In a candid discussion on the Gym Secrets podcast, the host highlights the challenges facing the fitness industry, noting that 25-30% of independent gyms have closed with potential increases due to market conditions. He argues that despite being a strong operator, unfavorable market dynamics can lead to failure. The host, a staunch supporter of gym owners, announces Gym Launch's pivot to remote services, citing advantages like unlimited lead generation, higher profit margins, and lifestyle flexibility for business owners. Emphasizing the effectiveness of one-on-one online coaching over group workouts, he encourages gym owners to embrace the online model for its scalability and potential for superior customer results, warning that clinging to in-person services will only get harder. He concludes by urging gym owners to consider the shift to online services seriously, as it presents a current golden opportunity within the industry.
"Welcome to the Gym Secrets podcast, where we talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons that we have learned along the way."
This quote sets the stage for the podcast, outlining its focus on growth strategies for gym owners and the sharing of experiences and lessons learned.
"25% to 30% of all independent gyms have permanently closed... I think that number may climb over the next six months to maybe 40 or even 50% of independently owned and operated facilities."
This quote presents a grim outlook for the gym industry, with a significant portion of independent gyms closing down, which is expected to increase.
"We cannot create the experience that we have wanted to create for our customers... It creates tons of variability in workforce and labor."
This quote highlights the challenges gyms face in providing the desired customer experience and managing their workforce due to external constraints.
"We've permanently trained consumers to consume or fill this need in a different way."
This quote suggests that the pandemic has led to a long-term shift in how consumers approach fitness, moving away from traditional gym services.
"Gym launch is loyal to gym owners. We are not loyal to gyms... gym launch as a company will be pivoting."
This quote clarifies that the company's loyalty lies with gym owners and their success, leading to a strategic pivot towards remote fitness solutions.
"In a remote environment or an online environment, you have virtually unlimited lead generation... The business owner can move and live wherever they want."
This quote discusses the benefits of remote fitness, including the potential for a broader customer base and increased flexibility for business owners.
"And financially, the model is more profitable, period... many people achieve superior results in a one on one setting compared to a group."
This quote emphasizes the financial benefits of an online fitness model and suggests that it can lead to better client outcomes compared to traditional group settings.
"Many of you have hired TKN have worked with Trevor, have worked with an online coach, whether on the strength side or the nutrition side or body composition or whatever. And you did that because you knew the one on one attention allowed you to get a better result."
This quote emphasizes the effectiveness of personalized coaching over group workouts, highlighting that individual attention leads to better outcomes in various aspects of fitness and health.
"And so I already said there was enough of a case from business standpoint to make that argument. But on the fitness component side, I believe that the actual fulfillment is better for the end user and is more profitable."
The quote discusses the advantages of the online coaching business model from both a business and fitness perspective, highlighting profitability and user fulfillment.
"For example, there are three primary models that exist in online today, excluding the GLX model that I'm going to talk about. Vehicle one, outbound messaging."
This quote introduces the three primary pre-Covid online business models, setting the stage for their analysis in terms of scalability and effort required.
"Simply put, you have to spend two, three, 4 hours a day outbound messaging people. Does it work? Yes. Does it require a ton of effort? Yes. Can you scale that? Not really."
This quote critiques the outbound messaging model for its high effort requirement and limited scalability, which are significant drawbacks for business owners.
"And so I could not put my weight behind it because I knew that if I were to implement one, two, or three, or all three of those together, the vast majority of the people in our community would not succeed, period."
This quote explains the rejection of the previous models due to their lack of scalability and the difficulty for community members to succeed using them.
"So the front end, we know that the acquisition is easier because we have unlimited leads. That's massive."
The quote highlights the importance of easy acquisition and unlimited leads in the preferred business model, which contributes to consistent business operations and cash flow.
"And then by day 30, you will be able to convert those customers at the same price as you were able to before in a"
This quote suggests that with the right tools and sales model, businesses can expect to convert customers efficiently and maintain profitability within a month.
gym setting, except you have far more of them, you acquired them for less, and they're staying at a higher profit margin.
This quote emphasizes the advantages of the online model over traditional gym settings, highlighting increased quantity, lower acquisition costs, and higher profit margins.
This model, if you give it one month, two months, three months, four months, it is going to be far superior to the revenue and profit that you were able to make at the gym, except it has no signs of slowing down.
The quote suggests that the online model's revenue and profit potential will surpass that of traditional gyms and continue to grow without slowing down.
You do not have to be constrained by your geographic five mile radius.
The online model eliminates geographical limitations that traditionally bound gym businesses, allowing for a broader market reach.
There's only three roles that exist in the model. The person who sells the trial up front, the coach, and that's it.
This quote outlines the simplicity and efficiency of the online model by reducing the roles to three key positions.
Most people can make that sale. These sales are not complicated, but can be done at absolutely massive scale and retain a customer at a $2,000 price point where you can acquire them in high volume very consistently.
The speaker highlights the ease of making sales in the online model and the ability to maintain a high customer value and consistent acquisition at scale.
And very transparently, I'm going to be doing this because I believe that I would like to serve a marketplace that's going to grow and make the most money.
This quote reflects the speaker's transparent intention to serve a growing and profitable market.
My goal is to run a profitable, wildly profitable business that grows fast.
The speaker states their personal goal, which aligns with the profitability and growth of the business.
I have to align with a model that I believe has the highest likelihood of success and profitable growth for my customers.
The quote shows the speaker's strategy to choose business models that offer the highest success rate and profitability for their clients.
Simply put, it is easier right now to get 50 new online clients than it is to get 50 in person clients.
This quote compares the ease of client acquisition in the online model versus in-person methods, favoring the online approach.
The rest of 2020 is going to be shit for gyms in general.
The speaker provides a blunt forecast for the gym industry, indicating a tough period ahead for traditional gym businesses.
I believe that this is the best opportunity vehicle for you to package your skills, serve your community, serve your family, and in terms of ROI on your time and your capital and the skills that you need to train your team on this model, I believe, is more scalable, more profitable, and will have higher ROi over the next six to twelve months than the in person model.
The quote expresses the speaker's belief in the superiority of the online model in terms of scalability, profitability, and return on investment compared to the in-person model.
That being said, if you still need to make decisions about it, you have a couple of different versions that you can handle this with.
This quote suggests that gym owners have multiple strategies to consider when transitioning from a physical gym to an online model.
"I do think that we are actually on the precipice, and we're currently in a golden opportunity era where there's this huge amount of demand for online services and there's not a lot of supply."
The quote highlights the speaker's view that there is a significant imbalance between the high demand for online services and the limited supply, marking a critical moment for businesses to transition to online models.
"What you don't know is that many of our seven figure gym owners, the top guys you see in this group, have pivoted 100% online."
This quote provides evidence of successful transitions to online models by high-earning gym owners within the speaker's community, suggesting a trend and a successful strategy.
"So let me just speak to your emotions. If you have the desire for more security, if you have the desire for less unknowns in the future... this is the time to take that action."
The quote appeals to the emotional side of decision-making, suggesting that an online business model can offer more security and predictability, which are desirable outcomes for business owners.
"And there is a massive, massive shortage of professionals who have the skill set. Like gym owners."
This quote identifies a gap in the market for skilled professionals to offer online training services, suggesting an opportunity for gym owners to fill this void with their expertise.
"This thing is just about as robust as the original gym launch model."
The speaker compares the new online business model's robustness to the original gym launch model, implying a strong belief in its effectiveness and profitability.
"The only thing you really have to do is just make sure that you're fulfilling the clients using the app that automates 80% of it anyways."
This quote explains how an app can automate a significant portion of client fulfillment in the online model, simplifying the business owner's responsibilities.
"I can tell you without any drop of doubt in my mind that we are by far the best."
This quote is a bold statement of confidence in the speaker's company, suggesting that their success is indicative of their superior ability in the business.
"The question is just whether or not you want to take the jump."
The speaker poses a rhetorical question to the audience, encouraging them to consider making the transition to an online business model.
"We're still going to release plays. We're going to release the stuff that we do to help gyms because that is what we've always done."
This quote assures the audience that the company will continue to provide support and resources to help gym owners, even as they shift their focus toward online fitness models.