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The Secret Marketing Strategy Behind Profitable Gyms [Video]
Written by Dino Gomez 
The lifeblood of a profitable gym is lead generation. Without leads your gym, kickboxing studio, yoga studio, spin studio, or affiliate crossfit is destined to fail. 

A consistent flow of new leads is the only way to profitability in the fitness industry. Perhaps you know this. But there's more.
Lead flow is the driver of your gym's profitability because member turnover is evitable.

  • Member's Quit
  • Become Sick
  • Move Out of Town
  •  Get Bored
  •  Become "Too Busy" with work
It is your lead flow that keeps you in business and ultimately grows your gym's membership base, raises prices, and drives profitability. 

The mistake most gym owners make is that they invest zero dollars into acquiring new leads. 

Instead, most gym owners rely on "word of mouth marketing" A.K.A. referrals. We call this in the biz, "wishful marketing". 

Here's how you know if you've fallen victim to wishful marketing:
  •  Referrals are your main lead source
  •  You post on Social Media for a few likes
  •  Your pricing is based on your competitor's pricing
  •  You offer the un-original "1-day free pass" or "7-day trial"
  •  You've grandfathered members into a monthly price of half what you should be charging
  •  You don't know your numbers (cost per lead, avg. member lifetime value, churn rate, etc)

Wishful marketing is no way to run a business. A profitable business is run by numbers and math.
A Profitable Gym is Run By Numbers and Math
A profitable gym knows their numbers and spends money to make more money. 

Here's an example of what this looks like.

A profitable gym will put in $100 to acquire 10 leads with the understanding that one of those 10 leads becomes a member paying you back $100/month. 

*(This gym also knows a member stays with them 6 months on average. So each member is worth $600. )

This gym pays $100 in advertising, receives back $600 in revenue, and profits $500. Then they rinse and repeat. 

That's it. That is how a business is run. It is run by numbers. 

Seems simple enough right? Or is it? 

Why Your Gym is Struggling
If you're reading this article then chances are you own, manage, or train at a struggling gym.

That's ok. Most gyms are un-profitable which leads us to the first reason you are failing. 

1). You Copy Competitor's Pricing & Hours
At Gym Authority 365 we work with a lotta gyms! 

We love to ask our client's where they got their pricing from. The answer we almost always get is, "Well Rob's gym down the street charges $50/month so we decided to match that."

Ok we get it. You copied your competitor's pricing.

The problem here is that Rob is broke, works 80 hours a week, trains clients, runs the gym, has no social life, and is still barely break even at $15,000/month revenue after he pays employees, insurance, and overhead. 

So why would you copy what Rob is doing? 

You're the only one who knows your gym's overhead, expenses, and desired profitability so don't copy the other guys. This leads to #2. 
2). You Don't Know Your Numbers
If you don't know your numbers then you've fallen victim to "Wishful Marketing" or "Wishful Business". And this can be scary. 

It's scary because you may be in debt and not even know it, you don't know how much to acquire leads at, you don't know what you should charge, you don't know where you're losing money and why, and you have no control over your gym's success. 

If you know your numbers then you start taking pro-active action towards growing your business. 

Lets help you take the first step towards changing things for the better. Here are the numbers every gym owner MUST KNOW:
  • Monthly Churn Rate ( percentage of members that leave each month)
  • Lead to Close Ratio ( percentage of leads that become members)
  •  Cost Per Lead ( what you pay to acquire a new lead) 
  •  Monthly Overhead (what your operating expenses total each month)
  •  Average Lifetime Value of Member (how much revenue is 1 member worth on average)
  •  Max # of Members You Can Train Per Day
  •  Max # of Members Your Gym Can Serve
Take these numbers and put them in a spreadsheet for safe keeping. Be sure to update these numbers monthly as they change. 

Now that you have some idea of how much a member is worth to you and your expenses, you can decide your target cost per acquisition so that you grow profitably. 
3). You Don't Pay to Acquire Leads
The whole reason to know thy number is so that you can use math to grow your gym. The goal is to put $1 into marketing and receive back $5. 

Here's a riddle (albeit true):

****Because many small gym owners don't know their numbers they are struggling... Because they are struggling they don't have cash flow yet alone money to stay open.... Because they don't have free cash flow they feel like they can't invest in marketing.... Because they don't invest in marketing they don't have a steady lead flow.... Because they don't have a steady lead flow, their membership has reached a plateau..... Because membership has plateaud the gym barely makes a profit and the owner works 24/7. 

And around and around we go. It's a vicious cycle. 

Here's a little secret to the riddle. You cannot afford NOT TO INVEST IN MARKETING.

Remember lead flow is the name of the game. And as soon as you decide you don't have money for leads you are now guilty of "Wishful Marketing". 

At Gym Authority 365 we understand cash flow is tight for marketing which is why we invented a lead generation program where clients pay us our service fee AFTER we have provided them 100 leads! 

This is our way of saying we understand you, we know cash flow is tight, and that we are confident in our ability to deliver results. 

4). You Try To Do Marketing Yourself
Most small gym owners work long hours. 

Let us take a running guess at what your day looks like.

1). You wake up exhausted at the crack of dawn to instruct/ open your gym
2). You train 1-2 classes/ clients in the middle of the day (or more)
3). You talk to several unhappy members
4). You try to sell several new prospects (more like people walking past your gym)
5). You send out an email blast or post on Facebook
6). You attend a training on how to market your gym
7). You skip lunch/ eat unhealthy since you're pressed for time
8). You clean/ work on facility and or equipment management
9). You consult staff/ hire/ fire 
10). You review your revenue in your CRM
11). You wonder why you thought running a gym would be fun/ easy
12). You make up reasons in your head why running a gym is hard
13). You train another client/ run a class
14). You go home late and exhausted 
15). You stay up past your bedtime trying to learn complex marketing strategies
16). You do it all again the next day

Sound fairly accurate? We know. 

The problem with this picture is there's just not enough time in the day. So why are you adding more to your plate by attempting to learn lead generation? 

Profitably gym owners and business owners alike: delegate!

Just as you hired or plan to hire a young personal trainer at $10/hour to help run a few classes you need to also delegate your marketing. 

By hiring a specialist gym marketing agency several things happen: 
  •  You Free Up Your Time 
  •  You Get Better Results 
  •  You regain Focus on Gym operations 
  •  Your lead flow skyrockets and your business thrives
Gym Marketing: The Secret Sauce 
The secret to a profitable gym is a few things. You need to know your numbers, you need a consistent lead flow, you need to acquire members at 1/4 the cost of the average member lifetime value, and you need to focus only on running your gym (not marketing).

Luckily, that's where comes in. We specialize in affordable lead acquisition with minimal upfront costs and leads guaranteed or we don't get paid. 

Give us a shot. There's no risk to you


About Author: Dino Gomez

Dino Gomez is the founder of Gym Authority 365, where we guarantee 100 leads to your small gym in 30 days or we work for free. He is a 10-year internet marketing veteran, lead generation expert, owns multiple marketing agencies, and is a well known consultant to business owners across the world.   
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