Home » Episode #437: From Struggling to Thriving-Fixing the Broken Model of Gym Marketing and Sales With Cale Owen

In this episode, Cale Owen of Gym Launch dives deep into strategies to help engage gym members, maximize profit, and help take business owners to the next level. Cale opens up about the challenge many gym-goers face - the reluctance to put in hard work and effort. He shares his recommendations on how to combat this and engage members by regularly reaching out to them, checking on their progress and well-being. (The simple handwritten card can be a game-changer in client retention!)

Pete and Cale go on to discuss the (extremely!) broken marketing and advertising strategies all too prevalent in the fitness industry. Owen states, "The question then becomes . . . what is the offer? And are we able to monetize on that enough to where that new client that I just signed up from this ad pays not only for themselves, the cost to acquire them, but also pays for the next person plus profit in the 1st 30 days? That's the equation we look for. Can we make a profit and pay for 2 new customers right at sign up? . . . We teach gym owners how to be able to do that."

When it comes to an effective rewards/incentive system, Cale and Pete both agree that aligning rewards with what clients truly value, rather than relying solely on cost and discounting is critical. (This is a lesson many in the industry have yet to learn, unfortunately.) It's crucial owners start thinking about marketing as an investment into their company, not a cost! Learn how to maximize profit per client and find ways to monetize beyond the all too common "race to zero" (and consequently showing lack of value for what we offer.) 

Some key moments: 

  • Jim Launch was founded by Alex and Leila Hormozi in 2016. Initially, they did gym makeovers and later switched to a licensing model with information courses and coaching. Gym Launch now offers more services to help gym owners reach more people and make profitable businesses.
  • Maximize profit by understanding customer lifetime value.
  • Adjust offer and pricing based on activities.
  • Reward systems must be done creatively, offering what the client values.
  • Regular client outreach is essential for gym retention. Gym owners should divide members into groups and reach out at least once a week, preferably twice.
  • Sending personalized handwritten cards once a month or quarterly for larger gyms is a nice touch. Knowing clients' names and making them feel recognized is crucial for a successful gym.
  • Fitness is always in demand, regardless of trends.

A few key takeaways: 

  1. Building relationships and providing personalized support is crucial for gym owners to retain members. The speaker recommends reaching out to members regularly and sending handwritten cards to celebrate their achievements.
  2. Incorporating workout recovery products and services is essential for gyms to prevent losing customers to other recovery spas and services. Pete mentions HigherDose that offers various recovery products like infrared technology, LED light masks, and PEMF mats and blankets.
  3. The podcast discusses the broken model in the fitness industry and how gym owners struggle with marketing, advertising, and sales. Gym Launch offers a "done for you" system to help owners with lead generation, sales training, and client messaging.
  4. Knowing your numbers and staying cash flow positive is crucial. Understanding the lifetime value of clients and spending within means can lead to scaling and continuous spending for advertising and business growth.
  5. Gym owners should focus on maximizing profit per client and finding ways to monetize beyond membership fees, such as selling supplements. Additionally, implementing creative and meaningful reward systems based on what the client values can increase client retention and profitability.

Click here to download transcript

If you're not already familiar, check out Promotion Vault . . . mentioned in the podcast. We spoke with CEO, Brian Mitchell a while back

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