MADLAB’S TRULY REVOLUTIONARY SYSTEM: THE 9 LAWS
2004-2006
Typical Commercial Model.
From 2004 - 2006 we ran Madlab School of Fitness, pretty much like gyms of its kind had been run for decades and still are today:
- Pay coaches by the hour for group classes
- Pay coaches a % for Personal training and other “add on” services
- Put as many people as you can into a group class
- Try to upsell them on personal training
- “Onboarding” consisted of 3-12 group “fundamentals sessions.”
Over time the major problems with this model became painfully obvious:
- Too many people left the gym.
- The coaches were not directly incentivized to retain them, and it was “ownership’s problem.”
- Finding new clients became “ownership’s problem.”
- Group classes had far too many “untrained” people, creating chaos and a dumbing down of the product.
- “Upselling” was a secondary focus for the coaches after working 15-20 hours of group classes, they were too bagged to “Upsell.”
- If a coach took a vacation, they were paid nothing.
The coaches could not make enough money to thrive. - The owner was working way too many hours for not enough money.
2006-2013:
Madlab Prime Directive Is Created.
Slowly in 2006, we started to change things to address the problems we encountered. First, we decided on a Prime Directive to morally guide all our decisions. Every decision had to be a win for:
- The clients
- The coaches
- The gym owner
Then we set up a system to measure how each party was winning or losing.
For the clients, we measured
- Retention (%)
- Average client value ($/client)
For the coaches
- Dollar per coach hour ($/hr)
- Total coach pay ($)
The gym owner
- Profit (EBITA)
- Business Value (5 X EBITA)
This was a big trial and error, data-driven, scientific experiment to find out what worked and what didn't.
First, we tackled the client onboarding process and scrapped the group on-ramps and went to 1 on one sessions.
Retention went up
Average client values went up
Then we took one coach and changed the coach compensation model. Then we took another coach and then another. By 2009 we had a team of 4 full-time coaches working in a coach co-op.
These coaches made over $70,000 a year (with one making over $100,0000), got 3-4 weeks of "semi" paid vacation, and worked fewer than 30 hours a week on the floor.
We needed a way to streamline and refine the Coach development process and further explore and refine the coach compensation model and coach co-op. We underwent a rigorous 2-year process to become a registered college for professional coaches.
Then we decided to try to figure out how to teach other gym owners and coaches how to implement all the changes we had done for ourselves. We did a 1-year Alpha study of 7 gyms in 2013, followed by a Beta study of 33 gyms in 2014 and a Gamma study of 55 gyms in 2015. Then we had a Harvard MBA do a 6-month study on the results these gyms were achieving.
What He Found Was:
- Gross Revenue went up 55% (from $13,000 to $21,000 per month)
- Profit went up 120% (from $1,800 to $3,800 per month
- Coach Pay went up 80% (from $2,200 to $4,000 per month)
- Gym Owner hours on the floor went down 40% (25 to 15 hours per week)
2013 And On:
Data Driven Results.
By 2015 others became very interested in our little scientific project, and Zen Planner commissioned an 18 month, 1600 gym meta-study. We compared average client values and retention rates among 1,600 Crossfit Affiliate gyms, Madlab’s flagship gym and the 80 Madlab gyms in our network. The results of this study showed:
Retention rate:
- CrossFit affiliates: 25% per year
- Madlab gyms: 60% per year
- Madlab School Of Fitness: 80%
Average client value:
- Crossfit affiliates: $120
- Madlab gyms: $199
- Madlab School Of Fitness: $217
Average Client lifetime values:
- Crossfit affiliates: $1,737
- Madlab gyms: $5,341
- Madlab School Of Fitness: $10,911
Without a doubt, Madlab’s data-driven and results-oriented system outperform the old typical commercial model.
The system follows 9 “Laws” that we uncovered in our nearly 2-decade long search for what works in a gym and what doesn’t.
It is truly a revolutionary system that can and will transform fitness, health and wellness.
HOW WE SUPPORT YOU.
Webinars & Masterclasses
HEAR OUR STORY AND LEARN BEST PRACTICES
Want to hear it from the horse's mouth?
Our webinar series is the place for you.
Learn how Madlab came to be, who we are and why we value honesty and integrity over everything else.
Cost: Complimentary aka FREE!
The Math and Fundamentals
SELF-DIRECTED LEARNING AT YOUR OWN PACE
Still looking for more info?
Our Math and Fundamentals course is the perfect learn at your own pace online course. This course will give you a deep dive into Madlab's nine laws and our six key performance metrics (KPIs).
Cost: $299 USD
Get Started
DIVE RIGHT IN, JOIN THE MADLAB COMMUNITY
Are you ready to learn how to implement the Madlab system and use the Nine Laws to take your facility to the next level?
Book a call to get started building the best gym in town for you (the business owner), your coaches and your clients!
Cost: $3500 then ongoing monthly payments of $59 graduating to $299 then to $249 USD.
1980 Clark Drive
Vancouver, BC Canada
V5N 0A9
info@madlabgroup.com