How Profitable Should An Online Fitness Business Be?

So in today's video, I'm going to be taking you through, um, profitability management of an online fitness business. What an online fitness business should look like, the pieces to the business, depending on how big you are and, um, where you should allocate your funds. Now, generally, there are a couple of different stages in online fitness business. Now, there's the stage of like zero to, I'd call it 15,000, 10,000 a month. Um, no, actually I'd say first stage is probably like zero to three, $4,000 a month. Uh, second stage from, that's like three 4,000 to 10,000. Uh, oh, I pushed up to 15,000. And then from there, you kind of got like 15. Some people can get up to 20,000 to 50,000, and then 50,000 to a hundred thousand, right? They're generally the categories. And your business is gonna take a different structure, a different leap depending on which stage of evolution you're at and what your key focus is at each stage.

Now, for those of you in the early stages like that, zero to three, $4,000 a month, you're predominantly going to be doing organic, uh, marketing strategies. You are more than likely, you're kind of, um, testing out the business, testing out the structure, getting kind of finding your stride, right? And, um, more than likely it's just you and it should really just be you in the business. You shouldn't necessarily be doing, uh, you shouldn't necessarily need much ads if they, if you're just at that stage and most of your marketing strategies for most people at that stage, if you are kind of capped within that stage, um, you'll be doing mainly organic strategies, free strategies, and in terms of the actual coaching of clients and all that sort of stuff, it'll be you because it's not big enough now to have teams and have enough cash flow to pay other people to do other pieces.

And you should have more than ample time. If you're charging each client at a minimum, say 1500 per client, that's like to do 3000 a month. It's like two clients, right? So it's not a huge amount, uh, workload wise, volume wise, so on, so forth. Now, uh, when you go from there, right, generally most people will, will throw in or layer in, uh, pay dates, which allow them to grow and scale. Now, I do have some people that are just inorganic, don't do much paid ads, and they can get up to around 15. I have got one or two people up to around 20,000 a month consistently for like a year or two, right? Consistently, and they just don't wanna do ads. Um, but I would say that's, that's the, um, it's not the norm for most people like it, it's, these people really love social media, organic content marketing, so and so forth. They don't have big followings, but they, they, um, they love that, that process. Now they cap around there because there's only so much time in the

Day. Now with ads, it gives you a system, allows you to leverage your time, you use money to leverage your time, right? And that's how you can grow a lot faster with, um, putting less of your time. So I would generally say most people at around 3000 and above, you start to, to dabble and touch on ads. Now, um, at that stage, 3000 to about 10,000, 15,000, most people can run the business as a one man band. That means they're doing the marketing, they're doing the ads, they're doing the sales calls, they're doing the coaching, um, they're setting up the business and growing it. Um, some people decide to bring on, you know, people within the business a little bit earlier than that because they've got the money and they can do as they choose, and they don't want to do certain pieces. But I would say most people before they hit about 10,000 a month, um, you've got ample time, energy focus to be kind of running it at almost like full profitability with no overhead, uh, other than ads.

Now, in terms of ads, most people should be allocating at, uh, maximum about, um, 2015 to 20% of their, of their, um, revenue, right? Their revenue target. So if, if you are looking to target 10,000 for the month, um, and you wanna do it consistently and predictably, and with very low stress, then, uh, at maximum you'd want to be spending is around, um, 15% of that. So let's call it $1,500 to make 10,000 a month, right? It's very high profit that puts you at 85% profitability, right? Month in, month out. And that's something you could do consistently. Now, there's, I, I've got a lot of people that spend a lot less on ads and get those figures. I'm talking about the maximum. You don't really want to be spending any more than 20%, right? Um, and if you're spending more than 20%, you can still say, oh, look, I'm spending 2000 making 10,000.

Well, as you scale, it starts becoming a little bit tougher as you try and bring in, you know, systems, team members, all that sort of stuff, if you really want to grow up. Now, if you, if you're like, Chris, I don't do much work. Uh, it's pretty leveraged. I just want a good work life balance and, you know, $8,000 profit at the end of the month and I just wanna hit 10 k, spend two K on ads and do that month in, month out, then look back and work, right? It's totally up to you. But I recommend it generally means your ad, your ad strategy can, uh, can be optimised a lot more, right? Uh, and your profitability can get a lot better. So 15%, right? That's where you should be when you generally get up to around the next brackets, like a 15,000 to, to generally call it like thirty, forty, fifty. Um, you generally wanna bring one member into the team, and that's where your, once again, your profitability management comes into it. So you've got, let's say, maximum 15% going to, um, into your ads, all

Right? And you've got an, uh, you've got an opportunity here to, to go one of, either way, it's one, get off sales calls or two, um, get off, get off the, the, the coaching part. Like there's kind of two main pieces to the business right now, and that's the coaching part or the lead gen part or, or the client closing, right? Um, some people can decide to bring on a setup. Now, um, set aside is closing workload. And as you grow to like 50,000 a month, the your days are gonna get quite full with sales calls. And some people love sales calls and, and it's quite a, a high yielding component, and they prefer that than the coaching arm. And so they're like a, well, I'm gonna put more time to calls and, uh, manage the person that coaches the clients so that I know that it's done well, but take myself out of the daily admin of that so I've got more time for sales calls.

Or people flip the other way. They're like, I love coaching the clients and I prefer not to do the sales calls. Uh, I'm becoming the bottleneck so I can bring on a sales closer, right? So I can spend more time with the clients, get 'em amazing results, the closer takes all the sales calls, and you can scale way up right? Now, what does that generally look like from a profitability management perspective? Like I said before, let's say maximum 15% to ads, uh, and a closer is generally around 10%. They, they're paid on performance, generally about 10%, depending on what your price point is, it can be upwards of, of 15% as well. So, um, what would your business look like then? Let's say you're doing 50,000 a month and you've got a full-time closer and you're doing ads, and let's say you are doing 50,000 a month, right?

15% are going to ads at maximum 10% go into the closer, right? That's 25%. So you're running at, um, like a 75% profitability at like 50,000 a month, and you're doing no sales calls, you're doing no manually gen, right? And literally, you only be spending time with your clients, right? So it's, it, it's a, and, and once again, if you're charging minimum of 1500, it's what, like 30 clients. So it's not a, it's not necessarily a full-time job. It's more a choice to leverage, right? Um, and have more freedom in your time. But at the same time, if you're doing like 50,000, uh, I don't have a calculator on me right now, but at 70%, 75% profitability, it's probably like you're putting like 37,000 in your pocket each, each month. And once again, you're probably working that part-time. Um, and that's how the numbers work to go from 50,000 to a hundred thousand. Generally, most businesses will have one coach working with clients one closer, and then you'd be running your ads, and that can, that can quite confidently full-time, closer, full-time coach and yourself. Um, you, you, you're pretty much like, that'll take you up to a hundred thousand. That's what most hundred thousand dollars online fitness businesses look like. Once

Again, what the profitability look like? Um, 70%, right? A, a coach. The closer is a more, a lot more expensive, quote, unquote, expensive. You know, they're paid only on sales they make, so they don't cost you anything. Um, in comparison to a coach, coaches are a lot more accessible, uh, a lot more cash, um, or cost effective, um, because they play a, a different role and there's a, they're a lot easier to recruit, um, and they're not on a performance payment basis. So, um, generally, once again, maximum even at those numbers, like you should be running like a 70% profitably. You might have some software costs in there, which is like one or 2%. You've got most of your, your stuff going to Facebook, adss your closing, and a small percentage to your coach. Um, but once again, 70%, if you're doing, like, we had a, uh, couple of guys that were doing like a hundred grand a month and you should be out, you know, easily putting away 68, 70,000 a month profit, um, and not doing sales calls, not doing coaching, and not doing any manual lead gen because the ads are doing, managing the business, sitting on the business, managing the team.

And that was kind of their day-to-day role. Um, so once again, you can do it. If you wanna play a more active role within the business and, and less just on the business, um, and you're happy to do, do the work, then you can run it much more profitable. But I guess what I'm trying to give you is a view on what can happen, um, what the structures look like, what you should remuneration wise, give to, uh, a resource within your team and the key resources that allow you to leverage, um, so that you're not the bottleneck and allow you to jump to the next stages at each evolutionary stage. Um, now some people do bring those resources on or earlier, some bring 'em on later. Um, totally up to you. But as you can see, it's, it all works phenomenally well in comparison to like bricks and mortar businesses where you have rents and leases and equipment and all that sort of stuff like way, way, way more profit, um, and way easier, um, business to run because you don't have all of that overhead, uh, contracts, all that sort of stuff as well.

So hopefully that makes sense. If you're at any of those stages and you're having, um, difficulties with, uh, evolving to the next step in scaling, reach out to me, Chris at tri. That is literally it from me today. Hopefully that helps depending on what stage you're at, and it allows you to kind of map out what your next 6, 12, 24 month might look like. Jess.