Non-Fungible Tokens: Arlo Eisenberg On The 5 Things You Need To Know To Create a Highly Successful Career In The NFT Industry
Set a Roadmap — Your collectors want to know what is coming. A roadmap is a great way to let holders in on the long-term vision and goals for your brand. Your roadmap should give holders something to look forward to. And it should instill confidence that there is a long-term plan for building and sustaining value. You can set specific goals, like “launch online store” or you can tease upcoming milestones, like “high-profile collaboration with a music artist.” You can set specific dates or months, or you can bundle items into quarters. Mostly just make sure you keep your road map updated — it is okay to make adjustments — and make sure you set goals that you can meet.
Many have observed that we are at the cusp of an NFT boom. The thing is, it’s so cutting edge, that many people don’t know what it is. What exactly is an NFT and how can one create a lucrative career out of selling them? To address this, as a part of our interview series called “5 Things You Need To Know To Create a Highly Successful Career In The NFT Industry”, we had the pleasure of interviewing Arlo Eisenberg.
Arlo Eisenberg is an agitator, a communicator, a skeptic, and a graphic artist with a distinct point of view. Juxtaposing challenging themes with bright, fun, poppy graphics has long been Arlo’s calling card. Things that most people find objectionable, or not polite to talk about, form the foundation for Arlo’s work.
Thank you so much for doing this with us! Before we dig in, our readers would like to get to know you a bit. Can you tell us a bit about your backstory and how you grew up?
I attended an arts high school in Dallas, Texas in the late 80s. After high school I moved to California to become a professional rollerblader — this was the 90s, remember! I won the first National Inline Skating Championships, won the X Games, and started a successful action sports apparel brand with my good buddy Brooke Howard-Smith called Senate. In addition to lifestyle clothing, we also sold wheels and accessories for skating. Senate made $13M a year at its peak.
Is there a particular book, film, or podcast that made a significant impact on you? Can you share a story or explain why it resonated with you so much?
As a professional skater, I used to travel a lot for demos and competitions. On one fateful trip to Europe, I picked up some reading material for the long international flight. I’ve always been an avid reader, and at the time I was way into UFOs and paranormal investigations — the kind of exciting stuff at the fringes of knowledge, always just beyond our reach. Unknowingly, one of the magazines I’d picked up, because of the cover art touting things like Big Foot and Roswell, actually took a skeptical approach to the extraordinary claims and systematically debunked the evidence for each one. I’d never encountered anything like it. It was eye-opening. The name of the magazine was Skeptic. I’ve read every issue since and I am still a subscriber to this day. Science and skepticism now shape my worldview and feature prominently in my work. They are even included in the brand pillars for Drug Receipts: Art & Subversion, Science & Skepticism, Community & Sport.
Is there a particular story that inspired you to pursue a career in this new industry? We’d love to hear it.
Nearly thirty years after creating the successful skating accessories brand Senate together I received a phone call from my old partner Brooke Howard-Smith. Nearly twenty years had elapsed since we’d worked together. We’d each gone on to form new lives, new families, and successful careers on opposite ends of the world — me in Texas and Brooke in New Zealand, where he is from. Much of my career has included creating art and custom graphics for streetwear and apparel brands. One of Brooke’s companies in New Zealand found great success with one of their NFT releases, FLUF World. Following the success of FLUF World, knowing my capabilities as an artist, and given our previous history of building successful brands together, Brooke reached out, from halfway around the world, to pitch the idea of getting back into business together. After patiently explaining to me what the heck an “NFT” was, I accepted and about six months later we launched Drug Receipts and sold out our entire collection of ten-thousand NFTs in 24 hours.
Can you share the most interesting story that happened to you since you began this fascinating career?
On a trip to LA to visit a good friend, and one of the founding partners of Drug Receipts, Tyler Shields (he also happens to be one of the most successful fine art photographers of our generation!), I caught a rideshare from LAX to Tyler’s house in Hollywood Hills. The driver, Kevin, was a sweet, street-wise gentleman of about sixty years old. By the end of our hour-long fare it came out that Kevin was starting to dabble a little bit in crypto, so I told him about our fledgling project, Drug Receipts, and said that I would add him to the whitelist if he wanted to get in on the mint when we released the collection. Kevin and I have talked many times on the phone since then, and I have seen him on my past couple of trips to California. I have spent many hours on the phone walking Kevin through the often cumbersome and confusing steps necessary to complete a transaction on the blockchain. It is kind of like having another parent to onboard and patiently walk through the process. In an interesting twist, the NFT that Kevin minted, which is facilitated through a completely random process, contains a rare trait inspired by one of Tyler Shields’ iconic photographs of Dorothy’s ruby red slippers and is already worth considerably more than what he paid for it.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?
Before I quit my job to focus on Drug Receipts full-time I was the Creative Director at my father’s design agency in Dallas, Eisenberg And Associates. After spending over twenty years in California on my own, making my own way, I returned to Dallas to work with my father. I’d spent about six years at the agency, working my way up, learning from my father. The expectation was that one day he would retire and I would take over the business. After spending so much time away from Dallas, I really relished the opportunity to be able to spend so much time with my father. He has always been a great influence on me, and one of my greatest supporters, but I learned so much over the last six years. It was really bittersweet to have to tell my father that I was leaving the agency to work on Drug Receipts full-time. It was such an unexpected curveball. As much as I know it was painful for him, and for me, he went out of his way to let me know how proud he was and to let me know he was behind me one-hundred percent.
Are you working on any exciting new projects now? How do you think that will help people?
Everything that we are working on at Drug Receipts is exciting. Since we sold out our collection in March we have started a live podcast, host a weekly Q&A on Twitter Spaces, we have thrown several live parties across the country — including a gallery art show with Tyler Shields at Samuel Lynne Galleries in Dallas, and introduced augmented reality merchandise and digital 3D wearables, we are launching our online store (the Drugstore, naturally), and we have many super exciting collaborations lined-up.
Ok super. Thank you for all that. Let’s now shift to the main focus of our interview. I’m sure you get this question all the time. But for the benefit of our readers, can you explain in your own words what an NFT is, and why people are spending so much money on them?
An NFT is a unique digital asset that exists on the blockchain. Unlike digital assets in the past, like JPGs, for instance, NFTs hold value because they possess unique digital “signatures” that can be stored and verified on the blockchain. This allows digital originals to be owned, traded, and verified — for the first time digital assets are considered collectible.
The NFT industry seems so exciting right now. What are the 3 things in particular that most excite you about the industry? If you can, please share a story or example for each.
NFTs can do for visual artists what streaming services and the internet have done for musicians. It creates a way for artists to connect directly with collectors and vice-versa. Because digital art can be a thing of value unto itself, as opposed to just being a facsimile of the “real” art hanging on a wall somewhere, it makes it possible for artists to participate in online marketplaces, and it cuts out the need for galleries, agents, and middlemen. NFTs empower creators.
What are the 3 things that concern you about the industry? Can you explain? What can be done to address those concerns?
Many of the concerns surrounding NFTs and the current state of the industry can be attributed to the fact that the whole space is so new. It is reasonable that many of these concerns will work themselves out as the technology and our knowledge catch up with the enthusiasm. That said, here are three of the major concerns that I see right now:
- Barriers to Entry — As alluded to in my story about my rideshare driver, Kevin, purchasing an NFT, especially purchasing your first NFT can be very daunting. In launching the Drug Receipts collection I had to personally onboard many people, including some people who were not particularly very tech savvy, like my father and Kevin. It was not easy. Because all of the transactions happen on the blockchain and require crypto, you can’t just click on a button and click “purchase” to buy something. At least not initially. You have to set up a crypto trading account to buy crypto, you have to set up a wallet to spend the crypto, and you have to go to websites to mint, or secondary markets to buy. And many of the steps along the way require labor-intensive steps to set up and verify. There is no doubt that this process will get streamlined and the user experience will get much better, but for now, the process puts buying NFTs out of reach for many people.
- Scams — In many ways the NFT market is like the wild west. It is all so new and happening so quickly that it feels completely unregulated (and in a sense that is exactly the case). This provides fertile ground for bad actors. Whether it is sham collections promising the world only to “pull the rug” and leave all of the collectors holding the bag, spam accounts impersonating legitimate collections trying to dupe people into paying for junk, or even worse trying to rob them of the contents in their crypto wallets, it is incumbent upon each of us to do our due diligence and KYC (know your customer/client).
- Knowledge Gap/Bad First Impression — There is a lot of confusion surrounding what NFTs are and a lot of bad information, unfortunately, is out there filling in the gaps. Much of what many people do know is based on sensational headlines, like “social media influencer scams followers” or “insufferable celebrity pays millions of dollars for cartoon JPG.” It will take some time and some better stories before the narrative surrounding NFTs starts to change. But those stories are out there!
What are the most common mistakes you have seen people make when they enter the NFT industry? What can be done to avoid that?
From the perspective of a creator, or a business owner entering the industry, most people are unprepared for the inverted business model of releasing an NFT collection, I know I was. With Drug Receipts, we sold out our collection of 10,000 NFTs in 24 hours. That was a multi-million dollar cash event in a single day. And that was the BEGINNING of the company! Historically, if you were going to start a business you would come up with a business plan. You would make some projections, allocate a budget, perhaps get a loan, and then start selling your widgets, or offering your service, and hope that you meet your projections long enough to stay in business and turn a profit. With the NFT collection, everything is turned on its head. You can get the infusion in cash upfront without ever giving any thought to what you are going to do with it. This is why so many collections turn into “rug pulls.” When there is a huge infusion of cash some unscrupulous business owners are tempted to look around and think, “we did it, we’re done here, we made our money” and they ride off into the sunset leaving their community, and their collectors, holding the bag. The reality is, with NFT collections, the real hard work comes after the mint after you sell the NFTs. The objective is to deliver value for your collectors so that their holdings will appreciate in value, which in turn raises the value of your collection. There is nothing revolutionary about the way this is accomplished. You have to invest in a quality team, utilize effective marketing and communications, have solid accounting, and you guessed it, you have to have a good business plan. Just because the money comes upfront doesn’t mean you can skip all of the necessary steps required to build a successful business.
How do you think NFTs have the potential to help society in the future?
NFTs, and more broadly speaking, blockchain technology and Web3, have the potential to disrupt everything. If given the opportunity to reevaluate our institutions what would we do to change them? How would we replace them? This is exactly the position we find ourselves in as we consider the implications of blockchain technology and decentralization. This is much bigger than discussions of artists like me and the potential for creators. What is at stake is no less than the fate of the entire global financial infrastructure. Will Bitcoin replace gold as the store of value? Will smart contracts replace banks? The implications of these kinds of changes cannot be overstated. And that is just one (albeit giant) sector. But decentralization has the potential to disrupt all systems and models — from schools to businesses to healthcare. The blockchain could empower users to take back control of their data and swing the pendulum of privacy back to the people. NFTs are just one part of a larger framework that is on the verge of changing everything.
Ok, fantastic. Here is the main question of our interview. What are your “5 Things You Need To Know To Create a Highly Successful Career In The NFT Industry?” (Please share a story or example for each.)
Offer Something of Value — In some cases, people will buy an NFT on aesthetic value alone. But in many cases, as with most collectibles, there is also the hope that your holdings will appreciate in value. So you have to be deliberate about what value you are offering to your holders. In some cases, this is referred to as “utility.” Will your NFT, in addition to looking really snuggin’ cool, also get you exclusive access to parties and events? Will it get you first dibs on exclusive merchandise? We recently dropped 500 augmented reality Drug Receipts hoodies. When you look at the artwork on the hoodies through a special Snapchat lens the animation comes to life. It is a real show-stopper! The only way you could purchase one of the hoodies was if you owned a Drug Receipts NFT. Additionally, we gave away over 100 of the hoodies to select members within the community just for owning a special trait within the collection, kind of like holding a golden ticket or owning a special Pokémon card.
Set a Roadmap — Your collectors want to know what is coming. A roadmap is a great way to let holders in on the long-term vision and goals for your brand. Your roadmap should give holders something to look forward to. And it should instill confidence that there is a long-term plan for building and sustaining value. You can set specific goals, like “launch online store” or you can tease upcoming milestones, like “high-profile collaboration with a music artist.” You can set specific dates or months, or you can bundle items into quarters. Mostly just make sure you keep your road map updated — it is okay to make adjustments — and make sure you set goals that you can meet.
Foster Community — Communities play a huge role in the NFT space. Since the business model is inverted and all of your collectors are invested upfront they become like virtual shareholders that want to know what you are doing to protect and grow their investment. At their best, communities become key collaborators in your project. Most communities are managed online through the social communication platform Discord. In the Drug Receipts Discord server, we have over 12K followers. We recently asked our community to elect thirteen members to serve on a board to provide feedback and direction for the brand. In this way, we are expanding the relationship between the community and the creators.
Build a Good Team — In business you are only as good as the people around you and the NFT industry is no different. Surround yourself with good people. But one thing that is unique about NFTs is the community involvement. We have already had several members of our community transition onto the core operations team after demonstrating their skills, commitment, and value within the community. Because Drug Receipts is a brand with purpose, built on clearly stated pillars, we have been lucky to attract a thoughtful, skilled, and highly engaged audience. When you think about it, engaging with gifted community members over an extended period of time in the Discord server is kind of like the best interview process ever.
Focus on Mental Health — Communities, and Discord servers are great. But they are also 24/7. We have holders in every timezone and the Discord never sleeps. One of the dark sides of the inverted business model of NFTs is that when you make a lot of money from collectors upfront, there is real pressure to do something with it, and to deliver a return on the investment that people made in you. And since the community never sleeps, the pressure never stops; it can be unrelenting. That is why it is imperative that you create boundaries for yourself and you look for ways to identify and measure value outside of minute-to-minute metrics like floor price. You have to believe in your long term vision and not get too consumed with daily fluctuations. The pressures and the grind of NFTs can be unrelenting. Burn out is a real concern. You have to be mindful of your mental health. Honor it.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
Drug Receipts is a movement. It is a project founded on ideals as expressed in our pillars: Art & Subversion, Science & Skepticism, Community & Sport. Our objective is to alter human minds. Through art and subversion we hope to encourage more thoughtful, nuanced conversations, especially surrounding challenging topics. Through science and skepticism we want to introduce people to the tools and skills to become critical thinkers and better, more purposeful consumers of information, and through community and sport we aim to encourage the activities and the spaces to bring people together to bond over shared values and ideals.
We are very blessed that very prominent leaders read this column. Is there a person in the world, or in the US with whom you would like to have a private breakfast or lunch, and why? He or she might just see this if we tag them :-)
Sam Harris and Dr. Steven Novella are both peak critical thinkers. I could imagine nothing more thrilling than spending an hour with either one of them, getting to listen to them speak, while personally vacillating between feelings of amazement and inadequacy.
Thank you so much for these excellent stories and insights. We wish you continued success on your great work!
