10/5 GO Newsletter #3

Reading Time: 2 minutes

Last week we went through the 30 Day Cash Model…if you missed it, check it out here


Basic nuts and bolts are this…


To keep scaling at a profit, a gym needs to collect twice as much money in the first 30 days as it costs to acquire them AND fulfill them.


Equation looks like this: 



In the example I used in last week’s email, the gym would need to collect $534 from a new client in their first 30 days to achieve profitability and scale.


The question that needs to be answered (and the purpose of this week’s email) is how do you get $534 per new client in 30 days?



Let’s walk through some options that real gym owners are using right now…


Do this and you’re already there. Thousands of gym owners are doing this every day. It’s simple, profitable, and gets clients incredible results.


This one requires a couple components…which means it’s more complex.

One, you need to have the right EFT pricing + an enrollment fee.

Next you need your billing cycles to be every 4 weeks, rather than monthly – so you bill every 28 days.


(Pro tip – if you’re not doing this already, switch immediately and you’ll get an 8% revenue bump without adding a client)


Last, you need to sell supplements that give you at least $50+ in commissions for three or more products.


Pricing first – you should be at $49/wk for a large group training facility + a $99 enrollment fee.


That puts you at $196 every 4 weeks and since you’ll get two billing cycles within your first 30 days, you’re collecting $392 + $99 and you’re at $491.


Almost there.


Now, on the product sale you can sell enough supplements to make up the difference – all you need is $43 in commissions and you’re covered.



Prestige Labs, our affiliate based supplement company built specifically for gym owners has up to 40% commissions on sales and affiliates routinely collect $80 commissions when they sell four products.



This option is simple…you need a percentage of your new signups to pay in full for the year to bring your average cash collected to the necessary amount.


For example – You sign up 10 people in a month.


9 people go right into EFT at $196 every 4 weeks, which means you’ll make $392 within their first 30 days.


1 person PIFs at $2,038 (20%).


This brings your total cash collected in the month to $5,566…an average of $556 per client.

You see, there are lots of ways to make the 30 Day Cash Model work in your business.


But regardless of which way you make it happen, you need to make it happen if you want to profitably grow your gym business and stay cash flow positive.



Till next time…




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