2 Gyms, 1,140 Clients—How Daniel Dobbs Brown Does It in Chile - podcast episode cover

2 Gyms, 1,140 Clients—How Daniel Dobbs Brown Does It in Chile

Sep 28, 202332 minSeason 3Ep. 497
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Episode description

Two CrossFit gyms in Santiago, Chile, are home to 1,140 total clients—and Daniel Dobbs Brown owns both of them.

Accion CrossFit Providencia earned the No. 1 spot on our August 2023 headcount leaderboard with 723 clients, and the Las Condes location hit No. 4 with 417.

So how did Dobbs Brown do it? Host Mike Warkentin digs in to find out.

The short answer: Daniel is using a precise, high-volume, data-backed marketing plan and an increasing focus on retention to build his client list.

Daniel pulls back the curtain and shares all his metrics, as well as the strategies he's implementing with the help of a mentor to reduce churn, increase length of engagement and boost average revenue per member—all with a goal of dramatically improving the health of his community.

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Gym Owners United

2:22 - Acquiring and retaining clients

5:59 - Getting people in

11:48 - Content marketing

16:06 - Group training and PT

19:52 - Improving length of engagement

27:59 - 3-point plan for success

Transcript

Speaker 1

A CrossFit gym with 723 clients. Yes, it can be done. And I've got the guy who did it here today. Welcome to Run a Profitable Gym. I'm your host, Mike GaN . Before we go further, please hit subscribe. I want you to get every show, including insights from Chris Cooper to Brain Founder and interviews with top gym owners that I do here every month. So, hit subscribe now. Here we go.

We talk a lot on the show about the 150 client model. You can earn a hundred thousand dollars a year with 150 clients who pay about 205 bucks a month. What most people miss is that these are just your first targets. You can, of course go way beyond them. Danielle Dobs Brown did just that. He runs two gyms in Santiago, Chile.

Number one, Axion CrossFit Providencia was number one on our leaderboard for clients in August. He had 723 members at that gym. His second location in Las Cones was fourth with four 18. So he took up two spots on our top 10 leaderboard for a total of between 1100 and 1200 members. These are CrossFit gyms. We're gonna find out how he did it. Daniella , welcome. How are you today? Thanks,

Speaker 2

Mike . Hi . I'm here at the, at the other side of the world.

Speaker 1

I love it. I haven't had, I haven't had someone from South America on the show yet, so I'm happy that as you, we met in Chicago briefly, and I said I would have you on the show here. You are being number one in our leaderboard, so I'm gonna put you on the spot right off the bat. 'cause people wanna know what's the single bi biggest reason that you have so many members at your gyms? Oh ,

Speaker 2

Mainly it's , it's about like, like the mission. Like we're, we're pretty clear about , uh, we , we wanna attract many, as many people as possible. Like , uh, in here in Chile and South America. The s really sedentary is really a big issue. And when I found CrossFit, I really found a , a way to make an impact in people's life . So at at starting point, I decided I want to make it like available for everyone.

Like CrossFit not being this like elite thing, like just for, for regular dudes . Like how to get your health better, how to improve your health. And that's, that's like are the main reason. Like I , I continue pushing to get new members. Like , uh, every, every people count, every, every person. Like , uh, you can have an impact in their health, in their lives .

And, and that's, that , that's our main driver in the end. So when I start working with Two Brain , uh, I worked with my mentor, like told me like, okay, the , the business, the 150 , uh, members , business model and all that . And I told him right , right away, like, I want big numbers. I wanna get to as many people as possible. And that's, that's my mission, and that's what we're trying to accomplish in here.

Speaker 1

Okay. So that's great. What I wanna do now is I wanna dig in because big numbers like that, that's a great goal. It has two parts. The first one is acquiring clients, the second part is retaining them. So I wanna talk to you about those two things specifically so that people understand exactly how you're doing it, because you can't obtain big numbers if you're bad at sales.

You can't obtain big numbers if all your clients are bleeding out the back door while you're filling them in the front door. So first things first, where do you , how do you get these clients? How do you acquire clients? What's your sales process like? Walk me through that. We, we

Speaker 2

Used to have like different, different approach , like covid , like , uh, like really focused on social media, media, Instagram and Facebook. And, and we were really like really hard on that. Like with posts every day , we create content every day . And that , that was like our, our main strategy at first. Uh , pre post covid , like, things kind of changed . Like everything. It's more like paid media right now.

Like we we're gonna have a change in strategy, but we have keeping , pushing, pushing those , those numbers. Like, eh , I don't know , like everyone in my team knows how many members we need to attract today, like how many trial classes we need in one day. Like I'm, I'm really like driven by numbers and I try to make my team like driven by number .

So that's one of the thing thing first things we , we applying here , like, it's like , uh, getting small goals and being able to know, okay, we need to attract like a hundred members. Okay, 25 per week. Okay, we need seven each day and , and we are getting seven each day. We're in , in right track. If not, we need to keep like, pushing and try to try new stuff. Like always been trying new stuff.

If , if I had to be like really a hundred percent honest, like we always been trying new stuff. Like I've been like researching to bring materials since like 200 , 2013 , something like that. I , I read Chris book and I, and I, I, I joined the mentorship like in 2019 at the end, but I was like consuming all like free information from , like far , far apart from , from now .

Speaker 1

So if I'll summarize that for you listeners. So first of all, yeah , an extensive research into the business of gym ownership that's been going on. Daniel's been doing that for a long time. Next you've got a , like a heavy, it sounds like a heavy or organic social media , uh, publication plan. So you're doing that Daniel every day . You're putting out content all the time, correct.

Speaker 2

Yeah, yeah, yeah , yeah. Also, I'm a , I'm a , uh, we are like 50, 55 people in, in my team. Like I got three people in marketing, like I got five people in , in customer service. Like we're a really big team. Yeah . So that's also a , a way to support that kind of numbers . Like I got to a point where I realized that if I wanted to go big, I need to to , to form a big team.

I need , uh, a good team to support all that. And that's that like building my leadership. Uh , it's been one of my main like , uh, challenges and, and what I'm working every day with my mentor .

Speaker 1

Wow. So that's a huge team. And that team actually has marketing people on it, and you are doing paid marketing. And what I heard from you is exactly what our top salespeople into rain tell me. They know their exact numbers. I need this many leads to get this many appointments, to get this many sales, to get support. This many members that supports this business and this profit margin. They know those numbers cold 100%.

Daniel just rattled them off off the top of his head because he thinks about 'em all the time. So that's a secret. If you are looking for larger member counts, you have to know these numbers and are best marketing people, and these are people outside the gym industry that we consult with.

They'll tell you, you need to know how many leads you need to get to figure out how many appointments you need to get to get sales. That whole funnel needs to be laid out perfectly. Two brain does have these funnels built for clients. So that's fascinating. So I need to know, how do you get people in the gym to make sure that you retain them?

Because we often hear that big gyms with big, big numbers struggle to retain people because it's just such a huge collection of people. How do you onboard your new clients to make sure they stay for years, not months. I've

Speaker 2

Been doing something like a little bit counterintuitive. Like , uh, I , I I , I haven't been able to apply like an also intro model because it , it kind of like stopped , uh, the , the amount of people we're getting in . So, okay . We kind of like accept kind of like failures in the , in the first 90 days process. Like we got our 90 days like deliver , and normally we're fighting.

Nowadays we're struggling with the 31st days like that . That's where , uh, like my C s M is working and where my , my front desk is working right now. And, and we normally got a churn there, like 50%, something like that. Uh , and that's ,

Speaker 1

Sorry , how many percent ? That's why

Speaker 2

We need to keep pushing 50%.

Speaker 1

One five or 55 0 .

Speaker 2

Five zero .

Speaker 1

Okay. So

Speaker 2

We , we lost kind of half of the members we get in one month. Okay . Normally it's people who, who don't come back again. It's like we don't have any contact points of them, they don't reply and that , that , that , that's it. But we keep pushing that . We keep sending emails, try to bring 'em back, bring them back. Like we gotta really like figure out the systems .

Like we're , we're contacting people like used to be members, like people who wanna attract like , uh, like be able to work with all the , the kind of customers we got and try to push them. Like having a big team gets you , gives you lots of opportunities for failure and , and for keep pushing. Like it's, it's kind of, kind of that idea.

It's, it's harder, like it requires much more systems built , but in the end it pays off in how many numbers you can get. Like if you really like push it, like it will bring back.

Speaker 1

Okay . So what do , so you do have your first, you said your 90 days are mapped out pretty carefully, correct?

Speaker 2

Yeah. My 30 days, I , I 30 days . Pardon me . I gotta honest , like yeah , my 30 days it's , well , like to apply to 90 days haven't been able, but also we have found out that the , from 90 days, like from 30 to 90, we normally got , sorry , we normally got like a good , uh, good number of , of retention and at that point like we need to push our past the 30 days. So normally we got it done .

Speaker 1

Aha . But you've got a client success manager, right? So this is an interesting one, Jim owners out there. If you do not have this, a client success manager is someone who's going to be very, very important in acquiring and retaining members because that person's job is essentially to acclimate new people to your gym, retain them, and maybe even reacquire them.

Daniel, would you tell me a little bit about what that client success manager does at your gym day to day ?

Speaker 2

We're, we're working in that position right now. Like we haven't been able to implement it hundred percent , but that one, that's one of the challenge we've been working on, like post pandemic.

Like we we're really like kind of shrink the business a little and we are trying to focus more in , continue with the big numbers, but try to be more like, I don't know , not try to bring everyone, one of the main things we changed when, when I started working with was like changing the , with clients and , and trying to attract, like changing how we attract not everyone is going to be a good fit for my team .

Yeah . And we're, we've been like polishing that and, and try to work on that. And our next step is like really implementing their , because manager with the idea for them to, to be able to track more like goal setting is one of the main challenges I got to , to finish this year.

Like I, I, I have been trying to implement that like for two years, haven't been successful with that and, but I know that that can be a game changer. So we're trying to focus more retention and try to focus more in , in goal settings to help people like really gather their goals.

And , and that's, that's the main, like nowadays we're implementing the customer success managers with , with that folks and hundred percent that folks like just goal settings and , and try to , to take retention mainly . So

Speaker 1

That's interesting. So you said that, I mean, let me get off if I have this laid out correctly. It sounds to me like you have a really, really great marketing plan and you're able to acquire a lot of members every month. Is that right?

Speaker 2

Yeah, normally we're attracting 70 to a hundred members amount . Wow . Yeah. Yeah .

Speaker 1

Do you mind telling me a little bit about your paid advertising? Are you spending a lot of money on that or a medium amount or how are you doing that?

Speaker 2

Oh, it It's, it's been trial and error error . We , we've been like pushing it hard like for the last four months. Yeah . And we kind of stopped , uh, paid marketing like on July . Yeah . And we've been like pushing just organic marketing and we have realized that we're getting to 75, 80 member members.

Like, it , it doesn't pay off like to , in , in today's like, we're using more marketing for awareness, like more than try to , to bring like qualified leads. We are just like putting the brand in and all that. And like trying to push some of the , uh, the , the initiatives where we're, we're implementing. Like we got one initiative .

Right now we're working with people with diabetes and we're like doing a whole project with that, with 10 people with diabetes and we're trying to change their lifestyle with the doctor. We're working with an MD also. We're, we got this senior program, like we, we train , eh , elder, not that elder, like 60, 60 plus people. And we train them like , uh, for a dollar a month.

Like it's just, yeah, it's a , it's a huge, like, success in here. Like normally people pass the age of 60, they're not moving a lot here in South America. Like normally doctors prescribe them to stay at home and don't move at all. So we , we are trying to change that and we're doing CrossFit classes for other people and , um, well we , we charge 'em the dollar for the month.

It's , it's just symbolic, but we got like 70, 80 people like , uh, so committed to, to changing their lives. And , and you really see the impact of CrossFit those kind of people. Like they're really start like seeing the , the evolution of how health you can recover your health and start being more independent and all that . It's , it's pretty wonderful.

So, so we push lots of like , uh, the , the marketing from the heart to say so like mm-hmm . Lots of things about feelings and how people you can make people feel better with and exercise . So that's our approach right now. We're trying to generate value a lot. Like we're working organic, like content, trying to use the coaches, use , use testimonials a lot.

Uh , I normally write writing blog every week, like trying to, like, we push lots of information like to social media. Like that's, if I got like one one piece of advice you give to everyone, like keep pushing content like that , that's something I learned from, from learn from k like from the beginning. Like he was always pushing new content, pushing new content. And that's something we've been doing like from scratch.

Like I , that's something I really copy from, from what I learned from Two Brain and, and I feel like that pays off in , in the long, in the long run. It

Speaker 1

Sounds like you're doing an incredible thing by getting that many clients in the door without a ton of paid marketing right now where you're using mostly organic stuff. Where can people follow you? What's the best place for them to look at your social media? So then if I find out what you're doing , uh,

Speaker 2

Just follow , uh, ion CrossFit . Well , it's gonna be hard to find that . Axion is Action . Action in Spanish.

Speaker 1

It's a C I O N in English . And it's pronounced That's right . Yeah . The way Daniel said it. So that's how you'll find . Yeah , that's right. And it's , uh, that's on Instagram. Is that your best account or where would you recommend people find you? Yeah,

Speaker 2

That's, that's the best account. There , there you will see like all the content we're pushing every day . Like, and , and normally that's our most, like, like with most content social media right now.

Speaker 1

Okay. That's good. Pushing . Talk to me. Average revenue per member. Do you track that stat? Yeah,

Speaker 2

A hundred percent. Like, I mean , I mean , I got to be honest, like I'm a numbers guy, hundred percent . Like I , I've been tracking numbers. I used to work on finance, so for me it's like I got my dashboard and I got all my , for me numbers are, are the reason why I, I , I wake up every , every day , every morning. Like I need to know my numbers. If not, I'm , I'm scared. Like .

Speaker 1

Yeah. I I like that. I'm with you on that. So do you, were , are you comfortable talking a little bit about your average revenue per member or give us some ballpark ideas? I'd love to know where it's at. Yeah,

Speaker 2

That's, that's going to be really like where are close to 85, 90 ? Like that's the US we're

Speaker 1

Is that us ?

Speaker 2

Us ? Yeah . Okay . Yeah . Yeah . I tried to give you the us Thank you. Uh , normally we're at that point we , we've been pushing like our average revenue, remember like for , for quite some like last couple, three, four years, like we've been changing. We used to have like 90% of our, our revenue came from , uh, group classes now, like we're close to 78% of our revenue come from classes.

We also got well , uh, lots of physiotherapy. Like we got a group of kinesiologist here working and they bring like 10%, 12% something , uh, close to that from revenue. Also, we got a personal training, like one-on-ones also, it's a , it's a huge revenue income. And also we got cafeterias in coffee shops in , in , in both of our boxes . So also that also brings revenue to the table .

We kind of like diversify a little bit because, well , pre pandemic, well , we realized we were just like group classes and we need to change to a higher value . Like that's something from, from , like I , I , I applied , I said, okay, I need to change that . And we've been pushing that and we've been really kind of successful. Like it's, it's been a , a huge increase.

Like it helps me like retain my , my coaches, like my coaches better, better wages. Like I, I got also a huge offer for my customers. Like it's, it's been really, really great pushing that. But we are still like far , I , I wanna , my target is give to 120. Like that's, that's my goal. That's my scope. But we're , we're working on that . Like , okay , we have some ideas.

Speaker 1

Do you happen to know off the top of your head what percentage of your revenue is pers comes from personal training?

Speaker 2

Personal training is like 9%, something like that.

Speaker 1

Okay. So that's interesting. Yeah. CrossFit gyms. Yeah . Often like when I ran CrossFit gym, it was a hundred percent group classes. I didn't even know you could do personal training. So for you to tack on 9% personal training, that's great. If that number goes up so much, the better. My other question is, you said that you have some members , uh, that is pay a symbolic fee of $1 a month. Is that right?

Yeah. So does that mean in your average revenue per member that you have people on the other end of it who are paying close to 200? Yeah. So what are they , what is that? If , if you just take your average $200 client, what is that person buying from you every month? Do you have an idea? Is it personal training in group or something

Speaker 2

Else ? Yeah, normally he's buying like group classes , uh, some nutrition service. Yeah , there you go on per , on personal training . On personal training. We're changing nutritional service right now, so it , it hasn't been that strong in the last couple of months. But normally , uh, those are the three services .

We, we , we normally get people and , and they're kind of the , the huge success right now is having like group classes and personal training, like having one coach working in some of your weakness and also being able to participate in group classes, the community and all of the CrossFit stuff that , that's really great. Also, if you got injured, I got this physiotherapist who also coaches.

So it's, it's , it's a great matching there .

Speaker 1

Okay. So what we've got here is you've got a large number of people and you're working, you have increased your average revenue , remember , and you're looking at driving it up probably another, you said about 40, $45, is that correct? Kind of Your goal would be 120 ? Yeah , yeah,

Speaker 2

Yeah , yeah. We're , we're trying to implement new stuff . Like we've been working with coaches, like I got a a , we , I got 30 coaches right now. Wow . And I'm , yeah, for my 30 coaches we're working now with , with a coaching mentor from like , he's mentoring my head coaches and now I'm trying to push my coaches to be able to give more value.

Like from my, from the 30 coaches I got, only seven are giving like PTs like , uh, personal training. So I'm , I'm trying to implement a new system to make them all like, understand how to give value, like using the help first model and try to make them like understand how like in here in South America , like there's still like a huge gap in , in coaching how much value you can give as a coach .

And we're trying to work on that . That's like our , my , my main goal . So from 2024 , like being able to give my my coaches more tools for them to start like working with people and , and try to make them like build their own brand and all

Speaker 1

That. Let's say fantasy land , you get to your goal of 120 or $125 per member. What would you do with that extra revenue? How would that change your business in your life? What would you do with it?

Speaker 2

I'm kind of crazy right now because , I am , nowadays I'm trying to work with companies like I'm, I'm implementing wellness, like , uh, wellness , uh, programs with companies in order to change how companies normally work. Like they're not focused, they're focused on performance, making the people work be better or work good, but they're not focusing make them like, give them the tools to be able to perform better.

Like CrossFit lifestyle, how you live your life. It's, it's going to impact like in your work. It doesn't matter what you do for work, it's, it's, if you've got a balanced life, you got good relationships, you got you , you workouts every day . You eat well, you're going to perform well. I'm trying to work with companies right now and like doing some consulting with them.

I'm trying to implement some programs like we've been working like with three companies right now. Uh , it's been a huge success and we're trying to push new companies with that. Also, we're trying to build a model where we are implementing process boxes in companies . So we're trying to work with that.

Also, I work with a human resource guy that we are trying to implement also , uh, soft skills like development for, for people like using CrossFit in order to develop like soft skills for companies. Also, like I, I got so many things going on right now, like, and I , and I, and that's one of the things I love of the CrossFit ball that it , it , it gives me the , the freedom to, to just do stuff.

Like we're hosting a level one this , this , this weekend. And we're going to host a a couple of new in new courses in , in the last couple of months . In next month . Like we are implementing new stuff every day and, and with more revenue on the table, I'm like, I'll bring my my family to vacation and continue working .

Speaker 1

Okay. So that's fascinating. That's , you got big plans. I hope you get there to do that. 'cause I wanna see what you do with it. I gotta ask you this question now. So the other half we talk about big numbers is acquisition and retention. So let's talk retention. You said that you have some monthly churn. What are you doing to retain your members? How are you gonna get that length of engagement up?

What are your plans? Because I know you're thinking about that.

Speaker 2

Yeah, I , I'm , I'm , I want , I , I'm pushing with my team right now. I wanna go , uh, all in with the customer success manager. Like we are implementing some stuff , but , uh, they're , my team is not a hundred percent convinced. I'm trying to convince them , like that's their , that's the bet we're gonna do on the , on the last , uh, the last month of the year. And , and I'm trying to push that .

Like , I , I feel like with , with the tools from children and , and the team we got , I , I'm on the point that I needed customer success manager really put the , we're at 1213 right now in, in churn , and that's not a number I'm happy with. So , sorry ,

Speaker 1

12, 13. That , that's percent or what is 12 ?

Speaker 2

13 churn a Yeah.

Speaker 1

So 12%

Speaker 2

Churn rate.

Speaker 1

Yeah . Okay. And every month.

Speaker 2

Every month. Yeah. Okay . Okay . Yeah , that's an average churn rate. Like, like we got, we used to work with 15. Now nowadays we're between 12 and 13, but I , I'm working with my mentor to push it to five seven . Like he's pushing me. I'm really like holding me accountable to push it to , to that point and, and I'm trying to change, like changing is hard.

Like, and , and that's the message for , for everyone who's listened to, to this kind of stuff. Like when you work with a mentor many times it's about like your mentor is going to push you in the direction you , you won't feel comfortable going, but that , that's why you got a mentor. Like he's, he really have the , the big picture. He's looking from the outside.

Uh , it's going to be hard to change, but, but I , I got the , the best mentor in the world and like, he's pushing me and he really like pushed me to, to be accountable with, with all my stuff and , and we're going in the right direction. Like I , I know things are going to get just better.

Speaker 1

Give him a shout out . Who is it? Who's your mentor? Uh ,

Speaker 2

Peter, Peter sson .

Speaker 1

He's a good guy. There you go. So Peter works with , uh, no,

Speaker 2

He's the best. He's

Speaker 1

Good . Yeah , he's the best . Sorry ,

Speaker 2

Sorry for the other mentors, but he's the best .

Speaker 1

It's funny, every talk client I talk to says their mentors the best and I think they might all be right. So let ask this, what would it do for your business? What would happen to your business? And I'll go further the health of your local community. If you got your churn rate from the teens down to five or 7%, what would happen if that happened? Well ,

Speaker 2

I'll get closer to my goal. I, I got a , a personal goal to get to 5,000 members. Like

Speaker 1

5,000 .

Speaker 2

Yeah . Okay . Yeah. That's, that's what I wanna reach. Like prior the pandemic, we used to have three locations and we got , uh, thousand 500 members, thousand 600 members in three locations. And, and I wanna , I , I wanna get closer to that number . I wanna get thousand members . Like I wanna have like five locations.

I wanna have like, I don't know , a nonprofit to , to help , to help like social people and social needs. Like, I got so many plans and things I, I , I wanna push so far. Like I really, I really feel like a CrossFit can change people's lives. Like I , I really dig into that. Uh , it changed my life. Like I, I'm , I , I'm an engineer. I, I coach classes.

I, and I do my best to really lead my life like the fullest I can, like really following my dreams and following my heart to, to like do, do the stuff I I love. And that's, I'm working with tur one is one of the things I , I really enjoy with . So I don't know , I , I , I don't know . I , I'm just planning, like I, I'm just enjoying myself. I'm enjoying life .

Like I , I really am not trying to think like if something I I got from the pandemic is not, not planned that much. Like, really like follow my heart and, and be, and use my head to, to figure how things will work. Like , uh, and nowadays, like I got a beautiful team, people I work with, like every day I got a chance to develop as a coach, as a mentor. I got, I , I got so many challenges ahead .

I got two kids, like , like my life is great , like just can't complain about it .

Speaker 1

That's good . So I'm gonna summarize the retention section. I wanna ask you a question at the end of it.

Here. You've got a client success manager and you're working to get your churn down into the five to 7% range that you can retain more members, help more people, and get into the 5,000 member mark, which is a huge goal, which is gonna allow you to do a lot of really cool stuff with your business and with your life. What are two other small things? I'm talking like more tactical stuff.

What are two other things you're doing to improve your retention? Do you have anything else that Peter's given you saying, here's how we're gonna get to that five to 7% churn . What are you looking at? I'm

Speaker 2

Trying to push now the, the content creation . Like I'm working with my marketing team where we we're probably gonna push the podcast from for our community. Like trying to, to be able to deliver more on that. And the secondly, we're , we're starting to push harder with companies like that . Uh , that bond with companies have been like giving some dividends right now. So we're pushing hard on that .

And I've been doing some structured changes on , on my team. Like , uh, I'm really working on my coaching stuff . Like , uh, now , nowadays, like I, I, I, I put a mentor with, with my coaching staff , like both of my head coaches got a mentor right now. I , I , I got the service from CrossFit. It's been like really a game changer.

And they're working with the , the coaching staff , like having 30 coaches makes it like really hard, really, really hard. Uh , but I feel like finally like 10 years working on that, we are starting to, to get to that coaching spot that I , I always wanted like be able to have coaches that really have impact on people's life and, and , and really like coach and classes that that's okay .

Speaker 1

That's Did

Speaker 2

I , the main things ,

Speaker 1

Did I hear you mention goal review sessions? Is that something that's on your agenda ? Yeah ,

Speaker 2

Yeah. No, a hundred percent . Like that's something I like my csm, that's, that's the first task we Okay . , she's going to implement it because I know , I know , I know who she's like , I , I haven't been able to push that , but ,

Speaker 1

But that's on her, her to-do list is to start getting goal review sessions in place.

Speaker 2

Yeah . Yeah. That's the first, yeah , that's the first.

Speaker 1

Okay. I'm really curious to see what happens for you because two brand data suggests that when you start doing goal review sessions with new clients, they stay longer and they end up paying more because they find out about more services that are gonna help 'em solve their problems.

So if you've got a ton of members and you start chipping away at goal review sessions with that membership group, I'm very curious to see what happens in six or eight months with your length of engagement, your churn rate, and your average revenue per member and your member count . Because if you retain members and you've got a marketing machine going , you might be able to add more.

So like, is that just a dream come true for you if these goal review sessions would start to affect all those numbers? That's

Speaker 2

Part of the plan. Like normally we got a length of engagement right now of 18 months, something

Speaker 1

Like that . You say 18,

Speaker 2

18 months . Yeah.

Speaker 1

Wow. That's pretty good.

Speaker 2

Yeah, it , we got a good of engagement , but the last couple of years it's been harder to push that. So that's, that's why we're trying to also implement that . Like we're kind kind of changing like post pandemic. Like we're kind changing, like I wanna go more for retention. For example , cia , that's our biggest location. Mm-hmm . , we used to have a thousand members in here .

Now we are , are up 750 , something like that. I don't want to push it to a thousand members. Again. Like it's really, it's really too crazy . Like , it , it doesn't make any sense. We got so many classes going on, but I wanna get, we close to 850, 900 members and then working in , in our member , like kind of , so we are trying to kind of doing the , the shift right now.

Like it's , we're going to implement like the C S m, we're trying to, to think more of how to retain more members and , and how to like have a higher value in like it's, that's how like , like our main goals, like in South America, probably like people , we don't realize that , but uh , we got a high average revenue per member. Like we are like, we're expensive box right now with many members.

So that's kind of weird. But normally you'll find an average revenue per member close to $40 US dollars , like 45. I work with a couple of , uh, like boxes and they normally got like a couple of them, like $35 per per revenue per member. Like it's, it's really, really low . So you're double that . Try to push that . Yeah. Yeah. But try to push to , to push that in , in this kind of market . It's really hard.

Mm-hmm . . But we're pushing like that's, that's the idea. And that we're struggling to make like the fitness industry better, better. Like that's, that's our main goal also.

Speaker 1

That's fascinating. So listers, to give you a summary here, if you want a lot of members, you , you know , marketing and acquisition plan and you need a retention plan. Daniel mentioned something really interesting that I'm gonna point out for you as well. Head count times length of engagement, times average revenue per member. That is the three part , the the multiplication table of success for a gym.

Because if you have a lot of members and they're paying a great rate, high value rate and they're receiving the service that they like and they stay for a long time, you will change those members' lives. They'll become fitter and happier and healthier. And your business will support a huge team and provide you with the income you deserve for running a business.

So those three parts, again, length of engagement, average revenue per member, client count, you want all of them to be high and they multiply each other. You can't just have a ton of clients at $1 a month. Daniel doesn't have that. He's got some high value clients at the other end. They're balancing out that social work that he does to generate an average revenue per member. That's actually double what it is locally.

And he's working hard to make his retention better. So he holds on to more people and changes the , the , the , the city and probably the country. Is that accurate Daniel? If I got that summary pretty close,

Speaker 2

It's the best summary. I could this , those , those Aries like really, really, really perfect. Okay ,

Speaker 1

That's good . I didn't wanna put words in your mouth, but that's what I'm getting from you is that like you have a vision for stuff and it's changing your community, but you've also got a , an eye dialed in on those metrics because if you don't, your business isn't gonna work, it's not enough. You just say, I want a bunch of members. You have to have a plan to get them and retain them and support your staff.

And then we're not gonna get into it today 'cause it's a huge topic, but you're leading a team of 55 people that's no longer teaching the squat . That's like leading a small army of people who are trying to do stuff. Yeah . That is a whole different entrepreneurial skillset when you reach that level.

The Tinker program with T Terrain is probably where you need to be because you need to level up as a person, not just as a CrossFit coach or a fitness trainer. Like I won't even ask you the questions Daniel , 'cause I know the pressures of leading a huge team. We'll leave that to another show.

But I wanna thank you so much for being here and just thanks so much for giving us the perspective from South America and talking to us about your huge client count . I appreciate it.

Speaker 2

No, thanks a lot for, for the opportunity just to share what we're doing here. Thanks. Like just a little piece of advice, like the numbers, like tracking your numbers, tracking your numbers , your numbers , and when you finish tracking your numbers , go then and track them again. Like really like be able to know your numbers so well .

Like you can have a conversation with anyone and you know how many people you got , your Im your engagement , like know all those numbers and , and things are going gonna improve . I , I really like really push those numbers. Like that's , that's the main thing .

Speaker 1

There's the piece of advice. Taking the show, track your numbers and when you do that, track them again, then do it again. That's how you'll find success as a gym owner. Two brain business has the data you need to compare your numbers to and give you targets and help you exceed the numbers you're currently at. So book a call with us if you want to hear more about that. That was Daniel Dobs Brown .

This is Run a Profitable Gym. I'm Mike Kin and thanks for watching and listening. I really appreciate it. Please subscribe on your way out. And now here's Chris Cooper with the final message.

Speaker 3

Hey, it's two Brain founder Chris Cooper. With a quick note . We created the Gym Owners United Facebook group to help you run a profitable gym. Thousands of gym owners, just like you have already joined in the group. We share sound advice about the business of fitness every day I answer questions, I run free webinars and I give away all kinds of great resources to help you grow your gym.

I'd love to have you in that group. It's Gym Owners United on Facebook, or go to gym owners united.com to join. Do it today.

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