How much does your business pay you to be the CEO?
When you open a business, you stop being a coach and start being an owner. You acquire different skills, you wear different hats, and you’re paid differently.
The success of your gym isn’t measured by how many members you have. It’s determined by what your gym pays you as CEO.
And the kicker? You can make $100,000 with 50 members if you want to. But if you have 500 members and you’re not earning anything from your gym, you’ll close.
Some of us take salaries from gyms. Some take profit distributions. Some charge their gym rent as landlords. To avoid overtaxation, some have their businesses pay their bills (like cell phone charges or car loans). Some do all of the above. Net owner benefit (NOB) is the total of salary, profit and the “extras” your gym provides for you.
For example, a gym owner might make $100,000 in NOB this way:
- $66,000 salary ($5,500 per month)
- $20,000 profit ($5,000 quarterly distributions)
- $6,000 health insurance
- $6,000 vehicle
- $2,000 cell phone/extras
Total: $100,000 NOB (or $8,333 per month)
The graphic below shows the top gym owners worldwide for NOB in January 2023 (we publish the actual gym names for our clients but not publicly).
An important note about this leaderboard: It reflects three-month rolling averages. That means the people on it didn’t just have one big month. They consistently reached this level of owner benefit each month for an entire quarter.
Check it out:
How did they do it? Here are the commonalities of every gym on the leaderboard:
- They use the Prescriptive Model.
- They have high average revenue per member (ARM).
- They use client success managers (CSMs).
- They have mentors.
For a deeper dive into the best practices of these high-earning gym owners, check out this YouTube video:
