If more than 80% of your gym’s revenue comes from group training classes, your fitness business is exposed.
A while ago, you may have been able to depend heavily on one form of income coming in each month. This is simply not the case anymore.
Running your gym with such singular dominant revenue streams also suggests that you’re operationally flawless, have exceptional coaches, robust class-time offerings, and a strong engagement and member retention program. Because of how unlikely this is, it means allowing too many ‘seasonal’ holds, experiencing even a small economic downturn, or finding out a new gym is opening just down the road are all very real threats to your business’s survival.
When you diversify your revenue streams, however, you create a foundation. You fortify your output by spreading out the means of input. And this makes it so you can grow under even the toughest of circumstances.
If you want a membership management strategy that will allow your gym to survive and thrive, you MUST commit to a more diversified channel strategy. Let’s take a look at a short priority list of new revenue streams you can begin implementing today.
New Revenue Streams
1.) 1-on-1 Coaching
This should be the #2 biggest revenue driver in your gym. If you can get it to #1, you’re a champion. The strategy to deploy here is leveraging subtle changes in your intro sessions with potential members to drive shifts in new revenue initiatives. Build the basics into your initial goals assessment and use it to highlight member needs.
Is their main goal fitness or nutrition driven?
If fitness, do they want to begin with an assessment and introduction to the fundamentals from you or are they comfortable heading right into a group class?
If you have less than 15% of your monthly revenues coming from 1-on-1 personal sessions, you have a massive opportunity to tap into an underlying community need. Explore it.
Empower your coaches and staff to engage and recruit members who want more individual attention and guidance. It’s one of the best ways to achieve the following:
- Identify and meet an underlying need
- Drive higher hourly rates for coaches
- Fight turnover & retain great staff,
If you’re doing everything by the book then structure pay against the 4/9ths model and be open to adjusting per coach rates to align with expertise and value (for the business AND member).
2.) Nutrition Packages
This really can go hand in hand with the above as 1-on-1 nutritional coaching is an extremely popular new revenue stream for many gyms. It’s likely because it costs nothing to start and you likely have all the resources to get it started.
We also see hundreds of Triib gyms running Nutrition Challenges each quarter. Right on the heels of the event, members are usually extremely excited to sign up for either a multi-session or recurring monthly nutrition coaching plan.
This can be molded into an online-only group or in-person. Online has an edge in that the connection remains consistent with little effort. Send out weekly content pieces to the member groups and maintain a strong catalyst for diet change, which will only reinforce gym attendance and overall retention numbers!
If you’ve ever had to face the reality that Chipotle Burritos aren’t good for you, you’d agree – dieting is hard as hell. Discipline is one part, knowledge is the other and members will pay for guidance and accountability with both.
3.) Corporate Programs
There are businesses near you. Partner with them!
Corporate challenges or events are nothing new but are often the least explored potential revenue stream. Unlike other challenges or events, which tend to only be rolled out seasonally, corporate partnerships can be very dependable forms of income for your business.
You can develop a corporate strategy that doesn’t NEED to involve simply discounting a membership. Often times, it may not be wise to do that at all! Rather, consider how you can work with their team to run quarterly challenges or become the host of monthly nutritional seminars. We’ve seen several gym owners and their staff collect monthly fees for traveling to the corporate location to teach office mobility, yoga, or nutritional ed classes off-site.
This one can be a homerun. Invest time into outreach around the area and gauge interest. You’ll be pleasantly surprised how many members you have out there waiting for you!