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Alta Global Targets 45,000 US Martial Arts Gyms To Drive Revenue Growth With Hype Marketing Launch
--News Direct--
Alta Global Group (NYSE American:MMA) recently announced a nationwide roll-out of its newly acquired, all-in-one marketing platform called Hype, to combat sports gym partners across the United States. Apart from revolutionizing the way the combat sports industry monetizes its social followers and enhances member engagement, Hype sets Alta up to drive major revenue growth.
Hype is like a mini-website builder, a CRM and payments processor all built into one that you can operate from your smartphone. So let's say a business owner has been growing their business through Instagram or Facebook and has amassed a large social media following. What Hype essentially allows them to do is take those followers social media and replicate them onto a platform with more freedom and tools to communicate and monetize.
Hype is an extremely powerful tool for business owners due to a number of reasons. First, it helps business owners avoid the problem of having a limited number of links in their bios, which is common in some social media apps.
Also, even if a business has a large social media following, every time it wants to communicate something or send a message to its followers, the algorithm essentially dictates that only a small percentage of the followers actually end up seeing the message, making it a very ineffective and unreliable way to reach potential customers.
That is where Hype comes in. The platform makes the process of converting a social media following much more efficient, giving full control over the potential customer base once they are in the CRM. From there, you can communicate with them directly via email or SMS without being at the behest of social media algorithms.
Hype’s nationwide rollout ties in well with Alta’s long-term mission of converting 640 million combat sports fans into participants because the intimate, community-oriented nature of combat sports gyms fosters strong relationships and referrals. This network effect could enhance the penetration of Hype among gym owners, coaches, and athlete influencers within each gym community.
The revenue potential for Alta Global Group (NYSE American:MMA) here is substantial considering that Hype operates on a traditional SaaS model. Hype's subscription pricing ranges from $39 to $299 per month. It also collects a transaction fee of up to 5% across all transactions processed through the platform. Hype is currently generating approximately $200,000 per year in recurring revenue from subscriptions and transactions, but this figure could be gearing up for exponential growth.
To illustrate this potential, think of it this way:
At the moment, there are about 45,000 gyms in the US, with 67,000 forecast by 2026 that have the potential to bring in revenue of anywhere from $39 to $299 a month. In addition to that, you’ve got a huge network of at least 100,000 coaches, on top of the number of gyms and 11.8 million active participants in the US alone.
Alta Global Group (NYSE American:MMA) believes that the coaches will obviously want to sell memberships and promote people coming to the gym for the trial.
With every gym having say 3 or 4 coaches who often sell private 1 on 1 lessons and may again have a large social media following independent from the gym itself, Hype would provide them with an opportunity to target their social followers with private classes or even monetize their own training content.
According to Alta's founder and CEO, Nick Langton, "We have a great opportunity here to help our gym partners, coaches, and athletes better monetize their infrastructure and content while Alta Global Group (NYSE American:MMA) benefits from the subscription-based monthly recurring revenue stream. With a potential footprint of tens of thousands of gyms across the US and annual subscription revenues of up to $3500 (plus potential transaction revenue), plus many more coaches and athlete influencers, the opportunity for Alta is substantial as we help bring more of the 640 million MMA fans into their local gyms for direct participation in their favorite sport."
From an investor's perspective, capturing just 10% of the US martial arts gym market—approximately 4,500 gyms—at a mid-tier price of $99 per month could generate at least $5 million in additional revenue for Alta, with minimal added costs. At a premium price of $299 per month, this figure could reach up to $15 million. And that's just from gym subscriptions alone and also excluding the transaction fees, highlighting significant potential for further growth.
In the US, there’s approximately 340,000 certified personal trainers working professionally and over 100,000 athlete influencers, all of whom can leverage Hype’s platform to create more value for their brands. Again, what's most exciting about Hype is that Alta can target a multitude of other businesses apart from combat sports gyms. There’s about 27.1 million businesses in the US managed by sole owners, and Hype could be a key tool for driving conversions of their social media following.
As mentioned before, Hype combines features from multiple established SaaS brands into a comprehensive solution that can be tailored for combat sports gyms, reducing the need for multiple subscriptions. It competes with platforms like WordPress and Squarespace for website creation, and provides more flexible payment options.
Perhaps the most interesting thing here is just the number of products Hype can replace. For instance, Linktree, Mailchimp, and Hubspot are multibillion dollar companies. Since Alta currently has a market cap of about $30 million, it appears to have significant room to grow its valuation in the near term as Hype’s rollout gathers momentum.
That potential is reaffirmed by the fact that some of these products have been acquired at sky-high valuations. For instance, Mailchimp was acquired for about $12 billion by Inuit back in 2021 and recently there were rumors of Alphabet intending to acquire Hubspot in a deal valued at $25 billion.
While Alta doesn't currently have any direct comparables, investors should note a couple of things. What the company is really doing is acknowledging that most businesses now, or a lot of small businesses, rely heavily on social media platforms such as TikTok, Instagram, or Facebook for most of their customer acquisition. So rather than replacing these social media apps, Hype offers a more efficient way to actually take those potential customers into your own sales funnel.
The main takeaway here is that the rollout of Hype across the US is set to unlock substantial shareholder value after this major milestone. So far, Hype as a product has been around for a while and already has a customer base that sits well beyond the combat sports realm, which further validates the business model.
Although Alta Global Group (NYSE American:MMA) is initially targeting combat sports gyms, there’s still a lot of revenue potential through Hype if the company decides to expand into other adjacent sectors like community sports or different athletes.
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Contact Details
Mark McKelvie
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View source version on newsdirect.com: https://newsdirect.com/news/alta-global-targets-45-000-us-martial-arts-gyms-to-drive-revenue-growth-with-hype-marketing-launch-981167377
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