Here are six key fitness-industry stats you must know as a gym owner who sells group coaching:
- The average big-group gym takes in $24,946 per month.
- The average big-group gym uses classes to generate 88 percent of revenue.
- The average big-group gym uses PT to generate just 2.4 percent of revenue.
- Half of big-group gyms have 122 clients or fewer.
- Average revenue per member per month (ARM) is $167 in big-group gyms.
- Half of big-group gym owners take home $4,000 a month or less.
These are not great numbers—and they can be improved quickly if gym owners do the right things.
I’ll put the stats in perspective with data from CrossFit Reform, owned by a millionaire gym owner:
- Monthly revenue is north of $50,000.
- Group classes generate 70 percent or gross revenue, with 20 percent coming from personal training and 10 percent from youth/nutrition/older adults.
- 240 clients at $250 ARM.
- Net owner benefit in July 2024: $10,592.
Wow, right?
Revenue and client count are double the average, ARM is $83 higher, and owner earnings are into five figures.
The simple summary: Eric Conner, owner of CrossFit Reform, is earning more than $100,000 a year by acquiring and retaining more high-value clients than other gyms.
How’s he doing it? By working with a mentor to analyze his business and systematically improve it.
If you aren’t ready to work with a mentor, we still want to help you. All the stats I laid out at the beginning of this post are available for free in our 2024 “State of the Industry” report.
In 2024, our guide has 13 ratings scales you can use to evaluate your gym. You can check your numbers against each scale to find out if they are below average, average or above average. From there, you should take quick steps to improve in your weakest areas.
You can get the guide here: “State of the Industry.”
For even more perspective, Chris Cooper reviews the guide with me on “Run a Profitable Gym,” and he digs into it on “The Sevan Podcast.”
So what should you do to improve your gym after you’ve evaluated it?
If you don’t have fast answers to that question, talk to someone who does. Here’s the two-step plan:
- Review your rankings in all 13 areas and list your areas of greatest concern.
- Book a call here and find out how you can move into the “above average” range as quickly as possible.
Here’s the link to the report one more time: “State of the Industry.”
