Why you shouldnt' believe the revshare or agency lie... 😡❌ Ep 59

Summary Notes


In a candid discussion, the host criticizes the deceptive practices of marketing agencies targeting gym owners, specifically those offering revenue sharing and marketing services without genuine industry experience. He argues that these agencies exploit gym owners by selling false expertise and outsourcing critical advertising tasks to low-paid, inexperienced workers. The host stresses the importance of gym owners mastering core business competencies, such as lead generation, nurturing, sales, fulfillment, and client retention, to ensure sustainable growth. He condemns the reliance on external agencies, emphasizing that no one will care for a business as much as its owner, and encourages gym owners to invest in learning these skills themselves.

Summary Notes

Deceptive Practices in the Fitness Industry

  • Speaker A is frustrated with the deceptive practices of certain agencies in the fitness industry.
  • Agencies are accused of peddling lies to gym owners and falsely presenting themselves as business experts.
  • The speaker emphasizes that these agencies often lack genuine experience in running a successful gym business.
  • Agencies exploit a specific lie to manipulate gym owners, according to Speaker A.

"And the lie that most of the time they peddle to gym owners."

This quote highlights the speaker's main concern about the deceitful narrative that agencies push onto gym owners.

Misrepresentation of Expertise

  • Agency owners and "Rev share dudes" are criticized for claiming expertise after minimal training.
  • Speaker A points out that these individuals often choose the gym niche without proper business experience.
  • The lack of success in their own gym ventures is seen as a red flag for the validity of their advice.

"Guys who basically bought clickfunnels and a Facebook marketing course and then consider themselves experts on the gym business."

This quote illustrates the speaker's view that the so-called experts have superficial qualifications and are not truly knowledgeable about the gym business.

The False Premise of Outsourced Marketing

  • Speaker A challenges the notion that gym owners should not know how to market their business.
  • Agencies are accused of convincing gym owners that marketing is too complex for them to handle.
  • The speaker argues that the complexity of marketing, especially on platforms like Facebook, is overstated by these agencies.

"The lie that you're a gym owner and so you shouldn't know how to market or run ads for your business."

This quote captures the false narrative that agencies use to convince gym owners to outsource their marketing efforts.

Undervaluing Gym Owners' Capabilities

  • Speaker A feels that agencies demean gym owners by suggesting they are incapable of learning marketing skills.
  • The agencies' practices are seen as a way to make gym owners dependent on their services.
  • The speaker believes that business owners should possess core competencies, such as lead generation and nurturing.

"You are incapable of doing a $15 learn hour job because it's so complicated."

This quote reflects the speaker's frustration with the way agencies belittle the abilities of gym owners, suggesting marketing tasks are beyond their skill set when, in fact, they are not.

The Irony of Agency Staffing

  • The speaker finds it ironic that agencies will hire and quickly train new employees to manage clients' accounts.
  • These new employees are often paid low wages, contradicting the agencies' claim about the complexity of marketing tasks.
  • Speaker A criticizes the hypocrisy of agencies in their staffing practices and the message it sends to gym owners.

"And then in the next breath, turn to the person that they pay, that they hired a week ago, that they trained for two days on how to run an ad, and then they will let that person run and manage your account."

This quote underscores the speaker's point about the inconsistency between what agencies claim and their actions, revealing a lack of integrity in their business model.

Business Growth and Skill Acquisition

  • Understanding and mastering the skills of fulfillment and client retention are crucial for business growth.
  • A lack of willingness to learn and adapt can hinder a business owner's progress.
  • Growth is a learning process that requires owners to be proactive in acquiring new skills.
  • Generating leads, nurturing relationships, and selling are essential skills for business success.
  • Relying solely on agencies for business functions like marketing can be detrimental in the long run.

"If you don't know how to fulfill, and if you don't know how to retain people and ascend them to higher levels of service, they're saying, yeah, you don't need to know how to do these first two things. If you don't want to learn how to do those things, you'll never grow as a business owner."

This quote highlights the importance of skill acquisition in fulfillment and client retention as a foundation for business growth. It suggests that without these skills, a business owner cannot expect to see their business expand.

The Pitfalls of Over-Reliance on Agencies

  • Agencies often lack firsthand experience in the specific businesses they serve, such as running a gym.
  • Business owners should be cautious of agencies that promise to handle everything without imparting essential skills to the owner.
  • Many agencies fail to deliver consistent results over time, leading to dissatisfaction and contractual disputes.
  • Owners need to take control of their business by learning key competencies, rather than relying on external parties.

"So if there is a company that is an agency, don't listen to them for how to run your gym because they never ran a gym."

This quote advises against taking operational advice from agencies that have no direct experience in running the type of business they are consulting for, emphasizing the need for business-specific expertise.

The Importance of Learning to "Fish"

  • Self-reliance in business practices such as marketing and ad management is essential for long-term success.
  • No one will care about a business as much as the owner, making it critical for them to understand and manage their core operations.
  • Agencies may prioritize acquiring new clients over servicing existing ones, which can lead to subpar service for the latter.
  • Business owners should invest time in learning skills that agencies typically outsource to low-wage workers.

"But at the end of the day, you're going to have to be the one who has to learn how to fish for yourself, period."

This quote uses the metaphor of learning to fish to illustrate the necessity of self-reliance and skill development for business owners, emphasizing that they cannot depend on others to care for their business as they would.

Ownership of Core Competencies

  • Mastery of every core competency is non-negotiable for business owners who want to succeed.
  • Business owners must be willing to learn and take charge of various aspects of their business, including those they may initially lack knowledge in.
  • A refusal to learn critical business skills can result in a cycle of dependency on agencies that may not have the business's best interests at heart.

"You have to own every core competency of the business."

This quote underscores the responsibility of business owners to fully understand and manage every critical aspect of their business, from marketing to client fulfillment.

Personal Investment in Growth

  • The speaker emphasizes the importance of personal investment in one's own growth.
  • They express a strong commitment to the growth of their business, Jim Lux.
  • The speaker conveys that no one else will care more about their growth than they do themselves.

"No one will care about Jim Lux's growth more than I will, period. It just is, right?"

The quote underscores the speaker's belief that individual dedication to one's own business growth is paramount, and that such dedication cannot be expected from others to the same degree.

Listener Engagement and Support

  • The hosts encourage listeners who enjoy the show to leave a rating or review.
  • They use humor to underscore the importance of listener support for the podcast's growth.
  • The hosts suggest that listener action (rating/reviewing) is a form of partnership in helping entrepreneurs.

"But it would mean the absolute world to me if you guys would go ahead and do that."

The quote is a direct appeal to the audience, expressing how much the hosts would appreciate their listeners' support through ratings and reviews.

Knowledge in Business Operations

  • The hosts discuss the necessity of understanding business operations, such as running traffic for multiple locations.
  • They emphasize the importance of knowing enough to manage and give feedback to a traffic manager.
  • The hosts suggest that business owners should be knowledgeable enough to identify when numbers are out of place.

"You have to know what you're talking about."

This quote highlights the importance of having a deep understanding of one's business operations to effectively manage and provide feedback to employees.

Revenue Sharing and Business Risks

  • The speaker shares their experience with a revenue-sharing (rev share) company and its business model.
  • They explain that a rev share model can indicate a missed opportunity by the business owner and a willingness by another party to take on risks.
  • The speaker notes that in a rev share model, profits are taken by the one who assumes the risk.

"If you're being wooed by somebody who's saying, hey, there's no money up front, then it means that they know something that you don't."

The quote suggests that offers of revenue sharing with no upfront cost can imply that the offering party sees an unexploited opportunity and is willing to take on the risk for potential profit.

Gym Launch Original Business Model

  • The speaker recounts the early days of their first business, which operated on a rev share model.
  • They detail the logistics and costs involved in running the business, including paying for travel, accommodation, and commissions.
  • Despite the revenue generated, the speaker identifies the unsustainable aspects of the model and the lack of personal growth for gym owners.

"The reason we stopped is because I had to pay the payroll, so I had to pay the flights. There and back. I had to pay for the hotels for the 21 days. I had to pay for the rental car for the 21 days. I had to pay for the ad spend for the 21 days, and then I had to pay for the commissions on top of that for the 21 days that the guy was out there and making $50,000 in sales."

This quote details the various expenses involved in the rev share model of the speaker's first business and provides insight into why they ultimately moved away from that model.

Incentive Misalignment with Revenue Sharing Companies

  • Revenue sharing companies may have conflicting incentives with gym owners.
  • These companies are willing to work without upfront costs because they can profit significantly from the gym's operations.
  • A pitch from a revenue share company suggests they can earn substantial profit from your business.

"But there are some gyms that simply could not handle it. And so it put our incentives against one another, and I didn't like it." "If they are doing it, it means that they know something that you don't know."

The first quote highlights a conflict of interest between gyms and rev share companies, while the second implies that the knowledge gap allows revenue sharing companies to capitalize on gym owners' lack of expertise.

Importance of Owning Business Functions

  • Gym owners must understand and manage all core business functions: lead generation, nurturing, sales, fulfillment, retention, and upselling.
  • Outsourcing these functions can be detrimental to business growth and success.
  • Learning and growing in these areas is essential for a business to thrive.

"You need to own every aspect of your business, all five core function." "If you don't know how to do those things, it's not a business."

These quotes emphasize the necessity for business owners to be proficient in all areas of their business operation to ensure it is complete and successful.

Entrepreneurial Growth and Learning

  • Growth and learning are crucial for business success.
  • Without the willingness to grow and learn, a business owner may not deserve success.
  • A lack of personal growth can lead to stagnation in business growth.

"You don't deserve to have successful business because you are not willing to grow and learn." "You will continue to ride the cycle of not knowing why your business isn't growing because you weren't growing."

The speaker stresses the importance of personal development for business owners, suggesting that a refusal to learn and adapt can hinder business success.

Taking Risks and Assessing Opportunities

  • Entrepreneurs must be willing to take calculated risks.
  • Gym owners should consider the potential profitability of taking on the responsibilities currently handled by revenue sharing companies.
  • Evaluating the opportunities that others are exploiting can lead to increased revenue.

"As an entrepreneur, you have to take risks." "These guys were able to spend the money on the ads and generate a positive return on top of that."

These quotes discuss the inherent risks in entrepreneurship and the need to analyze opportunities that others are capitalizing on, which could be more profitable if managed internally.

Gym Launch Promotion

  • Gym Launch offers a starting fee of $1,000 to make it accessible for gym owners.
  • Payment plans are available to accommodate gym owners who may not afford the full cost of services.
  • The speaker encourages gym owners to sign up for Gym Launch to learn how to manage their business effectively.

"Most gym owners don't have the money to afford our services. And that's okay and that's why we help you make it with us." "Tag a friend who needs to hear this for those gym owners who are in gym lunch and have this friend who's like on the sideline, he's like, but I don't know, just tag him in here because it's an inevitability."

The speaker is promoting Gym Launch's services, emphasizing their affordability and the imperative for gym owners to learn how to manage their businesses themselves. The mention of tagging a friend suggests a marketing strategy to expand their reach.

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