Inconsistent Revenue

Fitness centres and practitioners tend to need more consistent income. Seasonality can be an issue, with spikes in interest depending on the time of year. Gyms are renowned for spikes in interest in January as many become fitness addicts after a glutinous festive period. This tends to be short-lived as consistency drops off and interest wains. Similarly, the summer weather may incentivize people to train outdoors rather than inside a gym so that members may cancel or pause their membership over this period. Alternative sources of revenue can help smooth the flow of income and prevent the need to “save for a rainy day”. Failure to maintain consumer engagement with their fitness goals can cause cashflow shortfalls in off-peak seasons. Maintaining a consistent pipeline of client engagement can be challenging.

Fitness centres and practitioners could launch their services as an NFT collection. The NFT can be used to gain access to the fitness center or be redeemable for many PT sessions. These NFTs can be sold on the secondary market for fair value.

This guarantees upfront cash flow for the gym/PT from the initial NFT sales and continued revenue from subsequent sales from the royalties embedded within the NFT smart contract. The secondary market will then dictate the value of the membership/sessions on the open market. Still, the gyms could sell the memberships for a slight discount to increase the likelihood of the NFT project selling out. The subsequent sales, and associated royalties, should then help bridge the shortfall in the usual market sale price, with the benefit of securing cash flows.

Alternatively, NFTs can be launched as an access pass to fitness subscription content similar to subscription models that Spotify and Netflix use for music and films. Fitness providers can offer tiered NFT access for different types of content/membership. The higher the tier, the greater access to available content, better nutrition advice or perhaps one-to-one personal trainer sessions.