Gym owners aim to bring NFT membership to fitness clubs
While many nonfungible token (NFT) projects continue to suffer losses due to the bear market, a number of organizations have started using NFTs to solve real-world problems.
In particular, NFTs for subscription/membership-based models, or loyalty programs, are gaining ground. This point was highlighted in Forrester’s 2023 NFT and Metaverse Prediction Report, which notes: “Brands will swing from ‘cool’ non-fungible tokens (NFTs) towards loyalty. In 2023, brands will shift their focus to NFTs linked to loyalty, brand experience and deepening customer relationships.”
In fact, NFT use cases like these are being implemented today. For example, Starbucks recently announced an NFT-based loyalty program. Industry experts have also begun to explain why subscription-based services should implement NFTs to improve the relationship between brands and consumers.
NFT membership for fitness clubs
Although the concept of using NFTs for loyalty programs or membership models is new, mainstream sectors are beginning to understand their potential. The billion-dollar fitness industry could be the next sector to implement NFT-based memberships, as a handful of innovative gym owners have already begun exploring this model.
Deni Zulic, CEO and founder of Global Fit Club – a blockchain-based fitness platform – told Cointelegraph that Global Fit Club will soon offer NFT membership to give users access to a full suite of fitness services. Zulic explained that Global Fit Club partners with well-known gyms such as Anytime Fitness and F45 Training, to ensure that members have access to more benefits when they have an NFT membership.
“This is not just a gym membership. NFT holders will receive discounts on fitness-related services such as supplements, personal training and equipment, as Global Fit Club has a number of partners lined up to offer this,” he said. Zulic also noted that Global Fit Club will encourage users to exercise through its move-earn platform that pays NFT holders cryptocurrency when movement is recorded.
While the concept behind the Global Fit Club is innovative, Zulic explained that an NFT membership model is capable of solving many challenges facing the fitness industry. For example, he pointed out that gym membership prices fluctuate over time, which can create financial difficulties for gym goers:
“Some gyms have been around for years, and once offered memberships for $6 a month. Those same gyms now offer memberships for $50 a month. Users who have $6 membership prices can’t use their membership, but continue to keep it so they don’t need to pay more if they decide to go to the gym again. Or some members may be forced to pay higher fees because of things like rising inflation.”
Zulic believes that an NFT-based gym membership can solve this problem, as members can buy the non-fungible token at the floor price and then continue to reap the benefits for life. He added that if a member chooses to cancel their membership, they can resell their NFT and even make money depending on the asset’s value over time. “With NFTs, gym members can have full ownership of their memberships. They can lock in a certain price and then sell their membership if they choose,” Zulic said.
In addition, Zulic mentioned that while some gyms have loyalty programs that allow members to earn rewards for working out, an NFT membership can ensure that crypto payments are sent directly to a user’s wallet when movement is tracked: “There is actual money behind this, which will help with customer retention and satisfaction.”
Recent: What Musk’s Twitter Acquisition Could Mean for Crypto Adoption on Social Media
To Zulic’s point, a survey found that 67% of gym members never actually use their membership. Recent findings also reveal that Americans spend $397 million a year on unused gym memberships. An incentive program using crypto payments could well solve this problem.
Zulic noted that Global Fit Club plans to launch in Q1 of 2023. As such, it has yet to be determined whether NFTs will actually solve challenges associated with traditional gym memberships. Meanwhile, industry experts in the wellness sector are beginning to notice the potential behind NFT membership models. Lavinia Errico, co-founder of Equinox Fitness Clubs, told Cointelegraph that she believes NFTs will have tremendous value for membership-based companies:
“Exercise, wellness, social, private clubs, etc., all of these businesses are ripe for this massive disruption. Any companies that don’t embrace this will be left behind. It’s best to get on board now.”
Errico said she recently joined the advisory board of Rafi Lounge, a Malibu, Calif.-based wellness and fitness center that currently offers NFT memberships. Rafi Anteby, founder of Rafi Lounge, told Cointelegraph that while the firm has been open for over two years, he recently became aware of the need for a more efficient membership model.
“There are many wellness clubs around the world that overpromise and underdeliver benefits to their members. Members are also usually locked into high prices even if they don’t take advantage of their membership. There are also security issues associated with traditional gym memberships,” he said.
To solve these problems, Anteby has started pre-selling a handful of NFT memberships to current members.
“This is a new membership model, so trust is key. I’m starting with people who trust me, as I’ve been an existing business for over two years. I think it’s important to know who is behind an NFT drop before users jumps in,” he explained. Anteby added that the official Rafi Lounge NFT Coin will take place on November 11.
Anteby echoed Zulic and explained that using NFTs as membership gives users full ownership. “This gives members the opportunity to reap more benefits, along with the ability to sell their membership on a secondary market if they choose to do so,” he said.
However, Anteby hopes that Rafi Lounge members will keep their memberships, noting that community building is also important with this model. “Rafi Lounge is about bringing Web2 and Web3 together and this is made possible by using NFTs,” he said.
More importantly, Anteby pointed out that NFT-based memberships are able to ensure greater security, noting that the verification is based solely on the non-fungible token. “We have an app that creates a unique QR code for each member who has an NFT. It also uses facial recognition. This ensures that members are the only ones who can come in and take a class.”
Will NFT membership appeal to the mainstream?
While NFT-based gym memberships appear to have potential, it remains to be seen whether they have mainstream appeal. In fact, hacks and fraud associated with NFT projects, along with expensive floor prices, can hinder adoption.
Still, Zulic remains optimistic, noting that Global Fit Club’s standard NFT membership is low-priced and gives members lifetime access to partner gyms in the United States.
“According to our research, Global Fit Club’s move-to-earn platform is also likely to cover the cost of a member’s NFT within seven months,” he said. Also, Zulic and Anteby have noted that their NFT memberships can be sold on secondary markets, giving members the opportunity to earn more than what they paid.
However, some industry experts are critical of NFT membership models that can be resold on secondary marketplaces such as OpenSea. Lee Hnetinka, founder and CEO of FastAF – an NFT platform focused on utility – told Cointelegraph that NFTs have evolved to become more than just investment vehicles:
“NFTs are now being used to offer chain tools. Even if these could be sold, this defeats the purpose behind these models.”
Hnetinka added that while NFT membership offers a number of benefits, he believes the most important factor to consider for mainstream adoption is interoperability. For example, Hnetinka explained that some fitness clubs with NFT membership should consider giving members access to more health apps or to other fitness centres. “Sellers want a new engagement protocol, and NFTs allow this.” With this point in mind, Zulic noted that Global Fit Club plans to integrate with fitness applications that have open source APIs during the third quarter of this year.
Recent: Tokenization at the crossroads of the trucking industry to ensure efficient payments
Micah Archibald, CEO of Ninja Media and a spin instructor for the company Spinning, also told Cointelegraph that while the concept behind NFT-based gym memberships may not catch on immediately, she sees value in giving members access to fitness apps if they own certain NFTs. However, she doesn’t think many gyms are able to build out the technology and infrastructure needed to incorporate NFTs into their membership models.
With this in mind, Zulic noted that Global Fit Club is responsible for adopting the technology. “Gyms that typically implement the latest technologies for their equipment or in their apps have come to realize that Web3 and crypto are here to stay. I think in the next five years, innovative gyms will have Web3 integration,” he said.
