Owning and managing a gym can be hard. Really freaking hard. We know, we are gym owners too!
But you can make an impact, AND earn a good living in this business if you are smart about it. Read on to learn how to make $100k as a gym owner.
Now, before you start rolling your eyes as you are expecting some “sales pitch” on our proprietary method, what we are going to show you is easily doable. By anyone.
But before you can make a plan, you have to know your numbers.
Too many gym owners focus on month-over-month client value when you should be thinking about stacking the lifetime value of your clients.
Let’s break it down.
If your clients stay with your for 2 years on average, and they pay about $210 per month, then your average client lifetime value is roughly $5,000. If you served 200 clients in that 2 years, your net revenue would be $1,000,000.
At a 20% profit margin (which is very doable), the owner will make $100,000 per year. Most will make more.
To figure out your acquisition cost, divide how many new members you earned this year, by the total amount spent on marketing.
If you know you can acquire new members at $200 each (which is VERY doable), then it will cost you $40,000 to acquire the 200 members you need…
And you will do $1,000,000 in revenue over 2 years.
Let me guess, you don’t have any marketing expenses because you acquire them organically?
In fact, that’s not true.. Even organic traffic has a cost. What does it cost to:
Even if the owner is doing all of these things themself, there is a cost in the time that is spent doing them. So figure that out. Put a number to it.
Now, what if you invested more money in those things? How would that improve your organic marketing?
So, once you have a good system and funnel in place if organic traffic isn’t enough to outpace churn over two years, then you need to pay for the traffic.
That’s all ads are. They are just acquiring traffic from where it’s hanging out.
If you’ve run ads and they haven’t worked, it’s because the offer or funnel is bad. Traffic is just traffic.
Trust me, there isn’t much difference between a guy driving past your gym and them being interrupted by an ad on Facebook.
We are not saying you need ads. You probably don’t. It’s just about the right offer and the funnel.
Start with knowing your numbers. Then manipulate those to make that money and live the gym owner’s dream
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