Bringing NFT memberships to wellness clubs is the goal of gym owners

Key points: 

• NFTs for subscription/membership models or loyalty programs are gaining traction.
• Global Fit Club will soon offer NFT memberships that give users access to a full suite of fitness services.
• Also, they will incentivize users to exercise through its Move to Earn platform.
• Certain fitness clubs with NFT memberships could consider giving members access to other health apps or other gyms.

While many non-fungible token (NFT) projects continue to suffer due to the bear market, many organizations have started using NFTs to solve real-world problems.

In particular, NFTs for subscription/membership models or loyalty programs are gaining traction. This is underscored by Forrester's 2023 NFT and Metaverse Forecast report, which states: "Brands will shift from 'cool' non-fungible tokens (NFTs) to loyalty. In 2023, brands will shift their focus to NFTs related to brand experience and deepening customer relationships.”

In fact, NFT use cases like this are being implemented today. For example, Starbucks recently announced an NFT-based loyalty program. Industry experts are also beginning to explain why subscription-based services should implement NFTs to improve brand-consumer relationships.

NFT Membership in Health Club

Although the concept of applying NFTs to loyalty programs or membership models is new, the mainstream industry is starting to understand their potential. The multi-billion dollar fitness industry could be the next to embrace NFT-based memberships, as a handful of innovative studio owners have begun to explore the model.

Deni Zulic, CEO and founder of blockchain-based fitness platform Global Fit Club, told that Global Fit Club will soon offer NFT memberships that give users access to a full suite of fitness services. Zulic explained that Global Fit Club has partnered with well-known fitness centers such as Anytime Fitness and F45 Training to ensure members get more benefits by having NFT membership.

“It’s not just gym memberships. NFT holders can get discounts on fitness-related services such as supplements, personal training, and equipment because Global Fit Club has many partners who offer this service,” he said. Zulic also noted that Global Fit Club will incentivize users to exercise through its Move to Earn platform, which pays NFT holders in cryptocurrency when their movements are recorded.

While the concept behind Global Fit Club is innovative, Zulic said the NFT membership model could solve many of the challenges the fitness industry is currently facing. For example, he points out that gym membership prices can fluctuate over time, which can put bodybuilders in financial trouble:

“Some gyms have been around for years, once offering memberships for $6 a month. These same gyms are now offering memberships for $50 a month. Users that have $6 membership rates may not use their membership, but continue to keep it so they don’t have to pay more if they decide to go to the gym again. Or, some members may be forced to pay higher fees due to things like increasing inflation.” 

Zulic believes that NFT-based gym memberships can solve this problem, as members can buy non-fungible tokens at a reserve price and then benefit for life. If members decide to cancel their membership, they can resell their NFTs and even make a profit over time based on the value of the asset, he added. “With NFTs, gym members can fully own their membership. They can secure a specific program and then sell their membership if they want,” Zulic said.

Additionally, Zulic mentioned that while some gyms have loyalty programs that allow members to earn rewards for exercising, NFT membership ensures that crypto payments are sent directly to the user’s wallet when tracking exercise: “There’s actually money behind this to help Customer retention and satisfaction.”

According to Zulic, a survey found that 67% of gym members never actually use their membership. Recent results also show that Americans spend $397 million a year on idle gym memberships. Incentive programs that use crypto payments can address this well.

Zulic noted that the global fitness club is scheduled to launch in the first quarter of 2023. Therefore, it remains to be determined whether NFTs can truly solve the challenges associated with traditional gym memberships. At the same time, industry experts in the health field are starting to see the potential behind the NFT membership model. Lavinia Errico, a co-founder of Equinox Fitness Clubs, told that she believes NFTs will be of great value to membership-based businesses:

“Fitness, wellness, social, private clubs, etc., all of these businesses are ripe for this huge disruption. Any companies who do not embrace this will be left behind. It’s best to get on board now.” 

Errico said she recently joined the advisory board for Rafi Lounge, a Malibu, California-based health and fitness space that currently offers NFT memberships. Rafi Lounge founder Rafi Anteby told that while the company has been around for more than two years, he recently realized the need for a more efficient membership model.

"There are many health clubs around the world that overpromise their membership and fail to deliver. Even if members don't use memberships, they are often locked into high rates. Traditional gym memberships also have security concerns," he said.

To address these issues, Anteby has started the pre-sale of a handful of NFT memberships to existing members.

“This is a new membership model, so trust is key. I start with people who trust me because I’ve been building a business for over two years. I think it’s important to understand who is behind the decline of NFTs before users join. ," he explained. Anteby added that the official Rafi Lounge NFT mint will take place on November 11.

Anteby echoed Zulic, explaining that using NFTs as members allows users to have full ownership. "This gives members the opportunity to get more benefits, and they can also sell their membership on the secondary market if they want to," he said.

However, Anteby wants Rafi Lounge members to keep their memberships, noting that community building is also important in this model. "Rafi Lounge aims to bring Web2 and Web3 together, which is achieved by using NFTs," he noted.

What's more, Anteby points out that NFT-based memberships offer greater security, and verification is based entirely on non-fungible tokens. “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 only members can come in for classes.”

Will NFT membership appeal to the mainstream?

While NFT-based gym memberships appear to have potential, it remains to be seen whether they will appeal to the mainstream. In fact, hacks and scams associated with NFT projects and expensive floor prices can hinder adoption.

However, Zulic remains optimistic, noting that Global Fit Club's standard NFT membership is affordable and that members have lifetime access to partner gyms across the US.

“Based on our research, Global Fit Club’s money-making platform also has the potential to recover the cost of member NFTs within seven months,” he said. Additionally, Zulic and Anteby discovered that their NFT memberships could be sold on the secondary market, giving members the opportunity to earn more money than they paid.

However, some industry experts are critical of NFT membership models that can be resold on secondary markets such as OpenSea. Lee Hnetinka, founder and CEO of FastAF, a utility-focused NFT platform, told Cointelegraph that NFTs have grown into more than just investment vehicles:

“NFTs are now being used to provide on-chain utility. While these could be sold, this defeats the purpose behind these models.” 

Hnetinka added that while NFT membership offers many benefits, he believes the most important factor to consider for mainstream adoption is interoperability. For example, Hnetinka explained that certain fitness clubs with NFT memberships should consider giving members access to other health apps or other gyms. “Merchants want a new engagement protocol, and NFTs are enabling that.” With that in mind, Zulic noted that Global Fit Club plans to integrate fitness apps with open-source APIs in the third quarter of this year.

Micah Archibald, CEO of Ninja Media and Spinning’s spin coach, also told that while the concept behind NFT-based gym memberships won’t catch on right away, she believes that if members own certain NFTs, it could give them access to fitness apps authorized. However, she believes that many gyms are unable to build the technology and infrastructure needed to integrate NFTs into their membership models.

With that in mind, Zulic noted that fitness clubs worldwide are responsible for adopting the technology. "Gyms that typically implement the latest technology in their equipment or applications have realized that Web3 and encryption are here to stay. I believe innovative fitness clubs will integrate Web3 within the next five years," he said.