sweatcoin business model

 https://productmint.com/sweatcoin-business-model-how-does-sweatcoin-make-money/

How Does Sweatcoin Make Money?

Sweatcoin makes money by promoting other brands as well as by partnering with insurance companies and other governmental bodies.

It has to be noted that the Sweatcoin does and will not make money from the issuance of its SWEAT token.

The cryptocurrency is managed by a separate organization called the SWEAT Foundation, which oversees the distribution of those tokens.

Therefore, the business model of Sweatcoin is largely based on advertising. Promoting your brand on Sweatcoin has the advantage of being able to target a specific customer segment, i.e. people that are already or want to get fit.

As a result, sports-related brands can tap into a pool of tens of millions of dedicated customers willing to try out new products to improve their health.

Many of the products on Sweatcoin, therefore, offer trials to things like online gym subscriptions. From there, trainees can be converted into actual customers.

So, without further ado, let’s take a closer look at all the ways Sweatcoin generates revenue.

Brand Promotions

The majority of the revenue that Sweatcoin generates comes from promoting other brands on its app.

Brand partners include companies like Apple, Starbucks, Amazon, Les Mills, H&M, and hundreds of others.

Sweatcoin likely makes money whenever a user redeems his or her tokens for one of the many available products and services.

These brand partnerships allow companies to introduce new products and services to a highly targeted audience.

For instance, a brand that creates sports clothes can assume that users on Sweatcoin are, on average, more active and could thus become long-term customers.

Since Sweatcoin has over 90 million registered users, its app can also serve as a means to make one’s brand known in the first place.

Partnerships

Another source of income for Sweatcoin comes from partnerships it has with both insurance companies as well as other institutions.

For instance, in September 2019, Sweatcoin announced a collaboration with Hannover Re in which Sweatcoin provided the reinsurer with various health-related data points.

Additionally, Sweatcoin also partnered with the UK’s National Health Service (NHS) with the two piloting a new type of behavior change program. This pilot would introduce people with a greater risk of developing Type 2 diabetes to different types of physical activity.

Sweatcoin’s partners then likely compensate the company throughout the duration of the partnership.