Gyms have traditionally relied on memberships to drive revenue. You know the drill: sign up new members, collect monthly fees, and remind them when it’s time to renew. This model might keep the lights on, but you’re almost certainly leaving money on the table if memberships are your only focus.
The fitness industry quickly evolves as new technologies emerge and customer expectations change. Take advantage of these trends and grow your bottom line by expanding your products and services. This guide covers eight essential gym revenue streams to diversify your business and maximize profitability.
Are Gyms Highly Profitable?
Under the right conditions, gyms can earn lucrative profits. RunRepeat estimates the average gym revenue in the United States is $846,827.
Several factors can impact a gym’s profitability, including:
- Customer retention rate
- Equipment maintenance
- Geographic location
- Marketing
- Number of members
- Pricing
- Types of services offered
For example, gyms in densely populated urban areas can attract more members and earn more money than those in rural small towns. Similarly, gyms offering trendy classes like wall Pilates will likely earn higher revenue than businesses with traditional workout options.
Additionally, the fitness industry is still recovering from the effects of the COVID-19 pandemic. According to Statista, the fitness, health, and gym club industry’s revenue in the United States was $45.4 billion in 2019. In 2020, revenue declined steeply to $30.4 billion, with projections showing only a slight recovery to $30.8 billion by 2023.
While the industry is recovering slowly, interest in virtual services has soared. Statista predicts that the digital fitness market will generate $20.87 billion in 2024 and grow by 4.85% annually between 2024 and 2028.
What Is the Highest Gym Revenue?
Popular franchises earn the highest revenue. These profitable gyms have name recognition and many locations across the United States. They also typically have multiple revenue streams.
LA Fitness is one of the top-earning fitness businesses. In September 2023, the company reported a trailing 12 months (TTM) revenue of 2.09 billion. This franchise offers gym memberships, group fitness classes, and personal training.
Planet Fitness is another highly successful gym. In 2023, the business earned $1.1 billion in revenue, a 14.4% increase over the previous year. Planet Fitness offers a $10 monthly membership, customized workout plans, and personal training sessions.
Top 8 Revenue Streams To Boost Your Gym’s Profits
Follow in the footsteps of high-earning companies like LA Fitness and Planet Fitness by developing additional revenue streams. Here are eight ways to diversify your business model and increase your profits.
1. Membership Sales As the Foundation of the Total Revenue
Gym memberships are a staple source of revenue for many fitness businesses. They generate steady and predictable income throughout the year. Memberships also let you build lasting relationships with your customers.
Boost sales by creating a broad range of memberships to suit different customers’ needs. For instance, you can have monthly, quarterly, and annual memberships. Additionally, many gyms offer daily punch cards that clients can pre-purchase if they’re not ready to commit to a membership.
Special promotions can also increase membership sales. Consider offering holiday sales or exclusive discounts for new customers. You can also build community goodwill with special rates for first responders, teachers, or students. These marketing initiatives can attract new clients and strengthen your brand reputation.
2. On-Demand Fitness Content Offerings To Attract More Customers
Clients don’t always feel like attending in-person classes at specific times. Maybe they’re having trouble sleeping and want a 2:00 a.m. yoga workout to calm their mind. Or they need to fit in a quick exercise session during their toddler’s nap or between meetings.
Cater to your customers’ diverse needs with on-demand fitness content. Here are a few examples of online materials you could offer:
- Cooking demonstrations for nutritious meals
- Guided meditation videos
- Live wellness webinars
- Pre-recorded fitness classes
- Stretching routines
- Video tutorials for specific exercises
This content empowers clients to work out and learn about wellness on their schedules. They can customize their routines based on their interests and goals, increasing customer engagement and retention.
This option also lets you generate passive income. You can sell individual content as one-time purchases or offer subscriptions to a library of resources. As you expand your content catalog, your revenue will steadily grow.
3. Fitness Challenges and Events To Increase Gym Sign-Ups
Build a stronger community and entice potential customers with interactive fitness services.
Fitness challenges invite members to compete to improve their health and meet specific goals. For instance, you could organize a weight loss challenge every January to help customers shed those extra holiday pounds. You could also create a leaderboard for members who attend the most classes or lift the heaviest weight.
Special events can also generate extra revenue and grow your community. Consider organizing a fun obstacle course race or a goat yoga class. These events can draw in new members and reengage existing ones. They also give you plenty of opportunities to create unique content for social media and attract a wider audience.
4. Personalized Training To Increase Yearly Revenue
In 2023, the personal training industry generated $14 billion in the United States. Tap into this lucrative market by adding personal training services to your gym business model.
Start by identifying your target audience and tailoring your personal training services accordingly. Here are a few types of sessions you could offer:
- Introductory training for beginners who need help learning to use the equipment
- Wedding training to help brides- and grooms-to-be get in shape for the big day
- Recovery training for seniors recuperating from injuries and surgeries
- Hybrid meditation and workout training for busy people who need to unwind
These customizable services will help you stand out from competitors and address your customers’ unique needs. Offer them in-person and online for further revenue diversification.
5. Small Fitness Equipment and Other Products and Accessories
Selling products is one of the easiest ways to diversify your revenue streams. Partner with retailers and fitness suppliers to sell complementary equipment at your location and through your website.
Say, for example, you own a rock climbing gym. You could partner with a climbing equipment manufacturer to sell chalk bags, harnesses, ropes, and other essential gear. Additionally, you could collaborate with a local T-shirt printer to sell shirts and sweaters branded with your company logo.
Merchandise sales can boost your gym’s profit margin with minimal effort and time compared to other methods of generating revenue. These products let clients easily upgrade or replace their gear, improving their overall experience.
6. Referral Programs To Acquire New Customers
Almost 90% of people trust word-of-mouth recommendations from their friends and family. Gym owners can tap into this powerful marketing strategy by creating referral programs.
Offer rewards for current customers who refer new clients to your fitness center. Here are a few potential incentives:
- Cash rewards
- Complimentary personal training sessions
- Exclusive discounts at the gym store
- Free branded sweatshirt or yoga mat
- Gift cards
Referral programs can generate new leads and boost sales. They also engage customers by allowing them to actively shape your gym community.
7. Corporate Fitness Packages for Employees
Corporate fitness has become one of the hottest industry trends as businesses focus more on employee health. The global corporate wellness market will probably double from $70.12 billion in 2022 to $146.7 billion in 2027.
Seize this opportunity by creating corporate fitness packages. These services promote healthy habits in the workplace. Corporate fitness packages may include:
- Access to your gym facilities
- Customized workout plans
- Educational workshops on burnout, sleep habits, stress reduction, and other topics
- Meditation sessions
- Nutrition counseling
- On-site or online classes
- Personal training sessions
- Workplace fitness competitions
Develop several packages at varying prices to cater to a broad range of businesses. You can also provide additional services for one-time fees, such as team-building activities or wellness events.
8. Nutritional Plans From Hired Certified Dietitians
Offer nutritional services to help your clients fuel their bodies effectively. These resources teach them how to improve their eating habits and reach their fitness goals.
Hire certified dietitians to deliver online or in-person nutrition consultations. During these sessions, the dietician will assess customers’ dietary needs, overall health, and preferences. They will then use this information to develop personalized nutrition plans.
Nutritional consultations diversify your revenue by making your gym a one-stop shop for customers. They can get meal plans, personal fitness coaching, and other wellness services in one convenient location. This comprehensive approach can increase retention and overall customer satisfaction.
The Easy Way To Implement On-Demand Fitness To Increase Revenue
The days of gyms only selling annual or monthly memberships are long gone. Modern fitness centers must create multiple types of revenue to succeed in this competitive industry.
Expand your offerings quickly by partnering with Fitness On Demand. We offer top-notch digital fitness solutions for gyms and health clubs. Our customizable Flex App gives members access to over 1,200 virtual fitness classes at the gym or home. Plus, our Digital Signage and Broadcast TV solutions can be used to promote your business’ additional revenue sources.
Schedule a free demo today to learn more about how Fitness On Demand can help you maximize your profits and engage members.
Author
Luke Miska
Luke Miska is a results-driven business management visionary with a stellar record developing operationalizing strategies, experiences and measurable results that engage teams and customers to lead healthier lives. He leverages his passion for customer-centric strategies and aligns goals between customer needs and organizational priorities, catalyzing business success.
