How to Collect Royalties from Secondary NFT Sales
When you create and sell an NFT, you can earn money not only from the first sale but also from any future sales in the secondary market. This ongoing income is called "royalties." Essentially, you get a percentage of the resale value each time an NFT in your Collection is resold.
How to Set Up NFT Royalties in Single
Follow these simple steps to set up NFT royalties on Single:
- Log in to your Single account.
- From the left sidebar, go to NFTs > Manage NFT Collections
- Click "Create Collection" or choose an existing Collection to edit.
- Go to the Wallets page, and enter the percentage you want to receive from secondary sales in the Royalties section.
- Save your changes.
Note: Single receives 5% of the total 100% royalties for NFTs sold on the secondary market. You can add additional wallets to divide the remaining 95%, but the total between all wallets, including the 5% from Single, must equal 100%.
How Royalties are Calculated and Distributed
When your NFTs are bought and resold in the secondary market, you'll receive the royalty percentage you set for each transaction. The royalties are paid in the currency used for the transaction, such as SOL or USDC. It is essential to know that royalties only apply to secondary market sales and don't affect the initial sale of the NFT.
Note: Royalty payments depend on the marketplace where the NFT is resold, as some marketplaces may have different royalty policies. It's crucial to research the specific marketplace's policies where your NFT will be traded.
To receive your royalty payments, you will need a Solana-compatible wallet, like Phantom. When you set up your NFT collection on Single, you'll be prompted to connect your Solana wallet to ensure the payment of future royalties.