Thomas Plummer

The business of fitness


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How Marketing Works

Retro marketing built this industry, but electronic marketing will build its future. Websites, blogs, social media and almost all other forms of electronic marketing change so fast it is almost impossible to keep up. TheImage coupon sites, for example, were a rage for about a year or two and then died. Writing about how to design a coupon would have been an exercise in futility since that form of marketing came and went before the paragraph could be written.

Keeping that in mind, we are going to focus on the theories you need to master that can be applied to any form of social media or electronic marketing that might arise in your future. Understand the rules and any version of the game you play will be easier.

The most important lesson you can possibly learn about electronic marketing can be expressed in another basic rule:

Hits, looks, likes and number of views mean nothing if you can’t monetize it

It is easy to get caught up in the grand game of social media. For example, where you sit in a bar and brag about the number of likes you have on your social media site. There can be great gamesmanship involved here but these numbers mean nothing if you can’t figure out a way to turn those likes into money. The ultimate goal of all marketing is to create interest, which attracts leads, which come to the gym, who become members and who pay you money for the results you will help him get. If this sequence doesn’t end with the getting paid part, then it was inefficient marketing that proved to be a waste of your time.

Here is the entire theory of electronic marketing in one simple chart:

Create content

Develop your own community

Gain influence by having a community

Make $$$$$

Creating Content

People love to learn, be challenged, be entertained and most importantly, people like to hangout with a lot of like-minded folks interested in the same things. All electronic marketing, and especially social media, requires you to supply an endless stream of content. Posting content on almost a daily basis gets people to your sites, and getting people to your sites regularly begins to build the community, or as the powerful writer Seth Godin refers to them, your tribe.

Content doesn’t always have to stem from you. You can repost other’s writings, find a tidbit in a magazine, recommend a book or video and a thousand other things that keep people coming to your sites each and every day. If you post a short informative tip on your blog three times a week, people become trained to go to your site during a break during their day. They will follow you because you are giving them information that somehow challenges their mind or entertains them and if you do this consistently you will eventually end up with a lot of people who care about what you say and now belong to your community. There is a rule of marketing for this thought:

You have to become the source on a specific topic

You can become the weight loss expert, the sports performance for kids expert, the overall fitness expert in your small town, the body weight training guru or just about any other niche you could imagine. You become the source, or the filter, which gathers information for his tribe and then posts the stuff daily that your tribe needs to see based upon you being the master of that niche.

If you own a mainstream gym, your goal is to build a site for your business, but you as the owner should have a site where you become the local expert on everything fitness. This gets you invited to speak at local groups, quoted in the newspaper as needed as a fitness source, and eventually drives people to your business because who knows fitness in this town better than you do, and that is proven by the last 300 post you have made on your sites.

There are rules for content and here are just a few:

You can challenge thought, but you should never insult, be mean or put down someone by name. If you disagree with someone, disagree with class and style and state both sides before making the position for your point.

Never post personal stuff. This includes not posting pictures of your kids, unless it relates to your fitness mission, your dogs, your family vacation, you drunk on a beach in Mexico, you and the buds in a bar or anything that might even vaguely distract the tribe from believing you are the source.

It is hugely important to note that a decade from now everyone who will ever consider hiring you or doing business with you will immediately pop your name into a search engine and go to all the social media sites of the age. What do you want them to see, and remember that anything posted never, ever disappears from the web completely? Many younger people in the industry cry that this is unfair and their sites are their own private business. This is true, except for the fact that any person in any civilized country in the world can see whatever you post, except for anyone in China, and nothing is truly private on the web. Post often, but post with the one thought that you are trying to improve your personal brand, not kill it.

Never repost without giving credit, but always repost with a comment as to why you think this is important for your community.

Post something fresh at least six days a week.

Use pictures and videos several times a week

Remember that every post either enhances your brand, or hurts your brand. There is little in between.

Post and answer the comments as best you can each day. If the community is working, you will start to see interaction and response to what you are writing. Don’t wait a week to answer. If you post something controversial and expect comments, be there to answer and redirect the issue if needed.

Consider hiring someone to manage all of your media. This can be done for as little as a few hundred a month or as much as several thousand or more. The bigger you are, and the bigger you want to be, means you may need help posting daily and gathering the material for the posts.

The Community

The content gathers the tribe. The community gathers around someone that pushes their mental buttons and keeps them challenged. Content and community are both in fact one big circle. You feed content; the community feeds back and around it goes again. The goal is to build a significantly sized group of people that follow what you do and what you write because you are the true source in whatever niche you choose to exploit.

The size of the community will vary from site to site and from niche to niche. One person might be a failure with 30,000 likes on his social media site, while another person might be wildly successful with 500 friends on his social media. Don’t overestimate the need to build the largest community you can in your market. For example, a small training gym in a suburban area that has 500 followers on his site is doing quite well and that is enough to eventually start to turn that number into guests and memberships.

Building Influence

Once you establish your community you now have influence, but what to do with this new power? Think of influence as power to move the herd.

For example, you’re a small country and you declare war on the neighboring country. You summon your army and five drunks show up with a few shovels and a club. This is going to be a short war and it will end badly for you and your army. But let’s say you are a bigger country and you now want your loyal subjects to gather. You notice that you have 30,000 likes on your social media page and you want to sell your first e-book for $1.99 just to test the waters. Your community of 30,000 likes is far more likely to give you back sales versus the army of five. Put another way, when an army of like-minded individuals band together, whoever is leading that army has influence to make change, both monetarily and through driving change in your industry or niche.

Make $$$$$$$

You have content in place that changes daily. You have built your community of followers. Your community represents a large enough segment in your niche where you can alter thought and drive change.

You are now ready to monetize the process.

There are rules to this of course. Here are a few tips when it comes to going after the money:

Do not, and this means DO NOT, try and sell anyone anything until you have at least provided content for six months. Stated differently, build your community slowly without asking anything of them.

Once you starting asking for something, only do it once out of every 7-10 days. Don’t pound your tribe daily. Give, give, give for a week or so and then ask for that e-book sale. Give, give, give and then sell that trial membership. Build slowly and sell even more slowly.

Occasionally give something away free just for being part of the tribe. At least once a month, give everyone who follows you a free something, which is usually some short PDF tip sheet or informational piece. Create one of these a month and recycle each one the following year. You want, you want, but you need to give a little to your followers.

Here is an example of monetizing a social media site. This gym had 1,400 members at the time and had about 900 followers on its social media site. This tribe of 900 was a mix of members in the gym along with other people in the community that followed often due to the health and fitness tips that were posted daily along with the videos that showed workouts you could do at home.

The gym’s manager ran a post after about six months of gathering the tribe that said, “Post a video on this site in the next 30 minutes of you doing a burpee anywhere on the island and if you are a member of the gym you will receive 30 days of training valued at $300 for you and 30 days for your guest. Non-members, if you post you will get 30 days free to the gym, which includes a full training package for you too.”

The gym received 38 posts in 30 minutes. Out of the 38, 21 were members and the gym gave away 21 months of training and 21 guest months to the members to use with a friend. Remember the part from above where you need to reward the tribe with something free now and then. The other 17 posts were guests for a free trial month. In other words, this gym generated 38 guests in 30 minutes at no cost. Also consider that this gym uses primarily group training and another body in the groups doesn’t really cost the gym more money to service.

Another example from this gym was the use of the community, and the influence with this community, at generating revenue for the gym. The manager went to the local sporting goods store and asked the manager there if he would run a special just for the members of the gym, which is only about a half mile from the store.

The manager agreed since he had to do nothing. The sale was set for Friday from noon to three. All members of the gym would get 30 percent off shoes if they presented their membership cards. On Thursday night, the gym’s manager sent out a social media post stating: “special flash sale just for our members. Go to Freddie’s sporting goods from noon to three tomorrow and get 30 percent off any shoe in the store by just presenting your membership card.” The store sold 78 pairs of shoes. The gym’s tribe was rewarded for their loyalty and support. Most importantly, the gym’s manager could now ask $500 to run the sale again since he had proven he has the influence to drive customers to the store. Everyone wins and the community grows since friends refer friends who don’t want to be left out of these great special offers.

This formula as stated above applies to all electronic media since the basic progression is always going to be the same. Marketing electronically isn’t hard if you have a plan and if you realize that everything has to lead to the ability to capitalize on your influence at the end of the day.

 


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It was Time for a Rewrite – Introducing How to Make More Money in the Fitness Industry

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The industry has changed dramatically since my first book, Making Money in the Fitness Business was first released in 1999. Since that era, the big box mainstream gym have faded and the trainer, and the training-centric business model, has risen to dominate the field. This new revision, titled How to Make More Money in the Fitness Industry, represents our entire business system used by gyms in over 30 countries around the world.

The original book was a combination of a true labor of love and true arrogance. Everything I thought I knew was in that book and it represented to me a giant step forward from the past failures of the fitness industry toward a system where a dedicated owner could learn to make money ethically and professionally without hurting or failing the client. 

The original book sold about 100,000 copies, which surpassed all my other books combined. It is, however, time to move ahead. The book simply had to be revised to represent the market today and how business is done today. The revised book, which will be published the first week of March by Healthy Learning and Jim Petersen and his dedicated staff, covers over 400 pages of how to get it done in today’s market. Very little of the original book exists and it is a revision only in theory. The first seven chapters are new with current information you can use to make money today in a tough and competitive fitness market.

The following is the introduction from the new book, which gives you a taste of what changed and why. The new version will be on sale through Healthy Learning, Amazon and through the National Fitness Business Alliance (www.thenfba.com)  around March 10. I hope you enjoy this book as much as I did writing it.

Introduction to How to Make More Money in the Fitness Industry

When this book was first written back in 1999, it represented everything I really knew about fitness at the time. When I first started in the industry, much of what we did was really all about the owner and little if anything to do with the client. Sales techniques were predatory, the equipment was worthless, few people working in the industry at the time really knew anything about fitness, getting results for clients and the national image of what we did was horrible. There were still pockets of knowledge out there that resided in the small physical physique gyms scattered around the country, but the few who understood fitness were buried beneath the hundreds that wanted to exploit the member for everything he owned.

I grew up in fitness in the era of high-pressured sales. We lived, breathed and failed by learning to sell. The national chains at the time were nothing but repositories of old sales guys who could slam down a dozen a day and then do it again tomorrow. No one thought about, or cared about, the client, who quickly failed in this system and left. Why care? In those days, the member was easily replaceable and the competition was light. Sell, sell and sell again.

This is a system that I learned to hate quickly. The clients then, as they do now, suffered from being overweight, out of shape and miserable in their personal lives and were looking for us to help them achieve a new level of success. We didn’t have the tools, but there were a few of us that tried anyway. Books were scarce and the ones you could find were based upon personal experience and ideas with no research or real information to back up the claims and techniques in the books or magazines.

The best thing about this old information was that it predated the bodybuilders. Almost everything you read in those days, which was the late 70s and early 80s, was based upon a holistic, full body approach to fitness. You lifted heavy a couple days a week and put a lot of heavy metal up over you head as often as you could. You lifted heavy, lifted often, worked your full body and amazingly it worked for our clients.

At about this same period of time fitness changed and changed for the worse. The 80s was a decade of fixed plane equipment and the first generation of workout people who chased isolation for the muscle. The emergence of the national chains and the end of anyone getting any help unless you paid a trainer to work you out six days a week. This was the advent of the bodybuilder, which for better and worse chartered a course for the industry that lasted until just the last few years. We went for show in those days and bigger the better, but we created a generation of false expectations and worthless training knowledge that still permeates the mindset even today.

My absolute distaste for the early fitness industry still burns my lips today. We lied to the client to get him into the gym and then failed him once he was there. We chased image over health and failed to do any research that would have advanced the industry by several decades. The industry was for all practical purposes saved at the turn of this new century by the rise of the functional training mindset and by solid research that pointed the way. Some of the early functional pioneers, such as Vern Gambetta, Gary Gray, Jim Petersen, Cedric Bryant, Mike Clark, Al Vermeil and a few others set the tone for a new generation of trainers and training information. This first wave led to the second and the gurus of change who set the world on fire, such as Mark Verstegen, Gray Cook, Mike Boyle, Dan John, and Carlos Santana then led again to today’s best, such as Alwyn and Rachael Cosgrove, Todd Durkin, Greg Rose and Pavel Tsatsouline, who have combined to create a new generation of educated professionals that are quickly changing every concept we ever thought to be true in the industry. For once, we had tools that worked and that were validated by educated people who could and would test all the nonsense we had carried for over five decades.

My mission then, as it still is today, was to change the fitness industry from an image of nasty sales techniques and failed information to one where the client got what he paid for and could trust the gym and the owner he chose to help him fulfill his goals. One workshop, one gym at a time, one owner until the consumer could look at what we did and trust us instead of fearing us as he did back in the day of the pressured sale in an office.

Writing this first book was a labor of love. It was my chance to spread the word that you could make money in this business and you could do it ethically and professionally and not at the expense of hurting the people who trusted you with their money. There were later books in this long series on the business of fitness, but each new title was only added after I felt I had something new to say and while I enjoyed the writing process in each and every one, this first one was always my baby that started it all.

At the time this book was written, it seemed so fresh and needed in the industry, but as with everything in the fitness world, time diminishes returns and what was once at the edge of the field and pushing beyond any accepted boundary at the time, became dated and no longer the source of vital information that could help an owner understand and master the business side of the fitness industry.

My entire life has been spent going forward. I like living in the “now” and as I have told thousands of clients, you can’t change your past and the mistakes you have made so let’s talk about today and what you are going to differently starting tomorrow. Looking backward has never been productive for me, and nor for you, and once something is done in my life I let it be and keep moving towards tomorrow.

Being an author, however, is a little like having your own personal time machine; just one call from my publisher, Jim Petersen, who said, “This book is getting dated. How about doing a revised edition?” led to me firing up the time machine and heading back to 1999. Once a book is finished there is no going back for me and I truthfully haven’t looked through the first edition of this book more than a handful of times in the 14 years since I wrote it.

Picking it up again left me with two impressions. First of all, the material was right for the decade it was written, but it is not very close to how an owner has to think or work to be successful in a market that has changed so dramatically in so few years. Secondly, I was pleasantly surprised that there were still some fundamental truths in the book that have endured over time. For instance, building a receivable base is still a fundamental rule that can’t be changed even today, short-term debt still can kill a business and customer service still is an essential.

The failings of the original book today, however, were glaring. When this book was first published, there were no low-priced gyms, no training gyms that mattered, trainers were at best clipboard cowboys, and the chains that ruled that era have since faded to almost oblivion. Most importantly, back in the day in 1999, competition in most markets was at best moderate, meaning that most gyms could safely operate with little or no competition and the tools of the years that preceded 1999 going back to the 1950s, the era when the gym business started to first rise, were still somewhat valid.

In 1999, gym owners were still pressuring sales in offices, still just selling access to equipment through an inexpensive membership, and still using price-driven marketing to get leads. All of these concepts, by the way, have totally failed in today’s market including the idea that you can be the lowest bidder in the market and simply rent equipment to a consumer who will be gone in a few months.

There is an important rule in the fitness business that no one recognizes, but most everyone is affected by at some time or another. This rule is the 10-year rule and it states that few concepts in fitness will be sustainable for a 10-year period. Every new idea in fitness has pretty much the same curve of growth, but you as the creator or eventual leader get to choose your own ending. For example, in the 1980s aerobics started a long, slow growth period, got hot and rose to the pinnacle of need, quickly declined in the early 90s and then completely disappeared for about a decade.

This pattern is true of most concepts in the fitness industry, and it is why you constantly need to look at what you own and what you’re doing and reinvent. This is why consultants who write books need to go back and question every concept in their older books and ask if that idea is still relevant and would it work today?

We see the this pattern of long, slow grow, followed by a hot, “must-have-it-now” pattern, the quick decline and then oblivion in everything we do and in the real world too. Starbucks stumbled until its founder stepped back in and reinvented the company. Apple stumbled until Steve Jobs came back and set it again on its original course and only the future knows if that company can continue to amaze after the death of Jobs.

Great companies in the industry, such as Gold’s Gym and World’s, were the rulers of their decades, yet the companies sold and somewhat faded from their once true glory. Gold’s Gym was probably the most recognizable fitness name on the planet for several decades, but again, it is a lot easier to get to be number one than stay number one over time. Can these great names be reinvented by their current management and follow the path of Starbucks or will they fade and become just another former success story in the history of the industry?

The difference between long-term sustainable success and oblivion is evolution. Howard Schultz let Starbucks evolve, but only by remaining true to its roots. This sounds contradictory, but under his second generation direction, the company changed to meet the needs of its continually evolving customer base while never forgetting that it was, and always will be, about the coffee and the experience.

In the fitness business, creators of new concepts tend to sit on the past and cling to original methods and ideas. This list is long, but how many chains and franchises have you seen rise, become hot, and then fade away over a decade or so because the consumer and market simply grew past the original concept. Curves was a brilliant idea at the time, but a decade or two later and the concept became archaic and a hard sell in the market as the total number of units they operated continued to decline for a number of years. Their method of training, based upon a simple circuit concept, was right at the time when it was founded, but compared to the advent of functional training and how the proven methods of training, even for the older woman, has evolved can this business model be sustained into the future? Everything has to evolve or it dies and businesses, even wildly successful ones such as the original Curves franchise model, eventually reach a stage where you grow or fade.

When this introduction was written there were a number of other companies that were nearing that vital period where either they evolved into next generation or begin the long slow march to obscurity. Once you reach that pinnacle position of being really hot after the long, slow build, how long can you truly stay hot?

There is another position between hot and the big fall and that is where you operate as a long-term dependable company that keeps its product fresh, service great and always is moving itself ahead. Starbucks is over 40 years old, but its stores and concepts seem fresh and as if it was a brand new company. Sears is in the fight now to remain relevant. Montgomery Wards disappeared. Almost all of the Curves imitators failed and disappeared. Reinvention is life and whether you grow or you die in the fitness world is driven by your response to  the rapid pace of increasing knowledge, better educated employees, such as the trainers and a much more sophisticated client who all are pushing the gym owner to grow and adapt or face being ignored and fail.

It will be interesting in the near future to see if companies such as CrossFit, Planet Fitness, Les Mills, Gold’s, LA Fitness and the rest of the current big names, or programming giants such as Zumba, will continue to evolve and stay relevant or become a victim of the 10-year rule and start that quick slide to where they are rarely discussed and are no longer relevant in the business world of fitness.

Obviously, the first edition of this book was a victim of the 10-year rule and needed reinvention to stay relevant for a next generation of fitness business owners. The business model I have advocated all these years, and that has been quite successful for thousands of owners, needed to be tweaked, a process we started almost a decade ago. This book now represents all that we know today about running a successful gym as well as validating some of the original concepts that were slightly ahead of the curve.

One of the basic tenets I have always believed in is that going for heavy volume, meaning chasing an endless supply of new clients each month to replace the ones you burned up was not sustainable over time. The concept was right, but it was wrong in that it was introduced too early in the market. Going after a higher-return-client-served was the right idea, but it was hard to sell in the industry when the volume guys were still writing the big sales. In other words, it was the right idea, but we didn’t have the tools we needed to get it done back in 1999. But that has changed, and now is the time to recognize this principle. And most importantly, owners are listening now because of all the things that have failed in the last 20 years, nothing is more earth shattering than the failure of the volume based business model.

The missing ingredient all these years was the training component of the business. It seems absurd now, but working people out for money has been a small part of the industry for over 60 years. We have done nothing since the inception of the industry over 65 years ago, no matter how this is argued, except sell a membership to a person who pays each month to a gym so he can access, or in other words rent, the gym’s equipment.

The statistic that validates this has been constant for several decades. In a typical, mainstream fitness center, whether independent or chain, only about 5 percent of the membership work with a trainer on a regular schedule on an annual basis. If you are math challenged, look at it this way; in this gym, 95 percent of the membership gets no help whatsoever and practice some form of do-it-yourself fitness usually regulated to going around a circuit of set equipment that has been proven a hundred different ways not to get the person into shape over time.

The evolutionary key, and the premise behind the revision of this book, is that the industry cannot last as a rental company for equipment, even at $10 per month. We have to move from a volume approach, where the member is expendable and irrelevant over time, to a training-centric business model where we have to chase the maximum results, for the maximum number of clients, in the shortest period of time, and keep our clients for as long as we can in a hyper-competitive market place.

This revision contains our complete business model to make this happen for you and your business and it doesn’t matter if you own a big box mainstream gym or small training gym on the corner. Everything you need to be financially successful for the coming decades is here, proven by thousands of clients over a 30-year period. We now have the tools, we now have the education, and for the first time, we now have the clients willing to support a system designed to help them succeed.

There is one thing you have to understand if you want to make the fitness business your life’s work. We exist to change lives. We exist to help people who struggle with health and fitness get better. We exist to make a difference in our communities and with the people who trust us with their money. We can do all of this and still make more than enough money to take care of our lives and our families. If you are in fitness because you want to make a difference, then this book is for you.

Chase your passion through fitness,

Thomas Plummer

March 2014

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