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Guys, happy Tuesday, one day after I asked you guys for some questions and so thank you so much for

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giving me the amount of time that it took you to write the questions I would try. I don't know

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you, but I give you good answers. So there were a few different lines of questioning that appeared

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on the video that I made yesterday and so I'll probably answer three or four at a time per video

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just depending on what kind of line or bucket it kind of fit into. And so the first one that I

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wanted to or the first four that I wanted to kind of address were from Wil Hamilton,

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Mani Larris, Jesse Kudelano, and Alex Morningstar because they kind of fell into the same bucket

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under my, you know, understanding of it. And so Wil Hamilton asked, how would you make this work

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for how do you make challenges work for a PT first CrossFit studio? Jesse asked how you do this

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if you wanted to run this online and sell online and then Alex Morningstar asked how you can do

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this if you had a Muay Thai studio. So I'll just address your first and then I'll address Mani's

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for Wil Hamilton and those of you who have a PT first box, right? What's up Tyler? That's actually

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really like I don't really know why there's even a hang up with it. Like a six week challenge is

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literally just a front end. Whatever you want to do on the fulfillment side is up to you. So I

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mean we've had semi-private studios that just run, you know, two times a week, semi-private sessions

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for six weeks so they get 12 sessions for 600 or 800 or a thousand dollars that they run on the front end.

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So it's entirely up to you in terms of what you want to use for your fulfillment mechanism. The

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point is that we're just getting them in the door so that we can provide great service. And that would

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I mean I don't even see an issue. The main I guess constraint for you is just that you're not

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going to be able to take as many on but you've already said that that's kind of what you want to do

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anyways is not take too many people on it once. So don't take too many people on it once. You know

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what I mean? Like that's entirely your prerogative and it would work seamlessly just the same way.

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So if you're if you're just comfortable starting with two or four new PT people a week and start with

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two or four new PT people a week if you're selling it at 800 bucks a pop you know and you do four of

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them it adds an extra three grand a week so it's an extra 12 grand a month you know what I mean

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just on the front end and then you can transition back to CrossFit on the back in the exact same

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way we transition everyone else to CrossFit or large group whatever on the back end. I mean there's

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really no difference it's just a question of whether like you have the capacity but that's always

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going to be your business problem no matter what if you want to lead with PT which is fine. It's

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you're limiting your inflow which is cool so but that's your choice and really doesn't have any

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effect on the acquisition process that's just a fulfillment thing. So we'll hopefully that answer

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your question if you have any more problem below happy to talk more about it because I love talking

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about this stuff. So Jesse Patelano you said could you work could this work with online? It

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probably could but that's not my that's not my wheelhouse not that I couldn't do it we obviously

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haven't online business it's just that I don't recommend people have two things I speak out

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pretty adamantly against the whole hybrid model because I think what ends up happening is that

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you chase two rabbits and you catch neither. I don't think split focus makes anyone any money

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ever. The only people that I see who actually run multiple businesses successfully are usually

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doing a hundred million dollars more or more in revenue where they've actually got into the point

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where they've been executive team and then underneath them they have managers and they have

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frontline employees but if you're like I'm trying to start two things at once one of them

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is going to work it never works so let me like hopefully save you that time you should just

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use it in your local market crush it because it already works you know like the systems end to end

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and it's just flat out work so I would just do that rather than try and do it online and then

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introduce more variables because everything seems attractive until you get into it so you get it

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uh there's a there's a beautiful like curve of uninformed optimism first so right now you're

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uninformed and optimistic and then becomes informs pessimism and then you have the value of despair

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and then you have informed optimism and then you have the realization of the goal but most people

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don't make it past informed pessimism or value of despair so um my recommendation is to not

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to do that is to just focus on the local market that you're in and crush it that way um

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Alex Morningstar you had a you have a twelve hundred and a twelve hundred square foot

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facility from wartime and the question was just how do you how do you get how do you start a

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challenge without disrupting your current member experience um it really depends on so first off

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it's a it's a big strategic question in terms of whether you want to introduce a fitness component

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to your facility and that is a you question um I like fitness and transformation aspects because

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it's easy to sell there's a huge demand for it in the marketplace um and it's high value a lot

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of people value changing the way they look um in a very short period of time especially initially

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and then they get bought into the process etc on the community um so that's really a you question now

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if you said okay I I would like to do that I do want to introduce um you know a fitness component

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to my facility so I can satisfy two needs then I get two different frontends some people want

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self-defense and confidence and other people want weight loss and then we can process which we

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have tons of facilities that do that that's just a choice that you have to make um but in terms of

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if you have a twelve hundred square facility um there's two alternatives one is that you introduce

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a fitness component to your um why-tis sessions um so like maybe the first 30 minutes or so is

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is kind of conditioning work and then the second 30 minutes of skill work which is fine a lot of

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people just see that as an added benefit um or the alternate would be that you have like conditioning

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sessions that only the people who are in the challenge would have access to but I see that as sort

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of a more limited model um the people who are going to have the most access to the ones who really

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like incorporate into how they do their fulfillment on a larger scale um and especially since you're

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limited by space that would have to be because like you're not going to really start another like in

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my opinion because what would happen is this if you started it you'd start one session and then

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you start one session a a it'd be kind of a pain in the butt to fill um but you could do two one

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in the morning one at night um the thing is it's like you're you're gonna make more in the first

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week running our thing then you've done from your entire my-tis studio and then you're gonna be like

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holy shit I'm gonna be doing this like now and so then then you're gonna confront the fact that

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you want to change the strategy because make way more money so it's that's what's going to happen if

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you do choose to do that um but again it's your call um it's your business and it's it's whatever

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you want it to do so um I hope that that kind of answer the question but from a logistics standpoint

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starting with one of the morning one at night um you only have enough room for

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for one session so it's like for me if I really wanted to do a purpose I would just do a specific

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amount of time during the session that would be for fitness and then follow it up with conditioning

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and that could be a nice added bonus of a nice sales point um the last question was from

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Manny Lars um who asked um what happens when like if there's other people in my area that we were

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doing uh gym launch which is like a common obstacle overcome that we have in our sales group so

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I will tell you what we've got some markets we got 20 gyms right um and yet they all get fed

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and so the reality is that if you look at a marketplace it's not like there's one pie like this

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and then now there's two gyms another four gyms and then there's whatever eight gyms and you're

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cutting this one pie and like less and less and less the route is that there's 400 gyms in your

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market and now you're just going to be one of the eight or one of the ten that's actually crushing

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it and the reality is that if you over-deliver have amazing service have amazing fulfillment really

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care about your customers follow up with them um have events early on to to engage members get

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them into community um then you're going to be a gym that's going to succeed and you're going to

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be a gym that's going to maintain the customers get referrals and then grow from there um and so

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the question that I think you had as a secondary question is what happens if the market gets tired

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of six week challenges right and um hey it's a fair question uh but I think that

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if you look at history from fitness uh like LA fitness has run a free month for like 40 years

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um and so you're as long as you have a mechanism that converts eyeballs into customers walking

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in the door then you're going to be okay um thanks I appreciate it um you're going to be okay

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and the moment it stops working there will be something that works because there will always be

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something that brings people in the door now my personal opinion is that for the 40 years that

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LA fitness was dominating and 24-hour fitness was dominating is because they were the only ones

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were big enough to afford radio buys TV buys big direct mail plays and so they were the only

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ones who even had any promotions that were working on a large scale um the advent of internet

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advertising allowed people to start with a five dollar a budget and so lots of more lots more

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fish could enter the marketplace the other thing that happens that you can test a lot faster

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and so the you know the the the front end promotions that they usually had was for you know one month

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free stuff like you know no initiation fee things like that that they would used to get people in the

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door but the reality is that they probably just never tested a six week challenge on the front end

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because if they had my opinion is that it would have converted better it's just that they didn't

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know because that was not one of the tests that ran now we started running challenges six week

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challenges in 2013 at my facilities so that's five six years ago that we started running those

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and my opinion is that we're just able to test things so much faster that we can run a hundred tests

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within two weeks rather than doing ab split test if you're a really savvy marketer back in the day

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and then have to wait four months to get all the data from your direct mail piece or your

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radio split test right and so if you're looking historically at how people how gyms market get people

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in the door one the average woman diets five times a year you're gonna be getting different eyeballs

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every single time you run a campaign because a different person's light is on at that moment

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to respond to an advertisement the second thing is we want to craft the offer that is going to be

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the one that converts best and so right now I'm a big advocate of have one front end that works the

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best right like right now we haven't changed our free case study for 19 months if we need to change

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it we will but even so it's still going to push straight to a strategy call because that's what's

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worked that's our acquisition system that's worked if we need to change the widget we can

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but at the end of the day if you're a gym you're going to be giving a certain amount of time for

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free right like it's going to be a I mean it's going to be a promotion of it's time right it's

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28 days it's 42 days it's 12 I mean like there's just so much like you're going to be giving

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hey try our service at the bit like if it all boils down to it that's what it is and so if you

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want to have a way of of liquidating that attention right liquidating the amount of time then I

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would suggest that you sell something on the front end that's five hundred to seven hundred dollars

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right when they come in the door will Hamilton earlier said he's got the PT first model cool those

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guys do PT first that's fine you know what I mean if you want to run more volume through your door

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and have more you know a structured process where you can take on 10 15 new customers a week

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then you can run a challenge model way that we have it either way it doesn't really matter it's

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just an acquisition process so hey most in ancient quick break just to let you know that we've

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been starting to post on LinkedIn and want to connect with you all right so send me a connection

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request and note letting me know that you listen to the show and I will accept it there's

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anyone you think that we should be connected with tag them in one of my relay list posts

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and I will give you all the love in the world all right so let's get back to the show

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all that to say if there ever does get to it like one the market is big enough because every single

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day right every single day there's 400 gyms in the market every single day each one of those gyms

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has new people who walk in the door and people walk in the door off of the word amount they walk

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in the door because they googled it they showed up on google maps they walked in the door because

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they googled it and it was a blog post that someone wrote and wrote for SEO it was something they

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heard on the radio it was a direct mail piece it was something saw Instagram it was something

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to sell on Facebook it was something to sell on YouTube the amount of traffic that is out there is

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so much bigger than people are giving credit for it like like I just got a message this morning

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someone's like hey someone's like trying to copy your stuff I'm like dude you sign up 13 gyms

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yesterday we are much bigger and the point is is that there's still still enough market in my tiny

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little sliver of gym owners who are like who are cross put owners boot kick owners a semi-prime

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facility it's like I'm in a niche of a niche of a niche and we're still able to grow to the size of

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we are if you're talking about weight loss like women who would like to lose weight how many women

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do you know would like to lose weight all of them right and so if you have 400 gyms in each one

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of the gyms on average times that 10 new customers a month you're talking 4,000 new people a month

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we're signing up for gym memberships like across a city and our concern is what happens if another

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gym is marketing so what like one more gym is like is gonna be a little bit better than the other

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400 you know what I mean but still at the end of the day that's just gonna be something to get someone

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to try your food and unless your food is good they will not tell your friends their friends and they

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will not get more people in the door for you so um and I mean but the the sad the sad news is

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that no gym no micro gym is really even bigger enough most of the time even in the market aggressively

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for 10 years you know I mean like for five years for anyone's even know who you are right like I

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remember thinking um when I walked when I was ahead united fitness and and and so they call for

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you and I I wanted to be like like on the street like hey do you know united like on the other

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united fitness and people like I don't even know that is and like a telling tale of this and I

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said this before is that um a friend of mine used to launch orange theories and um I said oh that

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must be really easy everyone knows who you know orange theory is and I was like no not really

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and I was like what and he said 9 out of 10 leads that we get off of online advertising get never

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heard of orange theory orange theory and so if you're worried about like how like I hope that

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gives you an idea of how big the market is and how big the pie is and if you're like there's two

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gyms in my area marketing on Facebook so what you'll both get fed or a three of you'll get fed

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or all 10 of you will get fed and it doesn't like that should just stretch your mind in terms of how

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big the pie is if every single like I told you there's 4,000 people there's 400 gyms each

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gym gets 10 people a month there's 4,000 people every single month we're signing up for gyms

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it's just 10 you do you think that you can get 20 of them do you think you can get 40 of them

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of course you can right you just have to know how to market know how to sell know how to have an

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acquisition process and then put this process in place for each traffic vehicle that you're using

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so hopefully that answered will hint to the questions about PT first yes I think you can use that

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as a phone the necklaces for the 6th challenge Jesse Catalano I would not recommend that you do

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this as an online program because I think it will be extraction for you I would just focus on

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the fundamentals of doing what you do because you can make tons of money with gym if you're doing

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right out to Morningstar about my tie that is a fundamental strategic decision for you in terms of

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what you want your facility to be about if you like what will likely happen those if you adopt our

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model you will make a lot more money and then all of a sudden you'll see your like your protective

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will change but like I tell that you go through that experience on your own and the many I hope

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that that kind of size of the pie explanation give you a little bit of idea in terms of how big

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the actual pie is what I think about market saturation and the longevity of an offer and at the

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end of the day like what offer is going to beat at least for ours a free six week challenge there

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aren't many and I think that it wouldn't even be giving like well what about a free eight week

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challenge I think that there's magic with six weeks and the reason that I think that is six weeks

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is just long enough that people believe that they can have a huge outcome but short enough that they

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believe that they can achieve it and so I think that's really the balance point with the six weeks free

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just makes it irresistible and challenges are just kind of what seem to be converting right now if

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it turns into something else will change it you know what I mean but like it's flexible

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for the guys who know me like I'm in no way romantic about a six week challenge it just happens

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to be the vehicle that works like or at least has worked for the last five years and doesn't seem

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to be slowing down so I mean and for anyone who's like well I'm concerned of what happens when

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it stops working it's like well there's something that's working right now I don't want to use it

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because it could stop working it's like we'll just do just use it now it's working and then when

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it stops working we'll move to the next thing you know what I mean it's just called being

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adaptive which is just part of the game and if you think that your business is ever gonna just

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gonna have one offer like forever then that's silly because business is dynamic so don't think

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that way because it's not reality it's just like a dream world that we want to have and it's just

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not true but for the while it works so and it has worked for the last five years so I don't think

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it's gonna change like over up to the next six months but anyways guys have an amazing Tuesday I

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hope that answered your four questions and for those of you tuned in I appreciate it um thank

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you much talk to you soon