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I wanted to bring you a question that Layla asked me yesterday. She was like,

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what would you actually do? Like right now, like if you had, if you were, you know,

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roll back the time clock and this would happen when we had our six gyms. Like, what

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would your actual, what would you do to approach this and what would you play

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with? Welcome to the gym secrets podcast where you talk about how to get more

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customers, how to make more per customer and how to keep them longer and the

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many failures and lessons that we have learned along the way. I hope you enjoy

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and subscribe.

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So, I want to, I want to first just at least say with my big disclaimer here is that

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something that I don't discuss a lot but I think is worth mentioning is that the

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advice that I give in general, I try to cater to the audience that I'm

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speaking to. If I ran a gym, I would probably run it somewhat differently than

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what we espouse and that is because I am not you and you are not me. And so I

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would rather have a solution that I can get 90% of the marketplace to get an 80%

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win rather than have 5% of the marketplace get 100% win. And I've run my

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business that way and I think that is why we've been really successful is because

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it's the same thing with like a weight loss program. Like if I can get, if I

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could get, you know, 90% of people to have a great result rather than, you know,

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10% of people to have a crazy, crazy result, then I would rather serve the 90.

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Elon Musk even talks about this. He's like, I'd rather do a good amount for a ton of

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people rather than a lot for a very small amount. And so we've taken the same

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approach in terms of how we, you know, like when we make offers, all my focus is

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how can I make the best offer that anyone can sell, right? How can I make a

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sales process? It's so easy. Anyone can do it. Not necessarily like, like for

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me, I'd be selling how to get over the phone all day long, right? But a very

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small, small segment could actually do that successfully at scale. So that's my

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first disclaimer. Now that being said, this is exactly what I would do. If my

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gyms, you know, were in the midst of this, you know, COVID stuff. So first off, I

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would get out of the leases that I have. Now independent of, because there's

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some people who are like, whoa, we're going to get out of this sooner. We're going

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out of this later. I have no idea. But what I know is just opportunity. If I have

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the opportunity to, to, to, to flip my facilities in an environment where I'm

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being encouraged by both government and my clients to make the flip and remain

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open, then I'm going to take that opportunity and flip to a more profitable

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model, right? Like we're giving, we're being given permission in this instance to

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do that with zero repercussions, Stephen being encouraged. And so the first

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thing is I would take all six, I have my recurring base of members and I would

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flip them to remote. Now then I would try and cut all of the rent for each of

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those locations, maybe even get out of the lease. I would likely just try and

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go shake three, six months of free rent, see how it shakes out. But likely, this

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is what I'm saying, I would do. You don't need to do this. All right. I'm saying

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like, this is how I would, this is how I would play my cards. All right. And so

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what happens, let's say each of those gyms is at 30,000 a month, right? In

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recurrent, just EFTs, not running cash flow, nothing else, not something just

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like they're doing 30,000 a month. Cool. So now I've got 180,000 a month that I

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haven't recurring. Now let's be realistic. Let's say 25% of this people drop off

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because it's not an owner operated facility. I've got staff. They don't care as

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much. They're not rubbing bellies and kissing babies the way I would if I were

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at a single location. And so let's say I lose 25%. So that means I lose roughly,

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you know, 45,000 off that, I think. No, 40. Yeah. 40 ish, right? So there's 40,000

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a month down to like 140 ish or 135 per month. That's my recurring none. Okay. There's

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a lot of cash there. All right. Then I would take my best trainer at each

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facility, the guy, the guy or gal who cared the most, who is the most engaged with

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members, who is the most upbeat, the most positive, I'm truly caring about

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keeping them. And I might have to take two at each facility if there's too many

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for one person to handle. That's fine. The rest of my personnel would be

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considered non-essential because in this new model, they would not be able to

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provide value. All right. That's what I would do. All right. So I've got, let's say

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we got six. That means I've got 12 staff that I'm keeping on to maintain

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$135,000 in recurring revenue per month. Now let's say conservatively, I pay

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each of these people $3,000 a month, right? Just stay at home. Now that's a great

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for some of these guys that might actually be a big paid jump from what they

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were doing in person. Cool. So another making 3,000 a month staying at home to

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just provide accountability. All right. That is it. So big, big thing here, not

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like a gym lunch, what we're doing is we have, we just, so I'm kicking this off

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today, starting on Monday, we're running 16 remote workouts per day,

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basically every hour during the normal work day, there's going to be a class

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that's being held and that way all of our gyms can cut their overhead and just

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have all of those workouts as fulfillment for their online clients, right? And so

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now they don't even have to staff that stuff. It's already been taken care of

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centrally by all of us. So all of our gyms can participate. That cut their

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overhead even further, right? Now, rewind back to the six gyms. So step one, I'm

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going to get out of the leases that I can because because right now, you have a

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pretty good opportunity to be able to break leases and or at the very least get

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three, six months of free rent right now. So that's one, two, I would flip my

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recurring revenue into remote, which would be nutrition and accountability

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primarily. I'd have the workouts that are being done. If I have 12 trainers,

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I can say each of you guys are responsible for one workout a day. That's it.

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That's one every hour. And that allows all of my people to participate in a

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session at any given time. But it's not that hard because each of them can do

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it from home, right? And the whole point is that like, I'd love to say it's

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going to be from the gym, but reality, if you're getting quarantined, you might

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not be able to even go to the gym. So, and most of the clients are going to

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be consuming this from their homes. And so it would make sense to have a

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trainer that's from home, not a big deal. So that's, that's what I have on the

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workout part. Big, big caveat here, no one cares about the workouts. If you're

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selling over the phone, you can get workout apps online, you know, like, you

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know, beach body and keel, it seems got a sweat app. Like there's all these

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other apps that are like 10 to $20 a month that have probably better already

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existing stuff. So you're not going to win on the workout front, right? You're

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going to win on the accountability and the service. That's how we've always

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won. And that's how we need to keep like, remember, the rules haven't changed.

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Your workouts never matter. They don't matter now, right? What matters is the

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relationship that you have with these people that they feel like someone is

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checking in on them, right? They pay for you to pay attention. That's how it

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works. All right? So I have my 12 trainers. Let's say I said, I'm paying them

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3,000 a month. So I'm paying 36,000 a month and overhead for those

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trainers, right? And the only thing they have to do every day is one workout and

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then reach out to the customer. So make sure that they are being taken care of,

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making sure that their head space is good, making sure that they're not going

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to the pantry and rating it and getting cookies every day, making sure that

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they attend one of the workouts. That's what they do all day now. That's it.

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It's all they have to do. All right? Now overnight by doing this.

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Hey guys, love that you're listening to the podcast. If you ever want to

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have the video version of this, which usually has more facts, more visuals,

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more graphs, you know, drawn out stuff, sometimes it can help hit the brain

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centers in different ways. You can check out my YouTube channel. It's absolutely

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free to check that out if that's what you are into. And if not, keep enjoying

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the show.

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I have 100,000 a month that's left over in all profit. Holy smokes. That's a

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pretty good deal. But wait, now what do I do with my time? Right? So my time

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would be focused. The other thing that I would ask them to do is I would

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dedicate their first two hours of the day every day to doing 100 cold

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reach outs. All right? They want to pay for themselves. Cool. 100 cold

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reach outs. What you do is if you have someone who who's who's interested,

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you book them on my calendar, all clothes. All right? So I'm going to film my

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day with appointments that my team, my 12 people doing reach outs are going

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to set for me. All right? And then I'm going to close beyond that. I'm going to

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start turning on cold traffic. And I'm going to run because right now in this

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hypothetical environment, which is the real environment currently, lead costs

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are like 50% to 75% off. It's nuts. Right? I've never seen anything like this.

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It's crazy. And so we would be scheduling phone calls to sell. And so my

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trainer's day looks like this. First two hours of the day, all they're doing

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is doing cold reach outs. They get their daily 100. And you give me 100

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reach outs. That's what you owe me. All right? Get me one schedule today. I

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don't care. Just get me one schedule today. All right? What are they going to say?

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They're going to say, Hey, name. Do you know anybody who's trying to stay in

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shape during the quarantine? Who doesn't want to get make turn their sweat

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pants into yoga pants by the end of this? Ha, right? Whatever. Now when you

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say that, all of a sudden, the people who are responding are like, Oh,

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this person's not fishing. They're asking genuinely if I know anybody.

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Right? And now more than ever, people have a lot of good will that they want

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to help out other small businesses like that is definitely the zeitgeist of

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this moment. It's like I said, German word for the general vibe of an era.

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Anyway, so people are trying to help out small business owners. So if you're

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asking like that, you're not even soliciting them. You're just saying, Hey,

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do you know anybody? And a lot of times I'd be like, You know, I, I'm trying

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not to lose weight. Perfect. Our gain weight. Perfect. Let's get you book for

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a call. We have a totally remote thing to make sure that you stay healthy,

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et cetera. Right? So their first two hours they're doing the daily

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reach outs, then they're doing all the reach outs to their existing customers

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that they're maintaining. Right? And then one hour of the day, they're

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required to do their workout. Now, most of the time, you'd want to have your

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trainers to work out anyways at home. So it's like just record it. Like have fun

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with it. Right? And then that way, all of my people can actually have more

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sessions than they ever had in person. So I'm adding value than from what I

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used to have. They have more availability than we've ever had. They have more

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variety because they probably have access to trainers that they couldn't have had

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access to before. All right. And it's also my best coaches. So it's like, you

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know, we all know we've got a couple coaches. You run stuff. And if somebody

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uses news coming in, you probably want to put them with Jessica and not Eric.

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Right? And like, no, Jessica's awesome. Don't put in Eric's as her first

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session. Right? Maybe maybe save that for some of the later people who already

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like us. Right? So those are the trainers. We're going to be getting those at

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home workouts. Big picture again, big reminder, no one cares. Right? No one

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cares about the workouts. They only care about the ability. All right. So if I

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flip my gyms, right? I renegotiate my leases. I push them out where I break

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them. I take my recurring. I'll get into 100% remote. I would let go of not

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essentially personal or not who are not generating revenue or keeping

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revenue through fulfillment. Right? They're generating revenue in their first

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two hours of the day by getting new calls, the rest of their day. They're

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focused on doing the fulfillment for the clients that they already have and

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maintaining that EFT and recurring. They're feeling back the bucket because I'm

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going to be doing the sales because in a time of strife, I'm going to do what I

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need to know how to do best and make it rain. Right? And so the people who are

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not going to be able to succeed are the ones who don't want to roll up their

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sleeves and get dirty. If you're the best salesman at your gym, then you

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should sell. That's what you should be doing. Right? And then they do their one

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workout a day. So that's all trainers after you. Three things. Reach out to

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get new customers, reach out to existing customers, make sure they know we're

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paying attention. And then finally, that they're doing one workout a day, which

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they should be doing for themselves, anyway, it's just going to record it.

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Awesome. Boxes checked. All right. My day is going to be making sure that we're

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marketing and filling the bucket back up. All right. That's it. That's my

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day. All right. So I'm marketing and taking sales calls. I'm taking sales

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calls from paid traffic and taking sales calls from from outbound. I'm taking

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sales calls all day long. That is what my job is. Make it rain and feed the

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machine. All right. That is what I would have done. If I had been in that

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situation or in this situation, I'm not necessarily saying you do that. I'm

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telling you what I would have done. And that would be the play that I would do

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because it would give me permission to overnight transform six facilities

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into one massive recurring revenue stream. That's 100% remote. That is

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higher, higher profit margin, awful fulfillment. And I will say what I said

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yesterday, but I'll say it again. So hopefully it sinks in is that just because

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this has changed does not mean it's bad, right? Eight months ago, I walked

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through all the math about why having a remote fulfillment is a better

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solution. There's a reason people are going online, right? There are better

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margins, right? There are. The thing is is that a lot of people felt like for

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some reason that that was bad. That's okay. But now people are being forced

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to do it. Doesn't mean it's bad. It actually makes more money. And now we're

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getting permission from the government and from society to do this for

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ourselves. So I would take that opportunity and run with it. So that's my

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not my recommend excuse me. That's what I would have done. You can take that

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for what you will. But that is exactly what I would have done step by step.

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That's how it had broken out my trainers. That's what I would have done

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with my overhead. That's what I would have redefined their proper

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responsibilities as. And then beyond just lead them through the crisis are also

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trying to paint a vision or for a better future. It's like guys, you like

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in this, you're staying at home, you can work out whatever you want. You're

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just actually getting people good results because we're making sure that

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they're just staying accountable and they need us the most, right? And one small

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note that I want to add to this, when you're selling or when you're talking to

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customers, everyone right now is at the airport. So if you've noticed,

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everyone at the airport is always just like immediately a three out of 10,

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three out of five stressed, right? They're already at six out of 10 stress

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levels. What people want is to feel good. All right? And so that's going

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it. And so when you get on the phone, if you want to sell, right? You got to

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make them feel good. Like the fundamentals have not changed. It's just you

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got a little bit more resistance when you start them because they're already

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at a negative point. They're not at neutral. Most people are not going to be

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a little bit negative because they're quarantined. They got their kids

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around. They feel like shit. They're smelly. They're, you know, they feel

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sloppy and bloated because they're eating cookies all the way, right? And,

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you know, they're uncertain about the future. What they want from you, what

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your employees want from you, what your clients want from you, and what your

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prospects when you get on the phone with them want from you is one word, hope.

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All right? So you have to be the hopeless mother fucker that exists. All right?

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And the way that you have hope is that you have optimism about what you are

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willing to do to endure. And as long as you know that you're willing to

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endure just about anything to get through this, then you have confidence and

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certainty in the fact that you will get through this. And you can, you can

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convey that conviction to your prospects, to your team, and to your, to your

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customers, because that's what they're going to want. They like right now,

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therapies blown up, life coaching is blowing up in terms of like growth.

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Tons of people want life coaches. Tons of people want therapists right now

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because they're stressed out of their minds. And so if you're looking for more

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ways to provide value, someone will buy after how you've made them feel from

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the first 15 minutes of the phone call. The first 15 minutes is just like caring

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about them, throwing them some love, making them feel good about like, hey,

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we're going to get through this. No worries, right? They want to be around

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more of that. They want more of that feeling. The fact that you're going to

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sell them weight loss. And that's going to be the vehicle that you monetize is

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almost secondary to how you will make them feel in that moment, because

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they're just going to want to feel more of that. And so that goes for your

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trainers, reminding them, dude, like, we're just trying to make people feel

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good right now. Alright, we're trying to get people through this. Like if we

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can get them to put down the cookies and move a little bit, they're probably

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going to feel better. And if that's what that's what our value is right now,

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then that's what it's going to be. Alright, so that is what I would do step by

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step. If I have my gym drink, COVID right now, I make no recommendations.

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You are all grown-ass individuals who make your own decisions to yourself.

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But that is what I would do. So anyways, hope you have an amazing Wednesday.

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Keep rocking. You can make it through this. You just got to want it.