January 30, 2023

NFT Memberships: a loyalty program for communities

NFT Memberships: a loyalty program for communities

 NFT-based memberships are becoming more and more common across a wide range of businesses. So, for instance, a company might restrict access to its content to holders of particular NFTs, avoiding the problem that arises when customers share their paid subscription membership with others.

The fact that many seek to integrate NFT-based memberships into their websites and platforms is not surprising in light of this. But what precisely are NFT-based memberships? Before deeply analyzing this NFT Utility, let's start by clarifying what an NFT is.

What are NFTs?

Many of us, deeply immersed in the world of cryptocurrencies, often forget that it is still in its infancy. Most people still need to learn what blockchain and cryptocurrencies are. Therefore, we want to ensure that everyone knows what NFTs are.

These digital assets are non-fungible items, as suggested by their description. Thus, each NFT is distinctive. As a result, even if two NFTs were used to represent the same digital file (such as JPEG), their on-chain data wouldn't match. So, NFTs are not interchangeable.

NFTs are suitable for digital art and online collectibles because of their uniqueness. NFTs can also be connected to various forms of ownership evidence, such as physical assets like real estate. Moreover, those NFTs can also serve as a substitute for tickets and credentials. Multiple utilities have real-life value for owners that can be attached to an NFT, the Membership one of them. But why use an NFT membership instead of a traditional one? 

What is an NFT membership?

Membership programs have always been used as a way to create stronger relationships within a community. NFT memberships are similar.

NFT-based memberships are unique loyalty programs that call on the possession of a particular NFT by users or participants. Users can gain access to certain services, advantages, incentives, etc., by demonstrating their control of the necessary NFT.

As a result, there are a variety of alternatives for this kind of Membership. Users may get access to a certain DAO, Discord group, online club, or special event, for example. In the latter scenario, we frequently discuss NFT ticketing, particularly if it is a one-time event.

How NFT membership works

Now that everyone is up to speed on NFTs, let's discuss how they can be used as a permanent ticket to a membership program.

The verifiability of NFTs as authentic is a component of their worth. As technology advances, companies and creators may now offer NFTs to their communities and provide them access to unique alternatives by verifying these digital assets.

Opposite to traditional membership programs, the financial value of NFT membership can increase over time.

This creates a completely new dynamic, where the value is not only determined by the organization that is offering the memberships but also by the members themself, that also become champions and advocates of your organization. 

They will have all the interest to let your events and organization grow.

The focus point of NFT membership is that: it can be easily resold to the secondary market on Outwave or any other open marketplace, increasing your community and generating ongoing revenue for members and organizations.

It's important to say that every time an NFT membership is sold or transferred, its membership duration will be shortened. This is to prevent more people from getting the same perks for the same events. 

Why are NFT memberships valuable?

We can explain why NFT memberships have so much potential as a market leader in subscriptions and memberships.

Today's consumers are quite accustomed to memberships and their daily benefits. In addition, memberships are renowned for their value, offering benefits like exclusive discounts on items, quick shipping, and access to streaming services.

The difference with NFT-based memberships is that clients receive a digital asset in place of a club card, VIP bracelet, or membership ticket on a lanyard.

You may target casual fans and convert them into devoted brand supporters by ensuring you express your membership program's value.

The number of bonuses and advantages NFT members may get is virtually endless. Brands have many chances to interact with and reward their most devoted consumers thanks to the membership model.
For instance, businesses may provide NFT members with:

  • Access to exclusive goods
  • Discounts on select products
  • Access to online gatherings with founders, NFT members, or famous people
  • Obtaining access to an event backstage
  • Early access to limited-edition products
  • Access to gated or premium content

NFT memberships, however, go beyond the purchase of exclusive goods and entertainment. The real benefit of memberships is the sense of community they foster. You are promoting a sense of community and similarity among the owners of your Membership NFTs.

Communities provide your most ardent consumers with a forum for interaction, help you spread the word about your company among their networks, and reduce the likelihood of leaving you for a competitor.

Additionally, NFT communities offer your business a fantastic setting to test out new items on your most loyal supporters, get input on business plans, and organize referral schemes to entice community members to assist the brand in acquiring new clients. Finally, it's crucial to note and remember that the length of an NFT membership will be cut whenever it is sold or transferred. This is done to stop others from receiving the same benefits for the same item.

As Demind, we are exploring all these use cases as NFT can be disruptive in how users sell utilities and services in the next feature.