Peter Yang, head of product at Reddit, argued in a May 5 post that NFT is better than traditional subscriptions and is the future of subscriptions.

Creators and brands can maximize their revenue by targeting different fans' willingness to pay in three ways.

1. Ads can target regular fans who are not willing to pay anything.

2. Subscriptions can target active fans who are willing to pay a small fee.

3. NFT can target superfans who are willing to pay a lot

   But I now believe that NFT membership is better than a traditional subscription. The reasons are as follows.

   1. Creators and their communities own NFT

   Imagine you're a live stream host on Twitch.

   As a traditional subscription, Twitch sets your subscription price and share of revenue. If Twitch decides to cut creator compensation, then you will have no easy way to move your community to another platform.

   With an NFT membership, on the other hand, you can have NFT in your community. no platform can dictate how you interact with your fans. 2, creators can personalize NFT membership

   With a traditional subscription, the benefits and terms are usually predetermined. For example, on Twitch, you can only offer benefits like custom emojis to paid subscribers.

   With an NFT membership, you can personalize the NFT.

   look and feel. For example, a collection of pfp (profile pictures) can be created that fans can show off to spread the word.
   
   Terms. Can control casting prices, NFT quantities and royalties on secondary sales.
   
   Benefits. Allows NFT holders to access private communities, premium content, IRL events, etc.
   

   Since NFTs are programmable, the content offered is limited only by your creativity: the

   The NFT look and feel may change if fans perform specific tasks. 
   
   NFT may be a bundle that grants access to many creators' content.
   

   1. Creators and their communities share the benefits

   With a traditional subscription, fans who have supported the creator from the beginning don't see any benefits as the creator becomes more and more popular.

   With NFT membership, both creators and fans can share in the benefits as NFT becomes more valuable in the community. Disadvantages of NFT membership

   As the saying goes, "With great power comes great responsibility."

   Because NFT membership gives creators and the community control over its outcome, it's important to understand some common pitfalls.

   1. Traders may snap up your NFT and ruin the atmosphere of your community.

   Traders can come into your community and snap up all the NFTs without giving true fans a chance to share in the revenue at all.

   To avoid this, you can whitelist fans and set parameters so that one person cannot buy too many NFTs at once. 2. Fans can be excluded from NFT membership.

   If all goes well, your NFT collection will increase in value as the community grows. As a result, new fans may be excluded (not to mention Gas fees!) .

   To avoid this, you can issue subsequent NFTs at a lower price for fans who can't afford the OG collection. you can also use L2 and other L1 chains to avoid gas. 3. Fans may react negatively to NFT.

   Unfortunately, many creators and fans have a bad impression of NFT due to scams and people who want to make money fast. Therefore, if you pursue NFT membership without clearly communicating your value proposition, you may alienate some fans. Fans can see right through your true intentions, so ask yourself this question.

   Do you want to make a quick profit or build a sustainable community? How to Practice

   Let's assume again that you are a Twitch anchor.

   When you're just starting out, you can rely on Twitch to grow your audience. 
   
   After reaching a certain size, you decide to invite fans to join an owned community (Discord is not 100% owned, but it is a tight proxy).
   
   Based on the community's input you launch your first collection of NFT members. You decide the mint price, the number of NFTs and the membership benefits. 
   
   Fans who buy your NFT are motivated to spread your content because they share in the benefits. At some point, your OG NFT collection becomes too expensive for new fans to purchase.
   
   You and your community decide to release a new NFT collection to attract more fans to become owners. 
   

   All in all, I think NFT members are the future of subscriptions because they allow fans to share the benefits and allow creators to target multiple fans willing to pay

   I think this is one of the most exciting trends in web3.