Below you’ll find the targets to hit if you want to earn $100,000 per year as a microgym owner.
Are there variations? Sure. Your mentor can help you with those. But most microgym owners never reach $100,000 per year because they try to invent everything from scratch instead of starting from a great model and making little tweaks.
Here are the exact numbers to target first:
- 150 clients.
- $205 average revenue per member per month (ARM).
- 14-month average length of engagement (LEG, the number of months clients remain members).
- Recurring expenses at 22 percent or less of gross revenue.
- Payroll at 44 percent or less of gross revenue.
- $70 effective hourly rate (EHR, the value of your time as owner).
To see how we obtained this data, click here.
In my webinar at noon EST on April 13, I’ll share the “why” behind these numbers, answer your questions, give you strategies to reach the numbers and help you determine what to do first (I have a cool new tool to help you with that). This is the most important webinar I’ve ever done outside the Two-Brain Business program.
I’ll even give you three variations of the strategy:
- One in which the gym offers only group training.
- One in which the gym offers mostly group training with 10 percent of revenue coming from personal training or nutrition coaching.
- One diverse model in which the gym’s revenue breakdown is 70 percent group, 20 percent PT/nutrition and 10 percent retail/online services.
Any one of these can work. I’ll share the math for all three.
Why do I give this stuff away for free?
Because knowing these targets is the first step toward success. And the more successful microgyms become, the more the industry grows—and the more lives we change!
That pivot you need toward success? It starts with clarity. See you on the webinar!