additionally, taxes or regulations imposed by certain countries (India has some 30% taxes on crypto profit and 1% TDS tax on the sale of crypto assets exceeding more than RS50,000 in a single year) may further reduce any profits made from sales of artwork via NFTs.

Technology And Processes Involved In Selling NFTs

Many artists may not understand how exactly they should go about creating and selling their own NFTs. This is because there is a somewhat steep learning curve associated with understanding the technology behind blockchain platforms, smart contracts, and digital wallets.

Additionally, many artists may not have experience setting up auctions or know how to market their artwork effectively online. The NFT market is still new to many as blockchain technology, and cryptocurrency hasn’t yet hit mainstream usage compared to the traditional digital art market.

Thankfully tutorials and resources to get all the needed information about NFTs are already there. You just need to search upon search, and you will get the knowledge you need on how to sell NFTs.

Difficulty In Establishing Credibility As An Artist On NFT Marketplaces

It can be difficult for new or lesser-known artists to establish themselves on popular NFT marketplaces such as OpenSea or Magic Eden due to competition from more established creators who already have a large following.

The NFT market is filled with collections and collectibles. Getting an NFT collection visible on the platforms requires good marketing skills, high-quality artwork, maybe even some sort of utility baked into the NFT, and a community of like-minded individuals (if that is something the NFT collection is looking to have).

Overall, selling NFTs can be a difficult and complex process for artists. Despite these challenges, understanding the technology and establishing credibility on blockchain platforms can help to maximize profits when selling digital art.

Benefits For Artists Who Sell NFTs

The benefits of selling NFTs for artists are numerous. With the use of blockchain technology, artists can now gain increased visibility and exposure to potential buyers, set prices according to market demand, and potentially earn a long-term passive income stream.

Increased Visibility And Exposure In A New Market

Selling NFTs on the blockchain allows artists to reach new audiences who may not have otherwise been exposed to their work. By creating digital collectibles or artwork that is unique and scarce, they can attract attention from collectors.

The NFT market and blockchain technology are still relatively new compared to digital art and selling prints online. The NFT market is a new market with new types of customers, and thus artists can increase the visibility of their work in a new way.

However, the NFT market already feels quite saturated with PFP (profile-picture-project) projects, and even selling 1:1 collectibles might be hard as the value of a digital picture (JPEG, PNG) is somewhat questionable.

Potential For Long-Term Passive Income Stream

NFTs are the long-awaited, long-desired way for artists to earn passive income even after the initial first sale. NFTs enable artists to receive royalties as long as the NFT is in the market and is bought. Every time a sale happens, the artist gets paid to the digital wallet that was assigned to the smart contract.

While you can earn money as long as the item is on sale, it’s worth noting that if you wish to take your artwork off-market and not sell it anymore, you can’t do that (ever).


In conclusion, NFTs are an exciting new way for artists to monetize their work and get paid every time an NFT sells. By leveraging the power of blockchain technology, artists can ensure that they receive royalties from each sale without worrying about third-party interference or fraud.

However, there are still some challenges (understanding technology being one) that need to be addressed for the NFT market to become more widely adopted. Despite everything, the potential benefits of selling NFTs far outweigh any drawbacks and make it a viable option for many creative professionals looking to monetize their work.

FAQs in Relation to Do Artists Get Paid Every Time an NFT Sells?

Does The NFT Creator Make Money Every Time An NFT Is Sold?

Yes. If the creator of the NFT has set the royalty percentage to the smart contract, then every single sale will make money for the creator. The amount of money they receive depends on the percentage the creator has set for the NFT or for the entire NFT collection.

When You Sell An NFT, Do You Get Royalties?

Yes and no. If you are the creator of the NFT and have set a royalty percentage to the NFT, then you get royalties. You will also get royalties if the smart contract has been designed so that even the re-seller of an NFT receives some percentage of royalties.

You do not get royalties if you are not the creator of the NFT or the smart contract does not have such rules that enable the payment of royalties to secondary owners.

The creator of the NFT holds exclusive rights to the smart contract, which allows them to collect royalties from any future sales or transfers of their asset.

How Do NFT Artists Get Paid?

NFT artists get paid through the sale of their digital artworks. This can either mean that the artist sells an NFT by themselves or they create an NFT collection for someone and get paid for the work done. An artist can also get paid a percentage of the NFT sales, which can be written in the smart contract.

If the NFT collection is a success, the artist might get a hefty paycheck; on the other hand, if the collection fails, then the artist won’t get paid that much, if at all.

Who Gets The Royalties From NFT?

Usually, the creator of the NFT gets the royalties, or, to be more precise, the digital wallet address that is assigned to the smart contract gets the royalties. This could be an artist, a musician, or any other type of creative professional who has created something unique and valuable.

All of this is dependent on the smart contract that is written. The smart contract holds the rules by which the royalties are paid in which amount and to whom or to which digital wallet.

Some platforms may also take a percentage of each sale as their fee for facilitating transactions and showcasing the artist’s NFTs and NFT collections.



Digital Artist

I’m a digital artist who is passionate about anime and manga art. My true artist journey pretty much started with CTRL+Z. When I experienced that and the limitless color choices and the number of tools I could use with art software, I was sold. Drawing digital anime art is the thing that makes me happy among eating cheeseburgers in between veggie meals.

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