By the Numbers: What Gym Owners Earn

How much does your gym pay you?

How hard do you have to work to earn that money?

In this series, I’m going to share the top lessons from the top earners in Two-Brain Business. We found the owners who get paid the highest income and the owners who work most efficiently. We picked apart their metrics, then we interviewed them. Now I’m sharing their best lessons with you—and these are some of the most important lessons of all.

Profitable Gyms and Data

Your business exists to serve you. But gym owners have a purpose so noble that we sometimes forget that it’s important to profit.

In fact, for many years, I felt guilty about being profitable at all. Because when you love your work, you don’t care about money—until you run out. Then it’s all you care about. And it’s probably too late.

We track data from the best gyms in the world. Then we leaderboard the top gyms in each category every month, pick apart their businesses and tell Two-Brain gym owners how they’re achieving the industry-leading numbers. This is how Two-Brain builds our mentorship practice and courses.

Each month, I share a few of these data points publicly. This month, I’m going to share two of the most important metrics of all:

  • Net Owner Benefit—the total value an owner receives from his or her gym.
  • Effective Hourly Rate—how much time top gym owners spend working in their businesses.

In the next posts in this series, I’ll share the top scores for each metric. But here’s how to calculate yours so you’re ready to compare.

Net Owner Benefit

Net Owner Benefit is anything your business pays you or buys for you. For example, one of my companies owns my truck. Maybe your gym pays your cell-phone bill or you use your gym’s streaming music subscription at home.

To calculate: Add up your pay and your profit distributions first. Then think about the other big expenses you would have to cover if you sold or closed your business. Then add the little “extras”: those times your gym pays for your coffee or buys you lunch. Add them all up. That’s your Net Owner Benefit or the total reward you get from your business.

Effective Hourly Rate (EHR)

Effective Hourly Rate is the value of your time as an entrepreneur. This is a very valuable tool because it tells you when to hire and how you should spend your time. I call it the “Kingmaker Equation” in my books because it’s really a measure of your success as an entrepreneur.

A quadrant graphic showing how Effective Hourly Rate is affected by hours worked and income.

To calculate: Add up all the hours you work in the business and all of the hours you work on the business. If you’re at the gym, count those hours, even if you’re working out. If you’re doing programming at home, count those hours. If your laptop is open or if you’re combing through Facebook groups for gym owners, count those hours. Add them all. Then divide that number into your Net Owner Benefit to calculate your EHR. Net Owner Benefit divided by owner hours equals EHR.

Gym Owners: Your Business Must Pay You

If you want to change lives, your gym has to be around for a few decades. That means it has to pay its bills—and it also has to pay you. In this series, I’m going to share how the best gym owners in the world are making sure their businesses support them.

Other Media in This Series

“What Does Your Gym Pay You?”
“How Successful Are You as a Gym Owner?”


One more thing!

Did you know gym owners can earn $100,000 a year with no more than 150 clients? We wrote a guide showing you exactly how.