Arnold Schwarzenegger has a surprising business model for an app
Arnold Schwarzenegger has introduced a new concept for his fitness app, Pump Club. Users can earn back the cost of their annual subscription by consistently completing training programs.
A significant part of our lives is conducted through monthly and annual subscriptions. TV services, music, gaming, AI, professional apps, storage, and even our fitness routines are often locked behind fixed paywalls. However, Arnold Schwarzenegger (T-800 model and former Governor of California) is presenting a new concept for his fitness app. It is a paid service, but it can effectively be free if you put in the work.
Want it for free? Start lifting
For several years, Schwarzenegger has been behind a fitness app called Pump Club (also known as The Pump). According to its website, the app is designed for everyone from beginners to professional weightlifters, offering personalized fitness programs in a simple interface. It combines social media elements with tutorials, but it has recently found a way to stand out in a crowded market.
In honor of his 79th birthday, the actor and bodybuilder wrote: "I don't want gifts. Instead, my team and I are turning the fitness industry on its head." He introduced a new model: you pay $100 for the first year of the app instead of $16.99 per month. The twist? You can earn that money back. After completing the first fitness program the app builds for you, you get $50 back. After completing your fourth program, you get another $50 back.
"We are not funded by a venture capital fund or a hedge fund. I am funding everything," wrote Schwarzenegger. "I learned that you don't give people the discount at the beginning. If that worked, all gyms would be full in February," he added, referring to those who sign up for the gym at the start of the year and stop coming within a month while continuing to pay. "Let people be responsible for themselves. Let them earn the discount. We tested it, and it works."
In other words, everyone must purchase the subscription in advance, but if you persist, you get your first-year money back. The math works in your favor only if you truly change your body. "Most companies love it when you pay and disappear. We are happy only if you keep coming," concluded Schwarzenegger.
Smart in every way
While this is a relatively pro-consumer move, it is important to note that it is part of a temporary "birthday discount." After this coming Sunday (August 9), the price will be $150 per year. However, it seems the refund program will continue, allowing users to effectively pay $50 per year if they keep training. This is a smart user retention strategy: if users persist for a year, they are likely to continue paying in the future. And, of course, this move generates significant PR.
Can you imagine your gym returning money to those who train more? Can you imagine Netflix giving you a discount for watching more content, or Adobe returning money because you opened the software more often? Who would have guessed that Schwarzenegger would bring such a surprising marketing concept to the subscription economy era.
