The Breakdown: CrossFit CEO Don Faul Breaks the News
In an unprecedented move, CrossFit CEO Don Faul informed affiliate owners about the first fee hike in 11 years. The announcement, which was communicated via email, has created a buzz in the CrossFit community. Watch our reaction video above further breaking down the announcement, along with our reaction and opinions on the matter.
Insights from the Affiliate Price Increase Announcement
CrossFit HQ announced that starting from their next renewal date, affiliates will now pay an increased annual fee of $4,500, a significant jump from the existing $3,000, with some grandfathered affiliates paying as little as $500 prior. This adjustment also introduces tiered pricing for international affiliates.
Their Explanation for the Increase
The decision, as Faul explains in his email, is driven by the need to keep up with inflation, which has seen a 74% rise since the last fee adjustment. After a decade of static pricing, this increase is essential for sustaining a robust business and reinvesting in the CrossFit community.
Their Strategy Behind the Fee Hike
Faul claims that in 2022, CrossFit was just breaking even – a situation Faul deems insufficient for future investments and growth. This fee revision is part of a broader strategy to enhance the value and resources provided to affiliates.
Additional Value for Affiliates
Faul stated that the increased fees are justified by added value in three key areas:
- Growth Initiatives: Investments in technology, marketing, and brand enhancement.
- Elevated Quality Standards: Higher standards for owners and coaches, including a $500 certification course credit.
- Enhanced Support Tools: Improved business education and resources for affiliates.
Flexible Payment Options and Community Response
Starting 2024, affiliates will have the option to pay monthly without an additional fee. The range of responses from the community is varied from negative to supportive with quite a bit of reaction on social media.
Impact on Affiliates
CrossFit HQ claims that, for an average-sized affiliate with 125 members, the fee increase will amount to an additional dollar per member each month.
The Bottom Line
This fee increase marks a significant moment in CrossFit’s history. It reflects a balance between sustaining the business and enhancing value for affiliates. While reactions may vary, the overarching theme is the enhancement of the CrossFit brand and the support it offers to its community. Watch my reaction video above for my objective take on this move by CrossFit HQ.
