How Gym Launch Grew From $200,000/mo, to $1.5M/mo Within 7 Months
Summary
- When Gym Launch started, there was a unique combination of factors that led to rapid growth, known as the "lollapalooza effect," where multiple positive cycles reinforce each other.
- Initially, there were very few competitors in the gym guru space, giving Gym Launch a significant advantage.
- Being one of the first to market on Facebook was a strategic timing decision that played a huge role in growth.
- Upon launch, the average gym made $28,000 in the first 30 days from working with us, showing clear and immediate value for clients.
- Our pricing model was structured so clients could see returns before being fully invested, costing them $1,000 to start, then $1,000 weekly after a 14-day free period, fostering trust and commitment.
- Clients experienced a high return on investment early on; after their third payment of $1,000, they typically made $28,000 while only spending a fraction of that on ad spending.
- Gym Launch thus became a "money printing machine," leading to an overwhelming number of referrals from satisfied clients.
- Referrals were a significant growth driver, with the top client referring 52 new clients and the second-highest referring 32, each with a LifeTime Value (LTV) of $30,000, which amounted to substantial revenue.
- Overall, the growth of Gym Launch can be attributed to timing, low competition, effective use of Facebook marketing, a client-friendly pricing model, exceptional client results, and a strong referral system.
Video
How To Take Action
I would suggest looking for an edge in the market you're trying to enter. When I started Gym Launch, there was little competition, and that helped us stand out. If you can find an area with fewer people doing what you want to do, you're already ahead. Then, get your timing right. For us, jumping into Facebook marketing early was a key move.
When you're setting your prices, make it easy for your clients to see the value and trust you. Try a pricing model that lets clients see some results before they pay full price, like we did with a 14-day free period followed by small, incremental payments.
Make sure your service provides more value than it costs. Clients should see a high return on investment quickly. This approach turned Gym Launch into a "money printing machine," where clients made a lot more than they spent.
Finally, use referrals to grow fast. Do great work and your clients will want to tell their friends. Offer some incentive for referrals to encourage even more. Remember, one happy client can lead to many new ones.
So, here's a quick plan for you to follow:
- Identify markets with low competition.
- Time your entry into the market, like being early on new marketing platforms.
- Create a pricing model that allows clients to see value before fully committing.
- Provide exceptional value that yields high returns for your clients.
- Harness the power of referrals by doing great work and encouraging your clients to spread the word.
Do this, and you can see rapid growth, just like Gym Launch did.
Quotes by Alex Hormozi
"There isn't one thing right, it was a confluence of variables"
– Alex Hormozi
"The sum is much greater than the parts"
– Alex Hormozi
"Timing was one of them"
– Alex Hormozi
"We had created a money printing machine"
– Alex Hormozi
"We had referrals out the ass"
– Alex Hormozi
Full Transcript
why why and how did gym launch go from you know 200 000 a month in its first month to 1.5 million within seven months per month right and then 2.2 million four months after that literally just straight through yeah so the simple answer is there isn't one thing right it was a confluence of variables if you look at like uh warren buffett and charlie munger they call it the lollapalooza effect but it's basically when you have multiple kind of flywheels or virtuous cycles that stack on top of each other and then the sum is much greater than the parts right the first big one is that when we entered the marketplace uh there weren't as many there weren't as many gym gurus first off right just right off the bat there weren't as many number two there weren't nearly as many marketing on facebook like we were the first one like one among the first ones uh to kind of come in i think there were two guys i can think of who were marketing before like timing timing right off the bat there was like the biggest timing was one of them right the other piece and timing had multiple components one is the competition right the other piece of it was facebook itself right when we started dude the average gym that worked with us made 28 000 in the first 30 days that was the average not the like half of them did more than that right that's absurd that's absurd right and so as far as their experiences are concerned they pay a thousand dollars to start they get a 14 day like we give them we have 14 days free because they'd have to make the money to make the next next purchase right and then it was a thousand dollars a week after that for 16 weeks so by the time they made their third thousand dollar payment they'd already made 28 000 and paid three watch in an ad spend they'd only spend a thousand bucks so we had created a money printing machine and so yes uh we had referrals out the ass like absolutely like our dad our top our top gym referred us 52 clients our second highest gym referred us 32 clients and those are coaching clients who all had 30k ltv so like i had two guys who sent me like two and a half million bucks like two and we had like a hundred different gyms who referred us business right wow so like that was obviously a big piece of it um i'd say those are probably the biggest ones you