There are two trains of thought on the best way to sell gym/personal training memberships.
On the one hand, some people believe in collecting as much money as possible, even if it means giving a discount on the memberships. On the other hand, we have the recurring subscription model where you have some money coming in from your base memberships every month.
In our considered opinion, the recurring revenue model is the only way to grow your business and increase your profitability.
Building up your recurring revenues to be higher than your base operating expenses and growing the gap between these two is the surest way to have a thriving business.
If you go the other way and cannibalize your recurring revenues, you will have months where you can barely cover your base expenses. This is not good for your business as it keeps you in that state of always looking for the next big sale.
In this episode, Tim and Randy share the reasons why you should not fall for the excitement of a big sale and would rather focus on reoccurring revenues.
Key Takeaways
- The theme of the 2023 Growth Summit (01:30)
- Importance of cash flow to a business (02:31)
- Monthly recurring revenues vs. monthly expenses (06:21)
- Don’t live paycheck to paycheck (11:08)
- Align your expenses with your income (14:45)
- How to explode the growth and profitability of your business (16:15)
Additional Resources
- Become a member of the Gym Shirt Club and receive a shirt every month: https://gymshirtclub.com/
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- Learn more about our Business Accelerator Coaching Program for Gym Owners
- Grab your tickets for the 2023 FitPro Growth Summit
- Learn more about The Iron Circle
- Business Talk with Fitness Professionals Facebook group
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