In the latest Gym Secrets podcast, the host emphasizes the need for gym owners to adapt to a changing fitness landscape. He predicts a challenging recovery post-pandemic, as consumer behavior shifts towards convenience and remote fitness options. The host draws parallels to the fall of Blockbuster due to underestimating digital streaming, suggesting that gyms must evolve similarly. He presents compelling data showing that remote gyms have higher lead conversion rates and suggests that gym owners should consider transitioning to online models to maximize reach and profitability. The host stresses the urgency of leveraging current opportunities to build a successful online fitness business, warning against complacency and encouraging proactive adaptation to the evolving market demands.
"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 introduces the podcast's main objectives: customer acquisition, maximizing revenue per customer, customer retention, and learning from past mistakes.
"So I'm calling this the oh shit moment. Because right now, I think that there's still a certain sense of hope, right? I think that when they turn the lights back on, when they turn the economy back on, when they let gyms back... I think a lot fewer people are going to come back than you think."
The "oh shit" moment refers to the realization gym owners will have when they notice the customer turnout is significantly lower than expected once they reopen.
"Because it's so easy to rationalize our, like, human beings don't want to think of bad case scenarios, and so we rationalize that we don't need to change, right? And so Blockbuster executives... They were fucking wrong."
This quote highlights the danger of rationalizing away threats to one's business, drawing a parallel to the failure of Blockbuster to adapt to the rise of online streaming.
"And so the reality is that people will always choose their convenience... It took all of the remote services and dragged it ten years into the future in terms of mass adoption. It was forced adoption."
The quote emphasizes the preference for convenience in consumer choices and how the current situation has rapidly advanced the adoption of online services.
"Here's the others oh shit moment is that some of the companies that did layoffs may not rehire everyone, right? Because the demand is not going to be what it was at the single greatest moment in economic history."
This quote presents the concern that the job market may not fully recover, which could affect the demand for gym services and other industries.
"Which transparently will be great for me because I'm just going to market the shit."
The quote suggests that while traditional gyms might struggle, there is an opportunity for those who can adapt and offer online services to thrive in the changing market.
"Because that will be when marketing is more important than ever. Because you're going to have to differentiate and get your name out there more than anyone else is."
This quote emphasizes the heightened importance of marketing strategies for gyms post-crisis to attract and retain clients.
"If you're an amazing operator and you haven't lost anyone, then you'll probably recover better than people who have lost people, right? Because you have a stronger community, you have more bought in coaches, you have a better culture, et cetera, right?"
This quote highlights the advantage that gyms with strong communities and operational excellence have over those that have lost members and have weaker community ties.
"And the question is whether or not you want to be a business owner or a gym owner. And that's a very real question."
This quote introduces the idea that gym owners must decide whether their goal is to solely run a gym or to expand into broader business opportunities, potentially through remote operations.
"But no, it's not from one facility. Unless you have a massive facility and typically group training, personal training set will be only a part of that, right?"
This quote conveys the reality that substantial financial success in the gym industry typically requires more than just one facility unless it's a very large operation with numerous members.
"So in my belief, there is no way better than right now for the best operators to be able to build a million dollar income business."
This quote suggests that for top operators, the current market conditions are ideal for scaling up to a million-dollar income business, particularly through remote operations.
"But if you get twice as many at bats, you actually still net more sales."
This quote explains that despite a lower closing percentage for remote sales compared to in-person, the increased number of opportunities compensates and leads to more overall sales.
"But you are limited by your capacity to fulfill in terms of how many people you can have at each time. You're limited by your lead flow because let's be real. Like lead flow of a 25 miles radius is always going to be higher and cheaper than in a five mile radius because it's quadratic, right?"
This quote explains the logistical and mathematical considerations that impact lead flow and the cost of acquisition, emphasizing the benefits of a wider marketing radius.
"If you have a twelve inch pizza and you have a 24 inch pizza, a 24 inch pizza is not twice as big as a twelve inch pizza. You can fit like 412 inch pizzas inside of a 24 inch pizza because that's how circles work. It's called quadratic expansion."
The quote explains the concept of quadratic expansion using the example of pizzas, demonstrating that a 24-inch pizza has an area much larger than twice that of a 12-inch pizza due to the quadratic relationship between the radius and area of a circle.
"Hey, if you're a return listener and you have not rated or reviewed the show, I want you to know that you should feel absolutely terrible about yourself and everything else in the world. I'm kidding. But it would mean the absolute world to me."
This quote encourages listeners to rate and review the podcast, highlighting the importance of audience engagement in expanding the show's reach.
"And so when you go to a 25 miles radius, you're talking ten times, you know what I mean? The amount of people that you would be reaching otherwise."
The speaker illustrates how expanding the business radius can significantly amplify the potential customer base, which is essential for lead generation.
"Breaking even on the front end and having an 80% gross margin on the back end. You're talking about spending right now. If you spend $1,500, you'll make $6,000 in front end revenue in 30 days."
The quote provides a specific example of the cost-revenue relationship in online business, emphasizing the potential for high profitability with the right strategies.
"If you spent $2,200 in ad spend over the first 30 days, you would be able to have 50 people in your online remote business after you lost 40% for not going into continuity."
This quote details a strategy for building an online business, including investment in advertising and managing expectations for customer continuity.
"But what I can tell you is the opportunity is there. And so in the next 30 days, in the next 60 days, if you wanted to build yourself a six figure or multi six figure online income, you could do it."
The speaker emphasizes the presence of opportunities in the market for building a profitable online business in a short timeframe, encouraging listeners to consider the potential financial gains.
"decisions with math right now and not let your emotions, and not let your fear, and not let your discomfort around learning a new skill, which is selling over the phone, because is the only thing you have to do, that's it."
This quote emphasizes the importance of focusing on logical decision-making and overcoming emotional barriers to learn phone sales skills, which are deemed essential for business survival and growth.
"Now the mass market has been introduced to what online training is like. Most people don't even know what it was. Now they know what it is."
The speaker is highlighting the significant shift in public awareness and acceptance of online training due to the pandemic, suggesting a lasting change in consumer behavior.
"And so you're underestimating how big of a deal it is for them to even recognize that industry."
The speaker is cautioning against overlooking the impact that increased awareness of online training has on the industry's future.
"What if you have a business that just cash flows later and then you have your gym?"
This quote suggests the potential for a hybrid business model that combines remote services with traditional gym operations, leading to diversified income streams.
"Because this has given us the biggest reason of all time. The biggest. Why am I remote? Why are you doing this over the phone? Why are we doing this online? It has now given everyone permission to have that reason that we never had before."
The quote captures the unique opportunity presented by the pandemic to justify the transition to remote business models, which were previously more challenging to explain to consumers.
"Convenience and speed always win with humans. Always."
This quote underlines the speaker's belief that the inherent human preference for convenience will favor the adoption of remote fitness services.
"Take action now, start selling remote. I think it is incredibly, incredibly, incredibly awesome right now."
The speaker is advocating for immediate action in adopting remote sales strategies, emphasizing the urgency and potential benefits of doing so.