Part 1: Know your numbers

There are a lot of numbers you can focus on, but there are two ✌️that matter most:

1. How much it cost you to acquire a new member?
2. The value each client is worth to you over their lifetime.

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 me break it down.

If your average client lifetime value is $5,000 over 2 years (for example) then that means you need to serve 200 clients in that 2 years to net $1,000,000 in revenue.

At a 20% profit margin, this means the owner will make $100,000 per year if costs and overheads are in range. Most will make more.

In that cost and overheads is assumed budget for marketing.
If you know you can acquire new members at $200 cost 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 revenue over 2 years.
This is basic financial arbitrage that any base-level investor can leverage.

Let me guess, you don’t have a cost per acquisition figure because you acquire them organically?

Well, then GET ONE. Even organic traffic can be invested in by:
– improving your position in the search engines
– spending money on referral strategies
– increase page conversion rates with a better website
– Increase lead nurture, booking, show, and sold rates.

Having a crappy or no system in place is killing even your organic traffic conversion. You’d be surprised how many gyms we turn this around for that never have to spend a dime on ads.

I bet your home-built stuff converts at 25% of what’s possible and I bet the junk you’re paying some company who does “gym leads” or “WOD sites” is converting at about half because they take advantage of the goodwill and you not knowing what good looks like.

(I’m seriously tired of these companies taking advantage of gym owners with trash.)

I digress… So, once you have a good system and funnel in place if organic traffic isn’t enough to outpace churn over two years then that means you need to pay for the traffic.

That’s all ads are, it’s 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.

Same same.

I’m not even saying you need ads. You probably don’t.

It’s just about the right offer and the funnel.

Anyways, once you know your numbers you can apply step 2, which is choosing how you want to boost revenues and there are 4 ways you can do that.

I’m going to show you the 4 ways in the next post.

Ok sweet. So what should you do right now?
Get clear on your numbers.
1. What is each client worth to you
2. What would it cost to acquire enough of them to outpace churn and stack enough of those to hit your goal number in two years.

Start with knowing your numbers. Then manipulate those to make that cheddar 🧀 and live the gym owner’s dream

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