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January 27, 2026

The Dual-Engine Approach to Gen Z Marketing

How NIL Club's Dual-Engine approach creates value for both athletes and brands. Understanding when to market TO athletes (Direct-to-Athlete) vs. when athletes share WITH their audience (Peer-to-Peer).

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What is the Dual-Engine Approach to Gen Z Marketing?

The Dual-Engine approach creates mutual value for athletes and brands. Engine 1 (Direct-to-Athlete): Athletes become genuine customers, creating campus cultural relevance. Engine 2 (Peer-to-Peer Network): Athletes share with friends and followers, earning commissions while expanding your reach. Both engines use the same performance-based pricing - you only pay for verified conversions. The difference is reach: athletes directly vs. athletes plus their networks. Many brands use both for maximum impact.

Why Traditional Marketing Fails with Gen Z

Gen Z has fundamentally changed how brands must approach marketing. Traditional advertising strategies that worked for previous generations are increasingly ineffective:

  • Ad blindness: Gen Z has grown up with advertising and has developed sophisticated filters to ignore it
  • Ad blockers: Over 40% of Gen Z uses ad-blocking technology
  • Trust deficit: Gen Z trusts peer recommendations over brand messaging by a 3:1 margin
  • Platform fatigue: Paid social performance continues to decline as costs rise

The result: Brands are paying more for less engagement, with customer acquisition costs rising and retention falling.

Engine 1: Direct-to-Athlete — Marketing TO Athletes

Direct-to-Athlete means marketing TO athletes - making them genuine customers of products and services they actually want. When athletes across campus are using your product, you become culturally relevant in that community.

How It Works

  1. Athletes discover your offer through the NIL Club app
  2. They sign up because they actually want the product
  3. They become loyal customers and trusted advocates
  4. Your brand becomes part of campus culture

Why Everyone Wins

  • Athletes get real value: Free or discounted products and exclusive access to brands they love
  • Brands get cultural relevance: When athletes use your product, their peers notice
  • 74% lower CAC: Because athletes only promote what they actually use
  • Higher retention: Customers from peer referrals stay longer

Real Results: SoFi Case Study

SoFi used the Direct-to-Athlete model to acquire checking and savings customers among college athletes. The results:

  • 55% funding rate (vs. 12.4% industry average)
  • 13,000+ funded accounts
  • 23,800+ total signups

Engine 2: Peer-to-Peer Network — Athletes Share WITH Friends

The second engine enables athletes to earn money by sharing brands with their friends and followers. Athletes create authentic content for brands they choose to work with, maintaining creative control while getting paid.

How It Works

  1. Brand creates a campaign brief with flexible content guidelines
  2. Athletes opt into the campaign through the NIL Club app
  3. Athletes create authentic content in their own voice
  4. Content is reviewed for compliance and published
  5. Performance is tracked in real-time

Why Athlete UGC Outperforms Traditional Influencers

  • 10.8x higher retention: Customers from athlete referrals stay longer
  • 8.4% engagement rates: vs 0.5% industry average
  • 100% ad-blocker immune: Organic content reaches every follower
  • Scalable: Partner with 10 or 10,000 athletes simultaneously

Real Results: Subway Case Study

Subway used the Peer-to-Peer Network to launch their "FitFresh" menu:

  • 1.1M impressions (206% above goal)
  • 183 content pieces from 150+ athletes
  • 8.4% engagement rate (+1,580% vs industry)

Combining Both Engines: The Marketing Flywheel

The true power of the Dual-Engine approach emerges when both engines work together:

The Flywheel Effect

  1. Acquire: Athletes become customers through Direct-to-Athlete
  2. Activate: Customer athletes create authentic content
  3. Amplify: Content reaches their combined follower networks
  4. Convert: Followers become customers, some of whom are also athletes
  5. Repeat: New athlete customers enter the flywheel

This creates a self-reinforcing loop where customer acquisition and brand awareness compound over time. Something traditional advertising can never achieve.

When to Use Each Engine

Match your goal to the right engine:

  • Customer acquisition: Direct-to-Athlete
  • Brand awareness: Peer-to-Peer Network
  • Product launch: Both (Peer-to-Peer first to build buzz, then Direct for conversions)
  • App downloads: Direct-to-Athlete
  • UGC content library: Peer-to-Peer Network
  • Maximum ROI: Direct-to-Athlete

See the comparison table below for a full breakdown of each engine's strengths.

The Future of Gen Z Marketing

The Dual-Engine approach represents a fundamental shift in how brands should think about marketing to Gen Z:

  • From impressions to conversions: Pay for results, not eyeballs
  • From celebrities to communities: Activate thousands of micro-influencers
  • From campaigns to flywheels: Build compounding marketing effects
  • From guessing to knowing: Every result is verified and attributed

As traditional advertising channels become more expensive and less effective, performance-based athlete marketing offers a sustainable alternative that delivers measurable, scalable results.

Direct-to-Athlete vs. Peer-to-Peer Network

When to use each engine of the Dual-Engine approach

FeatureDirect-to-AthletePeer-to-Peer Network
Athlete RoleCustomer & ReferrerContent Creator
Primary GoalCustomer AcquisitionBrand Awareness
Key MetricCAC & Conversion RateImpressions & Engagement
Typical Result74% lower CAC10.8x higher retention
Best ForApps, Subscriptions, FinanceQSR, CPG, Product Launches
Content TypeOrganic word-of-mouthUGC videos & posts

Real Results From NIL Club Campaigns

Direct-to-Athlete

SoFi

55%
Funding Rate

Direct-to-Athlete campaign. 4.4x industry average.

View Full Results
Peer-to-Peer Network

Subway

8.4%
Engagement Rate

Peer-to-Peer campaign. 1,580% above industry average.

View Full Results
Direct-to-Athlete

Amazon Prime

$258K
Revenue Generated

Direct-to-Athlete campaign. 17.4K signups.

View Full Results
Direct-to-Athlete

Coinbase

46%
Conversion Rate

Direct-to-Athlete campaign. 4.1K depositors.

View Full Results

Frequently Asked Questions

What is the Dual-Engine approach to marketing?

The Dual-Engine approach creates value for both athletes and brands. Direct-to-Athlete: brands market TO athletes, who become genuine customers and trusted advocates (74% lower CAC). Peer-to-Peer: athletes share WITH their audience and earn commissions on every conversion (10.8x higher retention). Both work because athletes choose to participate.

When should I use Direct-to-Athlete vs Peer-to-Peer campaigns?

Both models are highly effective for most goals. Direct-to-Athlete turns athletes into loyal customers who create campus cultural relevance. Peer-to-Peer expands reach through athlete networks, with commissions on every conversion. For apps, subscriptions, and user acquisition, both approaches drive results. For maximum impact, use both engines together.

Why does athlete marketing work better than traditional influencer marketing?

College athletes are embedded in real communities (campus, hometown, friend groups) where their recommendations carry genuine weight. Unlike polished influencer content, athlete marketing builds on authentic trust and peer influence that Gen Z values. This results in 5x better conversion rates and 10.8x higher customer retention.

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