Average revenue per member (ARM) is a force multiplier: Every client you add brings more revenue.
And getting $10 more per existing client is usually way more effective than getting 10 more clients because new clients have costs.
About a year ago, only the top five gyms on our ARM leaderboard were over $400.
In July 2023, every single gym in the Top 10 was over $427, and the Top 10 average was $533.
In December 2023, every gym was once again over $427, and the Top 10 average increased to $537.
This is a big deal: Gym owners are consistently finding ways to offer incredible value to their clients.
Here’s the December 2023 leaderboard (we reveal the names of the gyms in our private group for clients):
The Stats in Perspective
I know these numbers can be mind blowing, so I’ll give you some perspective:
One of the owners on the leaderboard once had an ARM of $70. Now it’s well over $430.
Here’s the simple strategy she used to 6X her ARM: “We’ve since branched out and added value to each client’s membership using different strategies like personal training or small-group personal training or kids classes.”
So if your ARM is low right now, take heart. You can drive the number up, and you don’t need some secret, ultra-complicated tactic to do it.
Here’s one thing you can start doing today: Offer PT if you don’t offer it, and if you do, ask your group clients if they want to add one PT session per month to work on a specific skill one on one.
Another gym owner on the leaderboard offered a great mental exercise you can do when you’re reviewing your ARM:
“As you’re looking to maybe raise prices or go to that level, really write down your value of what you do and kind of reframe: ‘What if you don’t charge your value?’ Especially if you’ve worked really hard with your schooling, your education, your experience—and you’re not charging for that value. Are you really doing yourself a service?”
The answer is “no.” If you’re an amazing, experienced coach who helps clients improve their fitness and nutrition, you are punishing yourself and your family if you don’t charge what you’re worth.
In the worst-case scenario, you’re charging so little that you’re forced to close your gym—then your staff members, your clients and your community lose.
I’ll push you to try the exercise today: Write down everything you do for your clients. Be detailed—don’t leave out “small” things such as sending them a happy birthday text or celebrating their successes as if they were your own.
Write it all down, and then look at your average revenue per member. It’s likely you’re delivering more value than you’re charging for. In that case, you might need to increase rates (a mentor can help you do it).
If your number reflects the value you’re delivering but you’d still like to earn more, here’s the million-dollar question: “How can I deliver even more value to clients?” A mentor can help you with that one, too.
I’d like to see you on our leaderboard someday. I’ll give you a first step toward $430 ARM: Work toward an ARM of $205. That’s a great initial target. Do something to move toward it today!
And if you want a detailed plan to improve your ARM, let’s work together.
