Episode Transcript
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SPEAKER_00 (00:00):
But so that you can
see...
(00:29):
hey, there is an opportunity forme here in the fitness industry.
And so today I'm going to shareour monthly leaderboard show
where I collect data from allthousand two brain gyms and I
share who's doing the best.
And then I interview them and Itell you, here's how they did it
because I want to help you growyour gym too.
It's not just about how manyclients you can get anymore.
It really comes down to howprofitable is your gym.
(00:52):
That's what determines how longyou can stick around.
And one of the keys toprofitability is revenue,
regardless of how many clientsyou have.
If you can do$20,000 a monthwith one client or$20,000 a
month with 200 clients, it's thesame revenue and possibly a
little bit less work.
There are pros and cons to both.
I'm going to share all of thattoday.
This is Run a Profitable Gym.
(01:14):
If you want to ask questionsabout this episode, or you want
to talk about the leaders, ormaybe even meet some of them,
you can go togymownersunited.com.
That's our free group where wegive free help to gym owners
every single day.
Now, let's get into theleaderboard.
I'm going to start with who'sactually making the most revenue
in Two Brain.
The 10th place revenue, andthese are all in US dollars
(01:36):
because I want to compare applesto apples.
First, we have a gym in the USthat did$61,341 in revenue last
month.
Congratulations.
Ninth place, we had a gym do$63,623 in revenue last month.
They are from the Netherlands,but again, this is in USD.
Eighth place,$67,530 US lastmonth.
(01:58):
They're US.
Seventh place,$70,115.
This is a Canadian gym, butthat's US dollars that they
collected, which translates intowell over$100,000 Canadian.
Sixth place was a gym fromBelgium,$72,743 last month.
Fifth place was another gym inthe US,$74,266.
(02:21):
Fourth place was another gym inthe US,$78,710.
Third place was another gym inthe US at$84,834.
Second place, a gym fromDenmark,$92,447 US last month in
revenue.
And first place from the States,$114,660.
Now this is not the CrossFitGames.
(02:45):
It's not about who can climb theleaderboard.
It's how are they doing it sothat we can copy what they're
doing and do it in our own gyms.
And so first, I'm going to giveyou the common themes that were
shared with me by all 10 ofthese gyms about how they're
doing it.
First, The days of we just sellgroup fitness are over.
Our leaders all have diverserevenue streams with some very
(03:08):
high value services on the menu.
And that pulls up their grossrevenue.
It also pulls up their averagerevenue per member.
The exact service packages canvary from gym to gym.
I'm going to share some of themwith you in a moment.
But these gyms all generatethese huge revenue numbers by
giving their clients the optionsto pick what they want.
Not everybody wants grouptraining.
Not everybody wants personaltraining.
(03:29):
but giving people the options iswhat drives revenue up and makes
it easy for people to buy.
And that means that clients canpay more for more attention or
special programs if they want,and the gym earns more without
the gym owner trying to guesswhat the average person or what
everybody wants.
Second, semi-private trainingand small group training are
increasingly prominent in ourtop gyms for revenue.
(03:50):
This used to be the domain ofthe gyms with the high ARM.
They were selling their coachingfor$300,$400,$500 a month, doing
it in semi-private or smallgroup sessions.
But now they're actually takingover the leaderboard for gross
revenue as more and more top gymowners are using these high
value services to offer clientsmore attention, generate more
(04:10):
revenue per hour, maximizerevenue in the square footage
that they have.
and solve the I'm out of hoursto coach problem.
Also, especially in my gym,coaches love earning more than
25 bucks an hour and sometimesthe coach can earn 80 to 100.
I'm not saying that semi-privateis the choice for every single
gym and you should drop thegroup coaching model.
(04:30):
I often get accused of sayingthat I'm anti-group coaching.
That's not true.
I am anti-gyms failing and Iwant to give you the methods and
strategies that are going towork and that are working for
the best gyms in the world.
In Two Brain, our mentorshippractice, we help clients
identify and set these revenuestreams up.
So for example, one of ourleaders made this board without
(04:51):
using semi-private training, andhe's going to be working with
our specialist on semi-privatetraining tomorrow so that gym
has even more room to grow.
I can't wait to see their nextrevenue total.
But other gyms did this withsome group training and some
personal training.
Some gyms did this with somesemi-private and some group.
Some gyms have all three.
Their model is flexible and ourmentor works with you to deliver
(05:15):
the model that they want.
While the standard revenuestreams are generally group,
personal training, small group,or semi-private, some of the
leaders are using special eventsto generate significant revenue.
They're running nutritionchallenges and competitions on a
schedule regularly, which iskey.
They have a great plan.
They've built that plan withtheir mentor and they're
executing on the plan.
(05:35):
So they never have these dipsand low months.
So that's the key to theleaderboard is that the people
who are on it generating$70,000to$100,000 a month, they didn't
just have one big month, onefluke where they sold a bunch of
prepaid memberships or one baitand switch six week thing that
nobody ever keeps or keepsclients from.
They're not just randomlyannouncing a challenge because
(05:57):
revenue looks weak and they'redesperate.
What they're doing is building aplan for the whole year so that
these high revenue months areconsistent.
And if you compare this revenueleaderboard with a leaderboard
three months from now, you'regoing to find a lot of the same
gyms because they're justbuilding and building and
building.
So these special events andthese special challenges,
(06:18):
they're planned in advance andthey're so well-planned and that
they're marketed and they cangenerate$8,000 to$13,000 by
themselves.
And that's more gross revenuethan a lot of gyms.
It doesn't mean you should run afitness competition or a
nutrition challenge every singlemonth, but what if you ran a
special event every quarter orevery six months and tacked
$20,000 to$40,000 onto yourannual revenue?
(06:41):
What would that do for your gym?
Another very interesting featurethat's popping up is
gamification.
So some of our leaders are usingapps, leaderboards, and trackers
to make fitness feel like a gamefor clients that have lots of
ways to win.
That's a huge deal.
I can remember when we starteddoing group coaching as a new
CrossFit gym, we had thiswhiteboard and you had like your
daily leaderboard on there.
(07:01):
There are apps that do thatright now.
And those are very effective fornew clients.
But The goal of whatever ishappening on the leaderboard has
to align with the client'sactual goal.
That novelty will wear out.
And so what these gyms are doingis they're gamifying the
client's ultimate outcomes.
Clients don't need to finishfirst in Fran anymore.
They get to win if they get tobed on time, they pass on the
(07:24):
booze, or they get their heartrate up outside the gym, stuff
like that.
That's what you want to measure.
Here's the clever part.
If you encourage these behaviorsoutside the gym, clients develop
healthy habits and they getbetter results inside the gym
and you get credit for all ofit.
And so they move toward theirgoals faster and the gym
improves its retention.
Crazy, crazy, crazy important.
(07:45):
So here's the question to thinkabout.
How could you gamify theexperience at your gym to help
clients have more fun and getbetter results?
I just did a training inside2Brand called Build Your Own
Belt System, which wasenormously popular.
And we also have some greatpartners in Level Method, for
example, that can help you outwith this.
So here are some quotes from theleaders on the leaderboard this
(08:05):
month.
First one said...
Our revenue comes fromtraditional, predictable
personal training and membershipfees.
We also run a nutritionchallenge and a competition.
The competition generates$13,000twice a year.
We've been running that for overa decade with 140 to 150
athletes.
Amazing.
Stick to the basics and keepgetting better and better and
better instead of always tryingto add the new thing.
(08:28):
The second person said ourrevenue is 70% group, 20% small
group, 5% personal training, and5% on-ramp.
There's your business plan rightthere.
Let me repeat that again.
70% of their revenue comes fromgroup, 20% comes from small
group, 5% personal training, and5% they're on-ramp.
If that's all you did for thenext five years, your gym would
(08:49):
grow.
Next, this person said, we're apersonal training studio.
Five years ago, we had threepart-time coaches.
Now we have 11 and eightfull-time coaches, two part-time
and one physio.
So out of the 11, eight arefull-time, two are part-time,
and one physio.
Our revenue comes fromone-on-one, some two-on-one, and
some small group.
which is the lowest level ofrevenue at our gym.
(09:11):
So there's many ways to do this.
The key is to work with a mentorwho's gonna look at your profit
and loss, look at your actualmetrics and help you build a
plan to grow the gym that youwant.
The next person said, we'relooking now to go to the
semi-private concept and we havea call with two brain
specialist, Brian Bott.
Another person said, we alsooffer boxing and Thai boxing,
which is always done one-on-oneor one-on-two.
(09:32):
People really love it and theyhave the feeling that they can
get better at it.
It's no contact, they're justusing pads.
Next, I want to go deeper onthis gamification and challenges
because I've talked about it abit already.
And so I asked the leaders onthe leaderboard for some direct
quotes.
Here's what they said.
The first said, we've gamifiednutrition.
So instead of weight loss goals,we provide people with more ways
(09:53):
to win.
We use a point system in an app.
We asked how do we get moreengagement with the key drivers
outside the gym?
And so we track seven dailyhealth points.
They are sleep, water, protein,movement, alcohol, whole foods,
and timed eating.
And this makes it more fun.
We race to 200 health points andwe have a leaderboard.
Amazing.
(10:15):
The key here is that they're nottrying to set the best Fran time
or Murph time or the biggestdeadlift in your gym.
They're trying to do the bestthing that will actually create
change in their life over time.
This is helping the clientsbest.
It's taking the addictivestrategies of gamification and
applying them to health.
Amazing.
The next leaderboard personsaid, we run a mile a day May,
(10:37):
simple consistency challenge andplan to run something similar
once per quarter.
Again, they're ingraining basichabits in their clients that
will actually matter to theclients.
The clients will see resultsfrom and will create long-term
change.
The next person said, Amazing.
(10:59):
You're helping the client.
They're getting measurableresults and you're making it
fun.
The fourth person said, Ourclients get to feel like kids.
We've gamified heart rate usingthe MyZone heart rate monitor
with tracking on the screens.
We have a leaderboard of peoplewho are most active in a week.
And sometimes we do challengeslike males versus females or
morning class versus noon classall around heart rate.
(11:21):
That's great.
And I love that you're gamifyingit based on their actions
instead of their outcomes.
Trying to be the best boxsquatter in your gym is
motivating for the three peoplewho are in the running to be the
best box squatter.
Trying to be the person whosticks to their habits is
available to anybody.
Anybody can win that challengeand everybody wins when they
(11:42):
participate.
I love it so much.
The next set of comments werereally about focusing on avatar.
I grouped these together to makethe point.
The first gym on our revenueleaderboard said, we're
privileged to be in an affluentand busy neighborhood.
We relentlessly focus on thebeginner and the average athlete
delivering shame-free fitness.
We do not program for the bestand scale for the rest.
(12:03):
And they put that in quotes.
What that means is that they arenot targeting elite people, but
they are building high levels,maybe even elite levels of
fitness in the average person byknowing their avatar really
well.
Look, there's a reason thatPlanet Fitness or whoever it is
has the lunk alarm and thelunk-free zone.
They do that because it works.
(12:25):
And if you want to work withaverage people, that kind of
messaging can't hurt you, right?
If you say like, we are notabout serving the elite person
who's going for competition, wewant average people, that's not
bad.
But if you are very, veryspecific about the people that
you want to serve, beginners andaverage athletes, you're going
(12:46):
to go farther.
The more you narrow your niche,the higher your value to that
niche.
The next person said, I stayaway from nutrition.
I don't think touching thattopic creates a safe space and I
stay in my lane.
My revenue does not involve anynutrition or supplements.
Great.
So the reason that I includedthis quote, and I think it's so
important is that you can buildthe gym that you want to build
(13:07):
and still be one of the top 10gyms in the world for revenue.
If you have a plan and you buildthat plan with a mentor to help
you get really clear on whatyour plan is, what you sell and
what you don't sell, who youserve and who you don't serve.
And then you can build the gymthat you want.
You don't have to do what allthese people are doing.
You can not focus on nutritionor you can focus on nutrition.
(13:29):
The next person I keep our groupsmall.
(13:55):
but they also know that it'sgoing to go to a good cause.
So they use it as an incentive.
That's great.
But the key here is that addingvalue means decreasing group
size.
The bigger your group, the lessperceived value by every person
in there.
Even if you can give them a fullminute of coaching, they will
still tend to feel like they'reon an assembly line.
(14:16):
In a small group, the valueincreases, the price goes up,
and so does the revenue.
The next person said, we offergreat vibes and we do a lot of
team building.
I serve lots of business ownersand they like the positive
professional vibes.
No males walking aroundshirtless.
I think this is reallyimportant.
This person is also really greatat nailing who their avatar is.
(14:37):
I'm a business owner.
There's a lot of business ownersin my semi-private program.
They're not there to chatbusiness.
They do have that in common, butwhat they expect is
professionalism, They expect usto get the basics right every
single time.
They don't expect to be crushed,but they also do expect results.
And so getting the basics rightand knowing who your avatar is,
(14:59):
no matter who that is, isreally, really, really
important.
If your avatar is people over50, you should know that.
You should define that, and thatincreases the value of your
service.
Finally, one person said thatthey really focus on maximizing
revenue per square foot, andthis has led them to maximizing
revenue overall.
They said, we have 208 clientsin 400 square meters, which is
about 4,300 square feet, andwe're at the edge of capacity.
(15:22):
So what will this gym owner doif they're smart?
They won't double their spaceand double their equipment and
double their costs.
What they'll do is increasetheir value to those clients,
increase their rates, increasetheir revenue without taking on
any of those other expenses.
and they'll increase theirprofit and they'll increase what
they can pay their coaches to.
Look, the reason that we do thisis to help you.
(15:44):
If you learned anything fromthis session, it's that success
is possible for you.
Even if your gym is doing lessthan$10,000 a month, you could
one day be on theseleaderboards.
The real difference, the commonthread to all of these leaders
is that they got mentorship.
They got an outside perspectivethat helped them get really
clear about where they wanted togo and then help them break down
(16:07):
the steps to get there.
The mentor defined the path.
They're working the path.
They're doing it consistently.
They're not trying somethingdifferent every month.
They're getting better andbetter and better at the path
that works for them.
And it's taking them right tothe top of our revenue
leaderboard.
I hope this helps you.
I'm Chris Cooper.
This is Run a Profitable Gym.
Go to gymownersunited.com.
That's our free group.
If you want to do free webinarsevery few weeks and get our free
(16:30):
resources and talk about whatthe top leaders, the top gym
owners in the world are doing.