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How do gyms make money? (Bonus: 33 Ways Gyms Make Money)

How do gyms make money? (Bonus: 33 Ways Gyms Make Money)

Posted by Tyler Spraul, Certified Strength and Conditioning Specialist® (CSCS®) on January 30, 2023 — Updated on February 3, 2024

Gyms make money through gym memberships, personal training sessions, fitness classes, merchandise, and other products. Read on to learn different ways gyms make money and how to create multiple gym revenue streams.

How do gyms make money?

So how exactly do gyms make money? While the answer might seem obvious, the reality is a bit more nuanced. Yes, gyms make money from membership fees, but that’s just the beginning. Classes, personal training sessions, and merchandising also play a part (often, a large part).

Fitness Income Ideas

Whether you are just learning how to open a gym or how to start a fitness business, or maybe you are a long-time gym owner and are always willing to learn and up your game, then check out this guide to learn all of the ways how gyms make money.

Then read through our gym owner guide, and learn how to make more money in the fitness industry with our free guide on how to make money from fitness, learn how to make a gym profitable with our guide on how to increase gym revenue and profitability, learn just how profitable are gym businesses exactly, and then let us help you manage your gym with the best gym software to run your entire gym in one place.

Use the best gym management software solution for managing a fast-growing gym: Exercise.com.

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Advanced reporting to give you the data you need to make more money with your gym.

Gym Reports

And much, much more. All designed to help your gym make more money, increase gym member retention, and provide a world-class gym member experience (and gym staff experience) that will result in you having a successful gym business that can make money in-person and online.

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Gym Money-Making Sources

If you’ve just opened a new gym (or are considering doing so), you’ve probably asked, “How do gyms make money?” The money earned from membership fees seems like the easy answer, but there’s a lot more to it than that.

  • Membership fees are only the beginning of your gym’s income potential.
  • Classes and personal training packages are perfect upgrades for members.
  • Selling extra goods and services will help take your revenue to the next level.

As it turns out, gyms make money through a variety of methods, including retail, education, and technology (using tools like a gym CRM platform, a custom branded fitness app and a gym POS solution). Ready to maximize your gym’s earning potential? Get ready to offer multiple products and services to increase gym profitability. (Read more: How profitable is owning a gym?)

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How to Make Money with a Gym

There are three primary ways that gyms make money: from membership fees, from selling classes and personal training packages, and from selling extra goods and services.

Gym Membership Fees

The average cost of gym membership in the US is $507 per year, but every gym has its own income strategy. With memberships starting at $10 per month, Planet Fitness aims for a low-cost-high-volume approach. On the other hand, Life Time Fitness utilizes a more exclusive strategy, with memberships starting at $79 per month. According to the International Health, Racquet & Sportsclub Association (IHRSA), the average monthly membership fee for a gym in the United States is $58.

So, how much do gyms make from gym membership fees? The short answer is: it depends. The pricing structure you choose for your gym should make sense for your financial needs, but it should also compliment your company’s branding. It doesn’t make much sense to open a casual, fun, family gym if families can’t afford to frequent it. Conduct a gym SWOT analysis to decide how to make your gym stand out, and where your gym may intentionally choose not to compete.

Just because you set your gym’s membership fee at, for instance, $20 per month, it doesn’t mean you can’t play with that number to your advantage. If members are willing to pay for a year upfront, you could drop the cost to $15 per month.

Additionally, you could offer discounts for families or seniors. Conversely, in the name of reducing crowding during peak hours, you could charge a small fee to members who wish to use the gym during “premium hours”.

Whatever fee structure you choose for your gym, be sure to apply it consistently and fairly, and communicate any changes well in advance.

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Classes/Personal Training

Memberships may get customers in the door, but your gym’s earning potential does not stop there. Personal training packages are a perfect upgrade for members who may be new to working out, or for those who wish to maximize their results.

For other members who may be bored with their routine or who wish to have a more well-rounded fitness approach, classes are a great option. Yoga, pilates, and kettlebell classes are just a few examples that would fit well in nearly any gym (read our guide on ways to make money with yoga). According to the IHRSA, group exercise classes are the most popular type of class offered at health clubs, with an average of 10 classes offered per week. And the average revenue per class is $10-15.

Depending on your market and on your gym’s focus, you could even go a little more outside the box with your classes. Nutrition plans are a natural accompaniment to personal training packages. You could move your class outside to create a fitness boot camp.

With sports-specific training packages, you could attract high school and college athletes by helping them stay in shape for their sport during their off-season. You could even appeal to other fitness professionals by hosting fitness instructor training classes.

Read More: Personal Trainer Marketing

Extra Goods and Services

There is a whole world of goods and services that your gym can offer to enhance members’ experiences. If you have the space for it, you could include a smoothie bar, tanning beds, or a daycare area. If your gym has sports amenities, such as a basketball court or racquetball court, you could rent out equipment.

However, if space is tight, you can still sell things like supplements, bottled drinks, and branded merchandise (such as t-shirts and water bottles with your gym’s logo) using gym ecommerce software. And don’t forget about supplemental services like body composition testing and VO2 max testing.

According to the IHRSA, the average health club makes $2,600 in additional revenue from retail sales per month.

With the Exercise.com platform, we offer lightning fast online booking, one-click upsells to increase your average order value, and gym payment processing that will help you grow and manage your gym’s earning potential to the fullest.

Payments

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Ways to Increase Gym Income

While it can be tempting to start selling everything you can think of, it’s better to focus on a few additional gym revenue streams that make the most sense for your gym. Choose things that are easy to manage and will bring a great return. Dial in the best gym KPI metrics and then concentrate on what is most important to increase your gym income.

One simple tool that will show instant results is gym management software. Find one that can help track your revenue streams while also serving as an all-in-one information center, member portal, and online store. Streamline your gym with gym automations that send marketing messages to members and leads.

Automations

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Bonus: 33 Ways Gyms Make Money

The fitness industry has expanded significantly over the years, allowing gyms and fitness centers to diversify their revenue streams. Here are 33 ways gyms can generate income:

  1. Membership Fees: The primary source of revenue for many gyms.
  2. Personal Training: Offering one-on-one training sessions.
  3. Group Fitness Classes: Such as yoga, pilates, spin, or Zumba.
  4. Specialty Workshops: Weekend or one-day events focusing on specific fitness topics.
  5. Certification Programs: Training individuals to become certified fitness instructors.
  6. On-site Child Care: Charging for babysitting services while parents work out.
  7. Merchandise Sales: Selling gym-branded apparel and accessories.
  8. Nutrition Counseling: Offering sessions with nutritionists or dietitians.
  9. Café or Juice Bar: Selling health drinks, protein shakes, and snacks.
  10. Spa Services: Offering massages, facials, or other relaxation services.
  11. Tanning Services: Providing tanning beds or spray tans.
  12. Locker Rentals: Charging for premium locker spaces or services.
  13. Equipment Sales: Selling gym equipment for home use.
  14. Day Passes: Allowing non-members to use the facility for a day.
  15. Guest Fees: Charging members a fee for bringing a guest.
  16. Online Workouts: Subscription-based virtual classes or training sessions.
  17. Fitness Retreats: Organizing fitness or wellness retreats.
  18. Affiliate Marketing: Collaborating with health and fitness brands.
  19. Corporate Memberships: Offering discounted memberships for company employees.
  20. Rental Space: Renting out gym space during off-hours for events or classes.
  21. Vending Machines: Offering healthy snacks or drinks for purchase.
  22. Private Lessons: Such as martial arts, dance, or gymnastics.
  23. Swimming Lessons: If the gym has a pool.
  24. Health and Wellness Seminars: Charging for informational sessions.
  25. Selling Supplements: Offering a range of health and fitness supplements.
  26. Mobile App Subscriptions: Offering a branded gym app with premium content.
  27. Sponsorships: Collaborating with brands for events or challenges.
  28. Physical Therapy: Providing in-house physical therapy services.
  29. Sauna or Steam Room Access: Premium access or packages.
  30. Birthday Parties: Hosting fitness-themed birthday parties, especially for children.
  31. Boot Camps: Intensive workout programs for members.
  32. Fitness Challenges: Charging entry fees for weight loss or fitness challenges.
  33. Corporate Wellness Programs: Offering fitness and wellness services to corporations.

Diversifying into multiple gym revenue streams can help gyms maintain financial stability, especially during times when traditional memberships might wane. With the increasing interest in health and wellness, there are numerous opportunities for gyms to monetize their services, especially when paired with comprehensive platforms like Exercise.com, which can manage multiple revenue streams effectively. You can sell workout plans online to make money, learn how to run a fitness challenge, offer online memberships in your custom-branded fitness apps, and much more—all from the best gym management software platform: Exercise.com.

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Co-Founder, AMPD Golf Performance

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How profitable is a gym?

The profitability of a gym can vary depending on various factors such as location, size, target market, competition, and effective business management. While some gyms can be highly profitable, others may struggle to generate significant profits. Offering additional services, such as personal training, group classes, or specialized programs, can contribute to increased revenue. It’s also essential to implement efficient business strategies, manage expenses effectively, and continuously adapt to meet the needs and preferences of the target market. Utilizing software solutions like Exercise.com can help streamline operations, automate tasks, and optimize revenue generation, leading to increased profitability for gym owners.

Read More: How profitable is owning a gym?

Do gym owners make a lot of money?

The earning potential for gym owners can vary significantly depending on several factors, including the size and success of the gym, the location, the target market, and the owner’s ability to effectively manage and grow the business. While some gym owners can generate substantial profits, it’s important to note that success is not guaranteed and can require significant effort, dedication, and strategic decision-making. Utilizing powerful software solutions like Exercise.com can help gym owners streamline their operations, automate administrative tasks, improve member engagement, and optimize revenue generation, ultimately contributing to the potential for increased earnings in the fitness industry.

Read More: How much money do gym owners make?

How do gym owners get paid?

Gym owners typically earn income through various revenue streams, including membership fees, personal training sessions, group classes, retail sales, and additional services offered by the gym. The specific payment structure may vary depending on the business model, membership plans, and pricing options. Gym owners may receive payment through direct member payments, monthly or annual contracts, electronic funds transfer, credit card payments, or other payment processing systems. Effective financial management, including accurate tracking of revenue and expenses, is crucial for gym owners to ensure a stable and profitable business.

Read More: Gym Owner Average Salary Chart

Can a small gym make money?

Yes, a small gym can make money and be profitable. The key to success lies in effective management, strategic planning, and providing value to members. By focusing on providing high-quality services, cultivating a strong community, and implementing efficient business practices, small gyms can attract and retain members, leading to consistent revenue generation. Utilizing software solutions like Exercise.com can help small gym owners optimize their operations, automate processes, enhance member experience, and streamline revenue management, contributing to the profitability of the business. Learn more about how to start a small gym and be sure to use the best gym management software platform with Exercise.com so that you can grow and scale your gym.

What gym makes the most money?

The revenue generated by gyms can vary significantly based on several factors, including the size of the facility, the location, the target market, and the business model. Large fitness chains and franchises with widespread locations and established brand recognition often have the potential to generate higher revenue. However, it’s important to note that the financial success of a gym is not solely determined by its size or brand name. Effective business management, innovative services, strategic marketing, and a strong focus on member satisfaction are all factors that can contribute to a gym’s financial success. Utilizing software solutions like Exercise.com can help gym owners optimize their revenue generation and business operations, regardless of their size or brand.

Read More: The Most Successful Gyms in America

How many members does a gym need to be successful?

The number of members required for a gym to be successful can vary depending on several factors, including the size of the facility, the pricing structure, the operating expenses, and the target market. While there is no fixed number that guarantees success, gyms typically aim to attract and retain a sufficient number of members to cover their operating costs, generate profit, and sustain long-term growth. The specific membership count will vary based on the business model and financial goals of the gym. Effective marketing strategies, exceptional member experience, and utilizing software solutions like Exercise.com can help gyms attract and retain members, contributing to their overall success.

How does a gym make money with personal training?

Gyms make money with personal training by offering these services at a premium. Personal trainers typically work either as employees or independent contractors within the gym, and the gym charges members for one-on-one sessions. The rates for personal training are significantly higher than standard membership fees, and gyms often take a percentage of the session fees, contributing substantially to their revenue.

How are gyms profitable?

Gyms become profitable by diversifying their revenue streams beyond just membership fees. This includes income from personal training sessions, group classes, merchandise sales, and additional services like childcare, spa services, and cafés. Efficient management of operational costs such as staff, equipment maintenance, and utilities also plays a crucial role in maintaining profitability.

How do gyms make a profit?

Gyms make a profit by maximizing the utilization of their space and services to increase revenue while controlling operational costs. Profit drivers include membership sales, personal training, group fitness classes, and ancillary services like nutrition counseling, massage therapy, and health shops selling supplements and gym gear. Successful gyms also focus on member retention to ensure a steady income flow.

How much does Active and Fit pay gyms?

Active and Fit compensation to gyms is typically based on a negotiated rate per member visit or a flat monthly fee for each enrolled member, but the exact amounts can vary widely depending on the gym’s agreement with Active and Fit. These payments provide gyms with an additional revenue stream while encouraging gym usage among Active and Fit members.

Do gyms make money on SilverSneakers right away?

Gyms can start making money on SilverSneakers almost immediately after enrolling in the program and accepting members. Compensation is usually based on member check-ins; the more a SilverSneakers member uses the facility, the more the gym earns. This program also indirectly contributes to profitability by increasing foot traffic and potential upselling of other services.

How much money do gyms make in January vs other months of the year?

Gyms often experience a significant increase in revenue in January due to New Year’s resolutions, with many people signing up for memberships as part of their fitness goals. This surge can result in higher sales compared to other months, both in terms of new memberships and increased interest in personal training and classes. However, sustaining this influx throughout the year is key to maintaining profitability.

How to make money owning a gym?

To make money owning a gym, focus on creating a strong value proposition to attract and retain members, diversify revenue streams beyond membership fees, and manage operational costs efficiently. Implementing effective marketing strategies, offering a variety of services like personal training and group classes, and maintaining high-quality facilities can also significantly contribute to a gym’s financial success.

Do gym franchises make money?

Gym franchises have the potential to be profitable, but success is not guaranteed solely by being part of a franchise. The profitability of a gym franchise depends on various factors, including the specific franchise brand, the location, the market competition, the quality of management, and the ability to attract and retain members. While some gym franchises may be highly successful and generate significant profits, others may face challenges and struggle to achieve financial success. Effective business strategies, strong brand reputation, exceptional customer experience, and utilizing software solutions like Exercise.com can help gym franchises optimize their operations and revenue generation, increasing the potential for financial success.

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How can I make my gym profitable?

Gyms become profitable by balancing operational costs with diverse revenue streams. Profitability is achieved through membership fees, personal training services, group classes, selling merchandise, and additional amenities like spas or cafés. Effective gym marketing, member retention strategies, and efficient use of resources also contribute to gym profitability. You can make your gym profitable by committing to increasing revenue while decreasing expenses.

Read More: How to Increase Gym Revenue and Profitability

How do gym owners make money?

Gym owners make money primarily through membership fees, which can be on a monthly, quarterly, or annual basis. Other significant income sources include personal training sessions, group fitness classes, selling fitness-related merchandise, hosting events or workshops, and offering additional health and wellness services.

Do gyms make a lot of money?

The profitability of gyms varies widely based on factors like location, size, target market, and services offered. Some gyms, especially those with a unique selling proposition or located in high-demand areas, can be quite profitable. However, success in the fitness industry often requires careful financial planning and market analysis.

What is the average gym profit margin?

The average gym profit margin is 10-15%, with franchise gym profits on the lower end of 10%, boutique fitness studios averaging 20% to even 40% profit margins, and CrossFit gym profit margins in the 25-30% range. This variance is influenced by factors such as gym size, location, membership pricing, operating costs, and the range of services offered. Smaller boutique gyms might have higher margins due to specialized offerings, while larger gyms might operate on lower margins but with higher volume. So, what is the average profit of a gym? It varies. But why not have your gym beat the average!

Read More: Average Gym Profit Margin

What are the legal requirements for opening a gym?

Legal requirements for opening a gym include:

  • Business Registration: Registering the gym as a legal entity (LLC, corporation, etc.).
  • Licenses and Permits: Acquiring local business licenses and health and safety permits.
  • Insurance: Obtaining liability insurance and potentially property and worker’s compensation insurance.
  • Zoning and Building Codes: Complying with local zoning laws and building codes.
  • Certifications: Ensuring personal trainers and staff have the necessary certifications.

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How much does it cost to open a gym?

The cost of opening a gym can vary widely depending on several factors, including the size and location of the facility, the equipment and amenities, lease or purchase costs, interior design, staffing requirements, marketing expenses, and other startup costs. The total investment can range from tens of thousands to hundreds of thousands of dollars or more. It’s essential to conduct thorough market research, create a detailed business plan, and secure adequate funding to cover both startup and ongoing operational expenses. Utilizing software solutions like Exercise.com can help gym owners optimize their financial management and streamline operations, contributing to cost-effectiveness and financial success. So, what is the cost of building a gym? The cost of building a gym depends on the gym’s size and scope. It can range from around $50,000 for a basic setup in a small space to over $1 million for a large, high-end facility. Costs include purchasing equipment, flooring, mirrors, sound systems, and potentially expenses for building modifications.

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What is the average gym startup cost?

The average gym startup cost varies greatly but can range from $10,000 for a small personal training studio to several hundred thousand dollars for a fully equipped commercial gym. Costs include equipment, leasing or purchasing space, renovations, initial marketing, and operational setup.

What is the minimum investment to start a gym?

The minimum investment to start a gym can vary widely depending on several factors such as location, size of the facility, type of gym (boutique, commercial, specialized), and the level of equipment and amenities you plan to offer. However, to give a general idea:

  1. Low-Cost, Small or Boutique Gym: For a smaller facility, focusing on a specific type of fitness like a boutique or personal training studio, the minimum investment can range from $10,000 to $50,000. This setup typically involves leasing a smaller space, purchasing essential equipment, and minimal staff.
  2. Mid-Size Gym: For a mid-size gym offering a wider range of equipment and classes, the investment can be between $50,000 and $200,000. Costs increase with the size of the facility, variety of equipment, and additional features like showers and locker rooms.
  3. Full-Size Commercial Gym: For a larger gym with a comprehensive range of equipment, classes, and possible additional amenities like a pool or sauna, the investment can start from $200,000 and go much higher.

These estimates include costs for:

  • Lease or Purchase of Space: Renting or buying the physical location.
  • Equipment: Cardio machines, weights, fitness machines, and other training equipment.
  • Renovations and Setup: Any necessary remodeling to fit the gym’s layout and design needs.
  • Operational Costs: Utilities, staff salaries, insurance, and initial marketing.
  • Licenses and Permits: Compliance with local business regulations.

It’s important to conduct thorough market research and financial planning to estimate the costs accurately for your specific gym concept and location. Additionally, consider initial capital to sustain the business until it becomes profitable, as it might take some time to build up a steady membership base.

Read More: Cost to Open a Gym

What is the monthly cost of running a gym?

The monthly cost of running a gym includes rent or mortgage payments, utilities, staff salaries, equipment maintenance, insurance, marketing, and other operational expenses. This can range from a few thousand dollars for a small gym to tens of thousands for larger facilities. Managing these costs efficiently is crucial for maintaining profitability.

Read More: What is the monthly cost of running a gym?

Is there immediate revenue when opening a gym?

Generating immediate revenue when opening a gym can be challenging, as it takes time to attract and retain members, establish a strong brand presence, and build a loyal customer base. The initial period after opening a gym often involves significant investment in marketing, infrastructure setup, and member acquisition efforts. It’s crucial to have a solid business plan, financial reserves, and a realistic understanding of the time it takes to reach profitability. Leveraging software solutions like Exercise.com can help streamline operations, automate administrative tasks, and enhance member experience, contributing to revenue generation and accelerating the path to financial sustainability.

How can you make a gym profitable?

To make a gym profitable, several strategies can be employed. First, attracting and retaining members is crucial, so offering high-quality services, creating a positive and engaging atmosphere, and building strong relationships with members are essential. Second, diversifying revenue streams by offering additional services such as personal training, group classes, specialized programs, or retail sales can contribute to increased revenue. Third, effective cost management, including optimizing expenses, negotiating favorable supplier contracts, and leveraging technology to streamline operations, can improve profitability. Fourth, implementing strategic marketing and promotional campaigns to attract new members and retain existing ones is vital. Utilizing software solutions like Exercise.com can support gym owners in optimizing their operations, automating processes, enhancing member experience, and ultimately increasing profitability. Be sure and use the best white label fitness app software coupled with the best gym ecommerce software to offer a premium branded online experience along with your in-person gym experience for a diversified gym revenue stream.

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How can you make money in the fitness industry?

There are several ways to make money in the fitness industry. One common avenue is operating a gym or fitness facility, offering memberships and additional services such as personal training, group classes, or specialized programs. Another option is becoming a personal trainer or fitness coach, providing one-on-one or group training sessions. Online fitness coaching and digital products, such as workout programs or nutrition guides, have also gained popularity and can be monetized. Fitness professionals can also generate income through teaching fitness classes, hosting workshops or seminars, writing fitness-related books or articles, or becoming fitness influencers. Utilizing software solutions like Exercise.com can help fitness professionals optimize their business operations, attract clients, and maximize revenue generation in the fitness industry.

Read More: How to Make Money from Fitness

Are gyms actually profitable?

Yes, gyms can be profitable businesses. Their profitability depends on factors like location, membership retention, quality of services, and effective management. Offering a range of services such as personal training, group classes, and additional amenities can significantly boost revenue. Proper business planning and a good understanding of the fitness market are essential for success.

What type of gym is more profitable?

Boutique or specialized gyms tend to be more profitable than traditional gyms. These gyms focus on specific fitness niches like yoga, pilates, or high-intensity interval training (HIIT), often allowing for higher membership fees due to specialized services. Additionally, they often require less space and equipment than a full-service gym, reducing overhead costs.

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How do cheap gyms make money?

Cheap gyms, like budget-friendly fitness chains, make money through high volume. They attract a large number of members with low-cost memberships, banking on the fact that not all members will use the gym regularly. They also profit from additional services like personal training, group classes, and selling merchandise.

Do small gyms make money?

Yes, small gyms can make money, especially if they target a specific niche or offer specialized services that are not available in larger gyms. Effective management, local marketing, and a strong community presence can significantly contribute to a small gym’s profitability.

Is owning a gym passive income?

Owning a gym typically isn’t considered passive income since it involves active management, whether it’s handling day-to-day operations, managing staff, or marketing the business. However, with a strong management team and systems in place, it can provide a more passive income stream for the owner.

Read More: Is owning a gym passive income?

What month do gyms make the most money?

Gyms often make the most money in January when New Year’s resolutions drive sign-ups, and in the late spring or early summer when people want to improve their fitness for the summer season. These periods are prime times for gyms to offer promotions and special deals to attract new members.

How do gym influencers make money?

Gym influencers make money through various channels like sponsored content, affiliate marketing, selling their own fitness programs or merchandise, collaborations with fitness brands, and offering personal training services. Their income is often directly related to their social media presence and engagement.

Is it hard owning a gym?

Owning a gym can be challenging due to factors like competition, high initial investment, ongoing maintenance costs, and the need for constant innovation to keep members engaged. Success requires good business acumen, a deep understanding of the fitness market, and effective strategies for member retention.

Is owning a gym a good business idea?

Owning a gym can be a good business idea if you have a clear understanding of your target market, effective business and financial planning, and a passion for fitness and wellness. The success of a gym business depends on its ability to attract and retain members, offer quality services, and adapt to changing fitness trends.

What is the hardest part of owning a gym?

The hardest part of owning a gym is often managing the financial aspects, such as controlling operational costs, maintaining cash flow, and achieving profitability. Other challenges include member retention, staying competitive in a saturated market, and continuously updating equipment and services to meet customer expectations.

Read More: Pros and Cons of Owning a Gym

How do I start a successful gym business?

To start a successful gym business:

  1. Conduct Market Research: Understand your target audience and local competition.
  2. Develop a Solid Business Plan: This should include financial projections, marketing strategies, and operational details.
  3. Choose the Right Location: Accessibility and visibility are crucial.
  4. Invest in Quality Equipment: Ensure your gym is well-equipped to meet member needs.
  5. Hire Qualified Staff: Skilled and personable trainers and staff can make a big difference.
  6. Implement Effective Marketing: Use both digital and traditional marketing strategies to attract members.
  7. Focus on Member Experience: Offer unique services, maintain a clean and welcoming environment, and engage with members to build community.
  8. Utilize Gym Management Software: Platforms like Exercise.com can streamline operations, from membership management to scheduling and marketing.

Read More: How to Have a Successful Gym Business

What are the primary revenue streams for gyms?

The primary revenue streams for gyms include membership fees, personal training sessions, group classes, merchandise sales, and rental fees for special events or facility use. Some gyms may also offer additional services such as spa treatments, childcare, or nutrition coaching to generate extra income.

How do membership fees contribute to a gym’s revenue?

Membership fees are the foundation of a gym’s revenue, with clients typically paying on a monthly, quarterly, or annual basis. Offering different membership tiers and contract lengths can attract a broader range of customers, ensuring a steady flow of income for the gym.

How do gyms profit from personal training sessions?

Gyms profit from personal training sessions by taking a percentage of the fee paid by clients for one-on-one sessions with certified trainers. This revenue stream not only benefits the gym financially but also adds value to memberships by providing clients with tailored fitness guidance.

What role do group classes play in a gym’s revenue generation?

Group classes can be a significant revenue generator for gyms, as they often attract additional fees on top of regular memberships. Offering a diverse range of classes, such as yoga, spinning, or HIIT, can cater to different interests and fitness levels, encouraging more clients to participate and boosting income.

How do gyms make money from merchandise sales?

Gyms can generate income from merchandise sales by offering branded clothing, fitness accessories, supplements, and snacks for purchase. Providing high-quality products and ensuring they are prominently displayed within the gym can increase sales and contribute to the gym’s overall revenue.

How can rental fees contribute to a gym’s income?

Rental fees can be a lucrative source of income for gyms, as they may rent out facilities for special events, workshops, or sports competitions. Additionally, some gyms may rent space to independent fitness professionals, such as personal trainers or group class instructors, further diversifying their revenue streams.

How do gyms make money from additional services?

Gyms can generate extra income by offering additional services, such as massage therapy, tanning, nutrition counseling, or childcare. These services not only provide added convenience for gym-goers but also increase the perceived value of memberships, making clients more likely to invest in higher-tier plans.

What strategies can gyms use to attract and retain members?

Gyms can attract and retain members by offering competitive pricing, a diverse range of fitness options, and exceptional customer service. Additionally, creating a welcoming atmosphere, hosting member appreciation events, and implementing referral programs can help gyms maintain a loyal clientele and increase revenue.

How do gyms make money from corporate partnerships?

Gyms can establish corporate partnerships with local businesses to offer discounted memberships or wellness programs for employees. These partnerships can lead to a steady stream of new clients and provide additional revenue opportunities through group training or team-building activities.

How do gyms make money from ClassPass?

Gyms make money from ClassPass through a partnership model. When ClassPass members book a class at a gym, ClassPass pays the gym a predetermined rate per attendance. Although this rate might be lower than the gym’s standard drop-in fee, it allows gyms to fill classes that might otherwise have empty spots, thus optimizing their revenue and reaching a wider customer base.

How do gyms make money from Gympass?

Similar to ClassPass, Gympass operates on a partnership model. Gyms receive compensation from Gympass each time a Gympass member attends a class or uses the gym facilities. This partnership exposes gyms to a broader range of potential members, including those who may not commit to a traditional gym membership but use Gympass for its flexibility.

How do gyms make money from Active and Fit?

Active and Fit partners with gyms to provide affordable access to its members. The gyms are compensated based on member visits. While the per-visit rate may be lower than the gym’s standard fee, partnering with Active and Fit can lead to increased overall usage, especially during off-peak hours, and potentially attract long-term members.

How do gyms make money from Silver Sneakers?

Silver Sneakers is a fitness program primarily for seniors, and it partners with gyms across the country. Gyms are reimbursed based on Silver Sneakers member attendance. This program allows gyms to tap into the senior market, which might not be as price-sensitive as other demographics, and can also contribute to more consistent off-peak hour attendance.

How do gyms make money from Fitness Passport?

Fitness Passport works by offering a corporate membership program that employees can use at various gyms. Each gym that partners with Fitness Passport receives payment based on the number of visits by Fitness Passport holders. This scheme helps gyms gain exposure to corporate clients and increase utilization rates without significant marketing expenses.

How does Planet Fitness make money at $10 per month membership fees?

Planet Fitness’s business model is based on high-volume, low-cost memberships. The $10 per month fee attracts a large number of members, many of whom may not regularly use the gym. The revenue is supplemented by selling higher-tier memberships, offering personal training sessions, merchandise, and leveraging partnerships. Additionally, their low-cost model helps maintain low overhead costs, and the high number of members ensures steady revenue, even if individual contributions are small. This strategy, combined with efficient operations and targeted marketing, allows Planet Fitness to be profitable despite low individual membership fees.

Read More: Planet Fitness Business Model

How does 24 Hour Fitness make money?

24 Hour Fitness makes money primarily through its membership fees, offering various membership plans that cater to different customer needs. Their business model includes:

  1. Membership Fees: They offer different tiers of membership, each with varying levels of access to their gym locations and services. This could include monthly, annual, or even lifetime memberships.
  2. Personal Training Services: Personal training sessions are a significant revenue stream. Members pay extra for one-on-one training sessions with certified trainers.
  3. Group Fitness Classes: While some classes may be included in the membership fee, 24 Hour Fitness also offers specialized classes that members can pay extra to attend.
  4. Ancillary Services: This includes revenue from services like spas, massage therapy, and child care services provided within the facility.
  5. Retail and Merchandise: Selling fitness-related merchandise such as apparel, supplements, and workout gear also contributes to their revenue.
  6. Partnerships and Sponsorships: Collaborating with health and wellness brands for marketing and sponsorships.
  7. Online Training and Digital Subscriptions: With the rise of digital fitness, 24 Hour Fitness also capitalizes on online training programs and subscriptions, offering virtual classes and fitness advice.
  8. Corporate Wellness Programs: Partnering with businesses to offer corporate membership discounts and wellness programs.

The combination of these revenue streams enables 24 Hour Fitness to maintain profitability while offering round-the-clock access to their gym facilities. Their ability to cater to a broad customer base with different fitness needs and preferences is key to their business model.

The Bottom Line: How Gyms Make Money

At the end of the day, there is no one single way that gyms make money. Membership fees are just the beginning, and the possibilities are endless. So get thinking, because your gym’s earning potential may only be limited by your creativity.

If you’re ready to add additional revenue streams to your gym’s operation, Exercise.com can help. Book a demo to learn more.

Jimmy Myers Relentless Sports Performance
If you want to offer an elite service for the end user you need to get with the times and use elite level software that is intuitive, visually appealing, and effective. That is exactly what Exercise.com delivers to its clients.
Jimmy Myers
Owner/Trainer, Relentless Sports Performance

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Tyler Spraul is the director of UX and the head trainer for Exercise.com. He has his Bachelor of Science degree in pre-medicine and is an NSCA-Certified Strength and Conditioning Specialist® (CSCS®). He is a former All-American soccer player and still coaches soccer today. In his free time, he enjoys reading, learning, and living the dad life.
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