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Using NFT-based Memberships to Grow Your Business

Marc Lewis
Managing Editor
December 14, 2022
Using NFT-based Memberships to Grow Your Business
Update
Since this post was written, Hyperledger FireFly has reached 1.0. Learn more here!

NFT-based memberships offer a unique opportunity for independent creators and content producers to build sustainable businesses. By using NFTs to manage access to exclusive content, assets, or events, companies can build customer loyalty and open new revenue streams.

In this post, we'll explore how NFT-based memberships work, the benefits they offer today’s businesses, and some of the challenges they present. For businesses looking to start a membership program, this should give you a few ideas that may help bring your vision to life.

NFT Membership Benefits

We know that an NFT is an asset represented as a digital token on a distributed ledger. These tokens are unique, traceable, and trackable, and might grow in value based on scarcity or demand. In other articles we talked about how they can be soul-bound, dynamic, and even fractionalized, meaning that fractions of them can be bought by a group. The idea behind NFT-based memberships is that we can take this value, the uniqueness and ownership the technology allows, and mint assets to represent membership in a club or community, much like a ticket or passcode gets you into an exclusive room.

NFT are fun rewards, often taking the form of a piece of art or exclusive video, so there is value in owning them and some cachet for users who want to get a unique perk. Using them to track and reward membership makes a lot of sense. But they also might solve a lot of inefficiencies in membership systems and better track engagement.

Improving user experience

NFT-based memberships could eliminate paper-based memberships, or the idea of traditional membership cards, as all one would have to do to enter a club, site, or company is present a digital wallet that has the required NFT in it. The inviting organization could eliminate any paper systems or existing back office systems that verify identity, as identity would be attached to the NFT.

New revenue streams

NFT memberships can create real value for businesses and customers. Companies can charge upfront for inclusion and add micro-fees, or pay-as-you-use pricing, all tracked via smart contract. For membership holders, the actual membership may go up in value as well. Say space becomes limited, a membership holder could sell their space for more than they initially paid to join.

Eliminating forgery and fraud

Password sharing, false identities, there are all types of ways to bypass membership fees and get into places you’re not allowed to be—especially on the internet. Rather than relying on physical cards, passcodes, or documents, NFTs allow members to store digital and securely encrypted tokens which can be authenticated effortlessly. The permanent, tamperproof records allow for increased transparency and authenticity verification in the membership process.

Ideas for NFT-based Membership Programs

An NFT-based membership offers an exciting new way to grant exclusive access to digital content and experiences. As we think about ideas to put these into action, let’s brainstorm some ideas across industries:

  • A gaming studio could create an NFT that grants buyers early access to the next release, members-only digital assets such as avatar skin designs, or live events with the game developers.
  • A music label could offer exclusive previews of upcoming albums or behind-the-scenes looks at production sessions. These types of experiences were once thought impossible to monetize, but with NFTs they turn into valuable opportunities for both fans and creators alike.
  • Media companies (Time is an example) are starting to issue NFTs to build communities of holders, rewarding people for engaging with their product, then introducing them to like-minded customers.
  • A grocery store, improving on the keychain barcode, might issue an NFT-based membership that collects data on what is purchased, then push tailored coupons to the user, increasing loyalty among valued shoppers.

When it comes to NFT memberships, like many NFT use cases, initial use cases may skew playful and collectible, and then evolve into something more functional.

Flyfish Club became the first private dining club where membership is purchased via an NFT, creating exclusivity and a new, interesting way to take reservations.

NFT Membership options from Flyfish Club
Flyfish Club NFTs for sale, image via Flyfish Club

Surely these use cases, fun, interesting, and newsworthy, will inspire other more functional membership programs that replace the dated systems we consumers interact with on a daily basis.

How to Create an NFT-based Membership Program

Creating an NFT-based membership program can be a great way to reward customers and fans who appreciate your product or brand. The idea behind it is simple: create custom tokens on a blockchain network, assign them to users based on their level of loyalty, and provide exclusive benefits.

To get started, initiate the process of designing your network and tokens. You'll want to make sure to include functionality and design that reflects your brand while also providing customers with an asset they can proudly display. An NFT platform like ours makes it easy to mint your own NFTs. (You can read this how to mint an NFT guide to see how the platform works.)

Next, you'll use blocktrain to track how many are out in the wild and where they may have ended up.

Finally, you can define membership tiers and allocate specific benefits by tier. By doing so, you will have established an NFT-based membership program that provides loyal customers with exclusive rewards for showing you support.

Final Thoughts

NFTs have the potential to revolutionize how we interact with the digital world, and membership is just one area where they can be used. By using an NFT as your membership token, you can provide enhanced security, flexibility, and convenience for your members. If you want some help designing an NFT-based membership program, our team is here to help. Our NFT platform makes it easier than ever for businesses to create NFTs at scale, gas free. If you're interested in learning more, start with this tutorial on how to mint an NFT using the Kaleido platform.

Build Powerful NFT Experiences

Our NFT platform makes it easy to build NFT solutions that are fully customized to your needs and easy for your customers to use.

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Build Powerful NFT Experiences

Our NFT platform makes it easy to build NFT solutions that are fully customized to your needs and easy for your customers to use.

Try It Free
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Interested in Blockchain?

Start learning blockchain and creating enterprise solutions today with a free Kaleido account!

Create Free Account

Build Powerful NFT Experiences

Our NFT platform makes it easy to build NFT solutions that are fully customized to your needs and easy for your customers to use.

Try It Free

Build Powerful NFT Experiences

Our NFT platform makes it easy to build NFT solutions that are fully customized to your needs and easy for your customers to use.

Try It Free

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