It’s one thing for me to tell gym owners to do something.
But even if my advice is backed by a wealth of data—which it always is—a real example often hits much harder.
On a recent episode of “Run a Profitable Gym,” Tyler Quinn of Alchemy 365 revealed the inner workings of his business model and explained how he and wife Christy were able to put both of their gyms on our recent Top 10 leaderboard for client count.
Along the way, Tyler offered some rubber-meets-the-road examples of how tactical business advice plays out in real gyms.
Let’s dig into this case study.
Alchemy 365 Critical Data
KPIs
- Average revenue per member (ARM): $134
- Length of engagement (LEG): 16 months (next target: 18-24)
- Monthly churn: 5% (current area of focus with Two-Brain mentor Peter Brasovan)
Initial Business Model
- Revenue: $1 million per gym
- Proposed locations: 100 nationwide
- Peak locations: 9
Current Business Model
- Locations: 2 (both in Denver, Colorado)
- Aim: Profitability on Day 1
- Service: Accessible, high-intensity training delivered to large group classes in relatively small spaces
- Total members: About 900 (combined, 540 + 344 in August 2025)
- Square footage per gym: 4,500
- Number of training classrooms: 2 per gym (approx. 2,000 sq. ft. each)
- Average class size: 15–30
- Staff: About 45 total (4 full time)
Marketing & Sales Plan
- Referral-based leads: About 70% of first visitors come from referrals or buddy passes
- Heavy emphasis on organic marketing (off-sites, pop-ups, free events)
- Heavy focus on branding and market differentiators
- Limited paid ads
Key Lessons Learned
For years, I’ve talked about the right way and the wrong way to earn—and retain!—huge numbers of clients.
My original plan: Open a CrossFit space and wait for the masses to arrive. (It didn’t happen.)
I needed to get my systems dialed in, create a client journey and focus on serving about 150 high-value clients for 24+ months before I could realistically chase larger numbers of clients.
This mistake almost cost me my business.
Tyler—who also has experience running CrossFit affiliates—listed some of his errors and fixes.
1. Chasing the Wrong Metrics
Mistake: Focusing on top-line revenue and pursuing too many revenue streams.
Two-Brain perspective: I once listed all the ways a gym could generate revenue, and people looked at it as a checklist. But doing “all the things” isn’t as good as doing a few things really, really well—such as group, PT and habits coaching.
Tyler’s example: Adding smoothie bars, branded merchandise, lifestyle experiences such as retreats and diluting his focus. For example, his GM could often be found buying avocados at Trader Joe’s instead of managing service delivery at the gym. Membership declined while tertiary revenue masked problems.
Tyler’s correction: When he outsourced smoothie-bar operation, membership rebounded. He dialed in his focus, and that lesson stuck. Now, he focuses hard on what makes his brand a fit for his ideal client, not all the things he could do to get “all the clients.”
2. Overspending on Space
Mistake: Opening larger and more expensive locations.
Two-Brain perspective: I did this, too. I went bigger but didn’t have a plan, and my PT studio was soon supporting a struggling CrossFit location. If I were to open a new group location today, I would rent a very small amount of space and keep expenses very low, and I would expand only when bursting at the seams. (I would probably use a small-group model instead of big group, but that’s another discussion.)
Regardless of business model, we can teach gym owners exactly how to limit overhead and find profitability fast with small numbers of members. It’s a lot easier to build a business when you can sleep at night.
Tyler’s correction: Tyler estimates he could have saved 500–1,000 sq. ft. per facility with no negative impact (imagine the rent saved if every gym owner realized this!). Now, he’s using programming and equipment to ensure he can serve 15-30 people per class in just 2,000-square-foot classrooms.
Yes, Tyler is one of the few owners who has developed his product so he can beat the industry average of about seven people per class. Data shows most gym owners can’t get 15-20 people in a class—but you don’t have to if your services are priced properly in a sound business model.
3. Losing Focus on Core Strengths
Mistake: Building a “lifestyle brand” instead of focusing on core product (fitness experience).
Two-Brain perspective: We’ve all been tempted to broaden our focus and try new things before the “main thing” is dialed in. For example, my gym needed more members at one point. Instead of solving that problem with focused action, I built an entire concussion-testing protocol. And when I was done, my gym still needed more members.
Two-Brain mentorship helps gym owners build rock-solid systems that will allow them to expand strategically (if they want to), and a mentor provides accountability so you don’t get distracted like I did.
Tyler’s correction: He downsized to two gyms and refocused on healthy, sustainable profitability tied to business virtuosity: cleanliness, professionalism, punctuality, sincere care and client results.
The Path Forward
At the time the show was recorded in mid-October, Tyler had switched to a new software provider to streamline his operations and improve service delivery.
His other area of focus: Using a No Sweat Intro (NSI) to sell, with the goal of improving LEG. We’ll circle back to see what happens at Alchemy: Our data shows that using the NSI as part of the Prescriptive Model boosts close rate, ARM and LEG.
I love it when gym owners share their metrics and experiences to help others find success faster. The lessons Tyler learned as an entrepreneur mirror my own, and his corrections are supported by the largest data set in the fitness industry.
His focused adjustment to his business model allowed him to place Alchemy 365 LoHi and Alchemy 365 Tennyson on our Top 10 leaderboard for client count, and I can’t wait to see what he accomplishes with his mentor.
Just imagine what happens to revenue when a gym with 900 clients and $135 ARM adds even one month to LEG!
A mentor can help you build an A+ business, too.
Wherever you are in your journey as a fitness entrepreneur, we know exactly where the potholes are. We’ll help you drive past them and stomp the accelerator so you can reach breakeven fast and then enjoy impressive profitability.
To talk about the plan, book a call here today.
