WEBVTT 1 00:00:00.000 --> 00:00:05.600 A lot of what has been created for the community is good. I think it's all great stuff, but we need to solve the fucking problem 2 00:00:06.160 --> 00:00:09.840 Welcome to the gym secrets podcast where you talk about how to get more customers how to make more 3 00:00:09.840 --> 00:00:14.720 Per customer and how to keep them longer and the many failures and lessons that we have learned along the way 4 00:00:15.040 --> 00:00:17.040 I hope you enjoy and subscribe 5 00:00:19.200 --> 00:00:23.440 Hey, what's going everyone. Hope you guys are uh having uh, well, I would say a great Monday 6 00:00:23.440 --> 00:00:25.680 But I'm sure right now you're in the middle of the thick of it 7 00:00:26.240 --> 00:00:33.120 And so I wanted to um, give you guys a couple updates of what's going on on our side and then also give you a couple frameworks to kind of think through 8 00:00:33.200 --> 00:00:35.360 What's going on right now with? 9 00:00:35.360 --> 00:00:43.840 So first off on the gym launch side um, we are actively testing um, the ads in for remote gyms 10 00:00:44.480 --> 00:00:49.520 Uh, we'd already you may or may not remember uh, we had our hyper program uh, that we launched eight months ago 11 00:00:50.240 --> 00:00:52.960 To the to the great uh, what do you call it? 12 00:00:53.440 --> 00:00:56.560 Lashback of the entire gym community saying that I was trying to kill gyms 13 00:00:57.120 --> 00:01:00.640 And uh, in fact it is probably the thing they wish they had started a month ago 14 00:01:00.960 --> 00:01:04.000 Um, and I say that only to say sometimes having an open mind is a good idea 15 00:01:04.560 --> 00:01:09.920 Um, that being said we're testing ads in 35 markets as of right now 16 00:01:10.560 --> 00:01:16.400 Um, I want to give them 72 hours to run. There's three main points of success that we're looking for 17 00:01:17.040 --> 00:01:21.840 Which is one that the lead flow is what we expected it to be which is the same as the 21 day play right now that's killing it 18 00:01:22.400 --> 00:01:24.400 Um, or was killing it you know into corona 19 00:01:24.720 --> 00:01:32.560 Uh, two that uh, the on system that we have set up for booking remote calls uh, works as as intended it as desired 20 00:01:32.960 --> 00:01:38.080 My gut is that it's actually going to work a little bit better since we don't actually have to get someone in the car shot for their appointment 21 00:01:39.120 --> 00:01:45.040 And the third is that the offer that we've structured on the phone converts at the percentage that we said it was going to 22 00:01:45.440 --> 00:01:47.200 And so those are the three things that we're testing 23 00:01:47.200 --> 00:01:52.720 We have 35 markets that we're running it in um, and I'll let you guys know in real time when we have the results from that 24 00:01:52.720 --> 00:01:58.880 And then that will be what we released because my intention was not to create a checklist or widget or PDF 25 00:01:58.880 --> 00:02:03.200 And I think that a lot of what has been created for the community is good. I think it's all great stuff 26 00:02:03.680 --> 00:02:05.680 But we need to solve the fucking problem 27 00:02:05.680 --> 00:02:11.760 And so um, that's kind of what I want to talk about for the second small piece of this which is uh, kind of looking ahead 28 00:02:12.480 --> 00:02:14.480 so 29 00:02:14.560 --> 00:02:22.160 I want to make a promise to you which is that what you're going to go through over the next few months is going to be some of the hardest that you're going to go through 30 00:02:22.720 --> 00:02:28.640 I'm I'm promising you no sunshine no rainbows. It's going to be intense and you're going to have to work 31 00:02:29.120 --> 00:02:33.280 And I know that some of you were in a headspace going into this that was like I was already fucking burned out 32 00:02:33.360 --> 00:02:36.720 I was already tired and it was before all this shit happened, right? 33 00:02:37.280 --> 00:02:41.680 And so you're going to have to dig deep and find a gear inside of you of how bad you want to do this 34 00:02:42.240 --> 00:02:44.880 Because right now looking ahead 35 00:02:44.880 --> 00:02:50.320 There's probably a voice in your head that's telling you if we fail right now like no one's going to blame us 36 00:02:50.320 --> 00:02:53.520 Like you know my wife's not going to think of a failure and my parents will be like well, you know 37 00:02:53.600 --> 00:02:58.480 Coronavirus right and the thing is is that they would be a hundred percent reasonable and saying that because 38 00:02:59.600 --> 00:03:05.760 It wouldn't be a fault, right? It would be incredibly reasonable for a gym to go under during this transition time 39 00:03:06.320 --> 00:03:10.400 Right, but what I'm asking to do is not be reasonable but be unreasonable 40 00:03:10.800 --> 00:03:15.680 All right, and want more and there's going like everything that affects gyms affects gym lunch 41 00:03:15.920 --> 00:03:20.720 All right, so like I'm going through this shoulder to shoulder with you trying to figure this out 42 00:03:20.960 --> 00:03:26.000 You've got payroll. I've got 600,000 worth in payroll. All right, so the things you have just multiply them 43 00:03:26.160 --> 00:03:27.920 All right, I get where you're coming from 44 00:03:27.920 --> 00:03:31.840 But I can tell you that winners will always win whenever there's panic. There's always opportunity 45 00:03:31.920 --> 00:03:35.920 Panic is simply an embodiment of intense pain whenever there's pain 46 00:03:35.920 --> 00:03:40.320 It means there's something that can be solved and that means right now and here's the here's the silver lining 47 00:03:41.440 --> 00:03:45.280 There are going to be more people on their phones hold up at home health conscious 48 00:03:45.760 --> 00:03:47.440 worried about their health 49 00:03:47.440 --> 00:03:50.160 Eating cookies all these feeling fat, right? 50 00:03:50.720 --> 00:03:58.640 Who are like I said on their phones and the impressions on Facebook are already 50% off if anybody who's still marketing right now knows 51 00:03:58.960 --> 00:04:02.720 Lead costs have actually dropped and that's because a lot of people have stopped their advertising 52 00:04:03.040 --> 00:04:07.600 And so it is going to be just like whatever happens at every kind of V-bottom in every market 53 00:04:08.160 --> 00:04:13.200 Is there's going to be a winner take off there's going to be consolidation the guys who don't have the willpower or gals 54 00:04:14.000 --> 00:04:16.960 To whether this will give up all of their members 55 00:04:17.760 --> 00:04:21.280 To other gyms and the gyms who make it through will be bigger 56 00:04:21.840 --> 00:04:26.480 Stronger and more profitable than ever and that's a promise that will happen 57 00:04:27.200 --> 00:04:31.280 Buying behavior is going to shift because as every single gym 58 00:04:33.040 --> 00:04:40.720 Now has had circumstances break their belief about whether remote training was possible in a brick-and-water facility in a local market 59 00:04:41.120 --> 00:04:42.080 All right 60 00:04:42.080 --> 00:04:46.480 It is going to be possible and that belief is being made for you that choice has now been made 61 00:04:46.640 --> 00:04:50.640 You had the choice eight months ago to make that choice for yourself now. It's being made for you 62 00:04:50.960 --> 00:04:55.440 All right, and so with that choice now consumers are going to be used to 63 00:04:55.920 --> 00:04:58.960 Giving their their card over the phone and having remote services 64 00:04:59.280 --> 00:05:04.480 And so because of this like I said silver lining a lot of people are going to get used to remote training 65 00:05:04.480 --> 00:05:06.160 It's going to become more mainstream 66 00:05:06.160 --> 00:05:12.080 I think this may have actually moved up the remote training kind of movement maybe 18 24 months from what it was going to be 67 00:05:12.640 --> 00:05:16.880 I think there's going to be a lot of gyms who come out on the other side of this with a booming remote business 68 00:05:16.880 --> 00:05:22.800 Because like I said demand for this is going to be huge your skill set has never been more valuable 69 00:05:23.440 --> 00:05:30.880 And yet undervalued and so my goal is to flip the script during this period of time and I'll and let gyms capitalize on that 70 00:05:31.280 --> 00:05:32.240 All right 71 00:05:32.240 --> 00:05:36.240 And so the play is going to be simple. We're going to one stop the bleeding 72 00:05:36.480 --> 00:05:42.160 You need transition all of your existing clients into remote you may think well, we're not quarantined yet 73 00:05:42.320 --> 00:05:47.760 It's a matter of time. You have to look at this everybody's watching the same movie. It just matters what chapter you 74 00:05:48.160 --> 00:05:52.080 All right, so look at the people who are covered chapters of head and just read forward 75 00:05:52.080 --> 00:05:56.640 Don't think well, we're not there yet because honestly, I think it's going to get there, right? 76 00:05:56.800 --> 00:06:01.360 And so whether you are quarantined by mandatory or people have already started the social distancing 77 00:06:01.520 --> 00:06:05.760 You've already probably seen this and so just start preparing ahead all right now 78 00:06:05.920 --> 00:06:08.240 What is the offer that you're going to do to stop the bleeding? 79 00:06:08.560 --> 00:06:15.920 You're going to have to offer one-on-one services for remote training so that you can keep the value of not coming to the gym 80 00:06:16.160 --> 00:06:20.800 And so if you're used to charging $150 a month or $200 a month for in-person training 81 00:06:21.520 --> 00:06:23.120 You have to 82 00:06:23.360 --> 00:06:27.520 You have to over-deliver on value to your clients because they're no longer getting what they signed up for 83 00:06:27.760 --> 00:06:32.160 And so you have to give more of the thing that they didn't sign up for in order to keep them 84 00:06:32.400 --> 00:06:36.160 And so it's not um, I was working out and now I'm not working out 85 00:06:36.240 --> 00:06:39.360 You have to frame it as you used to be in a group setting and now you're one-on-one 86 00:06:39.840 --> 00:06:44.400 All right, and that's the value here is that you're going to shift them from a one-on-one in-person setting 87 00:06:44.560 --> 00:06:46.560 Sorry a group setting 88 00:06:46.640 --> 00:06:50.080 That's that's not that's in-person a group setting in-person 89 00:06:50.480 --> 00:06:54.320 To a one-on-one remote setting and by doing that you'll be able to maintain the value 90 00:06:54.320 --> 00:06:59.040 Describe and see of a $200 a month membership all right now if right now you're like oh shit Alex 91 00:06:59.520 --> 00:07:01.520 I don't have that I'm not ready for that 92 00:07:01.760 --> 00:07:06.320 This is where I said this is going to take work you're probably going to work more in the next 93 00:07:07.120 --> 00:07:11.680 I don't know how many months I wish I could tell you right forever this how long this takes right 94 00:07:11.680 --> 00:07:14.800 You're going to work more during this period of time than you probably ever have 95 00:07:15.280 --> 00:07:17.840 The good news is that you're not going to be at your 96 00:07:17.840 --> 00:07:20.000 Dem so you're going to be working from home 97 00:07:20.240 --> 00:07:23.760 And so for anyone who's ever had to do with this if you don't have all these sessions to take right but actually 98 00:07:24.240 --> 00:07:29.120 Does calm the noise a little bit and so the majority of your day is going to be doing sales calls 99 00:07:29.440 --> 00:07:34.320 All right your trainers need to fill on those remote services so that they can continue to get paid 100 00:07:34.640 --> 00:07:40.080 There are going to be people who get laid off period as much as I'd love to say that like you need to keep everyone 101 00:07:40.160 --> 00:07:41.680 You need to make business decisions 102 00:07:41.680 --> 00:07:43.680 You need to look at who are your most valuable assets 103 00:07:43.920 --> 00:07:49.840 Who is willing to work more who's willing to buckle down who is not emotional who can be calm and who can continue to provide value 104 00:07:50.480 --> 00:07:52.320 While things get a little bit crazy 105 00:07:52.320 --> 00:07:55.760 Okay, now my hope is that everything blows over and none of this matters 106 00:07:55.760 --> 00:07:58.880 But I don't think that's going to happen on a short time time and so we just need to prepare 107 00:08:01.680 --> 00:08:06.560 Aimos in ancient quick break just to let you know that we've been starting to post on LinkedIn and want to connect with you 108 00:08:06.880 --> 00:08:10.000 All right, so send me a connection request and note letting me know that you listen to the show 109 00:08:10.080 --> 00:08:15.360 And I will accept it. There's anyone you think that we should be connected with tag them in one of my relay lists posts 110 00:08:15.680 --> 00:08:18.800 And I will give you all the love in the world. All right, so let's get back to the show 111 00:08:22.400 --> 00:08:24.400 All right, so number one you stop the bleed 112 00:08:24.480 --> 00:08:26.160 number two 113 00:08:26.160 --> 00:08:30.000 You have to focus on how you can cut overhead all right now you have a facility 114 00:08:30.400 --> 00:08:38.000 There are a couple things that you can do the primary one is that you can email your landlord and ask for rent relief 115 00:08:38.400 --> 00:08:42.960 Okay, and so what that means is you should be able to get two to six months of free rent for your landlord 116 00:08:43.200 --> 00:08:48.080 There are a couple ways to structure those deals and I'm going to tell you these right now so that you can tactically do something 117 00:08:48.160 --> 00:08:52.720 All right, the training that we're going to come out with later this week is going to have all these and email templates and all that stuff 118 00:08:53.040 --> 00:08:56.240 But for right now, I just like I'm just going to give you the overlay 119 00:08:56.800 --> 00:09:02.160 One, you can just ask for the free run up front all right and the reason that you have leveraged there is because most 120 00:09:02.720 --> 00:09:03.680 um 121 00:09:03.680 --> 00:09:10.560 Most leases have clauses that are active God or force measure of clauses which means force major if you're saying it differently, right 122 00:09:10.880 --> 00:09:14.560 clauses means if there's something crazy that happens you can get out of a lease now 123 00:09:15.040 --> 00:09:18.400 Coronavirus is something that would cause and jump to relieve to your you know 124 00:09:18.960 --> 00:09:22.720 Huge damage to your business and you can make a very easy argument that that's what it'd be now 125 00:09:23.200 --> 00:09:27.760 A landlord is probably not going to be able to find another tenant for the next four to six months and they would like to keep you 126 00:09:28.000 --> 00:09:29.760 And so you have to understand where you have leverage 127 00:09:29.920 --> 00:09:34.320 All right, they're not going to find someone else and so giving you three months four months of free rent 128 00:09:34.480 --> 00:09:40.080 So that they can keep you as a tenant is something that a lot of them will be willing to do number one number two 129 00:09:40.080 --> 00:09:44.400 How do you structure that one is they can just give it to you and they can subtract it from the lease 130 00:09:44.480 --> 00:09:48.560 Number two is they can literally just push the lease forward so you basically add another 131 00:09:48.960 --> 00:09:52.240 You know three to six months to your lease at the end where you're going to be paying for that 132 00:09:52.320 --> 00:09:56.960 So your total lease value stays the same you're just pushing out some free months during this gap period 133 00:09:57.120 --> 00:10:00.320 All right, that's one way of structuring the deal the other way of structuring the deal 134 00:10:00.400 --> 00:10:06.080 I mean, there's many another way is taking that amount and depending on how much time you have left in your lease 135 00:10:06.080 --> 00:10:09.040 If you have like three or four years left you can take that time 136 00:10:09.840 --> 00:10:13.920 And amortize it which just means spreading it across the rest of the duration 137 00:10:13.920 --> 00:10:18.560 So if you want to take like let's say let's say your rent was two thousand dollars a month and you're getting three months free 138 00:10:18.560 --> 00:10:23.920 That would be six thousand dollars you take six thousand dollars you divided over 48 months if you got like four years left 139 00:10:24.000 --> 00:10:29.280 All right, and so it would it would be a significant amount cheaper it might be a couple hundred bucks a month more 140 00:10:29.920 --> 00:10:35.920 After this is through all right, so that's that's what amortizing it over over the lease looks like and the other thing 141 00:10:35.920 --> 00:10:39.680 You can do is combine it right be like listen. I need I need six months all right 142 00:10:40.000 --> 00:10:43.200 I'll tack three months on the end and give me three months amortized 143 00:10:43.760 --> 00:10:47.040 Right, and so you can combine these things so that you can get more free rent 144 00:10:47.280 --> 00:10:51.360 Okay, because you need that right now because you're not using the facility and you're not allowed to 145 00:10:51.760 --> 00:10:55.200 Right, and you can make that argument to any landlord and if they're in any way reasonable 146 00:10:55.920 --> 00:10:57.920 They're gonna they're gonna work with you all right 147 00:10:57.920 --> 00:11:03.120 So step one stop the bleeding transition people to remote training as fast as seemingly possible 148 00:11:03.600 --> 00:11:06.400 Create the training system that you have no we already have that in hybrid 149 00:11:06.400 --> 00:11:13.040 We already released that in remote for our guys and on later this week. We're gonna release it to to everyone else so that we can help the industry out all right 150 00:11:14.640 --> 00:11:20.560 The second thing is that you can cut your overhead which with the least thing that I just said you can also look at SBA relief loans 151 00:11:20.800 --> 00:11:21.760 um 152 00:11:21.760 --> 00:11:23.760 It's gonna be like three and a half percent of people are gonna get it 153 00:11:23.760 --> 00:11:26.320 But that's still one in 33 you should still take the shot all right 154 00:11:26.320 --> 00:11:32.480 It's 50 billion that gonna be putting in pumping into the economy and most people qualify for like five grand to 2.5 million 155 00:11:32.480 --> 00:11:38.320 So you can go for apply for that all right the third piece which is the exciting piece is you need to fill the bucket back up 156 00:11:38.480 --> 00:11:41.200 All right, so that's where you're gonna run advertisements 157 00:11:41.520 --> 00:11:47.120 Yes, you're gonna run advertisements why because impressions are cheaper than ever right now and people are all on their phones 158 00:11:47.200 --> 00:11:48.880 So that means that there's more attention 159 00:11:49.040 --> 00:11:52.560 There's more ad space than ever before and it's cheaper than ever before 160 00:11:52.880 --> 00:11:56.720 So the people who capitalize on this are going to make a lot of money all right 161 00:11:56.720 --> 00:12:00.400 So you have to remember that so with every every panic there's always opportunity 162 00:12:00.640 --> 00:12:04.240 So I don't want you to lose your minds over this you're gonna lose some cancellations. Okay 163 00:12:04.800 --> 00:12:07.360 Prepare yourself emotionally. It's going to happen all right 164 00:12:08.000 --> 00:12:09.200 But 165 00:12:09.200 --> 00:12:11.200 You're going to have a way to get it back 166 00:12:11.200 --> 00:12:14.640 All right, you're going to have a way to get it back and that's everything that we're focused on at gym watch 167 00:12:14.800 --> 00:12:18.640 As like I said, we need a complete solution. I can't just give you partial solution and say 168 00:12:19.840 --> 00:12:25.200 Transition everyone pray to God and hope for the best. It's not going to work right and that's all we're doing at gym launch 169 00:12:25.520 --> 00:12:31.280 Since the first announcement last week for seven days our entire development team is working around the clock 170 00:12:31.440 --> 00:12:35.920 Like truly around the clock. They're taking shifts to get Alan so that it could generate 171 00:12:36.880 --> 00:12:43.680 remote appointments for people so that you can spend less time doing anything but selling and fulfilling 172 00:12:44.080 --> 00:12:48.640 Right, so if your team can do the fulfillment you can do the selling and then the marketing can do the marketing 173 00:12:48.880 --> 00:12:51.440 And that way you can still continue to cash for your business 174 00:12:51.840 --> 00:12:57.760 All right, and hopefully you might end up on the other side of this thing with a very large remote business 175 00:12:57.760 --> 00:13:03.680 And then you'll have decisions to make about what you want to do because if you have 20,000 30,000 in recurring remote customers 176 00:13:04.800 --> 00:13:06.800 You might just want to stay out 177 00:13:06.800 --> 00:13:08.560 Something to consider all right 178 00:13:08.560 --> 00:13:11.360 But this is going to fundamentally shift the way consumers buy 179 00:13:11.520 --> 00:13:15.280 It's going to bring online training and remote training far more to the forefront 180 00:13:15.440 --> 00:13:18.720 Giving cards over the phone getting remote training for a few hundred dollars a month 181 00:13:18.720 --> 00:13:21.360 It's going to be far more commonplace and a lot of people may end up liking it 182 00:13:21.440 --> 00:13:25.520 They might like the one I want attention. That's why it is an industry already. All right, so 183 00:13:26.320 --> 00:13:28.160 All that to say 184 00:13:28.160 --> 00:13:32.000 Keep your heads about you and the one thing I can leave you with from a mindset standpoint is 185 00:13:33.440 --> 00:13:35.440 You're going to tell a story 186 00:13:35.760 --> 00:13:37.760 About what you do right now 187 00:13:38.080 --> 00:13:44.400 The next few months are going to be telling and they're going to tell the story of who you are and who you choose to be 188 00:13:45.200 --> 00:13:46.720 And so 189 00:13:46.720 --> 00:13:48.880 I would think deeply about 190 00:13:48.880 --> 00:13:55.040 Who that person that you want to be is because this is where like this is where this is where diamonds get made 191 00:13:55.440 --> 00:13:59.360 And these are the moments that you will be able to look back on and be like I made it through that shit 192 00:13:59.360 --> 00:14:05.680 I can fucking handle this right and it like you will have every rational reason to give up 193 00:14:06.400 --> 00:14:09.680 The reason the Navy sales training is so hard is not because one day of it's hard 194 00:14:09.920 --> 00:14:13.920 It's because they have to do it every single day and it's voluntary 195 00:14:14.080 --> 00:14:17.680 You can leave it anytime and that's how business is and right now 196 00:14:17.680 --> 00:14:22.320 It's about to get hard and the people who don't have the willpower are not going to make it 197 00:14:23.040 --> 00:14:24.320 Just telling you 198 00:14:24.400 --> 00:14:30.720 But the people who do will have a story that they will be able to tell themselves that will create the identity of the person 199 00:14:30.720 --> 00:14:35.520 They want to be and reinforce that because that story of who you really are 200 00:14:36.000 --> 00:14:42.480 We'll stick with you far beyond this moment. All right, so this is an opportunity for you to prove to yourself about who you are 201 00:14:43.120 --> 00:14:44.800 All right, it's going to be a lot of work 202 00:14:45.840 --> 00:14:50.080 It always is but there's going to be a lot of opportunity for the people who keep their eyes open 203 00:14:50.320 --> 00:14:52.320 Okay, so keep your eyes open 204 00:14:52.560 --> 00:14:55.440 Do as like work as hard as you can to keep the people you got 205 00:14:55.920 --> 00:15:02.080 We're working as hard as we can on the back end to get this acquisition system so that you can fill it fill your gym up right through the remote training 206 00:15:02.480 --> 00:15:06.240 Which by the way is much my higher profit model to begin with 207 00:15:07.040 --> 00:15:10.800 Because if you had 200 customers a 200 dollars a month remote training and you don't have sessions 208 00:15:10.800 --> 00:15:13.200 You have to pay for and you don't have rent that's a better model 209 00:15:14.160 --> 00:15:16.320 Which is the whole argument for hybrid eight months ago, but it's okay 210 00:15:17.440 --> 00:15:19.920 Now everyone's ready. So anyways, I just will say 211 00:15:20.720 --> 00:15:24.800 All of you all we're going to do everything in our power like truly everything in our power 212 00:15:25.280 --> 00:15:27.280 I believe that we're going to do it 213 00:15:28.320 --> 00:15:31.040 And we're going to accomplish the objective because we have the skill set 214 00:15:31.360 --> 00:15:33.280 We have the resources and we have the motivation 215 00:15:33.760 --> 00:15:36.880 And so there's no reason for me to think in any way that we can do it 216 00:15:36.960 --> 00:15:39.680 So we will we already have I would say if we're going to give an estimate 217 00:15:39.680 --> 00:15:41.280 We're probably about 80% of the way there 218 00:15:41.280 --> 00:15:42.800 We're just putting the finishing touches on 219 00:15:43.600 --> 00:15:45.120 And we should have a live later this week 220 00:15:45.200 --> 00:15:47.920 So anyways guys love you all hang in there 221 00:15:48.640 --> 00:15:51.280 You can fucking do this all right. I'll see you guys in their side