Episode 159: Buying Cash Flow Assets, with Joe Flanigan

Episode 159: Buying Cash Flow Assets, with Joe Flanigan

Joe Flanigan joins us to talk about buying real estate to grow your wealth. We specifically focus on buying multifamily apartment buildings and the risks and rewards of investing in real estate. Join us in this exciting episode! 

Joe Flanigan is from Houston, Texas where he owns District H CrossFit. Joe started CrossFit in 2005 and spent five years studying the methodology behind the fitness program before he got into coaching. As a coach, he specializes in weightlifting and helping others achieve their fitness goals. In addition to owning a gym and his passion for fitness, Joe loves real estate and has been involved in the real estate market for many years now.  

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Joe Flanigan:                         00:02                       Welcome everyone to TwoBrain radio. It is our mission at TwoBrain to provide 1 million entrepreneurs the freedom to live the life that they choose. Join us every week as we discover the very best practices to achieve perfect day and move you closer to wealth.

Joe Flanigan:                         00:26                       This episode is sponsored by Anvil Coffee, creators of the CEO brand coffee from two brain. If you’ve ever been to a two brain seminar, a summit, you’ve heard me do a little segment called what is the value of a cup of coffee. And I shared four key points in my life where I’ve shared a cup of coffee with somebody, really influential and it made a big deal. So in one circumstance, you know the coffee was worth a dollar 70 but it got me through this mountain pass in the dead of night in Utah. While I was working on a story about polygamous and there are three other even larger examples where coffee has been worth, you know, up to $100,000 with somebody. What does a Great Cup of coffee worth? Well, it can be almost priceless. And if you’ve met me, you know that I’m always either holding a cup of coffee, drinking a cup of coffee, or maybe even talking about a cup of coffee if I’m not doing one of those three things, I need one now.

Joe Flanigan:                         01:14                       When I approached Brian, I approached him from the help first mentality. Hey Man, I want to talk about your coffee on my show. It’s fantastic, and he turned right around and out, help first and me. He said, yeah man, we are going to help. Every time somebody in the two brand family order some coffee from anvil, we are going to make a little donation to the Special Olympics, which is a charity that is very near and dear to my heart. I can’t say enough about these guys. The coffee’s amazing brain and amazing person. He’s a valuable part of the two brain family and he’s going to make a contribution to special Olympics. Thank you Brian. I love your brother. I love your coffee. If you’re listening to this, give anvil coffee a shot, you will not be disappointed except for this one little disappointing thing. You can’t buy CEO coffee. The only way to get CEO coffee and the coveted two brain’s CEO Mug is to sign up for the incubator details for that are on our website too.

Greg:                                          02:07                       On this episode of TwoBrain radio. We talk to Joe Flanigan. This episode’s a little different because we talk about buying assets. Normally you hear us talking about gym ownership or something along the lines of that, but we kind of want to reach out a little bit more and show you guys that there’s other things besides the gym ownership that we talk about. And in this episode we kind of dig into that. Now Joe is a crossfit box owner, but we talk about, hey, when we get to a point where we have enough money and we want to do something with it, what are those other options that are out there? And we kind of dig into buying assets. Now we don’t dive into buying a building, but this is just like as if you were trying to buy a building. This dives into buying a multifamily apartment complex that Joe is currently in the process of doing. And we get into the different things that you need to do, including due diligence, making sure you know the numbers and analyze the numbers correctly and just kind of get a better understanding of, uh, the risks and the rewards with buying assets and allowing you to figure out what is the best case for you. Enjoy.

Greg:                                          03:12                       All right, I’m here with Joe . Joe, welcome to TwoBrain radio.

Joe Flanigan:                         03:16                       Thank you. Thanks for having me.

Greg:                                          03:18                       So I know a little bit of background about you, Joe. I know you own district h crossfit in Houston and you also have kind of dabble in a little, a few other things to kind of build up your, you and your families. W I wouldn’t say legacy, but more of your, your assets. So if you want to give us a little bit of background to anyone that’s listening about the business that you own, including the gym and then kind of what started you out looking into other assets.

Joe Flanigan:                         03:44                       Sure, sure. Uh, well first of all, I am, I am a part owner in district h crossfit and here in Houston and part owner being, you know, managing the, the staff and help manage the day to day operations, financials, all that stuff. And it frees me up and gives me a little bit more time to do my other passions and loves, which is really real estate. I came up and uh, the real estate industry straight out of school, straight out of college doing customers start a service for a builder here in Houston. And from there I was able to kind of parlay the experience from customer service and move it into building, then move it into project management and then into operations, which then helped me to have enough competence to actually open up a gym because that was something that all the way through college I did personal training and uh, I loved the physical and training side of helping people and I wanted to be able to continue to do that. You use the word legacy, and I really continue to do that as a long term gift of skills and talents that I had to be able to give to others. So, so I have, you know, two things that I love doing and real estate was something that was, was always on my mind as a vehicle for wealth in the future. And by that I mean, you know, being able to invest in something that is going to appreciate and time is going to give me tax difference or tax depreciation, you know, just, just or, and then also obviously the cash on cash return on a monthly basis is also helpful. It’s nice to be able to have that passive income on a, on a monthly basis, on a regular basis to be able to offset anything else income wise that I may be. I have a growing family, my wife and I, I have three kids, three kids. As of last week we had a third kid. So it is nice to be able to have the additional income to be able to put toward school homes, education, whatever it is that we have to do. In the future and still be able to create and build an essay for our future and for the legacy of our family.

Greg:                                          06:01                       First off, of course, congratulations. Got to say that with the newborn now you, you started down this path a of real estate in the past and I mean, you know that, that as you said, the real estate game is very, it’s very nice to have something that appreciates usually, I mean, of course we all know that markets do crash, but for the majority of the time that they always do appreciate. So you kind of started getting down, going down that road along with having being a co-owner in a gym. What kind of led you down the path to kind of what we’re going to get into a little bit more today of starting with compared to like maybe buying homes and renting them out, but more of like apartment complexes and the different types?

Joe Flanigan:                         06:41                       Sure. The way I started in, in, uh, investing was investing in single family homes. And the reason why we started in single families because I was comfortable there. I knew all of that went into a home just from building them for about 15 years. Being in the industry, I knew that that was it. Kind of a safer bet for us. Uh, we’re pretty conservative when it comes to our, our money. You know, the money that you make. You obviously don’t just want to give away. You don’t want to just want to hand out to somebody and hope that it’s going to appreciate in the future or grow. Uh, so, you know, we were, we were a little skeptical at first, but we bought our first rental home, made all the mistakes possible that I could make, but still turned out a monthly cash on cash return as well as a profit whenever we ended up disposing or selling the property.

Joe Flanigan:                         07:37                       So that essentially got us hooked and it made us want to do more. I missed one, two, uh, know how to do more. Um, so it got us involved in a group called Lifestyles Unlimited It’s actually been talked about before by one of the mentors. Actually Jeff Smith is involved here in Houston as well, but it got us involved there. And the education along with the experience doing it ourselves, a really, it just kind of push the needle even further. It made us want to invest fully in, in this as a long term approach. Once we got through with a few single family homes and disposing the as single family homes at to build up enough capital we have since moved to more of the multifamily approach. And multifamily approach is very similar to that, that have single family, but it requires obviously more capital. It requires more of a network when it comes to real estate brokers and agents that are out there pounding the pavement, trying to find these deals along with you, trying to find the deals and then a whole other slew of people, just a team, uh, that you have to build up, um, with attorneys and with mortgage and commercial brokers and mentors and all of that stuff to be able to move into this, this multifamily realm, uh, which is, which is what we’ve pushed to now.

Greg:                                          09:05                       So the process is, is definitely not a short road whatsoever. So, uh, if somebody, if somebody had enough, uh, cash assets, so we’ll say liquid cash and they decided, hey, real estate is definitely the way I think I want to go long term and they’re listening to this podcast. What do you feel like is the first step that they need to do?

Joe Flanigan:                         09:27                       I mean, I would say first step is figuring out what your comfort level, you know, again, handing out your money or giving your money to somebody or something in hopes that it’s going to uh, appreciate. Obviously hope, hope is not a strategy. You got to have some sort of a game plan to get it there. So I would say no. Your comfort level first then decide whether or not you want to go to the single family route or the multifamily route with the multifamily. I mean there are plenty of programs out there, people out there that are already doing this type of thing. I would get educated first though. It’s far more important to understand the inner workings of, uh, multifamily real estate then than it is really to go on, on the single family route. I think the single family route is a little bit easier to grasp.

Joe Flanigan:                         10:23                       It’s really one project is one dwelling is one home. You know, it’s, it’s not much more in depth learning as opposed to finding the brokers to find the home, to know how to plan your Rehab and know where to purchase. We know what your purchase price is, know what your sales price is and know how much you’re able to rehab the home in order to still make a profit whenever you’re refinancing or you’re selling the property. There are so many levels to it all. I mean, I apologize for, you know, possibly rambling at this point, but there really is so many levels when it comes to each avenue of, of investing in single family or investing in multifamily. But yeah, that choice has to be made first, obviously. Uh, and then educating yourself on which ever having you choose either single family.

Greg:                                          11:18                       Okay. So if, if somebody has, has the money or has the ability to purchase an asset, whether that’s a single family home, multifamily homes, I mean a building, like you said, the best bet is to, is to really decide what your, your risk level is. Right? Like what?

Joe Flanigan:                         11:34                       Willing to risk more risk, less and, and really then due diligence it sounds like. So,

Joe Flanigan:                         11:39                       mmm.

Greg:                                          11:40                       Really educating yourself on the ability to, uh, which avenue you’re going to go down, be able to actually say, okay,

Joe Flanigan:                         11:47                       this is, this is the steps. Yeah, definitely. Yeah. I think that education piece is very, very important because if you don’t understand the investment you’re getting in, you’re essentially just, again, throwing something, throwing money at something and wishing that it’s going to increase. I think that happens a lot with the stock market to, people don’t understand it yet. They’re willing to put money in a four o one k or an Ira because that’s what we’re told to do. I think the education piece is far more important than just do, just do, just do, don’t worry. It’ll be, you know, you’ll be able to, to cash out when you’re 65 or cash out later in life educated, educating yourself and then really trusting your education and the ability to do it yourself is, is another thing. Uh, and I’m not saying do the, you know, the whole Rehab Yourself, um, you know, get your hammer in your tool belt out and you do it all yourself.

Joe Flanigan:                         12:47                       Uh, I am just saying, you know, know who to call, know who to talk to, know your dollars and cents because you know, if you do not all of that stuff and you know who to contact, yeah. Actually becomes a pretty easy investment to get in it at least an investment vehicle to get in. I think far easier than the market is. And I only say that because I’ve done day trading and I’ve done some of the training piece too. And it’s not easy. I mean it does take a lot of education as well, but yeah, that’s that. I hope I answered the question.

Greg:                                          13:23                       No, no, no, that’s perfect. I just want people to be aware of that. Especially because, like you said, every scenario is different. I mean, you’ve got to know your comfort level and then being willing to, how much are you willing to invest? How much are you willing to put on the line for, for what you’re going towards or what you’re trying to achieve. So I definitely, I definitely think that that answers the question. Now let’s, let’s go a little bit more specific with you. You went into the multifamily homes now, what does that process actually look like? So I mean, from the point of view, trying to find where you’re at to kind of where you are and I know you’re still finishing up the process now, um, but kind of giving an overview each step of the way of, of what you’ve had to do.

Joe Flanigan:                         14:02                       Sure, sure. Absolutely. Uh, at the risk of boring folks that, uh, with terminology and verbiage and all that stuff. Absolutely. I will definitely tell because I feel it’s fascinating. I think it is something that, you know, being in real estate and in the industry or so long, I’ve been in it for about 18 years now. All facets and all sides of the industry. Then moving into a multifamily, I mean it’s like this is brand new. It’s completely different. And, but it, it’s exciting to me, you know, cause I, I love that challenge of learning something new and really trying to master it. And if I can forecast the future and see where this longterm road ends and the goal, you know, my longterm goal, I mean I just see it’s being, being so fruitful to learn this as well as I’m learning. So, um, so at the risk of boring, yes, I will talk about this, uh, beginning to end.

Joe Flanigan:                         15:08                       So the way I got started was obviously pulling together for personal financial statement. I’m really kind of going out there and meeting brokers, telling them what my net worth was in order to kind of figure out how much I could afford when it came to a multifamily project. Um, and then from there I’m honing my search to, you know, talking to these agents, talking to multiple agents, building relationships, something that everybody who’s listening to this podcast probably does very, very well. If they want a box. It’s that personal connection that is going to get you the deal. It’s that personal relationship that is going to help you find that diamond in the rough, that you are then able to pursue or at least do due diligence on at least doing some further analysis. So yeah, that’s what I think it takes anyway. The search starts, right and the searches with an agent and you’re looking at a number of different properties in small pockets of town or all around Houston, all around the nation, whatever it is that you choose, your search parameter is.

Joe Flanigan:                         16:16                       Um, and then obviously based upon your net worth from there, once you find a property, you, you’re going to handle eyes. It, you dig into the numbers. You, I use a spreadsheet that I actually got from the group that I am in lifestyles unlimited. Um, and I’ve tweaked it just a little bit in order to satisfy some of my add needs and, uh, and, and definitely something that I, I, I need to see on paper that otherwise they didn’t have. So, uh, after the analysis, then I move into the LOI stage, which is a letter of intent. Draw up a letter and you send it to the owner or you sent the owner’s agent saying how much you would have purchased the property for or how much you’d be willing to purchase the property for. And uh, once they accept you go into a period of 60 to 75 days and in that 60 to 75 days, you do a number of things.

Joe Flanigan:                         17:12                       Um, you signed a purchase sale agreement, you create a PPM, which is a private placement memorandum for all of your investors or all of your potential investors to view the deal, understand the deal and decide whether or not they want to fund it. And you go into feasibility, uh, which is period where you’re able to get on site and really do the hands on due diligence. You get to see, you know, all of the units, get to look at the roof, the foundation, everything, all the bones. And then from there, get a term sheet from your lender, get the loan commitment right to foreclose, finalize all these legal and that both your FCC attorney and your real estate attorney create. Go into the settlement statement and then take it over. And from that point on, I’ll have to, you’ll have to call me again for another podcast and I’ll tell you that after the takeover is complete, I’ll be able to give you a little bit more information after that.

Greg:                                          18:09                       It sounds like basically, um, you said you basically got to figure out your network worth first to be able to kind of network and, and build those relationships kind of now you’ve got to know what you’re worth. Now if people are out there and they’re wondering how do I determine that, what would it be? What’s the best,

Joe Flanigan:                         18:26                       best way to determine that? Is doing a personal financial statement. You can pull a personal financial statement, uh, or at least a spreadsheet online. Or you can go to your bank and you can say, Hey, this is what I’m thinking about doing. I’m thinking about getting into purchasing a building for my gym, purchasing a strip center or commercial use or I’m thinking about buying a multifamily property. What they’re going to say is, okay, we need to see a personal financial statement and they’ll give you a template of probably give you a spreadsheet for you to fill out on that personal financial statement. And it essentially is at the risk of sounding crude, a personal financial enema. I mean it goes through everything that you own that you know that, that the income that you make, the liabilities that you have just every, and then at the end of it you’re able to find out what your actual from from there, I mean you actually, once you do own a property, you actually do have to have a certain number of a dollar amount of liquidity as well.

Joe Flanigan:                         19:25                       But that comes a little bit later. Initially you just need to know what your net worth is because you, you are essentially a lender will loan up to your net worth on a property. And that was just kind of a quick hack that I, I learned halfway through this process is, you know, I was reaching for a little bit larger piece of Pie that I couldn’t necessarily go for without a key principle or without a guarantor on the loan. And then finally one of the lenders was like, you know, it’s because you’re reaching beyond your network and, and uh, that’s what you need to kind of stay within those parameters.

Greg:                                          20:01                       So if somebody was, I mean, and we can put this into context, I mean for, for everyone else or, or easier, easier context. I mean if somebody is buying their own building, I mean, you’re going to be kind of following the same steps are, or if they’re going to build a building, they’d have to find the property and stuff like that. So that’s the steps. These steps are very similar. They’re not all the same, but they’re definitely, definitely similar.

Joe Flanigan:                         20:23                       I would, I would say yes for sure.

Greg:                                          20:26                       Now that you, somebody knows their net worth, they’ve built up relationships with different brokers then they searched for, are they better yet they find an agent. And then start working. They’re way out of of their search of what, what they’re going to be looking for. Is it,

Joe Flanigan:                         20:40                       go ahead. Sorry. Go. Well, so the search itself, I have found it is one of the most challenging at least for the first deal once you have a name established in the industry. And really that the shocking thing about this is there are really only five major brokerage houses with that throughout the nation that deal in multifamily purchases and acquisitions and dispositions. So really getting in with each of those brokerage houses, establishing a name that you’re somebody who can purchase clothes, turnaround a deal or operated deal very well, um, that you’re able to close with funding. You have, uh, a group of investors that want to invest with you as a person. Um, then it’s a lot easier to get the deal, but it’s establishing that first, establishing the first contact with all of the agents and then also, um, establishing your name, um, in your reputation after that first deal.

Greg:                                          21:43                       So it’s more of we got to, it’s kind of like, what would you say, like by buying a car for the first time or something like that, uh, you got to have that credit. You have to do, you have to show that you’re worthy of it and kind of get your foot through the door. And sometimes some people just bite the bullet and get that super high interest rate on that first first vehicle just to get that credit established if necessary. But it sounds like that’s what you kinda got to do. You have to, you have to get that deeper steel done. And then it seems like deals after that become easier and easier because you’ve, you’ve

Joe Flanigan:                         22:10                       creative reputation then, or at least find the first deal. Yeah. The analogy is good until you’re a, until you get to the, you know, accepting the higher interest rate or a higher dollar higher expense to get into the old. Because a lot of these deals are so thin that you can’t, you can’t accept a higher interest rate. You can’t put any more of your own personal dollars in because it won’t yield a return. So it, it’s really dependent on, you know, it’s, it’s all about the market, right? It’s does somebody need to sell and is there a buyer? And a lot of these are either there owners that have owned the property for a very long time that no longer live in state, that are having a third party property management company running the deal and they’re just pulling a, a piece of the pie off every month.

Joe Flanigan:                         23:04                       And so if you can come in with a number that is enticing enough for them too, essentially get rid of the, their monthly cashflow, but they receive a huge nut in order to do that, then you know, you’ve found yourself a seller. And so I’ve, I have found a couple of different ways or I’ve, I’ve kind of created a couple of different ways in order to do that, that I’m sure other people have done as well. But it was one of those things where as a trial and error thing, I was just really searching for a deal. And so I age cat pulled up, uh, um, some of the properties that are really liked in the area that I liked and found that some of these honors lived out in, out of state. And I started calling him and I have my agents start to call them and tell them that we were willing to purchase their property for x amount of dollars. And I’m at that point it created a conversation and half of the conversation was created. Then we really dug into the numbers. So some of them didn’t work. But the one that we are on right now, that is exactly how we got it.

Greg:                                          24:08                       Wow. So basically, uh, figuring out what, what properties are available and then like you said, trying to figure out, usually the ones that kind of have moved away maybe, um, or out of state, uh, have a little bit better yield of, of a possibility than ones that are still active in theirs because they’re probably still trying to grow it. And the other ones are more of, hey, I’ve kind of moved on and started other things and yeah, they still own it, but yeah. Okay.

Joe Flanigan:                         24:34                       Okay.

Greg:                                          24:34                       So now that you’ve, I mean, you found the property, what’s, what’s the next step that, that you had to take? I know, I know we kind of talked about it of the analyzing the numbers, but what numbers specifically are we, are we looking at like what are the things that we need to make sure to do?

Joe Flanigan:                         24:50                       So it’s pretty in depth because, and there’s a couple of different layers. So there is a quick form that I use initially whenever I go in on a deal and essentially I’m looking at there, um, rent, whether I pull their rent roll or ask them to give me the rent roll. And then I asked for 80 12 financials. Enjoy the time. They don’t have financials. They have like a t three that boosts up their revenue, their income. And so it’s showing you, uh, uh, much better light than a t 12 would. So anyway, you take those initial numbers, you put those in, you know, I have a spreadsheet that essentially shows me what the gross rental income is, what the offer an asking price is, and then I kind of pencil in what my closing costs would be, what my operating capital for the first few months would end up being.

Joe Flanigan:                         25:43                       Put that in there as well. And then any rehab that’s going into the loan, I you, you also have to put in down payment, um, you know, in loan amount, interest rate terms in years, which you get that from your mortgage broker. Um, all of that is, you know, you’ve built this team of people already. You just ask them, they give you those numbers for what the going rate is or what the current rate is. Um, and then I plugged that into my equation and then kind of figure out what my yield will end up being after expenses are putting. So I use a very generic, um, dollar amount for expenses per unit, uh, at first. And then whenever I started digging into that, uh, t 12 or he sex or T3 financials than I actually know what their actual expenses are. Um, and then, you know, it’s an easy equation which every gym owner has done before.

Joe Flanigan:                         26:39                       It’s that, uh, net income Maya stolen expenses equals their net operating income. Um, and then you kind of add in whatever your potential debt service would be and you figure out what your cashflow, your annual cashflow is going to be. It’s essentially exactly what Greg and I had just gone through with that last year’s financials. So, yeah, if they’re with the brain, they, you know, any gym owner actually knows exactly what we’re talking about here. It’s, you’re just really trying to forecast what they are currently doing and then you look at the market rate for rents and see what you could be doing, perform it out. You performed that out and see what your return would be on a cash, on cash basis, annualized basis, put in whatever my compensation, uh, would be as a lead investor in what my net to the passage would be. And then that’s essentially what a uh, it’s a go or no go. And then from there you’ll get more information after an LOI is, is given a letter of intent has given and then you’ll get even more information from the seller if you do have a, a purchase sale agreement

Greg:                                          27:47                       signed. That’s a, that’s a lot of different things. We’re very quickly, but I like it. Yeah. Sorry. It’s funny.

Joe Flanigan:                         27:53                       Okay.

Greg:                                          27:53                       No it’s perfect because you, you brought up a really good fact that if, if people are working with to bring, we definitely go through those things and you know,

Joe Flanigan:                         28:02                       business is business and you know, it all does revolve around financials. Obviously there are certain things that we can do in order to better our business, which is creating those personal interactions and high touch and great experience for people. The whole reason, and I’ll actually call you into what my business is called, but my business is called worthwhile capitol. And the reason why I called it a worthwhile capital is because I wanted it to be more than just, you know, dollars and cents and you making a, you know, a ton of money. I wanted to make it more of that legacy type of business to where I felt good about taking a product that was a c class property, a run down property that has just been, has seen better days, you know, long ago and renovate it and make it better. Not just for dollars and cents, the end product, but are the people who were living there.

Joe Flanigan:                         29:01                       You know, people in a c class property, everybody knows what an a class property, right? The brand new luxury apartment complex that is, you know, everybody wants to live in but nobody can afford it. You know, they, if that’s, that’s the property that, you know, most people think of when they think of very nice apartment living. But the truth of it is there are so many people in these working, this working class that can’t afford much more then that, you know, but there is a big disparity in price point from Class A to class B or c and if we can invest in classy properties, reposition them to make them more of a B minus or B of course bringing up income because you know, people are willing to spend a little bit more money in that price point to have a better feel whenever they’re, they’re going home, you know, a better feeling of safety and security and possibly community if it’s a small community or a large community. So that’s the intent. And that was the hope whenever we, we started this venture, my wife and I and, and hopefully we’re able to continue that.

Greg:                                          30:07                       That’s amazing. And it’s something that I think a lot of people, again, we would want to hear is, is, is the process and, and kind of what it takes. So that’s why I wanted to bring you on here. There’s one thing that you mentioned and and well of course many things that you mentioned, but the one that I want to, I want to point out you mentioned investors and getting investors in that it’s that 60 75 days out going through everything and then eventually getting, yeah, talking to the investors, but how do you actually, how did you actually go about finding investors or getting, finding the right fit of investors so that they could help make this up?

Joe Flanigan:                         30:43                       That’s a great question. The, I felt I had a pretty good network and my wife has a pretty good network. She has her own business and has, I’ll probably a little larger network and I view that we could have tapped into to fund these deals potentially, but our concern was not everybody knowing the same information going into the deal. So knowing what questions to ask and knowing how much you know that the potential risk that their money could, we might not be able to return, hey or have her return for a few years or ever. That’s the reason why we went with one of these investment groups and lifestyles unloaded in particular because it’s all like minded people. Everybody has the same education growing yet everybody understands the risks and the reward when it comes to investing in multifamily or single family investments. And so I felt a lot more comfortable being able to reach out to that group, that Group of passive investors and investors on my distribution list from by unlimited Alyssa that I’ve created.

Joe Flanigan:                         31:50                       But still it’s of members of lifestyles unlimited. And you know, it just brings more like I, I just, I know in the future there’s still maybe people who are like, if stuff goes wrong or the economy tanks and, and we’re not able to get the returns that we project in, in our PPM, a private placement memorandum to them, they’ll at least know that they have the education saying that, hey, you know what, there, there is a risk, there’s a risk in everything, any investment, any investment vehicle for business that you create. And so that’s why we went through that channel.

Greg:                                          32:26                       Gotcha. And with that, I like that you definitely hit on, I mean, understanding risk and reward, right? Yeah. Like there’s, there’s so many things out there. When people open up a gym, they have to understand that or open up any business. There’s risks to it, but there’s also definitely rewards to it. So it’s Kinda, it’s Kinda cool that you were able to find those investors that are very likeminded, that are a part of a group that you’re part of, that can kind of help facilitate your dreams of what you’re trying to do. Now I guess my next question would be when it comes to having these investors buy in, because you kind of talked about you being lead investor and I mean this is like if you went into a partnership into buying a business, I mean, I mean, investors are definitely different than, than partners. How does that distribution of profit to everyone else? Is there a certain amount? If they invest a certain percentage in, they get a lot more out of it then?

Joe Flanigan:                         33:20                       So there’s a whole white paper that’s created through white through lifestyles that actually does protect the passive investor. Um, the lead investor is, has a very strong fiduciary responsibility to his investors, right? To the people that are relying on him, uh, or really investing in him in order to make a return. So there is how to create an operating agreement. I have to create stipulations on voting rights every month. They’re receiving financial state financial statements, a, uh, a balance sheet and income statement, rent roll, just a proper look at the property on a monthly basis. And then a quarterly basis, they’re getting a little bit more of financial reporting. And then annual basis, of course they’re getting financials. So there’s a whole, yeah, it’s all listed in, in my operating agreement what they’re, they’re getting now when it comes to compensation, a lead investor through lifestyles can only take compensation one way and a first time lead investor gets paid 5%.

Joe Flanigan:                         34:28                       And then I hope I’m not really giving too much information about lifestyles because it is a, it is a company that it’s like a paid for membership. Right. And so, you know, I don’t want to divulge too much I guess of that information but, but yeah, so there is a compensation plan and in the PPM and which private placement memorandum essentially lays out, gives you the whole entire investment summary and how people are, what the voting rights are and what the percentage of ownership is. And all of that is laid out in this. And what I did and what most will do is work with an SCC attorney in order to come up with this private placement memorandum. The reason why I would use, uh, a private placement memorandum is it is a requirement. It’s a necessity when, so it’s, it’s a, it’s an SCC regulated the event, right?

Joe Flanigan:                         35:27                       Because we have investors that are coming in to essentially create a fund and invest in a property. So the SEC regulate that even if you have one sophisticated investor, you’re legally required to have a ppm. Now if everybody was an increase in a credited investor, which accredited has three criteria, you know if you have over a million dollar net worth did you make over I believe 300 or two 50 as an individual and as a married couple, 300 and it’s 200 and 300 then you’re considered an accredited investor and if you have all accredited investors in a deal, then the sec regulates or does not require that you have a ppm, but it is just a great vehicle to be able to give to investors and say, Hey, here’s my deal. It has everything from an operating agreement to your investment summary to a, what we call a BPO, which is essentially the opinion of my opinion of my analysis of the deal in number form. It just has everything for them in order to view in one package and tell you whether or not they want to invest in them. From there, they fill out a subscription agreement and send it in and saying they want to invest in. Then from there I give them wiring instructions or a way to fund the deal

Greg:                                          36:51                       and does funding the deal basically. Then just their, their funds would go into, into the loan are basically are kind of like, uh, minimize the loan of whatever you’re going to need to write.

Joe Flanigan:                         37:02                       Yes. It goes into the ownership of the, of the property.

Greg:                                          37:06                       So

Joe Flanigan:                         37:07                       it may include the rehab that we were not able to get into the loan or it just may, may just be the down payment and operating capital for the first few months. Just depending on how the deal is structured and what you’re able to get into the loan when it comes to dollars. Otherwise the, yeah, the loan proceeds. Yeah, it goes to closing costs. It goes to a operating capital. It goes to essentially equity ownership in the company. Gotcha.

Greg:                                          37:37                       With this, I mean this is, this is definitely a long process, right? It’s not, it’s not something that’s short that people are giving me able to do over a weekend. I mean, unless they are very, very talented, but even then, I don’t think there’s enough time no matter what. But what is the overall time line look like if somebody is buying piece of property, whether it’s, I mean in multifamily, probably be a rental property like this. That’s multifamily or single family. I mean that’s a house, um, or even like they’re building for their business. What,

Joe Flanigan:                         38:03                       what does that timeline usually? So I’ll speak to multi family first just because that’s fresh on my mind. I know exactly how long it took me to do the whole process in getting to a deal. But so roughly first three stages of search, analyze, Loi. A letter of intent generally takes most people anywhere around, I’d say six months to 18 months. Just depending on how you’re able to network and build relationships with folks. Really get your name out there and hit the ground if you’re hitting the ground running and trying to find the property yourself, you know, I would say that timeframe is pretty good. I ended up writing, to be honest, I would say, oh well it was 1111 LOI is before I got one deal. So it took it, it took a lot of hitting the pavement and just, is this a good deal?

Joe Flanigan:                         38:57                       I’m gonna write a letter of intent. Oh, it’s not a great deal. You know, and trying to just go through the process and you learning it and learning it as you go. And I think that was, it gets a little bit stressful and a little disheartening. Oh, at times just because you’re like, man, I want this to happen. I want it to be yesterday that I have a property. But you know, you just keep doing it. You just keep doing it until, you know, you see blue from it. And I mean, I knew, I knew I would see fruit from it. I just knew it. I’ve seen so many people that have gone through the process and it took them two years or a year to find their first deal. And once they got their first deal there, you know, they’re moving to three, four deals, you know, in the next few years.

Joe Flanigan:                         39:38                       So, um, I’m very hopeful on that now. Everything on the backend when it comes to, you know, purchase sale agreement, Uvm, the feasibility side, lone sides takeover, that’s anywhere between 60 and 75 days. Just depends on what you’re able to put into your contract, your purchase sale agreement. Some sellers will say I want it as fast as possible and you know your money is going to go hard right away. Whereas, and they want the 60 day process, whereas others are like, okay, we understand that you need more time. 75 days is fine. So, but it’s generally 1675 days from there.

Greg:                                          40:15                       Okay. So there’s definitely, depending on the dealer or better yet what, how much things that go into it, it’s really going to determine how long it’s going to take the, the complications of having, having a much bigger property and then if it’s costing more and then all the other paperwork with the due diligence, that’s,

Joe Flanigan:                         40:34                       that’s necessary. It’s just going to take a longer time. So

Greg:                                          40:37                       overall, what is, I mean, what’s the end goal for you? What is, what does that longterm, yeah,

Joe Flanigan:                         40:42                       my goal is really to to to build a sustainable business. And multifamily and hospitality type industry where my wife and I can utilize our talents and our education and background in real estate as well as she’s an interior designer. So utilizing her business in my business together to be able to grow our wealth long term for our family’s legacy or our children for their children. And yeah, I think that really motivates us to, to grow something big. And I mean, it doesn’t necessarily have to be huge, but it just something that is of worth for not only ourselves, but we’re also creating spaces for people to live. I mean, there’s not too many people that can do that. Right. And with the box, we’ve been able to touch a lot of lives and build community and help people get out of despair of, you know, just weight gain and not being active and sickness and illness and all of that.

Joe Flanigan:                         41:52                       We’ve been able to do that there. Now I want to be able to do that with another side of our life that we’ve spent a lot of time, you know, both educating ourselves and working in this space, you know, why not be able to do that there too. So, so that’s a long term goal. And, um, while we’re waiting then getting steps, and I want to make it clear that I’m, I’m not a pro at this. I don’t, you know, I haven’t done a million deals or anything like that and this is all education that I’m, I’m learning as I’m going and really anybody, I think, especially those of us, those of us who own gyms and who our business owners can do this type of thing because we understand the, the operational side, we understand the acquisition of bringing people in. It’s kind of the same thing as finding the deal, you know, and then marketing that you have the property already under under your belt is really bettering the operations and, and bettering the experience for the people who live there. Um, so they have longterm residents and you don’t have a ton of turnover. So, yeah, I think, I think this group, the two green, the two brain group really would understand and grasp this pretty well

Greg:                                          43:03                       and, and that’s, I mean my main focus for ha for having you on definitely today is, is to get it so that people understand if they have, if they built up their business and they’ve a, they’ve done a great job with it and they want to know what’s next, what, what can they do next? They have enough money in the bank and they want to do something with it. Like you said, build a legacy, do something that is meaningful for their children or their children’s children or continue on what, what are some of the things out there? Because I think too many of us will say, okay, I have, I have this cash, I got to put it in the stock market. Or like you said, I got to put it in a 401k because that’s what I’m always told to do. But there’s other avenues out there.

Greg:                                          43:41                       So I understand, like you said, you haven’t done a ton of deals, but that’s okay. It was more of getting you on and kind of explaining the process so that some people can say, okay, hey, you know what, this is, uh, this is something I definitely want to do and I want to do it longer term and I’m really interested in real estate or I really like it. So let me start down that path in. This definitely gives them the idea. So I really appreciate you, Joe, for being able to spend this time with us and jump on here and it kind of talk about your, what you’ve, the process you’ve gone through and you’re currently still gone through. I know, like you said, you’re, you’re still in the process. We’re almost done. But I want people to be able to listen in and have the understanding that they can, there are other opportunities out there if their business is very successful and, or even mildly successful, that if they have cash in the bank and they want to put it towards something that this is a avenue. It’s not the only avenue. It may not be the best avenue for some, it may be the best for some. Uh, but it’s something that they can do to grow their wealth and grow their assets. Fantastic. So again, thank you Joe. I greatly appreciate your time for being able to share that with us and share your experiences and, uh, can’t wait to hear more from you and can’t wait to hear about the baby and all the things growing up, uh, with the family and, and such. So thank you for having me on.

Speaker 5:                               45:00                       As always, thank you so much for listening to this podcast. We greatly appreciate you and everyone that has subscribed to us. If you haven’t done that, please make sure you do drop a light to that episode. Share with a friend, and if you haven’t already, please write us a review and rate us on how, what you think. If you hated it, let us know if you loved it, even better. See you guys later.

 

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Episode 158: Your Strategic Advantages, with Josh Martin

Episode 158: Your Strategic Advantages, with Josh Martin

How do we celebrate our strategic advantages? In this episode we talk with Josh Martin, a mentor on the Two Brain Team, about the three most common strategic advantages to a CrossFit Gym: Coaching, Programming, and Community. Many gyms claim to have the best coaches, the best programming, and best community but do they in reality? Learn how you can actually market these items correctly and truly bring them out as strategic advantages. 

Josh Martin is not only a Two Brain mentor but also owns his own CrossFit gym in Lithia Florida, CrossFit for Glory. Josh has always been big into fitness growing up playing baseball, basketball, and even speed skating! At the University of Florida he got his degree in Applied Physiology and Kinesiology before stumbling upon CrossFit and opening up his own gym. Josh enjoys helping other people reach their health and fitness potential and CrossFit has provided the perfect platform to do so. 

 

Don’t Forget! Find out what stage of entrepreneurship you are in by taking the exclusive Two Brain test here: https://twobrainbusiness.com/test/ or schedule your free mentoring call by clicking here!

2019 Two Brain Summit in Chicago! Register here!

Links:

https://twobrainbusiness.com/mentor-item/josh-martin/

https://crossfitforglory.com/

 

Contact Josh:

josh@twobrainbusiness.com

https://www.facebook.com/crossfitforglory/

https://twitter.com/crossfit4glory

https://www.instagram.com/crossfitforglory/

 

Timeline:

Announcer:                            00:02                       Welcome everyone to TwoBrain Radio. It is our mission at TwoBrain to provide 1 million entrepreneurs the freedom to live the life that they choose. Join us every week as we discover the very best practices to achieve perfect day and move you closer to wealth.

Chris:                                         00:26                       Debt is a tricky subject in our world. We’ve been taught by HQ to avoid debt, to accumulate cash and then when we’ve got enough money to spend it, but in the business world, the reality is that there’s good debt and there’s bad debt. Good debt creates an asset and there’s also something called opportunity cost. Meaning if you wait until you can afford something, you probably never will be able to afford it and you’ll be missing a ton of opportunity. In the meantime, let’s say for example that you were bursting at the seams and your clients couldn’t attend the 6:00 PM class anymore because there was a waiting list, so they started canceling their memberships. You’re missing an opportunity cost here. The opportunity to keep your current clients because if they’re paying for a membership and they can’t attend, they’re not going to keep that membership for long so you’re looking to expand and so you’re going to have to take on some debt or you’re going to wait until you have the $10,000 or whatever that amount is to buy the new equipment.

Chris:                                         01:23                       You can keep turning new clients away while you wait and try and accumulate this money or you can leverage the capital through guys like rig equipment requirement is a partner that we chose a two brain business because their commitment to crossfit and their commitment to helping first has been proven over several years. I got to admit, I shy away a lot from money people. It’s intimidating to work with people who understand money and finance better than I do. I’m sure you feel the same way, but these guys have shown up time and time again. They’ve offered free help. They’ve turned down business a lot of times because they aren’t sure if the person has a good working business model and to be honest, they’ve sent people to us and let us turn them down for them because they wanted to know if this person’s plan was going to work before you expand, before you start out.

Speaker 2:                               02:16                       It’s super important that you know what you’re getting into the, you have a plan to pay back the debt. They have a plan to increase cash flow that you’re going to do based on new purchase equipment has a great tool. If you go to their site rigquipment.com you can figure out if you can’t afford that expansion, should you be buying that new rig or should you be investing in something else like mentorship. These guys will even finance the Twobrain business incubator phase if you purchase it with your equipment because they understand that the incubator makes your business more viable, it’s less of a risk for them. I love working with clay and Joe from rigquipment because these guys understand what our service in life is and that matches their service too.

Chris:                                         03:00                       Hey everyone. Chris Cooper here and really thrilled to see you this year in June in Chicago at the 2019 TwoBrain summit. Every year we have two separate speaking tracks is one for you, the business owner, and there’s one for coaches that will help them make better, longer, more meaningful careers under the umbrella of your business. This year we’ve got some pretty amazing topics like the client success manager, how to change your life organizational culture or the business owner’s life cycle, how to have breaks, how to have vacations, how to help your marriage survive, owning a business motivation and leadership. How to convert more clients, how to create a GM position that runs your gym for you and leaves you free to grow your business. How to start a business owner’s group and your community and more. The point here is to do the right thing that will help gym owners create better businesses that will last them for the long term.

Chris:                                         03:52                       Get them to tinker phase, help them be more successful, create meaningful careers that their coaches and give their clients a meaningful path to longterm health. We only do one big seminar every year and that’s the two brain summit and the reason that we do that is because a big part of the benefit is getting the to bring community together and and welcoming strangers into our midst and showing them how amazing GM ownership really can be. We’ll have a link to the two brain summit including a full list of all speakers and topics on both the owners and the coaches side in the show notes. I really hope to see you there.

Greg Strauch:                        04:24                       How do we celebrate our strategic advantages? We get into this episode talking about three of the most common strategic advantages that we see. Usually they are the best coaches, the best programming or the best community. Well there it’s all three of those or maybe one or two. We definitely see that a lot. All of us have the best coaches. All of us have the best community and all of us can program better than everyone else, but if we’re all doing it seems like none of us are doing it. On this episode, I talked to Josh Martin, one of the mentors on the two brain team, and we expand on this, these top three strategic advantages that we’re always seeing and really digging into them. How can we actually market these things correctly? How can we say that we do have these as strategic advantages and not look at them from a macro standpoint of just saying the best coaches, the best community or the best programming.

Greg Strauch:                        05:12                       We break these down and we give you actual tactile cues so that you guys can build a better strategic advantage and build a better community, better programming, and better coaching. Enjoy. All right, we’re on another episode of two brain business or to brain radio better yet. I’m here with Josh Martin. How are you Josh?

Josh Martin:                          05:31                       I’m doing great. How are you this morning, Greg?

Greg Strauch:                        05:33                       I’m doing well. So I wanted to bring you on here that you made an amazing post, but I wanted, I wanted people that maybe don’t see that kind of understand where you’re coming from on this cause I think it’s something that too many of us do and that is as a, as a gym, we do look at what is our strategic advantages and it’s kind of a role playing scenario that we do through incubator. But the top three that we always hear, which I will let you talk about, is something that really comes out to be that all of us do this. So you have a unique way of, of kind of talking about how to celebrate these and kind of dig into them. So, uh, let’s kind of dig in. What are those three top three strategic advantages that we always hear gym owners say?

Josh Martin:                          06:17                       Yeah. So one of the first exercises that are new incubator clients go through is the list of strategic advantages and where we’re looking for 10 to 12 of them. But inevitably the, usually the first three that people always go to is we have best community, we have the best programming, and we have the best coaches, community programming and coaches. Those are on every list of every client’s strategic advantages that I’ve ever worked with. So my thing is, if everybody has that, then it’s a strategic advantage for exactly none of them.

Greg Strauch:                        06:54                       And I think we all do. We all say it, right? We, I have the best coaches and I have the best programming in my communities better than anywhere else. But, uh, like you said, it’s, we all have it. So none of us really have it.

Josh Martin:                          07:06                       Exactly. You know. But here’s the funny thing, while we all say that we have that, I don’t think that really any of us, if I’m being perfectly honest, Greg, do a good job or a job at all of talking about this stuff enough on social media or blog or our newsletter. And I’m sure that there are some gyms out there who do you do a good job? Maybe talking about one or two of them, but you know, if these are the most common three, then we need to do a better job of talking about them, you know? So you start with the first one community. Well, what does that even mean? First of all? You know, what does it mean to have the best community?

Greg Strauch:                        07:46                       Yeah, no, I agree. I mean for me, I would say the best community is the fact of the people within the community, right?

Josh Martin:                          07:52                       Yeah, yeah, exactly. And one of the things that we talk about as a staff at my gym is while we all want to talk about how great our community is, the reality is that prospective clients that are looking for somewhere to go, and all of the no sweat intros I have ever done, I have never had somebody come in and say, you know what? I’m really looking for some new friends. I don’t have enough friends or I need some people that are going to high five me or I need a great community. Do you have something like that? Because that’s exactly what I’m looking for.

Greg Strauch:                        08:25                       No, I don’t think, I don’t think I’ve ever gotten somebody come in that says the same thing. Agreed.

Josh Martin:                          08:30                       Yeah. So that, you know, that’s, that’s the first one. And so what I want to do really today, and this can be done so briefly is like just give a couple of, of tips or, or actionable things that people can do to actually showcase what it means when they say they’ve got the best community, the best programming, the best coaches. So for me, the thing that, that I love about our community beyond the fact that yes, they’re wonderful, outgoing, amazing, high fiving people, is that they actually make a positive impact in the surrounding community. So I want to celebrate the things that our clients are doing to positively impact the surrounding community. So one of the things that I think all crossfit gyms and why we point to community, one of the things I think all crossfit gyms can do is actually highlights the charitable contributions that they are making from outside the four walls of their gym.

Josh Martin:                          09:28                       I think most of us have finally come around to the fact that we need to be celebrating what our clients do from a results on an individual basis, you know? But when we host a toy drive that stocks the toy closet for the local children’s hospital for the next six months, to me that’s a big, big, big deal. And that’s one thing that separates our community apart from not just other gyms, but maybe other local businesses in the area. And I’m not saying that to say that we are better because we do that, but it’s just that, hey, I think that the places that I go and frequent and visit, I want to know that they are making a positive impact in the community. And in turn, that makes me want to be a part of that. So I want to be a part of something bigger than myself.

Josh Martin:                          10:20                       So I think that that’s a very, very easy way. You know, around Memorial Day, I’m sure at your gym, Greg, I know at my gym has so many other crossfit gyms around the world. We do Memorial Day Murph and we do, it’s to honor the fallen soldiers, first responders, military, all those things. And I think it’s great that we talk about the workout and talk about why it was created, but it would also be great if we could celebrate the way that we are using this platform to bring awareness to these individuals. Does that make sense? No, that makes perfect sense because I think, and it sounds like that we really need to break down these bigger, we always like to say like the, like you said, best community, but really breaking that down to a much smaller level, a micro level. And one of these ways, like you said, is, I mean, uh, celebrating what you guys do outside of the community and the giving and giving back.

Josh Martin:                          11:14                       And I think you hit on something that was really the hits home for me because I know that’s something that I always talk about is being part of something bigger than oneself. Right? I mean that’s, that’s our staff loves to do what they do because they get to be part of something bigger than just themselves. They get to help others. And I think with one of the ways you said it, I mean like the toy drive or the Murph and Memorial Day, being able to show how much the community stands by of everyone gets to come together and do something amazing for other people. That’s, I mean, that’s something that I love and I love being part of that. And that’s, I mean, that’s part of the reason that I opened a gym, right. To help people, which now my, the people that I get to help get to help others, which is huge.

Josh Martin:                          11:55                       Yeah. And you know, it, it’s, it’s taken me a while to come around to, you know, the, the revelation that, yeah, we all do have great communities, but we need to be celebrating that. If we’re saying it’s a strategic advantage, well, you know, we need to be talking about that. And I think you know, this about me and anyone that’s heard me talk before or even knows the name of my gym knows that we’re a Christian owned and operated. I mean, our gym name is crossfit for glory. And so every Sunday, you know, we’re sitting in church and this was probably last summer one time, uh, we were listening in on a message from our lead pastor and they played a video highlights of a big, big community, really worldwide outreach thing that our church does call Christmas in July. And so throughout the spring months, so basically from like the new year up until may is a time where we can bring gifts and to the church.

Josh Martin:                          12:52                       And then the church in turn takes all these gifts over to Africa in a village that, uh, the church has basically built up and created through all the tithes and offerings that people have given. You know, throughout the course of the years, this village has been, you know, put up and all this stuff, but they ended up creating this thing called Christmas in July to where we bring all these packages over and then give the gift of Christmas to this village in Africa that has never seen or experienced anything like that. And it really made me just as a participant or member of the church crowds that my church was doing something like this. And that is the type of thing that I think people that wear our shirts are proud to see. I mean, yes, if you get somebody to lose 50 pounds or if you get them off of their diabetic medication, that’s a huge win.

Josh Martin:                          13:46                       But if they can brag on their gym for the big huge outreach things that we’re all doing, um, I think that the sense of pride just goes up exponentially. And I really think that that’s at the heart of what, what all these gym owners are talking about that makes their community so awesome. It’s not the in house parties or the potlucks or the barbecues. Like that’s a given. I, I think I even read a story that like planet fitness, you know, has donuts and coffee for you, which is hysterical by the way, but they have that for you when you come in to work out in the morning. So, you know, I don’t think those are the things that really make the community awesome. I think it’s the things outside the four walls of the gym, um, that really allow people to feel like they’re a part of something much larger than themselves.

Josh Martin:                          14:34                       Let’s, let’s get into the next one. Let’s, let’s talk about either a best programming or best coaching. Let’s go to a programming next. Okay. So like we said, if we all have the best programming, then none of us have the best programming. But here’s the funny part. If you were to poll, let’s say that you have a clients at your gym and you were to ask them on the day that they first came in, number one, what is programming and what are you looking for and programming. I don’t think that any of them would have any clue whatsoever what you’re talking about with regards to programming.

Greg Strauch:                        15:10                       Agreed. Nor do I think anyone Google searches best programming in whatever city you’re your businesses in.

Josh Martin:                          15:17                       Exactly what I, what I do think that gym owners want to talk about when we finally get into the weeds with programming is that really it needs to serve two purposes. Number one, it needs to deliver results. And number two, it needs to do no harm and I think the deliver results piece is probably the easiest one is because if you take somebody who really doesn’t have much of a background at all in doing anything health and fitness related, you could probably give them anything and they’re going to see results. That’s just one of the principles of, you know, exercise science. Now the more training time that somebody has under a structured program, the, the more that you, you need to maybe manipulate things, but we’re not even going to go down that road. We’re just going to say that our programming gets results and here they are.

Josh Martin:                          16:06                       Well, if we’re sharing clients’ success stories, then I think we’re doing a good job of that. The other thing is we need to show that our programming is not here to hurt people and I think the way that you talk about this, instead of saying like, Hey, come work out with us, we’re not going to hurt you. I think the better way is through education. And what I mean by that is if you are doing a workout that has combination of thrusters and pull ups and it’s in this silly rep scheme called 2115 and nine why is it that we’re doing these two things and this many reps of these things? Or why is it that another day we have row or God forbid run a five k for the workout. I think what it boils down to is we want to point to the letters and numbers that we have on our whiteboards and say come work out, lets us, our programming is the best, but the clients really have no context for that. But they do have context for am I getting results and am I staying injury free? So are we doing no harm? And I think that if we can educate them on, you know, what those components are that lead to those two, it establishes you and your gym as the authority in your area and it really creates buy in with the client that you know what you’re talking about.

Greg Strauch:                        17:23                       I agree. I mean that’s, that’s a big portion, right? Is, is being able to educate our people on why the why behind everything. Why are we doing it this way? And really getting them to understand the background. I mean we’re, we don’t have to jump into what each phase is going to be in and more of a biomechanical standpoint, but more of just the overall why, why is this good for us? Cause I know if gym is like mine, if we program a five k we always have less people and it’s always, we always know why that we have less people because no one wants to go run a five k for a workout. They want thrusters, they want the quick changement of, of all the movements we have going on and they really enjoy that. But a five k is just a five k you just got to put one foot in front of the other, but they don’t really understand the why. So being able to teach that point that, that makes perfect sense.

Josh Martin:                          18:14                       Yeah. And I, you know, I think that the more that you talk about these things, right, about these things, video, you know, it gets easier and easier and easier. I think coop probably said this in some form or fashion that you know, you’re writing and blogging and creating video content or content in general. Um, you think of it like a muscle. It’s going to be tough at first, but the more that you do it, the better at it that you’re going to become. So, you know, we’re not asking people or telling people to become novelists, but you know, even if writing is not your thing, something, especially when you first start in terms of educating your clients, something is better than nothing.

Greg Strauch:                        18:50                       Agreed. Now let’s, uh, let’s jump into the last part of this, which is, uh, the best coaches, cause I’ll say I have the best coaches and so will the gym down the street?

Josh Martin:                          18:58                       Yeah, I think I have the best coaches. But first, I think what we need to, and this is, this could be individual for every gym, we need to actually define, you know, what, what is a good coach? Or what is the best coach? What does that actually mean? Well, our coaches care, you know, are there the, you know, they’re the happiest, you know? Okay, great. You’re a, you’re a decent human being, you know, but to separate a good coach from a great coach, you know, what does that actually look like? Is it that the great coach spends more time learning? I, I would say that that’s probably, uh, a good starting points is that they have just spent a lot of time in the trenches. Now that I know people can argue against that, but I think a benefit for the affiliate owner would be to say that our coaches are great.

Josh Martin:                          19:47                       One of the reasons that they’re great is because they’re always pushing the bounds of their knowledge and education so that they can bring the best product to the client every single day. So if we have some sort of structured education program for our coaches, I would want to take some pictures of what it is that they’re studying. You know, take a picture of them going through modules on a computer or them reading a book or maybe highlighting a passage out of a book that is a part of your education program because to the the end user, right, the prospective client or even you can think of it in terms of retention for your current clients to know that their coaches are always striving to get better, I think would be huge for them. So even something as simple as that is, is posting content or sharing a snippet of a, of a book they’re reading to up their knowledge game I think would be huge.

Josh Martin:                          20:42                       Another thing, maybe taking a picture of your coach actively, even video of actively coaching somebody through a movement. You know, spotting them with a hand on the back for a ring row or teaching them, you know, elbows high and tight for a clean or a snatch or simply taking a picture of them standing at 45 degrees to the front of a client and saying, one of the things that we teach our coaches is to see from all angles and this is what Jimmy is looking at from this angle. These are the things that he can see, you know? Then maybe we take a picture of them, no coaching from the front and these are the different things that he sees from this angle. That would be, I think a solid place to start is just documenting what it means for your particular gym to have good coaches and then putting it out there and sharing it.

Greg Strauch:                        21:35                       And that was, that was going to be my final question is now that that people have these ideas after listening to this episode, what are, what do you feel like the best ways to market these ideas out there to share them? I mean, is it, I mean, do we, do we just do written, do it just do video, like what? What do you feel like it would be?

Josh Martin:                          21:51                       Yes. Any time clients ask, well, should I blog or should I video or audio or just take pictures? My answer is always, yes. Okay, first is low hanging fruit. If you are somebody who likes to write, then just start writing. If you are somebody who is very comfortable in front of the camera, then great. Turn on the Selfie Cam and shoot a couple of videos. If you are somebody who just prefers to maybe take a really well framed, are well lit picture and put a cute filter on it and then write a really compelling piece of copy for Instagram or Facebook, then start there. The worst thing that you can do is nothing. The next worse thing that you can do is try to do all of them because you’re going to do each of them poorly. Whereas if you can just find one, find your niche and really get that process dialed in.

Josh Martin:                          22:43                       Then move to another. You know, maybe go from writing to video or from photo to writing to video, but just doing something at this point is better than nothing. And then I would say having a consistent schedule of when you’re going to post what one of the things that has made the biggest impact from a consistency standpoint at our gym for social media posting is just creating a calendar. I actually, I got together with my head coach several months ago and I just threw something on too, you know, an excel spreadsheet Monday through Sunday am and pm. This is what we’re going to post. And she was asking me questions about it and I said, look, I don’t care what you post when, but let’s just follow something and stick to it because I, I feel like I’m just quoting coop this whole episode. But you know, he says consistency is greater than everything else.

Greg Strauch:                        23:36                       Agreed. And I think, uh, that’s, I mean that’s a huge, huge nugget for people to take out of this is finding whichever medium you want to post, however it’s going to be. Whether that’s written, whether that’s video, whether that’s pictures, it’s, it’s taking action on that, that lowest hanging fruit, tea, I mean knocking out what you, what you see as yours, super power if you want to say that on, on media creation and getting that done in that direction first and then maybe slowly going in getting these other things done. But I think you said it best with with having consistency, having a schedule built out so that if you’re doing this or if somebody else is doing this, they know exactly what to post. I know with me and our social media person, she actually has a a scheduler for Instagram that basically she can fill out an entire month’s worth of content and then it automatically send that to our Instagram on the day that she specified at the time she specified.

Greg Strauch:                        24:30                       And then on there we’ll actually carry over to our Facebook page as well. So it’s constant, constantly getting that information to our members, but then also our our front facing to the community, people on Facebook so that they can still have that content. They can learn about us because I think not only do we have to educate our, our current clients, but like you said, we need to, we need to educate everyone else too. Why we have the best community, why we have the best programming or why we have the best coaches. Yeah, exactly. Exactly. I’m glad you brought up the automation. You know, there’s tons of automation tools where you can schedule a bank of content to go out and all it really takes is, you know, sitting down for maybe you know, an hour or two on a Sunday and you can knock out a month’s worth of posts in that time.

Greg Strauch:                        25:14                       Agreed. Agreed. Well, I think that’s a perfect place to wrap it up. Thank you Josh for jumping on and talking about those top three strategic advantages that we always hear everyone say, but really being able to break them down to a smaller level so that people can really kind of dig deep and and develop content for their, for their businesses, for their gyms, but then also really realize that those are a macro and we need to kind of get a little bit more micro into each one of those to show why we are who we are and why we are better than the gym down the street or the business down the street. Absolutely. My pleasure.

Speaker 6:                               25:53                       As always, thank you so much for listening to this podcast. We really appreciate you and everyone that has subscribed to us. If you haven’t done that, please make sure you do drop a light to that episode. Share with a friend and if you haven’t already, please write us a review and rate us on how what you think. If you hated it, let us know if you loved it, even better. See you guys later.

 

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Episode 157: How To Run A Successful Competition, with TJ Belger

Episode 157: How To Run A Successful Competition, with TJ Belger

Overseeing or orchestrating an event within your business is never easy. Today we talk with TJ Belger about running the CrossFit masters event in Northern California. We get into how he got started with CrossFit and how to identify problems, find the right people, and execute to a plan. Additionally, we cover a whole host of dos and don’ts for running a successful event. 

 

TJ is originally from New Jersey and got his start in the fitness industry as a personal trainer. After gaining the itch to expand his knowledge and find a more competitive environment, TJ found CrossFit and soon after founded TJ’s Gyms. TJ holds many certifications from CrossFit HQ but he finds that it is his independent learning that really is most applicable to helping his clients succeed. His passion is helping people set goals, stay accountable, and lead better lives!

 

Don’t Forget! Find out what stage of entrepreneurship you are in by taking the exclusive Two Brain test here: https://twobrainbusiness.com/test/or schedule your free mentoring call by clicking here!

 

Greg Strauch:                        00:02                       Welcome everyone to TwoBrain Radio. It is our mission at two brain to provide 1 million entrepreneurs the freedom to live the life that they choose. Join us every week as we discover the very best practices to achieve perfect day and move you closer to wealth.

Chris Cooper:                        00:26                       This episode is brought to you by Incite tax. Incite tax is founded by John Briggs, a crossfitter, great big tall guy with a fantastic sense of humor and John is like a coach for your books. These guys are not just pencil pushing number crunchers. These guys will actually help you get towards your perfect day if you’re a member of our gross stage part of the mentoring program, you’re familiar with John’s videos on 10 99 versus w two contractors. See John used to work for the IRS. He’s seeing the other side of labor law and he knows exactly where the line is drawn. Don’t believe everything you read, but on the tax side, John can actually help you plan to take home more money every year and save more money on taxes because John is a certified profit first accountant. If you’ve listened to this podcast before, you know that I’m a big fan of Mike Michalowicz and his profit first system and John at insight tax and his staff can help you plan backwards from profit to get to where you need to go. It’s helped members of the two brain family buy houses in the first year that they’ve implemented profit first. It’s helped people save more money, take home more money and make the business do what it’s supposed to do, which is pay you.

Greg Strauch:                        01:35                       Orchestrating an event within your business is never easy. I remember a few years ago we decided to put on an event for the gym. This event brought a lot of people and a lot of competitive athletes, but I’ll tell you we never did the event again, not because we didn’t want to. It just took a lot more time and stress on our staff and myself that we decided that, hey, this wasn’t worth it. We talked this week with TJ Beljer about running one of the biggest events in the world, at least for masters athletes. This is the crossfit masters athlete event held in Nor Cal or northern California. We get into where he started with crossfit, also running the crossfit regionals for the first three years it was put on and we get into how to run a successful event, identifying a problem, finding the right people and executing on the plan, really trusting within your staff and letting them take ownership and getting into the some of the do’s and don’ts necessary for putting on a successful event. Enjoy the episode. All right, I’m on with Tj Belger. He is not only a business owner but he has running an amazing program and event, uh, and done it very successfully. So I want to bring him on here to share that with everybody so they know the do’s and don’ts of running events and make sure that they can not really maximize the experience that they give to people. So welcome Tj.

TJ Belger:                                 02:57                       Thanks for having me Greg. I’m a huge fan of this podcast. I listen every week.

Greg Strauch:                        03:01                       We love having you on. You’ve been, I think with two brain for a while too. So it’s, it’s Kinda nice to have some of the OGs that have been with us for a long time on here showing the different successes that they’ve had with different programs and events and everything that they’re doing. So let’s give everybody a little bit a synopsis of, of who you are and the businesses.

TJ Belger:                                 03:20                       So I have been, uh, in the fitness game since 1992, I moved to California, walked into a gym that had a help, wanted sign on the desk, can fast forward 26 years later. And here I am. I was a personal trainer in San Francisco for many years. I opened a gym in 2002. We found crossfit in 2005 and we went on to open three more gyms after that under the brand, you know, got into the two brain family. So funny. Now I can’t remember if it was two or three years ago at that phenomenal success with being mentored myself personally with a Jay Williams. But I’m lucky enough to have. And uh, on that, on the side of what we’re talking about today, specifically, we been in the events business or I guess going on about eight years now, 2009. We held our first in gym event for just our members.

TJ Belger:                                 04:15                       We were tapped when the, when we games move to regionals became a regional event. Our Gym was tapped to run regionals for the first three years in northern California. So when I say our gym, it was members of our gym, literally members of our gym as well as a couple few folks who worked with me in the gym. And we ran the show. So for crossfit shortly after that. So that started, I believe in, I think it was 2010. It might’ve been 2011, 2011 we started an event, sorry, 2010 we started an event called nor cal masters, which for the last nine years has been one of, if not the largest masters only event in the world. And along with that we ran separate events, something called nor cal teens. Um, a bunch of other things that we did. We’ve helped many programs as far as weekends dedicated to different types of events, like a masters, uh, event for just bringing in coaches of leaders in the community, having lectures and all kinds of stuff like that. So yeah, we’ve, we’ve done a good number of quote unquote events.

Greg Strauch:                        05:32                       Wow. And that’s, I mean that’s, that’s pretty big too. Not only did you, did you help orchestrate events within, within your gym in, in house? Um, we’d say smaller. I mean still with hundreds of people. Uh, but then HQ basically reached out and said, hey, we want you to run the regional side of it too, for the first three years, which I mean, that’s, that’s not a small fee to anyone that’s ever been to regionals. At least when there were originals. Now they weren’t, they’re not small. It’s not a small event. It’s, it’s a very orchestrated and needs to be that way and have the systems in place. So I can only imagine the, the very beginning of building that. But jumping into into this, this event which I know is not only the biggest masters event I think in the world, but one of the biggest crossfit events in the world. What kind of leads to that path? Was it? I mean was it building, building these, these smaller events within the gym and kind of getting reached out by HQ and and kind of going from there or like what actually made you say, okay, well this is what, this is the kind of event we want to have. We want to have north cal masters event.

TJ Belger:                                 06:34                       Hindsight being 2020 and now have the ability once again to two brands horn too much, but having now the toolbox to know how to do things moving forward. Essentially what we did with our original nor cal master event was literally what we do now and we built programs at the gym. We identify a problem, we find somebody who’s excited to help solve that problem and then we launch it. Right. The problem we identified was my, my wife was on our competition team when we went to the games for a few in the early years. For a few years in a row. She was at that time, 40 years old, the mother, two small kids. We had a number of people like that on our team. We’d like to joke, our first year we went to the two, what quote unquote the Games, which was actually in a Rhombus. Our tee shirts said Masters Division on them for our team because we were just all moms and dads.

TJ Belger:                                 07:37                       Right. That’s basically, we were just old people trying to do this thing. From there we identified, Hey, we think that there’s this segment of people who want to do this, uh, who you know are a little long in the tooth, who, who can then this might be their thing every year. The dream of going to the games. Now obviously there were no masters events at the Games at that point. So we said, let’s put on an event for 40. Literally the first year it was a one day event, 40 to 49 year olds. Right. And it worked out really well. We just, it was word of mouth. We’ve told the local gyms around are within me. I don’t know, maybe a 50 mile radius and we sold it out. Okay, cool. So the next we had to find a larger venue and the next year it got bigger and then the following year we moved it to two days and we got him in a larger venue and it just started to roll in it. And by solving this problem that we have, we thought was a problem, it kind of exploded.

Greg Strauch:                        08:38                       that’s kind of, that sounds correct, right. You’re, you’re slowly, slowly picking up and innovating constantly. Now let’s say I decide, okay, maybe I’m not running the same event or anybody out there that’s not running the same kind of event, but decides, Hey, you know what? I want to put together a really organized event for my community, for maybe the state or the, I mean even the region, kind of like this. What, what are the first steps or what are the steps basically somebody needs to do to build the checklist of, hey, these are the things I need to get done. And also let’s, let’s kind of look at maybe the struggles too. What are the things that have come up that you make sure that people are aware of so that if they do decide to do this,

TJ Belger:                                 09:21                       Snowball effects. I’ve been run over by the snow ball enough times where I don’t want that to happen anymore. So the first thing you want to do is it’s a business. Okay. It doesn’t even matter if you’re doing it. It doesn’t matter if you’re doing it for charity. It doesn’t matter if you’re doing it for your members for a good feeling. And it has to have a business plan after the business plan so you can figure out the cost because it’s going to cost something. It’s going to cost you in time or effort or man hours or whatever it is. And what I always tell people is, if you’re going to take something on getting in touch with people who are doing it, we were, we were lucky that I could sit down with people who ran a, and I reached out to them, massive iron man triathlon events or people who put on the San Francisco marathon or people who put us up.

TJ Belger:                                 10:07                       So I could sit down with people and say, what am I? What am I getting myself into here? Right? And I never assumed that I knew what to do. So I just saturated my network with being able to have coffee with people to say, well, you know, how does this, how does this work? So when you, because what they’re going to do is they’re going to hopefully beat up your business plan. You need to bring them your lame one page, you know, written down with a pencil, a piece of paper, business plan, let them beat the crap out of it. And because the people typically want to help, you know, that’s two brains going to motto there. So, and so what I did was start figuring out, okay, what do we got to do? How do we, we have to do this. The first thing was I got to get the right people.

TJ Belger:                                 10:50                       I got to get, I got, I got to get people who, who once again want to be here. I say to somebody who works for me, hey look, you’re going to be in charge of securing trucks and volunteers for moving equipment. And they look at me and they say, well, okay, I work for you and you’re telling me what to do. So okay, if this is my job, I have to do it. That’s a bad hire, right? Don’t hire that guy to do that job. Say go to your community and say, Hey, here’s what I need. I’m planning on doing this. I need help. And you know, you’d be shocked at the people who step in to to want to help, you know, especially if you created a good network. So this is plan first, network second, get the right people doing the right jobs.

TJ Belger:                                 11:33                       Once again, this is no different than running a business. And then you start to roll. When you start to roll and you make the context, that’s the first punch in the face. Okay? Meaning you get punched in the face because you start finding costs. You start finding how long things are going to take. You Start Finding out, oh wow, should have gotten started on this thing a year ago. You start finding that the dreams of things that you want it to have done have to all of a sudden start being cut it slashed. And there’s nothing wrong with that. If you have a grand vision and you have to cut and slash it look, you have to, you have to hit the learning curve. Or I should say the learning curve has to fall on you at some point. And the only way that’s going to happen is by you going out there throwing it out there and men, maybe you screw up the scoring or maybe it runs massively late. People are waiting to do the finals we’re having. It’s eight o’clock at night or maybe. And that way you can say, okay, I can’t believe how much I learned. I’m either going to do it again or I’m not. And you move on from those mistakes and typically you’ll be able to really start to finding it very quickly for the for the next time.

Greg Strauch:                        12:43                       Okay. So now that we’ve, I mean now that we’ve basically figured out that you cross figure out the timeline of when we’re going to be doing this and always feeling like, hey, there’s not enough and I wish we would have started a lot earlier. What are the key points that people need to have in place in the sense of, I mean like uh, like you said equipment judging somebody that orchestrates everything or overseas, kind of like the ring ring master. What are the positions that you feel like people need to have or at least the hats and roles so that

TJ Belger:                                 13:16                       I do take the profit first mentality profiting doesn’t and I think Chris would agree with is that doesn’t necessarily mean financial. Okay. So if I’m going to profit by this thing being this massively feel good event, okay, how am I going to ensure that profit if it is going to be profit, meaning I’m going to grate either on the cost of this thing, I’m not going to lose anything. Okay, well how is that going to happen? You really have to start digging into the homework as far as the different costs to you, your community, your team that you’re going to be running this thing with. The last thing I would wish upon people is that when you make a decision to run an event like this and you start putting people into place, that it actually ends a relationship. We’ve all been there, we’ve all been in situations where we’re like, okay, we’re doing this thing, and then it just, something happens and you, you hadn’t thought about it, hadn’t figured it through.

TJ Belger:                                 14:13                       You didn’t know how you are going to thank that person. Some people are great with a handshake, some people need your time, other people need to be compensated. You also have to figure out what legally you can do and can’t do. Okay. You can’t, you can’t say to somebody, hey, you’re going to drive trucks and you, you didn’t put them on your insurance. Right? You can’t say to somebody, Oh, you’re going to, you’re going to, I don’t know, uh, be in charge of the medical tent and they don’t have their CPR. Right. So you really have to do your due diligence and a lot of different ways to make sure that things aren’t going to, you’re not, you don’t want to have to yell at anybody. Let’s put it that way. Right? You don’t want to have a bad emotional moment because running in event will peak your emotional, I don’t know what your, it will push your emotional limits.

TJ Belger:                                 15:04                       It’ll push you all the way to the very edges because things are happening. We’re talking about know if you’re talking about what we’re talking about, you’re talking about an event, which means people are keeping score, which means that people want to win and they don’t want to lose. So you’ve got fans, competitors, coaches, judge’s head judges, and at the same time somebody, you know, the, the catering guy is like, hey, I gotta leave. You gotta pay me. Right? The last thing you want to deal with, or eight people screaming at you at the same time. Now we’ve resolved that because we have very defined roles. When we put an event on, if you have a question, you know I will be, I know my role is and if typically my role is to be on the mic, on the floor, one of the roles I have in that moment don’t come up to me and ask me a judging question.

TJ Belger:                                 15:58                       That’s not my department. To be honest. I don’t even know the answer. When I was, when I was new at this, I would give an answer and the head judge is like, that’s totally wrong and I’m a okay. I got to learn to just shut up. Right. You people might be like, wow, this guy’s running the event and he doesn’t even know what the movement’s standard is on kipping pull ups. No, I don’t. I don’t want people to come up and ask me those questions. No different than if they were to ask me, you know, are you guys serving bud or bud light? That’s not my, that’s not my department. Right. So getting all those little minutia things divvied out and then setting people up for success and or failure and letting them go and run it is key. You know, once again, no different than if it were a business.

Greg Strauch:                        16:39                       When you run an event like this after, after everything is over with, do you guys do any kind of like after action report or, or anything to kind of innovate on to the next years?

TJ Belger:                                 16:53                       Uh, so my equipment guy gives me the breakdown of how it went and how it could go better next year. My door person gives me the idea of how it could go, what happened and how that, cause I don’t even know Joe, she’s working, she’s running the door, she’s collecting money, she’s putting wristbands on. She’s, she’s, you know, in charge of that whole department. I don’t even see what’s happening. I don’t get anywhere near that area when the event is going on. My registration person, my person, and when I say my wife has, you know, should be on this call if she had the time because she has, my job is almost 96 straight hours of work around the event because I’m typically in charge of equipment. I’m in charge of the equipment team, meaning, you know, we’re making sure all everything is there and ready to roll.

TJ Belger:                                 17:47                       She has to deal with the other 12, 11 months and 26 days of the event. Meaning answering questions, working the social media, setting up, you know, testing the workouts, getting the feedback, finding out, uh, from Pete, from the venue cause securing venues, signing, putting down deposits, getting the information out to people and getting the feedback and having to answer every single question. Where should we stay when we come in? Well, on the website, here’s the host hotel. It’s been up for six months, but I’m just customer service. So I knew once again, here’s the hotel. Um, the, all that stuff that she has to go through for the whole rest of the year. The second it’s over, people are like, what is the date for next year? What’s the host Hotel Wa, you know, so she, she handles so much of that, that side of things that is just, you know, it is, uh, uh, a phenomenal amount of work.

TJ Belger:                                 18:49                       I, and when we now start getting into talking about how our event differs maybe from something like WodaPalooza, Granite games, some of these other events and our mission is to support this masters community. That is what we’re trying to do. We’re trying to say, look, we’re putting this event out because, and we have people who, we have a lot of people who were games athletes, right? Which is great. We want to support that. We also in the corral of what we’re doing, when the athletes are lined up in the crowd before they come out for their heat and athlete will say, Oh, you know what? By the way, I don’t have pull ups or I can’t do double unders. And it’s like, okay, so we’re doing, you’re about to do a workout that is 12 chest to bar pull ups, a hundred double unders and power snatches at 95 pounds and you’re saying you don’t have double unders and pull ups.

TJ Belger:                                 19:42                       What are you doing here? Right. Their response is I’m just going to have fun and that is something that we have stood behind from day one. We are supporting any master who wants to put themselves out there and they’re like, maybe today I’ll get my first double lender or maybe today I’ll give my first chest to bar. We want us, we always are wanting to support that community from top to bottom. Whatever way you look at it. One of the big separators for our event is we don’t do an online qualifier and when you don’t do, when you do do an online quote bar soap, when I sat down with people who run the bigger events and obviously regionals is easy, right? You qualify, you can either do this or you can’t. With ours we’re, we’re, we’re celebrating these athletes. We, we, we have judges who say, oh, okay, I can, obviously I can put my clipboard down here because we’re just trying to get this person to double under.

TJ Belger:                                 20:38                       We’re not worried about counting a hundred double unders in a row and we want, we tell our judges like, okay, let’s come on. Let’s get this person their double under. That is incredibly fulfilling. No different than if somebody, which we’ve had said multiple times to us. When someone comes to us who’s been to the games as a master and they say to us, this was better than the games. Wow. Well how great is that? You treated us better. We felt, we felt special judging the quality of it. Just wow, how great and that’s it right there and you know what? You win an hour event, a swag bag. You wouldn’t stuff that we managed to get people to donate essentially. Right? No cash. No, because you know the online qualifier for events is typically where events make the money. I have that event. Directors of the biggest events in the world tell me we lose money on the event, but we make such a big profit on the online qualifier. It’s worth doing well. Okay. We have to scrape and claw and make phone calls and try to develop relationships right now for our event next year because that’s the type of event we run. We are not looking to crown the fittest master in the world. We’re looking to put on the best event we can for the people who register for the event. That’s it, period. Whether they’re double unders or not. So, and that is fulfilling to us.

Greg Strauch:                        22:10                       And I think that’s, that’s such an amazing outlook, uh, for an event because I think there’s too many of us that have had these, we had these athletes that come in that want to be competitive. And when you’re trying to have a community that’s based around supporting each other, it’s sometimes hard unless you’re entire gym is filled with these competitive athletes that hold each other up and keep each other accountable and do the workouts with each other and create their own culture subculture within the gym. He usually never turns out that way. It usually gets, the clicky is usually the term a lot of people use or they feel like they’re, the competitive athletes are entitled and it just doesn’t really make for a great experience. Whether that’s members watching these athletes do their own programming or they’re in class and they’re just 10 times above everybody else in class.

Greg Strauch:                        22:55                       It’s sometimes doesn’t always give them that, uh, that warm fuzzy feeling of this is the place for me, uh, because the experience. But it sounds like you guys kind of take those competitive athletes that want to be competitive and show them how amazing of an experience they can have through a, an event compared to just being competitive, just trying to beat the person next to you. And I think that’s huge. That’s a really amazing, uh, outlook that it sounds like you guys have TJ on the event that I think a lot of people need to start doing, whether that’s within the gym or outside of the gym or whatever.

TJ Belger:                                 23:28                       It’s profound, I really love that. I assume we’ve had, okay, so what we’ve gone, we’ve sent teams and individuals to the Games, right? The promise land, right? That the Mount Everest, we’ve been there, done that. We’ll we do against sure. If the, if stars align in the right athletes are here, we want to support that. But it’s no different than how we want to support somebody who’s raising money for the local five k cancer run. Right. Why would those two things be any different? Right? We want to support every member in our community. Now. It could just be that the culture and the community that we’ve created here. But you know, for example, I believe this last year from our gym, from our gyms are multiple gyms. I think we had maybe four athletes compete from our gyms. And we have our, our communities mostly masters. I mean just the, the area that we live in, we have very few folks in their twenties.

TJ Belger:                                 24:33                       We, we have a large team program and everybody else has kind of 35 plus. All right? Because it’s just a, it’s a suburb, right? And we probably had four or five people compete, but we had probably, I don’t know from our gyms, 50, 60, 70 people volunteer. So the satisfaction when you look at that of safe people saying, Hey, I want to help, well, oh my gosh, how great is that? Right? They’re just, they’re just show up and then I’m going to dedicate my Saturday or my Sunday or both days to helping you run this event because, um, I, I like being part of this community and I want to get back. Well, if you’re looking at profit first, and that’s part of it. All right. Plan accomplished, mission accomplished. So the future, the next thing I feel like I have to kind of put in here the future of what events are, but I think if we’re anybody is, you know, no, at the same time that we put on a yearly event called the tjs Rodeo.

TJ Belger:                                 25:34                       Okay. It’s called the TJ’s Rodeo because many years ago, and it’s funny because just recently there’s been a real, an announcement by crossfit that they’re now having this licensing ability and gray, I don’t know how much you’ve read about it, but they’re saying, okay, look, if you license your event crossfit, we’ll stand behind it and all that good stuff. Right. Well, we had this thing called the tjs games that we’ve done since 2009. It is our inter gym competition is for our gym members. I think in 2011 ish around there, I got a cease and desist email from crossfit saying you cannot use the word games as a crossfit affiliate. And as we were putting on our event that weekend where I was like, well, it’s a little late now because it’s happening tomorrow. We, a woman walked by, we had it at this, our local civic center here in our county.

TJ Belger:                                 26:29                       We were holding an, a person walked by and said, what’s going on here at one of our volunteers said, oh, it’s a, it’s a vent we do for our, uh, the members of these gyms. And she said, it looks like a Rodeo for city folk and boat. The name Tjs Rodeo became name from that off. Now we put on this event, which is great, which is, it’s all about the community. We don’t, we don’t look for sponsors, we don’t look for vendors. We w we try my business manager, Jessica, who works tirelessly at all of our events, who sees if we can get some local businesses that might be interested, but we don’t kill ourselves trying to do that. When you look at a bigger event outside of that and you start looking down the line of trying to find vendors, sponsors and you know, you want to put on a village of people who are interested in in uh, or a vendor village.

TJ Belger:                                 27:22                       The tides are changing and now with the, you know, the future of how people qualify for the games or what their goals are or what they’re shooting for. I think you have to take that into account now because if you’re fit aid, if you are some jump rope company or beef jerky company or whatever, you are looking at 16 sanction rules now, which are going to have a lot of eyeballs and we for our event have to look to the future and say okay, they’re probably not, why would they as they’ve already told us, why would we come to Europe? It, right? You’re not putting anybody on the games, you’re just putting on an event that’s regional and local. But the reality is in the past we’ve Kinda, we counted on those companies and now for the future we have to try to figure out how we’re going to do this.

TJ Belger:                                 28:16                       If we want an event of this magnitude to continue because, it’s a specialty event. It’s something that if you are putting on an event and you say, well here’s what we’re going to do. We’re going to call rogue and we’re going to call crave beef jerky and we’re going to, and they’re going to, and we’re going to see, oof, I would, I would call them first to get that rejection out of the way. So you’re not counting on things like that. I think you’re better off if you’re starting one of these things. Go to the local paint store, you know, go to your, go to your neighbor who makes pottery and see if they want to have something to do with it. Starting there.

Greg Strauch:                        28:54                       So starting basically just starting small start with start within your community, the businesses maybe like maybe one degree of separation, like minded people that could possibly be interested in doing this to kind of help build that up. And I’m guessing eventually that’s when you’ll probably have those bigger companies like rogue and fit aid and all these other ones kinda reach out to you and say, hey, we want to start sponsoring to hey we saw this last year and we want to, we want to definitely be there for this. So it could lead to to bigger companies coming in and doing sponsored sponsored events into it. But really starting off small it sounds like,

TJ Belger:                                 29:30                       okay, you have five weeks of putting on an event and if you’re not part of, we do owe something that we use a lot of the intramural open pointers or are guidelines, but we do a gym versus gym versus gym competition. Our gyms compete against each other rather than having teams. So each gym has an event once a week where anybody participating, it takes place in these hours at these times and people come and they cheer and all that stuff. Now you have the opportunity at those events to say to your local coffee shop, or, I don’t know, somebody who’s trying to, a massage therapist or anybody to say, hey, would you want to come in and be present at this event? I’m going to charge you x to be there. All right. See how it goes. The worst thing that could happen is they say no.

TJ Belger:                                 30:22                       Right? Now. That gives you a little bit of experience of saying, you know, because you know in the back of your head you’re saying it’s six months. I want to put on a little local throw down where I’m going to do an event where every gym in the area can bring a team of three people and we’re going to have a little throwdown here, Jim versus him. Or we’re going to do a masters event or we’re going to do a team event or we’re going to do an individual event, but I’m going to throw something on and you know, I’m going to go to the local plumbing company or I’m going to go to wherever and see if they’re going to get more eyeballs and maybe I’ll expand out a little bit because you know this plumbing company, they take care of a 50 mile radius, so maybe I’ll check in with them or maybe so it, it, it gives you practice of trying to get the right sponsorship, the right eyeballs, and we’ve had sponsors, two brains been one MobilityWOD year after year who support us by saying this is, this is, we just want to be involved with this.

TJ Belger:                                 31:20                       We just want to support this because we love the mission and it might not have anything to do with them. Actually getting direct response from your event other than it’s one of the things that they do. They do. We have a billboard, we do Facebook ads and we hang a banner at the TJ’s Rodeo every year cause we like to support it. So like I said, you can’t, you can’t be afraid to ask. You have to ask because if somebody is going to write you a check, oh man, that’s only gonna make the event better. You’re going to be able to say, I can now rent this or I can buy this for the event or I can, I can make it that much better. So you got to start, you got to start by asking.

Greg Strauch:                        31:57                       And that makes sense. I mean really to get the, get people involved with that and taking that first step into not only getting sponsors but getting people even part of the vent and signing up for it, you just need to take the first step. You need to do it and, and see what happens. Because if you don’t do that, you’re not going to learn. Like I love that you said, hey, call up rogue. And, and all the other ones and just get rejected right away, uh, because it’s gonna make it a lot easier for you to now to go to those smaller people or asking people to sign up for this event and

TJ Belger:                                 32:28                       it’s maybe not get rejected as fat stores, not get rejected at all and people are going to sign it in sinks. Hettinger from row from 2000 maybe eight. Right. Where he reached to me and said, hey, I’m a, I think he his first product or maybe rings or maybe lifting belts, I can’t remember. It was some soft goods. Yeah, yeah. It was a metal rings. And because I think his uncle was, I think it was the rings, I think it was those metal real things at an industrial level. And so that might’ve been saying, hey, if you want to buy last shirt. So I, I don’t know if he remembers me, but we have some relationship. I, I don’t even get rejected by rope. They just don’t respond. Now at the same time, I don’t stop asking. Right. I send an email to this magical, you know, contact info thing.

TJ Belger:                                 33:21                       And I, and I don’t hear anything in a few months later, I throw another one out there and I throw, you know, another one out there and that did, they’re too busy shipping containers to Saudi Arabia doing whatever they’re doing. But who knows, maybe they’ll loop back around and say, yeah, you know what? Sorry, we’ve been distracted with stuff we’d love to help out. I’m not going to stop. Right? So that’s the main thing. You gotta be tenacious. The good comes with the bad meaning you’re setting yourself up for criticism, right? You’re, you’re putting on an event, so you’re setting yourself up for, for people to, uh, to not like it for whatever reason. They didn’t get the end result they were looking for and they might take to social media. They might, and that’s just part of the deal. It’s just a bad Yelp review. Bed bed, Google Review.

TJ Belger:                                 34:09                       Yeah. Okay, move on. You’ve got to go. So don’t, don’t be discouraged and Wa, and I’m happy to talk to anybody through this stuff. I typically get almost minutia questions like what scoring system do you use or what insurance company do use? And I say, well, we use this, hey, I’ve got a quick question back. How, what’s the budget for this event? And they’re like, ah, I dunno. Like, okay, well you know there’s some things you might want to think about. So we, it’s been great. It’s been completely exhausting and absolutely crushing. I came off, I just came off, I couldn’t talk last week because I got so sick after our last event. And that’s something that comes with the territory and you know the work, like I said, that my wife does for this thing and the, the, the work that my entire family has to do to put this thing on and at the end of the day you sit back and go, okay, people were really happy and that absolutely fulfills me.

TJ Belger:                                 35:10                       I think the Guido Trinidad who runs WodaPalooza, I think he sold it. I think that was the latest that I saw. And maybe that’s your goal to build something to sell. I don’t know it, it probably would help to know a little bit about what the end game is and know where you’re, what direction you’re heading into. That message is pretty consistently there. I don’t know if we don’t know what he was doing when he started WodaPalooza or not, but it just, it just, it helps to drive you forward a little bit. Yeah.

Greg Strauch:                        35:38                       Now with all of this, you, I mean you have to not only have the people in the right seats on the bus, but you really have to let them have ownership because I mean, if something goes wrong at that front door check ins or the athlete area or whatever it is, you have to let them kind of have that ownership to correct it and make the right decision and an interesting, what does that look like for you?

TJ Belger:                                 36:00                       Hard to do with it. Easy to do. I’m not at my, if I’m not at my, one of my gyms, they get opened. A coach opens the gym, a coach teaches a class or does a PT session or things happen all the time in my business. Right? And most likely if you’re moving your way down or I should say up the line as far as being a gym owner through to brand, that’s what happens and you, you, you and trust people to do things. If it doesn’t work out, you go back and say, why did this not happen? And at this point, because you have, I always preach to my staff, two things make you good at anything. Time and volume. Okay, have you been doing it for a long time and you’ve been doing a lot of it, you’re probably going to end up being pretty good at it.

TJ Belger:                                 36:48                       And some of those things I realize, I tell the people, some of you guys don’t have those. Maybe you have one of two or you don’t have any and I’m just going to trust that you’re going to do the best you can. So with the front door, the front of the house person is new, which I’m lucky she’s not. But the first year she took it over I said, just do the best you can. People are going to try to sneak in. You’re not, everybody’s going to have a wristband, people are gonna have Amex and we don’t accept Amex and you’re just gonna do the best you can. Here is the game plan, here’s the written out policy that we have your script. And then that’s it. And it’s like, okay, you know, standard operating procedures, just this is what you do and I’m going to walk away and you’re going to be fine.

TJ Belger:                                 37:35                       And when I have a brand new coach and I hand them the keys to the gym and I hired them and they there, they moved to my area and they don’t really know anybody and they shadow me and they shadow a few of the coaches that we decided. It’s time for them to run the show and a hand on the keys. And I’m like, okay, I’m an tomorrow morning. You’re on. And you got to let them go. Right. So I don’t know if that’s maybe easy for me to do because I have to. It’s my life. We had to, I’m, I’m happy. I’m happy that I have the ability to do that.

Greg Strauch:                        38:06                       I think that’s, that’s the perfect place to kind of wrap it up and really interesting into your, I mean, you and trust in your staff the same way you didn’t trust any of these people to make the right decisions. I mean, like you said, if you’re not there at 5:00 AM and they need to make a quick decision on whatever’s going on, you’ve already laid that out through your so ops and through your handbook and playbook, but really making sure that they, uh, they, they make the best decision possible and they’ll probably make a mistake. And I, I love that you’re able to create that culture within your staff of, of kind of explaining, hey, like you’re going to make the best decision you can at the right time. If you mess up, understand like, we’re gonna work through it and, and we’re going to do the right thing. If, if somebody wants to reach out to you, Tj, they listen to this episode and they say, Hey, you know what? I’m really, I’m having trouble running this, this event or this program that we’re doing right now and say, hey, I want to reach out to teachers and ask him a few questions. What’s the best way

TJ Belger:                                 39:01                       for us and away we go. Happy to answer any and all questions. If it’s easy to do by email, great. If not, I’m happy to talk to anyone in person on the phone or any way, shape or form.

Greg Strauch:                        39:11                       Awesome. Well TJ, thank you so much for the time and being able to walk through the steps to have, I mean you have one of the biggest sanctioned events in the world even but really for masters too and thank you so much for being able to share that with us and share that with the audience. You can start having ideas and kind of build off what you’ve said and create events that are super successful for themselves.

Speaker 4:                               39:38                       As always, thank you so much for listening to this podcast. We really appreciate you and everyone that has subscribed to us. If you haven’t done that, please make sure you do drop a light to that episode. Share with a friend and if you haven’t already, please write us a review and rate us on how what you think. If you hated it, let us know if you loved it, even better. See you guys later.

 

 

Links: 

https://www.tjsgym.com/

NorCal Masters Competition

Contact TJ:

tj@tjsgym.com

 

Timeline:

1:34 – Introduction to Running a Successful Event

6:06 – From small events to HQ endorsed large events

12:46 – What are the key points to have in place before hosting a big event 

16:40 – Performing an after action report on necessary changes post event

23:00 – The competitive atmosphere of a CrossFit event

29:15 – The importance of starting small

32:15 – Being rejected from major sponsors

35:45 – Correcting issues when things go wrong

Thanks for Listening!

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Episode 156: Building Kids’ Programs In Your Gym

Announcer:                            00:02                       Welcome everyone to to brain radio. It is our mission at TwoBrain is to provide 1 million entrepreneurs the freedom to live the life that they choose. Join us every week as we discover the very best practices to achieve perfect day and move you closer to wealth.

Announcer:                            00:26                       This episode is brought to you by ForTime Design. The real focus of this episode is talking about the value of your time. Is it worth it to outsource your programming and what I started to bring business.com to bring coaching.com I built these sites myself from scratch because I wasn’t satisfied with what else was out there. It’s important to know how to build a website yourself. It’s important to know how to change your own oil. It’s important to know how to rotate your own tires, but the value of your time is what’s most important. I’m not a graphic designer, I’m not a website designer and so I trust liquid state design to take care of all this stuff for me. Check them out. Toxic Teresa, they do some pretty amazing work and a lot of two brain gyms are already using them. To huge advantage in their local market.

Greg Strauch:                        01:10                       All right. I’m here with Jason Rule, owner of Driven nutrition. Jason, how are you?

Jason Rule:                             01:15                       I’m good. Thanks for having me on Greg. I appreciate it.

Greg Strauch:                        01:18                       Happy to. I know personally within my gym, I love the products that Driven nutrition has been able to offer us. I would say as a business owner, I love the profit margins as well. Uh, before we get into all that, let’s kind of start with your story. Let’s start with kind of what led you up to open driven nutrition and uh, Kinda expand and we’ll go from there.

Jason Rule:                             01:37                       All right. Right on. We’ll dive into it. So about 20 years ago, I bought my first supplement store and then shortly after that, about a year after that, about another one and got pretty entrenched inside of the supplement industry working with the franchisees. And what I found in the industry was a lot of times a company will come out of nowhere, build itself up, and then start charging a lot higher premium for their product or they’ll start selling out the people, the businesses that actually built them. So after about three years of doing that, I decided to open my own shingle and I figured, okay, at least I can control if I, if I start my own brand, I can control not only the quality of products but retail distribution as well as the wholesale price of it. So not having to worry about a manufacturer’s undercutting me or anything like that.

Jason Rule:                             02:30                       And that rolled around, that was about 14 years ago when I started tight. And, and then once crossfit came about, some of the supplements, uh, took a big jump again cause people started focusing on health and wellness and all that. But as crossfit gyms started reaching out to us saying, hey, we’d like to carry your product lines. I kept hearing over and over again, we don’t care if we make a profit, we just want a really good product offer our members. That struck a chord with me because that’s really how, well, that’s not exactly how I ran my company, but I’m a big believer in there’s no amount of money that’s worth giving up your reputation for. So when someone came into my stores, I trained all of my guys like, Hey, these are the products that we recommend for these situations. We’re not here just to make a buck or to sell a product, but instead to help these guys achieve their goals.

Jason Rule:                             03:21                       So the compassion and the, and the relationship that crossfit gyms had with their members really compelled to me. But it scared me really bad cause they’re saying I don’t care if I make a profit. So you know, keep in mind, this was seven years ago, I was flat out telling people like, look dude, you just bought a hobby. If you’re doing something for the sake of just, hey, I want to do this cause my members are telling me I should do it, then you should generate revenue from it and not, you shouldn’t do it. Focus on a part of a business that can be profitable, that can drive the metrics forward. So we worked with, we worked with a handful of gems and we just basically said, look, if we created a brand that was exclusive for affiliates, what would you need? And of course they started with protein, you know that it needs to taste great, it needs to be amazed and he said mix easily and it just needs to be a really straight forward product.

Jason Rule:                             04:10                       So we started with that and then amino acids, a creatine, glutamine, fish oil and nighttime sleep aid and recovery product, post workout, pre workout. The list goes on and on and now we’re up to 60 or 70 different products. And as we started developing the products, it stayed in the back of my mind. It’s not just the products that these affiliates need, but it’s the support and the training. And I caution to say this, permission to make a profit. And you know that at the time there were, there were some brands in the space, but they were, they were very expensive and there’s only so long you can overcharge for a commodity. And that’s what, that’s what supplements are, their commodities, you know, I’ll be at high grades depending on what company you work with, but they are, they are commodities. So eventually if you’re charging a lot of money for a product that a member can walk into a local retailer for and buy for 30 or $40, eventually the koolaid wears off a little bit and then like, oh, it’s proteins protein.

Jason Rule:                             05:12                       Right? Well that’s a tough business model. If the prices are really high, it’s just not something that can be sustained. So the, besides the teaching and the, the approaches that we take to retail of teaching Jim’s how to create a successful business unit. Inside of that, we wrap it around a model that allows the affiliates to sell the products at a reasonable price point. In fact, a lot of our affiliates will sell it a little bit below our retail price. So you’ll find our products on our, on our website as well as on our Amazon store and that’s at full blown retail and I encouraged the affiliates to sell it just a little bit below our retail price point. Then that way you can say as an added value of being a member of our gen, we’re proud to be able to save you money on these products.

Greg Strauch:                        05:58                       Yeah. Which is usually a different approach that a majority of supplement companies we’ll talk about with the people that are going to be supplying the supplements to the members. They definitely don’t, don’t do, don’t do that same justice that you guys do have of really making sure that they’re getting the benefit of being able to carry the products within their facilities. Right, right. So you guys take a different approach to onboarding. Anyone that, that, that decides to start with driven, what does that onboarding process look like?

Jason Rule:                             06:28                       Well, it uh, anybody who is interested, they can go to our website and fill out the form to become an affiliate. And then the next step is we’ve got a gate there intentionally. The next step is for them to schedule a call with me and then we jam for 1530 minutes to see if we’re a good fit. And we go over the process of how do I talk to my members about supplements? How do I come off as though I’m not being salesy and you know, and then how do I talk to my members as well as my coaches about it? And how do I make it part of my community and what we do here. So it’s kind of laying out that overall framework. And then we have emails that kind of are follow the bouncing ball. Everything from a script that an affiliate can use to post up when they first announced about it to a coach’s newsletter that has 60 to 70 different emails.

Jason Rule:                             07:15                       And, and in that we just drip emails to the coaches every seven to 10 days. And that’s a mistake that I made early on. A couple years back, I realized some of my onboarding calls were taking two and a half hours. And not only was I getting hungry during these things, but I, you know, the trickle down the lane, there’s only so much information you can absorb in and a certain amount of time. And what I found was, hey, I could create, I can create an article. So I started documenting our processes like any good business will. I mean, you guys do a great job of teaching that. And I was just winging it. You know, here’s what I know about retail. And I was just puking all over it.

Jason Rule:                             07:55                       And uh, so I started documented like, here’s, here’s a ball, just follow it. And we, we integrated that into infusion soft that we use for followup and it just kind of follow the bouncing ball and um, hopefully, uh, we’ve done a good job. I always say, hopefully because I believe that we’re just one version away from being better and that includes whatever version we just made that’s better. Uh, so we’re constantly improving those processes that here’s how you introduce products to members, here’s how you introduced it to coaches and here’s how you create a successful business unit inside of your gym. Instead of just buying products to help us pay for the products you take yourself, it should be a profitable venture.

Greg Strauch:                        08:36                       Agreed. Agreed. And with that, I mean, you guys do even more unique things with, with the onboarding, but also with a presales. I know, uh, Bryan Alexander did this and in what kind of interests me into driven was the fact that you guys do more of like a preorder. So if is buying shirts

Jason Rule:                             08:56                       or other kinds of apparel companies kind of do this, hey, put out a list, let everyone kind of pick what they need and then a kind of forward that to you guys with payment to get, get the order placed. Is that correct? Yeah, yeah, that’s right. Brian. Brian crushed it and he actually helped us develop the sop is for it. I was sitting there at my desk and I heard the printer just go and go and go on and had like an $8,000 order and I just picked up the phone. I said, what did you just do? It said all, I’ve been building up for that for a couple months. And I was like, okay, we need to hop on a call. And that’s one of the things that I do is if a, if an affiliate is crushing something, I’ll hop on a call, I’ll record it, and then I’ll turn it into a podcast and they’ll spread that out to the rest of our affiliates.

Jason Rule:                             09:34                       Then that way we can all kind of get up to speed and also accelerate, you know, the hive mind mindset. So we, we took what Brian was doing and then we implemented that into not only an email series but also a mini cha using Facebook messenger. You know you mentioned doing things different, I call it weird, you know, things that stand out that kind of make people go, what was that? What did I just look at? I get real heavy into Facebook messenger and so we have a link then an affiliate you can click on and then it’s just basically a follow the bouncing ball, nine day process of here’s what you post, here’s what you say, here’s the links to the assets that you need. And then nine days later you, you have this big list of members that need products and you go place the order.

Jason Rule:                             10:19                       And then two days later you’d get the order and disburse it out and you have profit in the bank. And that’s amazing to be able to do, cause I’ve, I first handed been able to do that and allow for us to have excellent margins on our products in the industry. There’s definitely different models throughout supplementation of how people should, should be selling it and all that kind of stuff. Can you talk a little bit about the difference between what driven has done compared to maybe the conventional business model of supplements? Uh, sure. I mean that’s part of the reason that we, we created a new brand completely out of by driven nutrition instead of taking the original brand than we had and saying, hey, here’s, here’s a traditional southern, that company, you know, it’s normally dealing with body builders, fitness competitors, weight loss, that type of thing.

Jason Rule:                             11:05                       And a lot of those companies were advertising at crossfitters as well as at owners. You know, some went directly to the gyms, they have sales forces for wholesale and everything else and then they will call you and hey Greg, are you looking at selling some supplements? Sure, send me some samples and then they hound you and pound you until you either buy or die. And we don’t, we don’t do that. We, we’ve grown strictly by word of mouth. And part of that was through being broke and you know, simply through desperation of hey, we can’t, the margins that we have that aren’t anywhere near what the affiliate can have. So we had to get more creative with how, how we grew our brands. So you know, working with affiliates, one of the first things I tell them, and I encouraged, I can encourage affiliates to do the same thing, is I expect to do such a good job for you that when somebody says, Hey, what do you do for some months?

Jason Rule:                             11:55                       Or what are you selling your gym? It’s a flat out. If you’re not working with Jason had driven, you are missing the boat. And I know that by saying that, then I’m, then I’m establishing the level of quality that you as an affiliate expect. So if, if we ever drop the ball, if we screw up, if we mess up an order or we can improve our process, you know, all of all of the affiliates we work with have my cell phone and I expect a text like, Hey Jason, you’re dropping the ball or you could do a better job here. And if it’s something that is possible or within with our, in our abilities to learn than we, we build it and then we implement it and then we test it. So I think that, you know, working directly in with affiliate owners and letting them know, like you’re the, you’re the ones growing our brand. You’re the ones that are, that are talking to your members, that you’re the ones that are trusting that when you sell them one of our products, that they are getting a good product. So we’ve, we’ve stayed very loyal to that and we rely on the affiliates to help us spread the word because I don’t think there’s anything like what we do.

Greg Strauch:                        12:57                       No I I 100% agree and I can attest to anyone out there listening to this podcast that a, I do have your cell phone number in my phone and if anything like that does come up. Definitely being able to reach out to you, which is unique because it’s not like you can reach out to a lot of other supplement companies. Their CEOs are even have their cell phone number to say, Hey I need help with this. Or Hey I think the system could be streamlined this way or that way and giving you feedback directly. So that’s definitely a unique thing that you’re able to do and continue doing at a high level with, with all the other things that you currently do within the business and still be able to keep that personal touch with affiliate owners and gym owners.

Jason Rule:                             13:36                       Well for me it’s very honestly it’s self serving because we serve the affiliates and if I, if I build a wall between you guys and I don’t have that line of communication, then I’m just going and I’m going to start mentoring stuff as far as what is my opinion is that everybody should be doing instead of listening to what are the best ones out there doing. We can just move a lot faster altogether. Then we can just individually, so for, it’s part of it’s lazy by me is I don’t want to have to think of all this cool stuff that everybody’s doing out there. I just want to be able to take it and be like, hey man, good job. How do we, how do we duplicate that this out with, you know, a thousand other affiliates.

Greg Strauch:                        14:13                       Yeah, definitely. Now you guys have the typical supplements. You have the protein, you have the BCA A’s, but you have some unique supplements to. Can you expand a little bit on some of the stuff that is kind of outside of the normal protein and bcas that that most Shim cell?

Jason Rule:                             14:32                       Yeah. You know, our top sellers are two bound protein. Then we’ve got posed quad, we’ve got prewired, which is a lot of, lot of crossfit gyms and not a lot. I’d say some of them are like, no, I don’t want to sell preworkout great. So another product we have is called disrupt. So it’s our branch chain amino acids. It’s BCAS plus one gram of an energy formula. So you know it has about 120 milligrams of caffeine. So not enough to really give you much energy at all, but it’s just kind of a smooth, smooth product that you can take to help increase pain tolerance. So there’s no pump product. You know, if you’re doing a metcon or something like that, you don’t want your heart rate up if you’re doing a long rowing, you don’t want to get a pump in your legs. So disrupt as a cool product that really doesn’t fit the, the space of normal supplements.

Jason Rule:                             15:16                       But it falls into the crossfit space. Well along with post one. And then, you know, we got into, Jeez man, Greg, we’ve got, I think we’ve got 60, close to 60 some odd skews just with, and that’s just products. And then you get into apparel, you know, shirts, uh, men’s shorts, uh, ladies shorts, you know, and all of those are brand. And we set those up at a pass through cost. Some affiliate can sell our apparel and generate a really solid revenue stream. And then, you know, when somebody is thinking that they need to take a protein or something like that and they see a coach or an owner, other members walking around driven nutrition tee shirts, what are they going to buy? You’re going to buy what everybody else does. So that’s one way that we kind of help drive interest into the brand and keep that, keep that internal marketing going without a lot of effort from the affiliate owner.

Jason Rule:                             16:04                       So apparel is great. And then, I don’t know, lower year ago I created a, a good relationship with Charlotte’s web who’s the industry leader in CBD. In fact, they’re the ones that created the, the rush for CBD. You know, Satya gooped in 2014 the an expo say on them called weed, and he documented the, the medical refugee crisis that was happening in Colorado of people hearing about CBD and what it was doing for these, the two first patients, Charlotte figgy and a Secai Jackson. So this, these Stanley brothers or seven of them, they started as Stanley brothers, his name of it, and eventually that the name got out so much about of what it was doing for Charlotte figgy that they ended up naming their entire company Charlotte’s web off of the strain of him that they were growing. So as I started looking into it for personal reasons, there was a lot of misinformation.

Jason Rule:                             17:03                       It reminded me of, it reminded me a lot of when a new supplement comes out and there’s all this amazing sexy marketing on it, and that just makes me raise an antenna of bullshit antenna like that doesn’t make any sense there. So I started digging into it and digging into it, digging into it, and every, every form that I found, everybody that actually was needing CBD for what, what they consider medical reasons, whether it’s dealing with epilepsy or depression, PTSD, that type of thing. Every, every legitimate source that I found was pointing to Charlotte’s web. And the more I dug into the company and more I realized like all of these other companies are private labeling their buy in bulk oil from Israel, from China, where China, you can, you can pet spend 100 bucks and get an organic certification. There’s no validity to it whatsoever.

Jason Rule:                             17:54                       So the market, you know, the big CVD market that is, is what it is now was scaring me a year and a half ago because there’s, you know, there’s no one at the wheel of this industry except for Charlotte’s web because they grow. So every, every bottle that is produced comes from the exact same strand of him. So if you can imagine the Fido chemical properties of a plant, it’s going to vary from one batch to another. Hemp is such a, such an untapped market that we still have unique strains. And that’s what these guys did was they, they, they bred this strain up until it’s CBD content was higher than anything else I’ve ever found were a lot of times, you know, four years ago, everybody was growing hemp plants to increase the TNC to get people more high. They had read these studies in the sixties about what CBD can do and the studies are coming from Israel and you know, what the endocannabinoid system is and you know, uh, all of that, we can spend hours talking about CBD.

Jason Rule:                             18:53                       But these guys believed in the benefits of it. So they started breeding this strain that they own that genetics for now. And not only do the hand plant every plant in Colorado on their own farm, but the hand cultivated. So there’s no synthetic pesticides, no synthetic fungicides or anything like that. And in the end product, every batch, every product is exactly the same, has the same fido chemical properties. And you know, the scary thing about CBD, the scary thing about hemp oil is hemp as a reclamation plant. Uh, what that means is, is they’ll plant it around like mining operations, uh, to pull the, pull the contaminants out of the soil to get the, to get the, to get the levels out to where they’re not going to get sued by the EPA. Well, I mean, like, uh, in Japan, after Hiroshima was bombed, they planted him all over the place to pull the radiation on the soil.

Jason Rule:                             19:46                       Now it’s going, it’s coming out of the soil, but it’s going into the plant. So if you’ve taken, if you take these huge roomfuls of hemp, grinded up that have been grown in less than stellar conditions are polluted conditions, all of those contaminants are going to be inside those plants. And now they’re getting to get this entire roomful of him is going to get processed and put inside these two gallons of oil. So now you’ve got an incredibly concentrated level of contaminants. And so instead of doing what a lot of well a lot of companies do is, you know, buying raw products, putting your label on it, I felt I was really doing a disservice to the industry. But more than that, our clients, because I can’t make a better product than Charlotte’s web.

Greg Strauch:                        20:28                       Yeah. Oh, I was gonna say, so you basically turned around and said, okay, if gym owners are, are selling supplements and this is something that can benefit them, which we can go into the benefits of, of their members in them of what CBD oil can do. But because you couldn’t develop a better product to, you wanted to get the best of the best, which was, uh, what Charlotte’s web was.

Jason Rule:                             20:48                       Right, right. Or his right, right. Yeah. Yeah. And uh, you know, the CBD concentration is a factor of seven times stronger than most of the other brands out there. And it’s the same price point. The cost per CBD mall milligram is a fraction of most brands. So an affiliate, I’ve had affiliates bring it in, you know, one of the, you know, we talk about how do we, how do we promote it, how do we do all that? And a lot of times affiliates will, we’ll spend a lot of time researching and everything allows to get like that. I’m really just teaching affiliates. Hey, if you can get out of here, get out of the numbers way and like just make it available, ask them a question. So one of the ways that we taught affiliates early on to to see if it was a good fit was I took a picture of the bottle and then I just put this question mark on it.

Jason Rule:                             21:31                       And so I sent affiliates of the script and said, ah, just post this, post the picture and say, do you take CBD oil and why? And then listen, listen to your members. Uh, we had, we had one gem get 37 comments on it. Yeah. Like, I mean like do Murph, you’ll get that many comments or program, a three mile run for time. You know, you’ll get a bunch of comments. But people, now, this has been a year and a half since we’ve been into it, but when we first started it was pretty divided. You know, people were passionate about it one way or the other and um, you know, that that is starting to die down. The acceptance of it and everything else. People are starting to realize this product doesn’t get you high. You know, there’s not enough THC in it to do anything. Psychoactively but there are benefits that, that people are getting.

Greg Strauch:                        22:15                       Yeah. I like to always say to people that are worried about that with, with the being in CBD oil. I say it’s a, it’s about the equivalent of the alcohol in Cambridge show. Jay Is, I mean it’s fermented tea. It’s going to technically, but nobody’s drinking that and a drinking and driving. So it’s like that. It’s, yes, technically it could have a trace in there, but it’s such a, such a minor level that it will, you could drink the whole thing and I’m pretty sure it’s still wouldn’t cause that much of an effect. But I mean, and, and CBE CBD you can get into to the benefits if they do have members that are taking this or don’t know about it. What, what exactly are the benefits that people that would be telling their, their members of what this could do?

Jason Rule:                             22:59                       You know, there, we have to be careful with, um, you can tell stories, you can say why people take it. But you can’t say that it’s fixing it because then you get into, then you’re telling people that it is a medication and that’s, that’s really, that’s another reasons that we work with. We decided to work with Charlotte’s web is I want us to make sure that we’re staying on the right side of, of this particular industry because right now the pharmaceutical company, they were able to produce one CBD product. Apple dialax I believe is the name of it, so if, if we as an industry of people who are offering as well as gems that are offering CBD and hemp oil and then they start saying, well, this can cure this or this can cure that. They really get themselves in a tough spot of where they’re prescribing and unapproved medication.

Jason Rule:                             23:48                       I’d be doing everybody a disservice to answer that question. What I will do is there’s, there’s a nonprofit and we talked about this before we got on the call. Greg is, it’s called the realm of caring. The t h e r o c. Dot. US. It is the best source that is available on the planet that I’ve found of. What are the studies and what are the studies pointing to for different conditions? What impact does CBD and humble having on these and out of out of the studies that have been done and it’s, it’s, there’s a huge library, like you can go to the resource and there’s, there’s hundreds of conditions that studies have been done and they’re linked up on there. So I would recommend any affiliate, use that as a resource not only for to learn about, but also if a member has a question, plugged them into it.

Jason Rule:                             24:35                       Since since we work with Charlotte’s web, who was one of the original founders of who was the founder of the realm of caring. Now it’s a nonprofit that works with other oil companies and it recommends other hemp oil companies. But since we’re connected to that, our gym can use the realm of caring. Our gyms can use the realm of caring as a resource to pick up the phone, to hand the phone to a member and say, hey, you’re dealing with this condition. Please reach out to them and have these conversations. And the beautiful thing is, is the real caring is run by people who have dealt with, you know, sick kids. They’ve been sick themselves, they’ve used these products. And so no matter what condition someone is dealing with, they have people who have dealt with that themselves and they’re able to plug you in to that resource so you can use it. So I, I’ll the, I believe that on better serving everyone that’s listening to this, by sending them in that direction, then doing what all these other companies are doing of, Hey, this is what CBD oil does or cures this or cures that. There’s, that’s not doing the industry any justice.

Greg Strauch:                        25:38                       Yeah, no, I agree. We definitely appreciate that. We’ll make sure we link that in the show notes so that everyone, if they’re doing the research for that, and that’s just one of the products that you guys have to offer that’s a little bit more unique because a, a lot of supplement companies aren’t going in any other route, uh, besides the protein, the preworkout, um, possibly even the creatine. But even further into that, you guys, I mean, let’s, uh, let’s talk about a unique product. I remember at the summit last year, you brought it up. You were, you were, you were eating a bag of them and we’re a little confused on what they were, but I think it’s called the meat snacks. Is that correct?

Jason Rule:                             26:11                       Yeah, yeah, that’s right. Um, so I made snacks is made from chicken isolat. So this, this company not too far from us. In fact, if you buy Campbell’s soup or any, any type of a chicken bullion, anything, it comes from this company and what they, what they were trying to do is figure out how, so as they’re refining chicken processing chicken, they had some byproduct, which was chicken protein. So they’ve started refining the process of chicken protein isolate and then having this, this powder, which it doesn’t sound very, and by itself it’s not, um, you know, just basically it’s, it’s cooked chicken with very little seasoning or anything like that, but it has unbelievable health benefits. Chicken is one of the highest things in branch chain amino acids products out there by a factor of almost two. So chicken protein has some great benefits for athletes.

Jason Rule:                             27:02                       So as they started developing products, I started buying these meat snacks. So I, last year I set a goal, I wanted to travel and go to five different events or masterminds or anything like that. And as I travel, I don’t like eating crappy meals, Mcdonald’s, anything like that. So I try to control, okay, I need a snack here, I need a snack there. So I was traveling with these things and, and eating them. I was eating three or four days sometimes when I would travel. And I was like, these are delicious. So created a relationship with the company and said, hey, we’d like to offer these to our affiliates. And um, and we do. So when we, the thing is when we create those relationships with the affiliates or with these companies, we’ve been very careful to vet them. Uh, not only from the standpoint of their Ra’s and their products, but their business. What’s their business goals? Do they align with ours? And is this something that, that their members are going to be able to buy it? The costs that they’re getting an ad and a few months. If so, I tell people flat out, look, if that’s the path you’re going down, let’s, let’s just part friends because we’re not going to get along and it’s not going to go well if you start selling us out and our, and our retail partners,

Greg Strauch:                        28:10                       which is very unique because I mean supplements, you’re looking at margins and you’re looking at what you guys are able to make and look in numbers really is what it comes down to. And that’s definitely a different take that you guys go about within the industry of it’s not chasing the money, it’s more of chasing what’s going to benefit the end user the most. Along with the gym owner, the, the crossfit affiliate owner.

Jason Rule:                             28:33                       It’s a, it’s a lot longer game. You know, there’s not, there’s not a flash in the pan. We’re not looking for instant revenue, um, incident profits. You know, we’re, we’re in this for the long haul and it’s, you know, the crossfit owners that were telling us six or seven years ago, you know, I don’t care if I make a profit, I just want a good product off of my members. Um, we just kind of flipped that on its head a little bit, but I know how, how are trusting, you know, a lot of these guys are past military firefighters, law enforcement. My Dad’s a retired highway patrolmen. My brother’s a trooper. I got a nephew that’s a trooper, another one that’s going into it and Kansas. And you know, I just grew up with that mindset of, you know, tell people what you’re going to do and then do it.

Jason Rule:                             29:11                       And then crossfit goes a step farther of that vitality of, hey, this is, this is really unique. This can help your business. And then, you know, there’s been a lot of consultants that have come out and they’re saving a lot of these gems by teaching them how to make profit. And, um, and thankfully I’m grateful that they’re helping us spread the word as far as, hey, this is what driven does pay attention to them and you don’t have to sell supplements, but if you do, I feel that uh, driven is probably the best model out there. I hope.

Greg Strauch:                        29:42                       And coming from an experience, I mean we’re almost five years in now, uh, with me owning the gym and I can definitely tell you that, uh, it’s, it’s the way the process you guys have made, um, which is what I want to get into next of somebody being able to onboard with you to the point of selling the supplements and how easy you guys make it. Almost like a plug in play to do along with, I mean, looking at it from a business standpoint, the margins that you make on the products are, I’ve yet to see something better and we can break down the difference between, I mean, whey protein and the different types of it and casein protein and all these other things of what’s going to be the most beneficial. But you guys do a great job of not only instituting a learning process of what you guys have and how to show what to offer so that people don’t have to go out and do the research themselves if they haven’t yet.

Greg Strauch:                        30:33                       But you guys sell top notch supplement. So it’s not like you guys are going to the the guy, like you said before, with the oils of, of going to like China and getting a bulk order of, of, of protein. You guys are actually making it and manufacturing it to the highest possible quality all the time. Right, right. I appreciate you saying, saying all of that. Yeah. You know, I, I mentioned that earlier. A lot of affiliate owners, we’ll try to learn everything that casein does or everything that fish oil does or what do I mean? I’ll acids do. And the truth is a lot of your guys as members are already taking and buying supplements. They’re just not buying them from you either because you don’t offer them. The products you offer are that, some of them don’t taste good. Right? So it has to taste good.

Jason Rule:                             31:16                       It has to taste like reward or it’s priced outside of what the other markets do with that specific product. Um, so we, we kind of focus on instead of, hey, instead learn everything in that a branch chain amino acid can do, just make it available to your members, find a product and this is, this is true of any retail. Find a product that you believe in and if it’s something that you can generate a good enough profit on to make it worth your while, make it available to them and then talk about it. Let your members know this is what you take. You don’t have to know everything about amino acids. You just have to say, hey, this is what I take. This is why I take it. This is what I perceive when I take it. And then let them taste it. If you, if you do those things and you have it on your shelves, they’ll buy it

Jason Rule:                             31:58                       without a doubt. And I think, uh, something that I’ve always done and I’ve stuck to and my head coach still make sure, um, that my GM follows this as well, is the fact that we’re never going to sell a supplement or product that we don’t personally take or willing to take something, whether it’s a workout or it’s a amino acid or protein. Everything that we have on our shelves is stuff that we take and our coaches take and we believe in. And I think that’s something that you guys also have a line in. I remember you saying it plenty of times of, and I’m not going to sell a supplement that I’m not willing to take or that I haven’t taken that I enjoy taking too because I mean supplements are supplementation. So it’s, and that’s, that’s awesome to be able to have an that care in there. So let’s say somebody right now is listening to this and they’re like, you know what? I needed to talk to Jason. I need to figure out how I can institute this. The onboarding process, you said that they sign up online on the website, which we’ll put in the show notes, there’s a link for that. But what is, what does that onboarding process look like for somebody coming on with

Jason Rule:                             33:00                       driven nutrition? Well, first thing I’d do is ask them, are you carrying supplements now? What have you carried in the past of what worked? Then that way I can get a feel for kind of where they are as far as business, you know, do we need to break down some, some preconceived notions about making a profit first of all. And uh, and then the other thing is just plugging them into the, the emails of here’s, here’s the system that you follow. And you know, once we throw the switch, all ordering goes through our website, which is very convenient. There are no spreadsheets. So when you need to order something, you just hop on the website and you order at will. There’s no volume discounts. I don’t believe in that at all. I think that I want to work with a gym that has 10 members.

Jason Rule:                             33:40                       Then that way when they have 300, they will never change because they knew from day one that, that, that we were there with them. And I had businesses when I had stores that, that were that way. Um, it always, it always aggravated me when people, as I got bigger and more successful companies would come out of the woodworks, you know, it’d be like, Hey, your movements and volume, let’s increase this and then you can, you know, we can increase your margin. Like, you know, those products don’t cost you any lesson in your warehouse. Why? Why are you charging me less? I needed, I needed a profit when I was broke, man. So, you know, we don’t have minimums. Pricing goes, you know, pricing is, it’s flat and simple and you just get on the website and order whenever you need to.

Greg Strauch:                        34:20                       That process is super easy to you guys. Definitely take the leg work out of, out of trying to figure out how to do everything. I mean you guys have that affiliate separate log into, uh, which, which makes it super easy for people to jump on in and order what they need to.

Jason Rule:                             34:33                       Right. And then, um, you know, that we go through kind of the, how do we introduce this to the members? You know, talking about the first introduction, you know, do you order samples or do you order a handful of products? Uh, I’m a firm believer that samples do nothing but delay a purchasing decision. You know, if I hand you a sample and say, here you go bro, let me know what you think, you know. And then in a couple of days I see a, hey Greg, what did you think of the products? And like a, you know, things are going to get awkward cause you haven’t tried it or your dog ate it. It fell between the cracks, your seat, you know, instead on day one, like here, Greg would just getting in this protein, let me grab a scoop, go grab four or five ounces of water, throw it and shake it up. Let me know what you think and you’re going to buy that product that day if you like it.

Greg Strauch:                        35:14                       Yeah. I think, Jeff Burling had the chocolate peanut butter. And uh, I was like, all right, let me try it. Like I’ve had chocolate peanut butter proteins and he was like, man, I love this stuff. Like I can’t, I can’t keep it on the shelf and I’m buying it personally. And I tried it and I was like, Yep, that’s a, that’s exactly what I’m doing now. Um, that’s awesome. So if somebody wants to reach out to you guys, um, what’s the best way to contact you if they want to start up or if they have general questions for you guys? What’s the best way?

Jason Rule:                             35:45                       Uh, well, I’m on Facebook and my name is Jason Rule. You can reach out to me personally if we’re not friends. Um, and they hit my spam. So it may be a better idea to go to the Driven Nutrition page and then send a message that way. We do not have a wholesale price list. I’ll warn you ahead of time. Um, we do not send out samples. So the process to learn more information and we keep those behind the gate intentionally. So if he remembers or you have a coach that’s going rogue or somebody selling, wanting to sell products out of their garage, we don’t send that information out. So you fill out the, become an affiliate form. And then once we see that we’re a good fit and then I open the gates and you’re able to access the wholesale information. And then, uh, another way that you can do that, that I think any Jim could benefit from and should is we have a Facebook group called building retail in your box.

Jason Rule:                             36:31                       And we try to, you know, like on this call, I try to stay very agnostic as far as, you know, as far as brand, anything that we teach can be applied to any brand that you have in your gems. So, even if you’re not wanting to jump on board with a driven in building retail in your box and take some of those steps and implement them, you know, recreate some of the assets that we have and um, and, and use that to, to increase retail there. There’s, here’s one thing I just want to add and I know we’re running short on time. It’s your, your members want you to be successful. They want to buy products from you that, that you trust. And if as a gym you don’t talk about supplements or you don’t, if you don’t want to offer supplements, that’s fine. But talk about supplements, be a conduit for that information because when they do have questions about it or they get marketed to on Facebook or on Amazon or anything else, I can’t imagine in five years the number of people you’ve had walked through your door, Greg, after they’d been with you for two months and they’re bringing in a pile of crap that they have no business taking cause it’s not right for them where they are on their fitness journey.

Jason Rule:                             37:35                       So I highly encourage any gym that’s listening. If you’re, if you are carrying a product, offer it on day one, make it available on day one and make it part of the conversation and not something that’s just sitting on the shelf collecting dust until a member comes along and buys it from you.

Greg Strauch:                        37:51                       No, I agree. I agree. And I think, uh, that’s a perfect place to wrap it up. So thank you Jason for Bml jump on and uh, your time for sharing everything, uh, all the products that you guys have. I mean, they can always jump on the website and there’s plenty of different things that we didn’t even get into on here, but I definitely appreciate everything you guys do and uh, thank you so much for your time.

Jason Rule:                             38:11                       Oh, it was a pleasure. Greg. Thanks for having me.

Speaker 6:                               38:18                       As always, thank you so much for listening to this podcast. We’d really appreciate you and everyone that has subscribed to us. If you haven’t done that, please make sure you do drop a light to that episode. Share with a friend and if you haven’t already, please write us a review and rate us on how what you think. If you hated it, let us know if you loved it, even better. See you guys later.

 

Greg Strauch:                        00:02                       Welcome everyone to TwoBrain Radio! It is our mission at TwoBrain to provide 1 million entrepreneurs the freedom to live the life that they choose to join us every week as we discover the very best practices to achieve perfect day and move you closer to wealth.

Speaker 2:                               00:25                       Yeah.

Chris Cooper:                        00:26                       This episode is brought to you by Healthy Steps Nutrition. I first met Nicole over a year ago when one of my favorite crossfit affiliates introduced me to her because Nicole was helping them. Sam Brumenschenkel, of crossfit port orange started a nutrition program in her box and that conversation turned into something larger. A year later, Nicole has a fantastic bolt on nutrition program that you can add to your box anywhere in the world. So if you’re thinking, I need to start presenting better nutrition information to my clients, or I need a new revenue stream, or I want to know more about nutrition, but I don’t know where to get started. Healthy steps has that. What they’re going to do is put you or one of your coaches even better through a course, get them qualified to start teaching nutrition. Then they’re going to add you to a private Facebook group.

Chris Cooper:                        01:14                       They’re going to give you a rollout so that you can do a nutrition challenge at your gym, which more than pays for the cost of enrolling them in the course and then provide an ongoing mentorship program for your nutrition program so you can continue to run things for your clients like in nutrition accountability plan every month like we do at catalyst. Nicole is a fantastic person and after launching healthy steps nutrition online, she actually opened up her own box. She’s working with some massive clients including some big big school boards across the country now and she’s in a great position to actually change people’s lives. With nutrition. You can be a conduit for that. Your clients need nutrition advice and counseling. Healthy steps is the best possible solution to this. It’s bolt on. You can take a coach who’s passionate about nutrition and give them the help they need to start a program overseen by a registered dietician, Nicole Marshawn, how the steps. Nutrition is a proud sponsor of two brain and I am so glad to have them. Nicole will be speaking at our summit in Chicago, June 3rd and fourth this year. You do not want to miss her.

Greg Strauch:                        02:20                       Have you ever decided that you wanted to start a youth program within your gym or a crossfit kids program? As many, many gyms have done. If you’re anything like me, you were very enthusiastic to start it but didn’t realize that there’s a lot of bumps along the way. Having the right coach take on this opportunity is definitely difficult to find because not every coach is going to be able to fill that role. I know personally, I would not be good at coaching youth, not because I’m not good at coaching, but I don’t feel like I have the tools that those kids would need to be successful. Luckily, I have found a coach that is amazing at coaching youth on this episode. We talk to Gretchen. Gretchen is a youth program manager within her gym but has brought on this really awesome program to to brain and this is mentoring youth coaches and their programs that they run.

Greg Strauch:                        03:16                       We dive into not only what it’s like to start a youth program and realize that, hey, I don’t know everything. I am making mistakes and fixing those as Gretchen has done. But then we also get into what it’s like working with other youth programs, making sure that the one size fits all doesn’t really work in this model. So the content that she produces and the 10 week program she has created is generalized and then sit down and you guys talk about specifics of how it can help your program out. She also talks about some gyms that she has worked with in a pilot program for this program that within three months we’re getting their Roi on the payment of the program. So hope you guys enjoyed the episode. All right, I’m here with Gretchen Bredemeyer Meyer. She is brought on an amazing program to, to brain and that is a mentorship for youth programs. So welcome Gretchen.

Gretchen:                                04:15                       Thanks so much. Glad to be here.

Greg Strauch:                        04:16                       So let’s kind of get into a little bit of background about this and more of your background, how you got started into building youth programs, the programs that you’ve built that have kind of led you to the path of finding a need in the market for people that are running a youth program and really don’t know what to do, or a gym that would like to start, one that has a coach but really doesn’t know where to go from there. So let’s kind of get into your, a little bit about your background and where you’re from and what has led you to this point.

Gretchen:                                04:45                       Yeah, absolutely. Uh, my story about working with youth started about when I was a youth myself. I’ve always worked with camps. When I graduated from college, I became an interpreter for the deaf and hard of hearing and worked almost exclusively in the school system. So I was in a school system all year and in the summertimes I would venture off and sort of enjoy the outdoors, right? So I would, I, you know, hiking, Whitewater raft, guiding, leading trips, uh, rock climbing. So every summer brought on sort of a new adventure. And every time I sort of stepped into a new adventure, my role was always to do that thing with the youth or prepare a program for the youth to do that. So I’ve run and directed camps for rock climbing. I’ve run programs for Whitewater kayaking and you know, anything that I could do outside with kids.

Gretchen:                                05:34                       That’s what I was doing every summer since I started my career in interpreting. One year I remember, I don’t really like the cold and it was January and we are white water kayaking. And I was like, you know what man, I got to find something warmer to do in January. And my husband was like, yeah, I checked out crossfit one time. You want to try it? So, uh, the story just continues right as I got into crossfit, my thing became, you know, find a way to get the involved, find a way to make this awesome for young people. Um, because, uh, the one thing that’s different between all of the adventures that I had gone on before and crossfit is that it is valuable to use for the rest of their lives. Like you’re not just changing their day or their month or one simple paradigm.

Gretchen:                                06:13                       You’re changing their lives. And so it became really apparent to me quite early on that it was important to make this as accessible and is it successful for youth as I possibly could. And so that’s what I endeavored to do and we’ve made some headway. Some headway though. The start was sort of rough. I love that you said how I found the need in the market was that, uh, when I first started my, the owner of the gym, his name is Josh, was doing mentor calls with his own mentor. He’s the one that decided I was an intrepreneur and should really start and run this program. I thought he was crazy, but he finally convinced me to do it and I thought, Hey, those mentor calls sound like a great idea. Can somebody do one of those for me with this youth program I’m trying to run now and I looked and looked and crickets, man, there is nobody out there doing it. So I thought, you know, I’m going to make this successful for kids, not just for my program, but I’m going to endeavor to do it for everybody’s program just like I have with everything else that I’ve done.

Greg Strauch:                        07:06                       And that’s, I mean, and I completely could see the need for this, especially within my own gym. Having a coach who runs an awesome program, but there’s things that you’ve made mistakes with that other people can learn from. I think Chris has brought that up many, many, many times on this podcast about the mistakes that he’s made has allowed others to benefit from those mistakes and not have to make the same ones, which only allows the trajectory of the business to 10 x basically so that you don’t have to worry about those, those potholes. So you started the youth program at the gym and started building it, but realized, hey, I would like to have some kind of mentorship, somebody to help me along this path of the program I’m building within the gym. But there really wasn’t anything. So you decided to take it upon yourself to create this awesome program now?

Gretchen:                                07:58                       Yeah, it was crazy. I think I’ve made all the mistakes. If you, if you want to talk about a mistake, I’ve probably been there. Um, so it was just, you know, there wasn’t anybody to help me out. So it was trial and error. It was, you know, should we do sessions? Should we do membership? Should we do six week sessions? How long should we do sections? How do you charge for sessions? How many kids did you have in your class? What age groups do you need to figure out? How do you mark it, what the interactions with parents needs to look like? How does hiring in new youth coach and to look like, what does this four nights thing and how does it apply to this program and so on and so forth. And so it was just a long process of tests, experiment, try it out, see what’s good and fairly, fairly soon down the road I’d say like maybe here after I started, as I got to know to brain a little bit better, I got onto their page and started really questioning other gyms about what was working for them.

Gretchen:                                08:49                       So because I knew that the longterm goal was sort of endeavoring to help other programs succeed as well. Uh, I tried to make an effort to sort of not only gather data from my gym but from other gyms as well, which was very helpful. Um, and it’s what eventually led me into sort of mentoring a few gyms. So it, you know, as you make those steps, just like Chris said, as you make those steps and you figure out what’s, what, what doesn’t work, it propels you into what does work and the things that really do work are what you can share and you can, you can help people figure out faster. Right. It took me like a solid, a solid two, if not two and a half years to get things running well with processes in place that I could count on that made it really, that made it so that I can actually focus all of my time and Energy on great coaching, great programming, great events. And that’s where you really want to be, right? That’s what your kids deserve. They need to have your full attention and your programming in your coaching, in the events that you run in the way that you interact with them. They deserve all that. So, um, I guess my desire was just to be able to hand somebody a fully functioning program and say, hey, you’re an amazing coach. Go do that thing without distractions and these kids are going to succeed as a result.

Greg Strauch:                        09:55                       And that’s awesome. And that’s, that’s what makes you such a, I think we’ve, we’ve coined the term intrepreneur, but really an entrepreneur, I mean that’s what you’re doing. You’re building a business within a business. And then on top of that now creating an avenue for those gyms that have decided, hey, I would like to start a youth program. So now that you’re, you’ve kind of moved to that seed of mentoring other, other gyms and other businesses to develop these programs. What have you said like, Hey, these are the right people for these programs. If there’s a gym out there that’s listening that says, Hey, I want to start this program, but I don’t know if someone in my staff could possibly take this on. What are those attributes that you’ve seen that really say, hey, this is the kind of person that you want to start this program?

Gretchen:                                10:43                       Yeah. Whether or not you have that person is, is definitely the linchpin. And I would tell gyms don’t think that because you don’t have that person, you can’t create that person. In my story, I did not think that I was any sort of entrepreneur at all. Um, and it took a lot of mentorship from Josh, the owner of the gym, to really spark that in me, to really ignite that vision and, and free me to sort of run after it. And so first of all, I’d say if you can find the attributes of an entrepreneur, the same attributes that allow you to be really successful with your gym, right? Because a youth program is just like an intrepreneur is just an entrepreneur on us, like a smaller scale, right? With us with an umbrella, right? It’s the, it’s the entrepreneurs that would love to be entrepreneurs but really need a little bit of a safety net, you know, that’s who we are.

Gretchen:                                11:28                       So if you can, if you can find somebody who sort of has the same attributes that really make you a successful business owner, then that’s sort of who you’re looking for. Not, not that you need a reflection of yourself, but somebody that’s passionate, somebody that’s willing to work hard, so many that is, that is motivated by, this is the success of others. Um, I would say is a big one. I talked to Chris a little bit the other day and I said, I dunno, you know, the Enneagram, I’m a number six, which is a helper. Maybe, maybe that’s a good place to start, but you see these people in lots of different areas, right? And so as you look around your gym, I would really almost most challenging to find somebody that you think has these attributes and sort of start the process of pouring into them and talking to them about what really motivates them and what their perfect day looks like and what they’re passionate about.

Gretchen:                                12:13                       Because I bet you have one in your gym or somebody that you know closely. Right. A lot of the people that end up working for gyms are a retired pastors working really well in one of them. There’s a mom of kids who are older and they don’t, they don’t have to spend as much as their of their evening time really pouring into their own kids. They’re in college now, so they have some extra time, but they love kids and they love pouring into kids. So you know, that really works. Teachers are a hard sell, right? Teachers are great with kids. They do amazing stuff, but they’re overworked and underpaid and usually work far into the evenings trying to do their jobs so they don’t really have the time or really they just don’t have the energy to pour it in kids any longer by the end of the day.

Gretchen:                                12:54                       So it’s a good try, right? If you find the perfect person, awesome. But I would say don’t just assume that because somebody has a teacher, they’re going to be the perfect fit for your gym or for your program. I would also say, you know, young coaches that are really looking to get a four nights program under their belt, you see that they have business skills, you see that they’re hardworking, they’re motivated, they really want to get it done. Somebody who just needs the hours and needs to, you know, figure out where their place in this crossfit world is. That’s another good place to start. But, um, my challenge to you guys, to the gym owners out there listening would be that I bet there’s somebody in your gym like that. And with just a touch of inspiration and the beginnings of mentorship for them. I bet you can ignite that spirit in them.

Greg Strauch:                        13:32                       Perfect. I think you mentioned it earlier, but we actually have a stay at home mom that loves crossfit. Used to actually coach kids skiing and snowboarding back in the day and she just loves working with kids and started other programs in other crossfit gyms, so as soon as she came through the door and how enthusiastic she is, I was like, she’s perfect for starting this program within our, with our gym.

Gretchen:                                13:58                       Yeah, there’s that. There’s a swim coach. What am I, one of my favorite coaches that she’s amazing with the kids as as a swim coach. Right. You can get coaches of other things as long as they have the time. Right. That’s the big one.

Greg Strauch:                        14:09                       That’s a big thing. If somebody has a right fit for this program. Let’s kind of talk about the overview of what the program kind of brings to the table for those coaches that are, are either starting or have started a kids program or youth program and then kind of how this program builds on top of that.

Gretchen:                                14:27                       Yeah. The program that I’ve created, it’s a mentorship program is sort of, uh, just my way of, of sort of coming alongside walking alongside somebody in order to sort of get them to their most efficient, their most profitable and the most successful for the kids program that they can get to. And a short amount of time, right? So what I offer is, is 10 weeks of online videos, written content and action items that a program manager, once you find that perfect person would come and learn, uh, online. And then once they finish all the action items, they would have a half an hour phone call with me. We’re in, we’ll sort of customized everything that they’ve learned for their specific gym and for their specific way of coaching and their style, sort of doing things. So we went to sort of, my goal is to sort of completely wrap around your coach, right?

Gretchen:                                15:18                       It’s, it’s something that honestly, any gym owner that really loves mentorship and loves, like relationship could do. It’s just a matter of do you have the time and the knowledge and the best practices to do it. So it’s not necessarily something that’s completely unique to me. I just have a passion for it and I have the time for it and making the time for it. And I just, I just love to do it. Right. I love to see people blossom. I love to see people be as, as efficient and productive and profitable as it can be. Because as much as I’m not a gym, no gym owner, I understand that the success of the gym overall and the success of the youth program are tightly interwoven. And the success of both of those things is really required to impact the kids that I’m so passionate about impacting.

Gretchen:                                16:02                       Right? So you can’t have one without the other two. And so, you know, when I went to my crossfit kids cert, they said, you know, this isn’t it. It’s really just not going to be profitable. You have to do it cause it’s the right thing to do and I thought to myself, man, youth programs just aren’t always going to last in every gym for very long. If that’s the case, like not everybody has the capacity to do that. How can I sort of not prove them wrong but find a different paradigm to work under so that this can be really profitable so these kids can really succeed and have access to just an incredible thing and incredible value that we know is crossfit and so that’s the plane of the mentorship, right? We go through a ton of topics. We talk about all the, the the like the shotgun topics, the easy ones, right?

Gretchen:                                16:43                       We talk about the age groups, we talk about the format of your classes. It’s actually really important which age group goes first in which age group goes second in your like schedule of the day. We talk about which one to start up and how many to start up at the same time and what to do when one of those is easier than the other. We also talk about your coaching style and how that sort of affects all of these things. We go through your perfect day. We, we find goals for you. I have this great system that I’ve found for just organization of your life in general that makes, uh, the typical program manager who’s sort of on survival mode and living like week to week, find the capacity to plan out a month, three months in a year in advance for the benefit of their program and their kids and their gym. So we do a lot, we work over like, you know, the entirety of the next what, 1215 months of your life. So it’s a, it’s a 10 week program, but the scope of it is pretty broad. So by the end of that 10 weeks, you should walk away pretty confident in what your next year’s gonna look like and, and really confident in the fact that you are doing the best thing that you can do for your kids and, and the, the longevity of your program in that gym for sure.

Greg Strauch:                        17:48                       Wow. 10, I mean, 10 full weeks of, of knowledge. And basically getting that, that general understanding so that you can turn around and talk to you about the specifics of how can I tailor this to my gym is, is amazing. I mean that’s, that’s a huge amount. And I remember I was talking before about this, but the marketing side of this, because I know like personally for us, uh, it’s very hard for us to market our kids program, our youth program more of because we just don’t know where to start. So what kind of marketing skills or marketing tools have you brought to the table to bring on a youth program and sustain it long term with getting more people through the door to jump into those programs?

Gretchen:                                18:29                       Specific to the program and the things that we talk about in my mentorship, the truth of the matter is, is that word of mouth is still just huge with kids programs, right? Through the mentorship, we talk a lot about how to get kids talking about your program at the bus stop and how to get moms talking about your program when they have coffee with other moms. We talk about the importance of car magnets and tee shirts, and it all sounds so dinosaur era, right? That’s not how marketing goes right now, but for whatever reason, you know, when there’s something as valuable as a child involved, parents really only trust what other people that they trust say about it. And so that word of mouth is still, for whatever reason, huge, huge in youth programming. Right? Um, and so we sort of talk about marketing through relationship.

Gretchen:                                19:17                       And you know, Chris has some great ideas on this. He, he writes level at or is he does, there’s all sorts of things that he’s already sort of brought together as far as how relationship and marketing are so tightly interwoven. And so in my mentorship I talk about there’s definitely things that you can, that you can do, right? Like a, it’s never a bad idea to seek out a photographer rate. Hobby photographers are literally everywhere. And the difference and the difference between my pictures and your General Hobby photographers pictures are night and day and, and they love to do it. And, and you have an a huge, a huge room filled with adorable children that they are going to be sites to take pictures of. Right? So we have a hobby photographer and Arjun that comes to our competitions. He comes to our big events and his pictures are literally invaluable.

Gretchen:                                20:10                       I have no idea what I would pay for pay him if he asked for payment. But they’re absolutely invaluable to my program. It’s sort of what my program stands on. And so things like that, right? There’s lots of little things you can do, but that’s, that’s one idea that it’s never a bad idea to approach somebody and just ask them if they can walk alongside your program. If, especially if they’re a crossfitter. Right. They see the value of crossfit and it’s not a long step to show them that if they had started crossfit though, when, when they were six, then they wouldn’t be having problems with their knees and their hips. They wouldn’t be having the issues that they’re having right now. And it doesn’t, it’s not that hard to inspire somebody that way. You know what I mean? And I like as a youth program manager, that’s one other attribute that’s really, really important is that you really need to be able to like tell the story of your kids, tell the story of your whole, your kids, their whole lives and, and, and the impacts that you have and the value that you bring to sort of just inspire, uh, excitement and the people around you and around your program.

Gretchen:                                21:07                       There’s lots of people who support my program in little ways, right? There’s lots of people who will call me and say, Hey, I just found mats. This gymnastics place was going out of business and I just dumpster dove for you. Awesome. I love that. You know, that this program is valuable enough to go grab those mats before anybody else does. Or, you know, I have parents that are like, Hey, I’d really love to, you know, my daughter and I were making Christmas cards that are crossfit themed. It’s a little t-rex pulling a sled with a Santa hat on and we want to sell the cards are like at least ask people to donate and we just want to give them money to your program, right? So at least at least 90% of your job is helping people understand the value of your program and people are generous people or get excited about kids doing really cool things. And so you can really, um, with, with some effort, right? You have to be intentional, but you can really get people on board and, and, and that’s the best place. That’s the best environment you could possibly hope for for these kids, for your program and for profitability for your gym. Right. That’s like the perfect little place to be.

Greg Strauch:                        22:10                       Agreed. And I, it’s funny you mentioned reaching out or, or better yet, people reach out to you to help you with growing the program because you’ve, you’ve kind of installed that, hey, this is what the value of this program is. And I mean long term. I mean if we could get those kids to go to more of a like a junior varsity or as they get older to a varsity and then eventually into regular class, that would be an amazing goal to really get them into always being healthy and understanding exercise and moving properly and really living longer hours is the end goal. Right, but it’s funny that you mentioned people reaching out to you because I remember when I first started our program, we had a two members that are business owners in town and I remember I really wanted to build this program.

Greg Strauch:                        22:53                       They had their son in it and we just weren’t getting a whole lot of traction on it. We only had maybe a handful to eight kids in the program and it just wasn’t, I priced the programming correctly. I did all the mistakes that I know if I would have had with program that you had available, it would have definitely changed all of that. But I remember being like, man, I wish I could get more equipment for this. And I remember when the business owners reached out to me and said, hey, it’s the end of the year, we would like to get more of a tax break. You know, understand this as a business to business. We would love to buy equipment for the kids program. And I remember when they first offered this, I said, no, no, no, no. I mean having the whole ego and pride. Right. And I remember going back and Danny was his name, he, he just, he’s in a phenomenal person and I love him and his wife, but he was relentless.

Greg Strauch:                        23:45                       This, I mean, he’s like, it’s getting closer. I got to, I got to buy equipment. What do you need? And I remember going to my coach that was wearing the program at the time. I said, hey, what equipment would you need? Like make a dream sheet. And so she did. And it was, I looked at it and I said, wow, this is, this is pretty expensive. This is not cheap. And Danny, Danny came to me again and was like, Hey, do you have a list? Do you have something? I said, yeah, this is it. This is a what my coach made. So if you just want to pick one or two items, that’s fine. And I remember getting the shipment in and he bought everything and I couldn’t believe it. And I was like bought us those, the maths, the gymnastics mats and some of the little, uh, I think they’re called Oso barbells will hit barbells and really just helped us kind of build that program, which was amazing.

Greg Strauch:                        24:27                       So anybody that is listening that is building a program currently, of course I’m going to say, hey, let’s, let’s make sure that you jump on a call with Gretchen and we’ll talk about that and make sure it’s in the show notes for the link. But really don’t forget to use that affinity marketing and reaching out to your members that have kids possibly in the program or if you’re starting a program to kind of help help you facilitate the, the equipment needs and, and maybe there’s a certification or something like that because I know they’d be happy to do it. And if it’s coming from a business, they can write that off in their taxes. So, you know, uh, they will be all about that at the end of the year.

Gretchen:                                25:00                       Yeah. And to say like not only is it beneficial for their business, but a lot of my background was actually in mission work. I was raised in faith and love to do mission work and I just remember writing to people and being like, I don’t want to ask people for money to send me to this awesome place that I’m going to be excited about. And I remember people saying over and over again, right, they can’t go to this place. They can’t do this thing. And so what you’re doing is you’re sharing this awesome opportunity with somebody else and letting them get involved in something that they otherwise wouldn’t be able to do. Right. And if you truly believe that your program is a value rate, if you truly believe that what you have to offer is the best thing out there for these kids, then it’s going to do nothing but provide value and a sense of, of, of worth and being involved in something greater than yourself. If you allow other people to get involved to help you to offer those opportunities without equipment or whatever the case may be. Right. It’s not only helpful for your program, it’s helpful for that person, which is sort of a backwards or like hard to accept paradigm I guess.

Greg Strauch:                        26:02                       It is. It definitely is. Um, but like I think that underlying tone of of exactly what we’re both saying and you’ve really hit on it, but it’s, it’s really that mindset, like changing the mindset of, of thinking that you’re, you’re sticking your hand out for, for handouts. But really you’re, you’re trying to get this program off the ground and you have to understand the value that you’re providing, which is huge. I mean, if you could, if we think about this from a macro standpoint and if this kid could go through a program and at the end of their life live and extra 10, 20 even years because they’ve been in a program like this their entire life and they saw the value in what it would do for them long term. I mean that’s huge. Yeah. I mean, you’re extending people’s lives and quality

Gretchen:                                26:46                       life too, right? You’re not going to end up in all those places where we see our grandparents and our parents these days, like that’s not where these kids are going to end up.

Greg Strauch:                        26:55                       So if somebody’s okay, hey, you know what, they’re listening to this. They want to sign up for this program. They feel like everything that you, you talked about or that we’ve talked about so far, what exactly is the process for them to get started?

Gretchen:                                27:09                       Yeah, so, um, first of all, I think that in order to get excited about this program, um, you have to know that my goal is to help youth programs, right? My goal is to help gyms. And so before I offer it this youth program, I think it’s helpful to say I did it on my own without to rain for about a year and a half. And then once I came to to brain, I did a pilot, right? I wanted to and and to brain wanted to make sure that the value of this mentorship program was going to be something that was going to be a helpful advantageous to gym owners. Right? So we tested the Roi, right? We looked at what the value was and I took specific notes on what that Roi look like. And before you jump in or like are emotionally led to have like these adorable kids doing really well and your gym, which will happen, it’ll be fantastic.

Gretchen:                                28:00                       But I want you also to know that, like, I honestly interested in partnering with your gym in a way that’s going to be beneficial to you. So I can tell you that the gyms that I’ve worked with now have absolutely within three months of the mentorship, gotten a return on investment. They’ve gotten that back. They’ve seen a difference in how their gym, uh, brings in revenue. Right? And so before I tell you like, hey, sign up. I just want to give you a couple of examples of the fact that like this works, it really works and it doesn’t work necessarily because I’m great, but because I’ve spent the time figuring out what it is that it works, right. There’s a program that I worked with just recently and at the end of the mentorship there last month during the mentorship, their revenue for the youth program was whole 42.

Gretchen:                                28:45                       The following month I revenue was 1438. The following month their revenue is 2170. And the following month was was July. Now July is when we plan all of our camps, right? And so the revenue for July was 39, 17. Right? You’re not going to get July months all year round. But it’s, it’s good to note that in, you know, 10 weeks plus a couple months there, they were doing a great job of really applying all the concepts that I, that I give them and that I did it, that they really used. And worked with and really grew, right? We, you know, it’s not going to happen in that three months because the thing with kids is that kids programs are cyclical, right? They’ve got definite up, up months and down months. And I was talking with Chris, he says that during the hockey season, everybody leads. Um, so if you’re in Canada, what I would do is I’d work with you on what you can do during hockey season.

Gretchen:                                29:36                       But my goal is to really create a program with, uh, with dependable revenue, right? You don’t want huge ups and huge down. So how do we avoid that? How do we make sure that you’re getting a more dependable revenue stream and ultimately a continuously growing revenue stream out of your youth program? So that’s one of the things that we work really hard to do. And I really endeavored toward making this worth its value, right? So that said, right, I would love to talk to anybody, right? Send your, send your program managers my way. You as an owner book a book, an intro call with me. I would love to chat with you, see where you are, right? There are some gyms that just aren’t in a great place to start this program. And if that’s the case, I will tell you, right, these are a couple of things that need to happen before this mentorship is actually going to be super valuable to you.

Gretchen:                                30:22                       Right? Or call me and maybe I’ll be like, oh my goodness, this is, it can be so good for you. I can’t wait. That’ll be exciting. We’ll get everything done right. Um, I get so excited to work with people, but have him call me. Right? We can discuss all of your like superficial layer problems. I am so happy to help with that. And then, and then we can talk about what that, what that 10 week mentorship looks like. Right? Because if I can, if I can communicate with you and figure out what you need, then I can best communicate what I can bring to the table. What, what it really looks like to do that. So we have links. I’m sure that Greg is going to put him as he said in the, yeah, so there’s links, but there should be a link for an intro call with me.

Gretchen:                                31:01                       You can reach me@gretchenattwobrainbusiness.com. I have an Instagram page, it’s under coach to kids. See, oh, a c h the number two and the word kid. All one word. Um, that’s my Instagram where you can see lots of fun pictures about what I do with my program. You use it as a tool for helping your program and, and I would just love to chat with you, right? The more people that I can help, the more people that I can learn from, the more data we can collect. This process only gets more streamlined, right? And at this point in time, we already have processes and SAP that we can just hand you, right? So what, as we continue to grow, we’re only going to be more and more beneficial. There’s also an online community called to brain kids that’s currently open. Um, we are going to have to close that group to a mentorship clients sometimes soon. I think if towards the end of January. But for right now it’s open. So come on, join that group, ask any questions that you have. Um, I would love to chat with you their answer questions. They’re sort of see what best way I can sort of fill the gap for where your program is right now.

Greg Strauch:                        32:01                       Awesome. Gretchen, thank you for your time and being able to jump on the podcast and sharing this amazing program. I mean I’m about to jump on the links as soon as, as soon as I make sure I get them in the show notes, but I am going to definitely be jumping on a call so that I can get my kids or my youth coach basically on board with this because I would love to expand on the programs that we have to offer, uh, on top of what we already have. So thank you so much for the time and we greatly appreciate it.

Gretchen:                                32:27                       Awesome. Thank you so much, Greg. Have a great day.

Greg Strauch:                        32:35                       As always. Thank you so much for listening to this podcast. We greatly appreciate

Speaker 6:                               32:40                       you and everyone that has subscribed to us. If you haven’t done that, please make sure you do drop a light to that episode. Share with a friend, and if you haven’t already, please write us a review and rate us on how what you think. If you hated it, let us know if you loved it, even better. See you guys later.

 

Episode 155: Driven Nutrition, with Jason Rule

Announcer:                            00:02                       Welcome everyone to to brain radio. It is our mission at TwoBrain is to provide 1 million entrepreneurs the freedom to live the life that they choose. Join us every week as we discover the very best practices to achieve perfect day and move you closer to wealth.

Announcer:                            00:26                       This episode is brought to you by ForTime Design. The real focus of this episode is talking about the value of your time. Is it worth it to outsource your programming and what I started to bring business.com to bring coaching.com I built these sites myself from scratch because I wasn’t satisfied with what else was out there. It’s important to know how to build a website yourself. It’s important to know how to change your own oil. It’s important to know how to rotate your own tires, but the value of your time is what’s most important. I’m not a graphic designer, I’m not a website designer and so I trust liquid state design to take care of all this stuff for me. Check them out. Toxic Teresa, they do some pretty amazing work and a lot of two brain gyms are already using them. To huge advantage in their local market.

Greg Strauch:                        01:10                       All right. I’m here with Jason Rule, owner of Driven nutrition. Jason, how are you?

Jason Rule:                             01:15                       I’m good. Thanks for having me on Greg. I appreciate it.

Greg Strauch:                        01:18                       Happy to. I know personally within my gym, I love the products that Driven nutrition has been able to offer us. I would say as a business owner, I love the profit margins as well. Uh, before we get into all that, let’s kind of start with your story. Let’s start with kind of what led you up to open driven nutrition and uh, Kinda expand and we’ll go from there.

Jason Rule:                             01:37                       All right. Right on. We’ll dive into it. So about 20 years ago, I bought my first supplement store and then shortly after that, about a year after that, about another one and got pretty entrenched inside of the supplement industry working with the franchisees. And what I found in the industry was a lot of times a company will come out of nowhere, build itself up, and then start charging a lot higher premium for their product or they’ll start selling out the people, the businesses that actually built them. So after about three years of doing that, I decided to open my own shingle and I figured, okay, at least I can control if I, if I start my own brand, I can control not only the quality of products but retail distribution as well as the wholesale price of it. So not having to worry about a manufacturer’s undercutting me or anything like that.

Jason Rule:                             02:30                       And that rolled around, that was about 14 years ago when I started tight. And, and then once crossfit came about, some of the supplements, uh, took a big jump again cause people started focusing on health and wellness and all that. But as crossfit gyms started reaching out to us saying, hey, we’d like to carry your product lines. I kept hearing over and over again, we don’t care if we make a profit, we just want a really good product offer our members. That struck a chord with me because that’s really how, well, that’s not exactly how I ran my company, but I’m a big believer in there’s no amount of money that’s worth giving up your reputation for. So when someone came into my stores, I trained all of my guys like, Hey, these are the products that we recommend for these situations. We’re not here just to make a buck or to sell a product, but instead to help these guys achieve their goals.

Jason Rule:                             03:21                       So the compassion and the, and the relationship that crossfit gyms had with their members really compelled to me. But it scared me really bad cause they’re saying I don’t care if I make a profit. So you know, keep in mind, this was seven years ago, I was flat out telling people like, look dude, you just bought a hobby. If you’re doing something for the sake of just, hey, I want to do this cause my members are telling me I should do it, then you should generate revenue from it and not, you shouldn’t do it. Focus on a part of a business that can be profitable, that can drive the metrics forward. So we worked with, we worked with a handful of gems and we just basically said, look, if we created a brand that was exclusive for affiliates, what would you need? And of course they started with protein, you know that it needs to taste great, it needs to be amazed and he said mix easily and it just needs to be a really straight forward product.

Jason Rule:                             04:10                       So we started with that and then amino acids, a creatine, glutamine, fish oil and nighttime sleep aid and recovery product, post workout, pre workout. The list goes on and on and now we’re up to 60 or 70 different products. And as we started developing the products, it stayed in the back of my mind. It’s not just the products that these affiliates need, but it’s the support and the training. And I caution to say this, permission to make a profit. And you know that at the time there were, there were some brands in the space, but they were, they were very expensive and there’s only so long you can overcharge for a commodity. And that’s what, that’s what supplements are, their commodities, you know, I’ll be at high grades depending on what company you work with, but they are, they are commodities. So eventually if you’re charging a lot of money for a product that a member can walk into a local retailer for and buy for 30 or $40, eventually the koolaid wears off a little bit and then like, oh, it’s proteins protein.

Jason Rule:                             05:12                       Right? Well that’s a tough business model. If the prices are really high, it’s just not something that can be sustained. So the, besides the teaching and the, the approaches that we take to retail of teaching Jim’s how to create a successful business unit. Inside of that, we wrap it around a model that allows the affiliates to sell the products at a reasonable price point. In fact, a lot of our affiliates will sell it a little bit below our retail price. So you’ll find our products on our, on our website as well as on our Amazon store and that’s at full blown retail and I encouraged the affiliates to sell it just a little bit below our retail price point. Then that way you can say as an added value of being a member of our gen, we’re proud to be able to save you money on these products.

Greg Strauch:                        05:58                       Yeah. Which is usually a different approach that a majority of supplement companies we’ll talk about with the people that are going to be supplying the supplements to the members. They definitely don’t, don’t do, don’t do that same justice that you guys do have of really making sure that they’re getting the benefit of being able to carry the products within their facilities. Right, right. So you guys take a different approach to onboarding. Anyone that, that, that decides to start with driven, what does that onboarding process look like?

Jason Rule:                             06:28                       Well, it uh, anybody who is interested, they can go to our website and fill out the form to become an affiliate. And then the next step is we’ve got a gate there intentionally. The next step is for them to schedule a call with me and then we jam for 1530 minutes to see if we’re a good fit. And we go over the process of how do I talk to my members about supplements? How do I come off as though I’m not being salesy and you know, and then how do I talk to my members as well as my coaches about it? And how do I make it part of my community and what we do here. So it’s kind of laying out that overall framework. And then we have emails that kind of are follow the bouncing ball. Everything from a script that an affiliate can use to post up when they first announced about it to a coach’s newsletter that has 60 to 70 different emails.

Jason Rule:                             07:15                       And, and in that we just drip emails to the coaches every seven to 10 days. And that’s a mistake that I made early on. A couple years back, I realized some of my onboarding calls were taking two and a half hours. And not only was I getting hungry during these things, but I, you know, the trickle down the lane, there’s only so much information you can absorb in and a certain amount of time. And what I found was, hey, I could create, I can create an article. So I started documenting our processes like any good business will. I mean, you guys do a great job of teaching that. And I was just winging it. You know, here’s what I know about retail. And I was just puking all over it.

Jason Rule:                             07:55                       And uh, so I started documented like, here’s, here’s a ball, just follow it. And we, we integrated that into infusion soft that we use for followup and it just kind of follow the bouncing ball and um, hopefully, uh, we’ve done a good job. I always say, hopefully because I believe that we’re just one version away from being better and that includes whatever version we just made that’s better. Uh, so we’re constantly improving those processes that here’s how you introduce products to members, here’s how you introduced it to coaches and here’s how you create a successful business unit inside of your gym. Instead of just buying products to help us pay for the products you take yourself, it should be a profitable venture.

Greg Strauch:                        08:36                       Agreed. Agreed. And with that, I mean, you guys do even more unique things with, with the onboarding, but also with a presales. I know, uh, Bryan Alexander did this and in what kind of interests me into driven was the fact that you guys do more of like a preorder. So if is buying shirts

Jason Rule:                             08:56                       or other kinds of apparel companies kind of do this, hey, put out a list, let everyone kind of pick what they need and then a kind of forward that to you guys with payment to get, get the order placed. Is that correct? Yeah, yeah, that’s right. Brian. Brian crushed it and he actually helped us develop the sop is for it. I was sitting there at my desk and I heard the printer just go and go and go on and had like an $8,000 order and I just picked up the phone. I said, what did you just do? It said all, I’ve been building up for that for a couple months. And I was like, okay, we need to hop on a call. And that’s one of the things that I do is if a, if an affiliate is crushing something, I’ll hop on a call, I’ll record it, and then I’ll turn it into a podcast and they’ll spread that out to the rest of our affiliates.

Jason Rule:                             09:34                       Then that way we can all kind of get up to speed and also accelerate, you know, the hive mind mindset. So we, we took what Brian was doing and then we implemented that into not only an email series but also a mini cha using Facebook messenger. You know you mentioned doing things different, I call it weird, you know, things that stand out that kind of make people go, what was that? What did I just look at? I get real heavy into Facebook messenger and so we have a link then an affiliate you can click on and then it’s just basically a follow the bouncing ball, nine day process of here’s what you post, here’s what you say, here’s the links to the assets that you need. And then nine days later you, you have this big list of members that need products and you go place the order.

Jason Rule:                             10:19                       And then two days later you’d get the order and disburse it out and you have profit in the bank. And that’s amazing to be able to do, cause I’ve, I first handed been able to do that and allow for us to have excellent margins on our products in the industry. There’s definitely different models throughout supplementation of how people should, should be selling it and all that kind of stuff. Can you talk a little bit about the difference between what driven has done compared to maybe the conventional business model of supplements? Uh, sure. I mean that’s part of the reason that we, we created a new brand completely out of by driven nutrition instead of taking the original brand than we had and saying, hey, here’s, here’s a traditional southern, that company, you know, it’s normally dealing with body builders, fitness competitors, weight loss, that type of thing.

Jason Rule:                             11:05                       And a lot of those companies were advertising at crossfitters as well as at owners. You know, some went directly to the gyms, they have sales forces for wholesale and everything else and then they will call you and hey Greg, are you looking at selling some supplements? Sure, send me some samples and then they hound you and pound you until you either buy or die. And we don’t, we don’t do that. We, we’ve grown strictly by word of mouth. And part of that was through being broke and you know, simply through desperation of hey, we can’t, the margins that we have that aren’t anywhere near what the affiliate can have. So we had to get more creative with how, how we grew our brands. So you know, working with affiliates, one of the first things I tell them, and I encouraged, I can encourage affiliates to do the same thing, is I expect to do such a good job for you that when somebody says, Hey, what do you do for some months?

Jason Rule:                             11:55                       Or what are you selling your gym? It’s a flat out. If you’re not working with Jason had driven, you are missing the boat. And I know that by saying that, then I’m, then I’m establishing the level of quality that you as an affiliate expect. So if, if we ever drop the ball, if we screw up, if we mess up an order or we can improve our process, you know, all of all of the affiliates we work with have my cell phone and I expect a text like, Hey Jason, you’re dropping the ball or you could do a better job here. And if it’s something that is possible or within with our, in our abilities to learn than we, we build it and then we implement it and then we test it. So I think that, you know, working directly in with affiliate owners and letting them know, like you’re the, you’re the ones growing our brand. You’re the ones that are, that are talking to your members, that you’re the ones that are trusting that when you sell them one of our products, that they are getting a good product. So we’ve, we’ve stayed very loyal to that and we rely on the affiliates to help us spread the word because I don’t think there’s anything like what we do.

Greg Strauch:                        12:57                       No I I 100% agree and I can attest to anyone out there listening to this podcast that a, I do have your cell phone number in my phone and if anything like that does come up. Definitely being able to reach out to you, which is unique because it’s not like you can reach out to a lot of other supplement companies. Their CEOs are even have their cell phone number to say, Hey I need help with this. Or Hey I think the system could be streamlined this way or that way and giving you feedback directly. So that’s definitely a unique thing that you’re able to do and continue doing at a high level with, with all the other things that you currently do within the business and still be able to keep that personal touch with affiliate owners and gym owners.

Jason Rule:                             13:36                       Well for me it’s very honestly it’s self serving because we serve the affiliates and if I, if I build a wall between you guys and I don’t have that line of communication, then I’m just going and I’m going to start mentoring stuff as far as what is my opinion is that everybody should be doing instead of listening to what are the best ones out there doing. We can just move a lot faster altogether. Then we can just individually, so for, it’s part of it’s lazy by me is I don’t want to have to think of all this cool stuff that everybody’s doing out there. I just want to be able to take it and be like, hey man, good job. How do we, how do we duplicate that this out with, you know, a thousand other affiliates.

Greg Strauch:                        14:13                       Yeah, definitely. Now you guys have the typical supplements. You have the protein, you have the BCA A’s, but you have some unique supplements to. Can you expand a little bit on some of the stuff that is kind of outside of the normal protein and bcas that that most Shim cell?

Jason Rule:                             14:32                       Yeah. You know, our top sellers are two bound protein. Then we’ve got posed quad, we’ve got prewired, which is a lot of, lot of crossfit gyms and not a lot. I’d say some of them are like, no, I don’t want to sell preworkout great. So another product we have is called disrupt. So it’s our branch chain amino acids. It’s BCAS plus one gram of an energy formula. So you know it has about 120 milligrams of caffeine. So not enough to really give you much energy at all, but it’s just kind of a smooth, smooth product that you can take to help increase pain tolerance. So there’s no pump product. You know, if you’re doing a metcon or something like that, you don’t want your heart rate up if you’re doing a long rowing, you don’t want to get a pump in your legs. So disrupt as a cool product that really doesn’t fit the, the space of normal supplements.

Jason Rule:                             15:16                       But it falls into the crossfit space. Well along with post one. And then, you know, we got into, Jeez man, Greg, we’ve got, I think we’ve got 60, close to 60 some odd skews just with, and that’s just products. And then you get into apparel, you know, shirts, uh, men’s shorts, uh, ladies shorts, you know, and all of those are brand. And we set those up at a pass through cost. Some affiliate can sell our apparel and generate a really solid revenue stream. And then, you know, when somebody is thinking that they need to take a protein or something like that and they see a coach or an owner, other members walking around driven nutrition tee shirts, what are they going to buy? You’re going to buy what everybody else does. So that’s one way that we kind of help drive interest into the brand and keep that, keep that internal marketing going without a lot of effort from the affiliate owner.

Jason Rule:                             16:04                       So apparel is great. And then, I don’t know, lower year ago I created a, a good relationship with Charlotte’s web who’s the industry leader in CBD. In fact, they’re the ones that created the, the rush for CBD. You know, Satya gooped in 2014 the an expo say on them called weed, and he documented the, the medical refugee crisis that was happening in Colorado of people hearing about CBD and what it was doing for these, the two first patients, Charlotte figgy and a Secai Jackson. So this, these Stanley brothers or seven of them, they started as Stanley brothers, his name of it, and eventually that the name got out so much about of what it was doing for Charlotte figgy that they ended up naming their entire company Charlotte’s web off of the strain of him that they were growing. So as I started looking into it for personal reasons, there was a lot of misinformation.

Jason Rule:                             17:03                       It reminded me of, it reminded me a lot of when a new supplement comes out and there’s all this amazing sexy marketing on it, and that just makes me raise an antenna of bullshit antenna like that doesn’t make any sense there. So I started digging into it and digging into it, digging into it, and every, every form that I found, everybody that actually was needing CBD for what, what they consider medical reasons, whether it’s dealing with epilepsy or depression, PTSD, that type of thing. Every, every legitimate source that I found was pointing to Charlotte’s web. And the more I dug into the company and more I realized like all of these other companies are private labeling their buy in bulk oil from Israel, from China, where China, you can, you can pet spend 100 bucks and get an organic certification. There’s no validity to it whatsoever.

Jason Rule:                             17:54                       So the market, you know, the big CVD market that is, is what it is now was scaring me a year and a half ago because there’s, you know, there’s no one at the wheel of this industry except for Charlotte’s web because they grow. So every, every bottle that is produced comes from the exact same strand of him. So if you can imagine the Fido chemical properties of a plant, it’s going to vary from one batch to another. Hemp is such a, such an untapped market that we still have unique strains. And that’s what these guys did was they, they, they bred this strain up until it’s CBD content was higher than anything else I’ve ever found were a lot of times, you know, four years ago, everybody was growing hemp plants to increase the TNC to get people more high. They had read these studies in the sixties about what CBD can do and the studies are coming from Israel and you know, what the endocannabinoid system is and you know, uh, all of that, we can spend hours talking about CBD.

Jason Rule:                             18:53                       But these guys believed in the benefits of it. So they started breeding this strain that they own that genetics for now. And not only do the hand plant every plant in Colorado on their own farm, but the hand cultivated. So there’s no synthetic pesticides, no synthetic fungicides or anything like that. And in the end product, every batch, every product is exactly the same, has the same fido chemical properties. And you know, the scary thing about CBD, the scary thing about hemp oil is hemp as a reclamation plant. Uh, what that means is, is they’ll plant it around like mining operations, uh, to pull the, pull the contaminants out of the soil to get the, to get the, to get the levels out to where they’re not going to get sued by the EPA. Well, I mean, like, uh, in Japan, after Hiroshima was bombed, they planted him all over the place to pull the radiation on the soil.

Jason Rule:                             19:46                       Now it’s going, it’s coming out of the soil, but it’s going into the plant. So if you’ve taken, if you take these huge roomfuls of hemp, grinded up that have been grown in less than stellar conditions are polluted conditions, all of those contaminants are going to be inside those plants. And now they’re getting to get this entire roomful of him is going to get processed and put inside these two gallons of oil. So now you’ve got an incredibly concentrated level of contaminants. And so instead of doing what a lot of well a lot of companies do is, you know, buying raw products, putting your label on it, I felt I was really doing a disservice to the industry. But more than that, our clients, because I can’t make a better product than Charlotte’s web.

Greg Strauch:                        20:28                       Yeah. Oh, I was gonna say, so you basically turned around and said, okay, if gym owners are, are selling supplements and this is something that can benefit them, which we can go into the benefits of, of their members in them of what CBD oil can do. But because you couldn’t develop a better product to, you wanted to get the best of the best, which was, uh, what Charlotte’s web was.

Jason Rule:                             20:48                       Right, right. Or his right, right. Yeah. Yeah. And uh, you know, the CBD concentration is a factor of seven times stronger than most of the other brands out there. And it’s the same price point. The cost per CBD mall milligram is a fraction of most brands. So an affiliate, I’ve had affiliates bring it in, you know, one of the, you know, we talk about how do we, how do we promote it, how do we do all that? And a lot of times affiliates will, we’ll spend a lot of time researching and everything allows to get like that. I’m really just teaching affiliates. Hey, if you can get out of here, get out of the numbers way and like just make it available, ask them a question. So one of the ways that we taught affiliates early on to to see if it was a good fit was I took a picture of the bottle and then I just put this question mark on it.

Jason Rule:                             21:31                       And so I sent affiliates of the script and said, ah, just post this, post the picture and say, do you take CBD oil and why? And then listen, listen to your members. Uh, we had, we had one gem get 37 comments on it. Yeah. Like, I mean like do Murph, you’ll get that many comments or program, a three mile run for time. You know, you’ll get a bunch of comments. But people, now, this has been a year and a half since we’ve been into it, but when we first started it was pretty divided. You know, people were passionate about it one way or the other and um, you know, that that is starting to die down. The acceptance of it and everything else. People are starting to realize this product doesn’t get you high. You know, there’s not enough THC in it to do anything. Psychoactively but there are benefits that, that people are getting.

Greg Strauch:                        22:15                       Yeah. I like to always say to people that are worried about that with, with the being in CBD oil. I say it’s a, it’s about the equivalent of the alcohol in Cambridge show. Jay Is, I mean it’s fermented tea. It’s going to technically, but nobody’s drinking that and a drinking and driving. So it’s like that. It’s, yes, technically it could have a trace in there, but it’s such a, such a minor level that it will, you could drink the whole thing and I’m pretty sure it’s still wouldn’t cause that much of an effect. But I mean, and, and CBE CBD you can get into to the benefits if they do have members that are taking this or don’t know about it. What, what exactly are the benefits that people that would be telling their, their members of what this could do?

Jason Rule:                             22:59                       You know, there, we have to be careful with, um, you can tell stories, you can say why people take it. But you can’t say that it’s fixing it because then you get into, then you’re telling people that it is a medication and that’s, that’s really, that’s another reasons that we work with. We decided to work with Charlotte’s web is I want us to make sure that we’re staying on the right side of, of this particular industry because right now the pharmaceutical company, they were able to produce one CBD product. Apple dialax I believe is the name of it, so if, if we as an industry of people who are offering as well as gems that are offering CBD and hemp oil and then they start saying, well, this can cure this or this can cure that. They really get themselves in a tough spot of where they’re prescribing and unapproved medication.

Jason Rule:                             23:48                       I’d be doing everybody a disservice to answer that question. What I will do is there’s, there’s a nonprofit and we talked about this before we got on the call. Greg is, it’s called the realm of caring. The t h e r o c. Dot. US. It is the best source that is available on the planet that I’ve found of. What are the studies and what are the studies pointing to for different conditions? What impact does CBD and humble having on these and out of out of the studies that have been done and it’s, it’s, there’s a huge library, like you can go to the resource and there’s, there’s hundreds of conditions that studies have been done and they’re linked up on there. So I would recommend any affiliate, use that as a resource not only for to learn about, but also if a member has a question, plugged them into it.

Jason Rule:                             24:35                       Since since we work with Charlotte’s web, who was one of the original founders of who was the founder of the realm of caring. Now it’s a nonprofit that works with other oil companies and it recommends other hemp oil companies. But since we’re connected to that, our gym can use the realm of caring. Our gyms can use the realm of caring as a resource to pick up the phone, to hand the phone to a member and say, hey, you’re dealing with this condition. Please reach out to them and have these conversations. And the beautiful thing is, is the real caring is run by people who have dealt with, you know, sick kids. They’ve been sick themselves, they’ve used these products. And so no matter what condition someone is dealing with, they have people who have dealt with that themselves and they’re able to plug you in to that resource so you can use it. So I, I’ll the, I believe that on better serving everyone that’s listening to this, by sending them in that direction, then doing what all these other companies are doing of, Hey, this is what CBD oil does or cures this or cures that. There’s, that’s not doing the industry any justice.

Greg Strauch:                        25:38                       Yeah, no, I agree. We definitely appreciate that. We’ll make sure we link that in the show notes so that everyone, if they’re doing the research for that, and that’s just one of the products that you guys have to offer that’s a little bit more unique because a, a lot of supplement companies aren’t going in any other route, uh, besides the protein, the preworkout, um, possibly even the creatine. But even further into that, you guys, I mean, let’s, uh, let’s talk about a unique product. I remember at the summit last year, you brought it up. You were, you were, you were eating a bag of them and we’re a little confused on what they were, but I think it’s called the meat snacks. Is that correct?

Jason Rule:                             26:11                       Yeah, yeah, that’s right. Um, so I made snacks is made from chicken isolat. So this, this company not too far from us. In fact, if you buy Campbell’s soup or any, any type of a chicken bullion, anything, it comes from this company and what they, what they were trying to do is figure out how, so as they’re refining chicken processing chicken, they had some byproduct, which was chicken protein. So they’ve started refining the process of chicken protein isolate and then having this, this powder, which it doesn’t sound very, and by itself it’s not, um, you know, just basically it’s, it’s cooked chicken with very little seasoning or anything like that, but it has unbelievable health benefits. Chicken is one of the highest things in branch chain amino acids products out there by a factor of almost two. So chicken protein has some great benefits for athletes.

Jason Rule:                             27:02                       So as they started developing products, I started buying these meat snacks. So I, last year I set a goal, I wanted to travel and go to five different events or masterminds or anything like that. And as I travel, I don’t like eating crappy meals, Mcdonald’s, anything like that. So I try to control, okay, I need a snack here, I need a snack there. So I was traveling with these things and, and eating them. I was eating three or four days sometimes when I would travel. And I was like, these are delicious. So created a relationship with the company and said, hey, we’d like to offer these to our affiliates. And um, and we do. So when we, the thing is when we create those relationships with the affiliates or with these companies, we’ve been very careful to vet them. Uh, not only from the standpoint of their Ra’s and their products, but their business. What’s their business goals? Do they align with ours? And is this something that, that their members are going to be able to buy it? The costs that they’re getting an ad and a few months. If so, I tell people flat out, look, if that’s the path you’re going down, let’s, let’s just part friends because we’re not going to get along and it’s not going to go well if you start selling us out and our, and our retail partners,

Greg Strauch:                        28:10                       which is very unique because I mean supplements, you’re looking at margins and you’re looking at what you guys are able to make and look in numbers really is what it comes down to. And that’s definitely a different take that you guys go about within the industry of it’s not chasing the money, it’s more of chasing what’s going to benefit the end user the most. Along with the gym owner, the, the crossfit affiliate owner.

Jason Rule:                             28:33                       It’s a, it’s a lot longer game. You know, there’s not, there’s not a flash in the pan. We’re not looking for instant revenue, um, incident profits. You know, we’re, we’re in this for the long haul and it’s, you know, the crossfit owners that were telling us six or seven years ago, you know, I don’t care if I make a profit, I just want a good product off of my members. Um, we just kind of flipped that on its head a little bit, but I know how, how are trusting, you know, a lot of these guys are past military firefighters, law enforcement. My Dad’s a retired highway patrolmen. My brother’s a trooper. I got a nephew that’s a trooper, another one that’s going into it and Kansas. And you know, I just grew up with that mindset of, you know, tell people what you’re going to do and then do it.

Jason Rule:                             29:11                       And then crossfit goes a step farther of that vitality of, hey, this is, this is really unique. This can help your business. And then, you know, there’s been a lot of consultants that have come out and they’re saving a lot of these gems by teaching them how to make profit. And, um, and thankfully I’m grateful that they’re helping us spread the word as far as, hey, this is what driven does pay attention to them and you don’t have to sell supplements, but if you do, I feel that uh, driven is probably the best model out there. I hope.

Greg Strauch:                        29:42                       And coming from an experience, I mean we’re almost five years in now, uh, with me owning the gym and I can definitely tell you that, uh, it’s, it’s the way the process you guys have made, um, which is what I want to get into next of somebody being able to onboard with you to the point of selling the supplements and how easy you guys make it. Almost like a plug in play to do along with, I mean, looking at it from a business standpoint, the margins that you make on the products are, I’ve yet to see something better and we can break down the difference between, I mean, whey protein and the different types of it and casein protein and all these other things of what’s going to be the most beneficial. But you guys do a great job of not only instituting a learning process of what you guys have and how to show what to offer so that people don’t have to go out and do the research themselves if they haven’t yet.

Greg Strauch:                        30:33                       But you guys sell top notch supplement. So it’s not like you guys are going to the the guy, like you said before, with the oils of, of going to like China and getting a bulk order of, of, of protein. You guys are actually making it and manufacturing it to the highest possible quality all the time. Right, right. I appreciate you saying, saying all of that. Yeah. You know, I, I mentioned that earlier. A lot of affiliate owners, we’ll try to learn everything that casein does or everything that fish oil does or what do I mean? I’ll acids do. And the truth is a lot of your guys as members are already taking and buying supplements. They’re just not buying them from you either because you don’t offer them. The products you offer are that, some of them don’t taste good. Right? So it has to taste good.

Jason Rule:                             31:16                       It has to taste like reward or it’s priced outside of what the other markets do with that specific product. Um, so we, we kind of focus on instead of, hey, instead learn everything in that a branch chain amino acid can do, just make it available to your members, find a product and this is, this is true of any retail. Find a product that you believe in and if it’s something that you can generate a good enough profit on to make it worth your while, make it available to them and then talk about it. Let your members know this is what you take. You don’t have to know everything about amino acids. You just have to say, hey, this is what I take. This is why I take it. This is what I perceive when I take it. And then let them taste it. If you, if you do those things and you have it on your shelves, they’ll buy it

Jason Rule:                             31:58                       without a doubt. And I think, uh, something that I’ve always done and I’ve stuck to and my head coach still make sure, um, that my GM follows this as well, is the fact that we’re never going to sell a supplement or product that we don’t personally take or willing to take something, whether it’s a workout or it’s a amino acid or protein. Everything that we have on our shelves is stuff that we take and our coaches take and we believe in. And I think that’s something that you guys also have a line in. I remember you saying it plenty of times of, and I’m not going to sell a supplement that I’m not willing to take or that I haven’t taken that I enjoy taking too because I mean supplements are supplementation. So it’s, and that’s, that’s awesome to be able to have an that care in there. So let’s say somebody right now is listening to this and they’re like, you know what? I needed to talk to Jason. I need to figure out how I can institute this. The onboarding process, you said that they sign up online on the website, which we’ll put in the show notes, there’s a link for that. But what is, what does that onboarding process look like for somebody coming on with

Jason Rule:                             33:00                       driven nutrition? Well, first thing I’d do is ask them, are you carrying supplements now? What have you carried in the past of what worked? Then that way I can get a feel for kind of where they are as far as business, you know, do we need to break down some, some preconceived notions about making a profit first of all. And uh, and then the other thing is just plugging them into the, the emails of here’s, here’s the system that you follow. And you know, once we throw the switch, all ordering goes through our website, which is very convenient. There are no spreadsheets. So when you need to order something, you just hop on the website and you order at will. There’s no volume discounts. I don’t believe in that at all. I think that I want to work with a gym that has 10 members.

Jason Rule:                             33:40                       Then that way when they have 300, they will never change because they knew from day one that, that, that we were there with them. And I had businesses when I had stores that, that were that way. Um, it always, it always aggravated me when people, as I got bigger and more successful companies would come out of the woodworks, you know, it’d be like, Hey, your movements and volume, let’s increase this and then you can, you know, we can increase your margin. Like, you know, those products don’t cost you any lesson in your warehouse. Why? Why are you charging me less? I needed, I needed a profit when I was broke, man. So, you know, we don’t have minimums. Pricing goes, you know, pricing is, it’s flat and simple and you just get on the website and order whenever you need to.

Greg Strauch:                        34:20                       That process is super easy to you guys. Definitely take the leg work out of, out of trying to figure out how to do everything. I mean you guys have that affiliate separate log into, uh, which, which makes it super easy for people to jump on in and order what they need to.

Jason Rule:                             34:33                       Right. And then, um, you know, that we go through kind of the, how do we introduce this to the members? You know, talking about the first introduction, you know, do you order samples or do you order a handful of products? Uh, I’m a firm believer that samples do nothing but delay a purchasing decision. You know, if I hand you a sample and say, here you go bro, let me know what you think, you know. And then in a couple of days I see a, hey Greg, what did you think of the products? And like a, you know, things are going to get awkward cause you haven’t tried it or your dog ate it. It fell between the cracks, your seat, you know, instead on day one, like here, Greg would just getting in this protein, let me grab a scoop, go grab four or five ounces of water, throw it and shake it up. Let me know what you think and you’re going to buy that product that day if you like it.

Greg Strauch:                        35:14                       Yeah. I think, Jeff Burling had the chocolate peanut butter. And uh, I was like, all right, let me try it. Like I’ve had chocolate peanut butter proteins and he was like, man, I love this stuff. Like I can’t, I can’t keep it on the shelf and I’m buying it personally. And I tried it and I was like, Yep, that’s a, that’s exactly what I’m doing now. Um, that’s awesome. So if somebody wants to reach out to you guys, um, what’s the best way to contact you if they want to start up or if they have general questions for you guys? What’s the best way?

Jason Rule:                             35:45                       Uh, well, I’m on Facebook and my name is Jason Rule. You can reach out to me personally if we’re not friends. Um, and they hit my spam. So it may be a better idea to go to the Driven Nutrition page and then send a message that way. We do not have a wholesale price list. I’ll warn you ahead of time. Um, we do not send out samples. So the process to learn more information and we keep those behind the gate intentionally. So if he remembers or you have a coach that’s going rogue or somebody selling, wanting to sell products out of their garage, we don’t send that information out. So you fill out the, become an affiliate form. And then once we see that we’re a good fit and then I open the gates and you’re able to access the wholesale information. And then, uh, another way that you can do that, that I think any Jim could benefit from and should is we have a Facebook group called building retail in your box.

Jason Rule:                             36:31                       And we try to, you know, like on this call, I try to stay very agnostic as far as, you know, as far as brand, anything that we teach can be applied to any brand that you have in your gems. So, even if you’re not wanting to jump on board with a driven in building retail in your box and take some of those steps and implement them, you know, recreate some of the assets that we have and um, and, and use that to, to increase retail there. There’s, here’s one thing I just want to add and I know we’re running short on time. It’s your, your members want you to be successful. They want to buy products from you that, that you trust. And if as a gym you don’t talk about supplements or you don’t, if you don’t want to offer supplements, that’s fine. But talk about supplements, be a conduit for that information because when they do have questions about it or they get marketed to on Facebook or on Amazon or anything else, I can’t imagine in five years the number of people you’ve had walked through your door, Greg, after they’d been with you for two months and they’re bringing in a pile of crap that they have no business taking cause it’s not right for them where they are on their fitness journey.

Jason Rule:                             37:35                       So I highly encourage any gym that’s listening. If you’re, if you are carrying a product, offer it on day one, make it available on day one and make it part of the conversation and not something that’s just sitting on the shelf collecting dust until a member comes along and buys it from you.

Greg Strauch:                        37:51                       No, I agree. I agree. And I think, uh, that’s a perfect place to wrap it up. So thank you Jason for Bml jump on and uh, your time for sharing everything, uh, all the products that you guys have. I mean, they can always jump on the website and there’s plenty of different things that we didn’t even get into on here, but I definitely appreciate everything you guys do and uh, thank you so much for your time.

Jason Rule:                             38:11                       Oh, it was a pleasure. Greg. Thanks for having me.

Speaker 6:                               38:18                       As always, thank you so much for listening to this podcast. We’d really appreciate you and everyone that has subscribed to us. If you haven’t done that, please make sure you do drop a light to that episode. Share with a friend and if you haven’t already, please write us a review and rate us on how what you think. If you hated it, let us know if you loved it, even better. See you guys later.

 

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Episode 155: The Intramural Open

Episode 155: The Intramural Open

Episode 155 – The Intramural Open with Mike Lejeune

The Intramural Open is a fantastic way to build your community during the CrossFit Open. The focus is on inclusion and celebration instead of competition (though there’s a good bit of that, too.) Every year, we’ve built and improved on the idea thanks to the feedback from those gyms.

 

The Intramural Open was invented by Chris Cooper, founder of Two-Brain Business. You can download our 2019 Intramural Open Guide here for free!

You should also read “How To Make The Open Easier” after you’ve downloaded the guide.

On the podcast today, we are joined by Mike Lejeune of CrossFit SciCoh and Echelon. Mike’s been running the Intramural Open at his gyms for years, and built Echelon to help him host competitions in his gym. The software makes it easy to host world-class fitness competitions. We talk about hosting competitions in general; the Intramural Open in particular; changes to the Games season (and the effects on your business!) and new opportunities for you as a box owner this year.

Don’t Forget! Find out what stage of entrepreneurship you are in by taking the exclusive Two Brain test here: https://twobrainbusiness.com/test/ or schedule your free mentoring call by clicking here! 

Timeline:
2:43 – Introduction to the Intramural Open
4:19 – What is the Intramural Open?
5:57 – How you can get the Intramural Open started at your gym?
10:45 – The importance of creating a competitive environment and keeping it fair
17:17 – Why RX athletes are not placed on a pedestal for the Intramural Open
18:31 – Facebook Live Events to pump up the gym during the Open
20:24 – Boosting participation through Friday and weekend events during the Open
26:46 – The Sixth-week grand finale to the Intramural Open
28:24 – Motivation and prizes for winning the intramural open
33:00 – The Re-Open, the midterms for the Open.
36:19 – The benefits of using Echelon for Intramural Open planning
39:29 – How to sign up to use Echelon and begin planning an event

Links: 
https://echeloncomps.com/
https://twobrainbusiness.com/intramuralopen2019/

Contact Mike:
mike@echeloncomps.com