Sweatcoin is a free mobile application under the health and fitness category. It was launched in 2015 by Russian businessmen Oleg Fomenko, Egor Khmelev, and Anton Derlyatka.
The app was designed to encourage physical activity and exercise by rewarding members with a digital currency called “Sweatcoins.”
The concept behind the app is to motivate people to live healthier lifestyles by converting their daily steps and physical activity into a digital currency that can be redeemed for various rewards, discounts, and products.
This model works by connecting big brands to the same platform as fitness enthusiasts who wish to make a little extra cash.
Let’s learn how Sweatcoin makes money, how it works, its business model, monetization strategies, and other things.
Understanding the Sweatcoin Business Model
Sweatcoin manages to stay ahead of the pack by utilizing a variety of strategies. These include keeping its members informed, gathering data about user habits, and ensuring that everyone is motivated to stay the course.
Through its app, the company gives tangible rewards to users, provides continuous updates regarding their health, and offers a conducive environment for them to connect socially.
This business model works like a charm because everyone appreciates the benefits they get from the app.
How Sweatcoin Works?
1. Step Tracking
Users get to download the Sweatcoin app on Google Play or App Store and then register for a free or premium account. They are then required to allow the app to access their GPS location.
The app will use the device’s sensors to record every step they take. The app requires GPS location because certain brands are only available in specific regions of the world and can therefore only offer services, products, or rewards to people in those regions.
It is advisable that every user allows the app to work in the background since deactivating it may mean it won’t record data accurately.
2. Conversion to Sweatcoins
The app connects to your Google Fit, Apple Fitness+, or any other default health and fitness app and then counts every step you make and retains the data until you achieve a specified threshold.
As the account holder, you can then convert your steps and activity into Sweatcoins, which are a form of digital currency that was designed for the Sweatcoin ecosystem but is now being used on other exchanges as well.
3. Rewards and Offers
As an account holder, you must avoid engaging in any activity that can compromise accurate step reading. For instance, swinging your arms as a way of creating motion may lead to account bans.
However, if you use the app correctly, you’ll be free to redeem your accumulated Sweatcoins for different rewards, discounts, products, and services from partner companies and brands.
Rewards are available in a wide variety including fitness equipment, cash, clothing, gadgets, experiences, and more.
Take note that in most cases Sweatcoin operates within its own digital currency ecosystem. That means you may not be able to trade with it outside of the said system and a few other networks.
Sweatcoin relies on three main methods of generating income which include
- Advertising revenue
- Brand affiliations
- Premium memberships
We’ll talk about these as we move forward.
Monetization Strategies
In-App Advertising
After its launch, Sweatcoin immediately started coming up with strategies to monetize content. One of the most popular was in the form of reward videos.
In this case, users would be allowed to watch at least three videos and then receive a randomized reward of Sweatcoins for completing the task. This strategy proved to be relatively successful since it gave users a reason to keep coming back to the app.
Most videos on the app are aimed at creating awareness regarding products and services available to the public. Note that advertisements may also be in other forms including posters or banners, not only videos.
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Partnership with Brands
Another important aspect of monetization is that Sweatcoin allows service and product providers the opportunity to showcase their offerings and thus increase awareness and sales.
Sweatcoin chooses network partners carefully to ensure that all parties can achieve their goals. That means there is a process of vetting before any adverts are posted on the app.
At the end of the day, partners pay an agreed-upon amount and Sweatcoin takes a fee before also sharing the rewards with app users.
It is equally important to note that Sweatcoin provides prominence to partner brands on the app’s marketplace. Featured partners can decide to offer rewards in the form of free or discounted products such as clothes, fitness equipment, gadgets, and services.
Finally, brand partnerships can take a slightly different outlook depending on what a brand requires. For instance, some would like to get information regarding potential customers but they have no way of collecting the necessary data.
Such brands can approach Sweatcoin and agree on a mechanism to collect such information. Additionally, a brand may enter into a deal with Sweatcoin to develop a fitness or health program.
Promotional Offers
Another monetization strategy is in the form of promotional offers. In this case, Sweatcoin encourages users to take advantage of different offers available through the app.
For instance, the company may encourage users to buy fitness equipment from a specific store or brand. This makes it possible for users to find the equipment they need at affordable costs.
At the same time, it helps different stores or brands achieve their sales goals. The stores or brands can then pay commissions or fees as a way of appreciating the campaigns carried out on the app.
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Premium Subscription
As noted earlier, Sweatcoin is a free app. However, you can subscribe to the premium plan which offers more benefits in the long run.
Before you decide to take the premium plan, you should consider subscribing to the seven-day free trial. After that expires you can either choose to pay on a monthly or annual basis depending on what you find desirable.
Users on the free plan can only earn up to 10 Sweatcoins per day. Keep in mind that one Sweatcoin is equivalent to 1,052 steps.
On the other hand, users on the premium plan can earn an unlimited amount of Sweatcoins each day. Basically, you earn two times the amount of Sweatcoins for every step you take under this plan.
Another point to note is that the premium plan is subject to a fair use policy. This helps ensure that people with malicious intent do not take advantage to make abnormal profits.
The fair use policy also helps keep users within reasonable health and fitness limits. That means users won’t feel the urge to take too many steps just to earn more Sweatcoins.
Benefits for Premium Users
Apart from earning more Sweatcoins, users on the premium plan get access to some of the best deals on the app. That means you are likely going to pay less for products and services advertised through the app.
Additionally, premium users get priority customer service. In case you are having trouble with your app, you can simply get in touch and expect a response in a relatively short time.
Subscription Fees
To enjoy the benefits of the Sweatcoin premium plan, you’ll need to pay $4.99 every month. Alternatively, you can choose to pay $24.99 per year which is much cheaper considering that the monthly plan becomes costlier over time.
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Affiliate Marketing
How Sweatcoin Utilizes Affiliate Marketing
Affiliate marketing is another strategy that Sweatcoin employs to increase awareness but also to provide rewards to its users. As a new user, you are required to sign up for a free Sweatcoin account and then provide your legal details including your name and a valid email address.
Once that is done, you’ll be provided with a personal referral link that you can post on social media or other online platforms. In essence, you’ll be marketing Sweatcoin to your friends and acquaintances as a way of influencing them to download and start using the app.
When a minimum of 20 people use your link to join the app, you’ll be upgraded from a member to an influencer.
As an influencer, you’ll be able to receive rewards which you can redeem for cash, donate to charity, and buy products and services. Additionally, you’ll have access to the Sweatcoin library where you can find inspiration on what to do in order to increase your following.
The app also integrates with most social media platforms allowing you to share content with a few clicks of a button. Finally, affiliate marketers can use their unique content to generate views and possibly build a following.
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Revenue from Affiliate Marketing
Sweatcoin works with a mediator named IronSource LevelPlay to ensure that all revenue collections and distributions are done seamlessly. The amount of revenue an influencer can make depends on the strategies they put in place.
It is important to note that the more people download and start using the Sweatcoin app, the more the company’s value grows. This gives it the leeway to negotiate for better rates when getting into agreements with partner brands.
As a result of that setup, influencers that manage to convince a lot of people to download and use the app ultimately receive the largest share of the revenue.
In most cases, Sweatcoin encourages influencers to recruit new members within specific timelines and this helps improve and sustain business growth.
Once an influencer meets the specified threshold in Sweatcoins, they can request a payout which will be deposited in their PayPal or bank account through Wise Transfer.
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Future Monetization Prospects
Potential Partnerships
As the world evolves and becomes more technology-oriented, people are continuously looking for ways to stay healthy and fit. Apps like Sweatcoin offer an excellent solution for such people.
Big brands are able to showcase their products on the Sweatcoin marketplace while at the same time sharing their profits with users who are looking to stay fit. What’s more, consumers throughout the world get access to information regarding some of the latest products and services from the app’s marketplace.
This win-win situation makes the Sweatcoin concept one of the most innovative and future-facing solutions. With that in mind, it is easy to understand why future monetization prospects look quite positive.
The company has already partnered with some of the world’s most reputable brands including OkCupid, Headspace, Audible, and Tidal. It is dedicated to matching such brands with audiences that are young, tech-savvy, and conscious of their health and fitness.
In light of that, it is likely that the company will build stronger relationships with governments that want to manage the cost of healthcare, insurers looking to promote healthier lifestyles, and private companies offering health and fitness services or products.
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Possible New Features or Services
While the company does not sell user data to third-party entities, chances are that it may consider creating a service based on the need to gather data.
This may be done by encouraging users to share things such as their diet, fitness routine, and other information that can help in the creation of health programs. Users who volunteer such information can then be rewarded with Sweatcoins.
Market Expansion Possibilities
Sweatcoin currently has over 120 million registered users around the globe. The company believes that it will expand this base to one billion in the coming months or years.
It has also seen the creation of over 43,295,980,198 Sweatcoins. This expansion is likely to give it an even better standing in terms of revenue generation and marketing.
Wrapping Up
Sweatcoin has come up with a brilliant business model that is likely to spur its growth into the foreseeable future. Currently, it is already working with over 600 partners which gives it a good footing financially and reputation-wise.
As people come across its monetization strategies, including affiliate marketing, in-app adverts, and reward system, it is clear that a lot more will sign up and earn a few Sweatcoins as they continue leading healthier lifestyles.
It is also likely to attract more brands that want to connect to potential customers and increase sales.
