Your Revenue Streams
Since 1995, I have made a living in the fitness industry, with the exception of a two-year stint as a golf professional. Being a golf professional wasn’t for me, but I did learn a lot. I learned how to get up at 4 a.m. to open the golf course. I learned the art and the importance of customer service. I also learned about revenue streams.
In golf, you take in money from membership dues, daily green fees, cart rentals, lessons, food, beverages, pro shop retail and more. In other words, there are many ways to make money from owning a golf course.
In the fitness industry, while there are many similarities to the golf business, you really only have three ways to make money. That is through memberships, personal training and nutrition.
The question is: What percentage of revenue should come from where?
Membership dues should represent 50 percent of your revenue. Personal training/coaching should represent 40 percent of your revenue. Nutrition should represent 10 percent of your revenue.
Most gyms are about 90 percent memberships, 8 percent personal training and 2 percent or less nutrition. So, how do you hit the percentages I want you to hit?
Memberships: Spend 7 percent of your gross annual revenue on marketing. Pound your message over and over using a combination of print and electronic mediums, focusing on paid trial offers.
Coaching: Get 70 percent of members to meet with a coach, put them through a workout and present them options that include more than one-on-one.
Nutrition: Many of your members are using Jenny Craig and Weight Watchers. Implement your own nutrition program so you can help them while increasing your revenue. Email me at email@example.com for a resource to help you implement a nutrition program.
Keep changing lives.