About Madlab Business
Welcome to Madlab Business where we help gym owners and coaches radically transform their businesses and unleash their full earning potential.
At Madlab Business, we believe that innovation, mentorship, and proven, repeatable systems are the driving forces behind successful gyms and coaches.
Madlab was founded in 2004 by Craig Patterson, an engineer turned fitness pro who was frustrated by the conventional sales and retention methods that were stifling the industry. He set out to create a business plan and a data-driven model that would inspire and empower gym owners and coaches to make real money while professionalizing the industry.
He then tested and proved his model on his own gym - The Madlab School of Fitness, which now boasts over 1 million in annual revenue.
Fast forward to 2023 and the Madlab team has taught this model to over hundreds of gym owners and coaches worldwide.
There are no gurus at Madlab Business; there are only experienced gym owners who have taught and mentored hundreds of other gym owners and coaches how to play the long game.
A LITTLE MORE ABOUT THE MADLAB STORY
Madlab Founder Craig Patterson, spent ten years living in a basement apartment, working 6 days a week with his coaches and best friends to figure out a business model where the clients didn’t leave, the coach could make $100,000 a year and the gym owner can earn 20% profit, reduce their headaches and have a passive income stream for decades to come.
Then, for the next ten years, he worked with his wife and global team to ensure that Madlab’s business system could be repeated by gym owners and coaches regardless of location or market size.
Here’s what Craig figured out (so you don’t have to) :
How to keep clients for life– Madlab School of Fitness 80% + yearly retention rate. (Industry average is 30%)
How to increase average client value – more than $350 per month (personal plus medium group).
How to properly compensate and retain coaches – coaches earn $80k - $120k per year, work less than 30 hours per week and have 5 weeks of paid vacation. Madlab Has 3 Coaches who have been with us for over 17 years, 3 coaches over 10 years and 2 more for more than 5 years.
How to be consistently profitable long term – Madlab has made 17- 23% EBITA for the past 15 years.
How to break down the math and the business plan in simple actionable steps -
Madlab got accredited as a college in 2015 after a 7 year qualification process.
How to level up without deep pockets and a huge marketing budget – Madlab School gets 70 % of its new clients from direct referral and does not rely on paid marketing.
TRIED, TESTED AND CERTIFIED
Seven Years Of Trial And Error.
2004 - WE NEED A BETTER WAY.
Madlab School of Fitness made all the same mistakes most gym owners make early on.
We focused on getting people through the doors as fast as possible and thought that being the best gym in town just meant offering the most intense workouts.
There were no metrics, and there was no data. We knew this needed to change.
2011 - APPROVED LEARNING.
As we honed in our client development process and coach compensation system, gyms from all over the world began inquiring about how Madlab School of Fitness was producing the results it was.
We wanted to share this information with as many people as possible.
This led to the creation of The Madlab Business Group and our accredited courses.
In Depth Harvard Study.
2015 - SCIENTIFIC RESEARCH.
After a one-year alpha study examining seven gyms, we followed that with a beta study of 33 gyms and a gamma study of 55 gyms.
These results were interesting enough for a Harvard MBA to conduct their own research and complete a six-month study examining metrics such as total revenue, profit and coach pay to name a few.
1600 Gym Meta Study.
In 2015 Zen Planner commissioned an 18 month, 1600 gym meta-study. We compared average client value and retention rates among 1,600 CrossFit affiliate gyms, Madlab’s flagship gym and the 80 Madlab gyms in our network at that time.
We found that implementing Madlab's nine laws not only produces more profit but leads to a higher client value and the best retention rates on record.
Madlab informs, educates, and empowers gym owners and professional coaches on how to build ethical and sustainable gyms and careers that serve the owner, the coach and the client.
THE PILLARS OF MADLAB GROUPS APPROACH
The Nine Laws.
SIMPLE YET EFFECTIVE.
Madlab's nine laws ensure that the business owner is successful in their endeavours, but they also provide coaches with an opportunity to have a lifelong career in the fitness industry.
The nine laws also ensure that the members in your gym are always on the winning side by providing them with the best coaching and training possible.
When push comes to shove, understanding and implementing Madlab's nine laws will take any fitness business to the next level.
Our Flagship Facility.
How do we know the nine laws work?
How do we know that the six KPI's matter?
We have been using them and honing them for the past 17 years at our flagship gym, Madlab School of Fitness.
Having a facility that lives and breaths everything we preach is why and how we can give no-nonsense, real-life examples of how we can help you change your life and change your business.
We aren't gurus; we are gym owners just like you.
THE NUMBERS RARELY LIE.
Madlab's six KPIs ensure that the nine laws are being utilized and producing results.
Tracking the data and knowing your numbers is critical when it comes to running a successful business. Understanding trends, setting goals and constantly reevaluating what is working and what is not is easier when concrete information is available.
The MADLAB Foundation
9 Laws – the business model that allows you to succeed!
Law #1: The client’s intro day should be done in a one-on-one setting with one coach, and by appointment only – watch here
Law #2: Fundamentals should be administered as personal training (generally, 12-18 sessions depending on the client) watch here
Law #3: Each client needs a consistent coach for life in their corner, a coach who knows their strengths, weaknesses, goals, priorities etc. watch here
Law #4: Hybrid memberships—aka a combination of group classes, personal training and in some cases individual design—is the most effective way to retain clients' long-term. watch here
Law #5: In order for coaches to become professional coaches, they should go through a formal, practical coach development process that includes a true mentorship process. watch here
Law #6: In order to earn a professional wage, coaches need to be compensated based on performance (meaning their ability to bring on and retain clients) watch here
Law #7: A coach co-op (such as at a law or engineering firm) allows for coaches to work a sustainable number of on-floor hours, avoid burnout and be able to take paid vacation each year. watch here
Law #8: For long-term sustainability, the business needs to earn a minimum of 20 percent annual profit (EBITDA) watch here
Law #9: (optional): If the above eight laws are followed, it’s possible to create a turnkey asset, where the business can run smoothly without the owner. watch here
Madlab School of Fitness
Why Choose Madlab Business?
With almost 2 decades of experience in the industry, we have a proven track record of helping gym owners and coaches succeed.
We are passionate about innovation and numbers. We constantly strive to stay ahead of the curve and embrace data-driven solutions.
We take the time to talk to you and understand your specific needs so that we can curate the best tools and support team to meet your goals and objectives.
Our ultimate goal is to help you achieve real results. We measure our success by your success and work tirelessly to deliver measurable outcomes.
Long Term Success
the Commercial Gym Model is Broken which means unless you do things differently, your business is set up to fail.