It started with a comment – one word, blunt and honestly offensive: “retarded.”
Tim had posted an ad comparing two gyms, both with 100 members. One gym was generating $500,000 a month, while the other barely made $200,000. Same headcount, completely different results – why is that?
A CrossFit gym owner jumped in, did the math, and lost it. He said, “That’s retarded.” Because to him, $417 per member per month sounded astronomical – like there’s just no way a gym could ever charge that.
Well… he was speaking from his own experience.
That reaction sparked a bigger conversation. In models like CrossFit or large-group training, numbers like that do seem impossible. Those models cap revenue potential, no matter how hard the owner works or how good the marketing is.
In this episode, Tim and Randy break down how it’s actually possible. It’s not about working harder – it’s about the business model. Semi-private training gyms routinely charge $400 to $600 per month because the model allows for it. It’s scalable, profitable, and designed to grow.
They share examples, hard numbers, and everything you need to know about switching the model to break through revenue ceilings.
Tune in for the full conversation.
Key Takeaways:
- Intro (00:00)
- $417/month is normal, not crazy (00:46)
- The real problem is always your model (02:54)
- Hard work won’t fix a bad model (05:53)
- People justify paying for experiences (07:18)
- CrossFit model struggles financially (09:02)
- Stop taking advice from broke owners (12:17)
- Jay Abraham’s “best use of time/capital” rule (15:12)
- Recap (17:24)
Additional Resources:
- A tool for deciding on new gym services – 5-Question Matrix
- Get 30 days of Semi-Private Pro on us!
- Check out our Switch to Semi-Private course
- Apply to join the Iron Circle
- Get your early bird ticket for the 2025 Growth Summit in Nashville
- Get access to the 2024 Growth Summit recordings
- Tim's new book - Built to Win by Tim Lyons
- ProFit Accelerator: Helping Training Gyms Grow to 30K/month and Beyond Facebook group
- Business Accelerator Program
---
If you haven't already, please rate and review the podcast on Apple Podcasts!
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com