Profit Strategies for MMA Gyms.... #35
- Adrian Dionisio - business737 owner
- Sep 16, 2021
- 15 min read
Updated: Apr 30, 2024
The market size for Martial Arts Studios is approximately $5 billion. As of 2021 MMA is the third most popular sport in the world There is worldwide increasing interest in MMA.
A gym or academy associated with MMA is a business that will only grow due to the sport’s popularity word wide. As long as the correct principles are implemented effectively, it can prove to be an extremely scalable and profitable business, with multiple revenue streams.
Industry research shows the worst mistakes for gym owners are;
· Not marketing your business
· Too narrow a focus
Owners who spend all time training students are neglecting the future of the gym. There has to be a strategic focus on acquiring new students and marketing the business. There have to be profitable strategies to diversify what your business has to offer and adding value for your customer.
This report will outline strategies to make a MMA gym Grow With Accelerated Profit. Remember you are not only running a gym but also a business. To keep going it must be profitable. You have this obligation to your students, your business and to yourself the owner.
Growth & Profit Formula 1 – More Leads
Strategy #1- Digital Marketing
Strategy #2 - Referral Systems
Strategy #3 -Strategic Partnerships
Ask yourself the following questions? Why would people want to join your gym? What are they looking for? What do they want? What problem are you solving for them?
These are the most important thing to communicate in all your marketing activities. This is how you will generate leads, attention and interest. The list below shows the most popular reasons why someone would join a MMA gym, so communicate this in all your marketing activities;
Self-defence & Fighting
Camaraderie
Discipline & Endurance
Lose Weight
Friendship &Bonding
Unity
Challenge
Be part of a team
Exercise
Martial Arts Spirit
Learning
Build Self Esteem
More Leads Strategy 1: Digital Marketing
Digital marketing initiatives can be very effective in generating leads and interest in your business. It is important to have an online presence because it will increase your credibility and authority. Online platforms allow people to stay updated but most importantly they can help you in your marketing activities.
Digital Marketing enables you to reach a much larger audience and target specific prospects who are most likely to use your gym. It is cost-effective and easily measurable, meaning you can make informed decisions and pivot when necessary.
Table 2 shows digital marketing strategies that, when implemented correctly, will help your business to grow with accelerated profit. The aim is to attract and engage prospects.
Search Engine Optimisation (SEO)
Pay Per Click (PPC)
Email marketing
Web site optimisation
Display advertising
Social Media Marketing
Content Marketing
Local Search Marketing
Influencer Marketing
Video Marketing
Voice Search Optimisation
These strategies will Improve your performance on Google Search, enhance your reputations and increase authority in your field. Aim to show the legitimacy of your gym, what kind of establishment it is. Highlight the personality, feel and look.
More Leads Strategy #2 Referral systems
The effectiveness of referral systems depends on the Lifetime Value (LTV) of a client. For example, if the average client brings in $100 month and stays 1 year, then the LTV is $1,200.
A gym owner can estimate what he can afford to give away as a bonus or gift, if a member brings in a new referral. Below are some referral systems. If you implement 3 or 4 of these systematically, you will grow your business exponentially.
1. The best referral system is based on providing the best value and service in your industry. Exceed your customer’s expectations in these two critical areas and people will refer you.
2. When you first speak to a prospective client, say “We promise to do our best to continually exceed your expectations with our gym. When we do, could we count on you to sing our praises to two or three other people you know would benefit from our gym, where everyone is treated as family?”
3. When you sign up the client, ask again for those three referrals.
4. Ask for referrals to every prospect that comes into your place of business.
5. Ask your friends and associates for referrals.
6. Each client you take on must give you referrals as a condition of being a member. They must personally call at least two people and recommend they call you. (This has worked extremely well for numerous 6 figure businesses).
7. Send a gift to a member that refers another member to you. This gets them to think of you more highly than they currently do and it engenders immediate reciprocity. (The paying member has just brought you another paying member, so don’t be cheap, a $50 gift basket or gift card would not be unreasonable).
8. Give referral business cards to every client that comes through your door
Incentivise members to advocate for you and you can see high impact results very quickly. A good tip for referral schemes is to keep them exciting. 10% off renewal by referring a friend or free private classes / customized training programs. Make free class coupons for people to give out (don’t make it too readily available or they will lose value). Many businesses even hold referral competitions where whoever gets the most referrals over 6 months / year wins a trip to the coast or tropical holiday. Make your own motivated and engaged salesforce that works for free!
Also, ask people to review your business on Google. Claim your Google My Business Page and get people to leave reviews because it will increase your search engine ranking – meaning people will see your gym more often when they search for BJJ / MMA gym in your area. Ask them to share training and gym pics, with links, on their social media.
More Leads Strategy #3; Strategic Partnerships
Strategic Partnerships are the easiest and fastest way to grow any business. Look for a business that is not in direct competition with you but has a similar target market. Then partner with them to form an alliance that brings mutual benefits to both parties. Below is a list of potential strategic partners
Yoga Studios
Schools
Healthy Places to eat
Juice Bars
Massage Therapist
Recreation centres
Youth Clubs
Chiropractor
Health Spas
When thinking about potential partners for your business, look for situations that will be win / win for both parties (they always want more leads so offer an easy, cost-free way to give them more business):
a) Offer to endorse their business to your clientele (ask for the same thing in exchange)
b) Offer a special coupon during the close to boost their business
c) Put their brochure in your materials
d) Offer to do a joint mailer where costs go down, but also would allow you wider exposure and more frequent touches
e) Place a compelling offer as an additional insert into each other’s digital marketing campaigns (no additional cost to promote each other)
Think what other businesses does your ideal client use? Possibly a business with similar products or services. Consider companies who can refer you to their customers and you can do the same for them.
Advertise each other’s establishment with fliers, website and on social media. You can also offer discount coupons for their establishment, and they can offer free trial class coupons for your gym.
Growth & Profit Formula #2 – More Transactions
Strategy #1- Additional Services
Strategy #2 - Cross selling
Always look to add value for the benefit of your members and your business. The main source of revenue is membership however additional products and services will increase profits, support current members and attract new ones. It will take growth to a new level;
· Enhance your core business
· Stand out from competition
· Add value
· Generate additional revenues streams
Do not underestimate additional revenue opportunities. They can make huge impact on your profitability and double even triple profits in a short space of time.
Be open to alternative income streams. Additional services and cross selling have massive potential to facilitate growth and increase profits for any business across all industries.
Strategy #1- Additional Services
There are eight main areas where it will be possible to increase revenues by adding additional services. Consider them all because they are all opportunities for grow with increased revenue and profit. See what is the easiest and most lucrative for you to implement.
Offer more services and add more value for your client. Stand out from your competitors and provide a unique and unrivalled experience for your customer.
1. Offer Other Martial Arts Programs (group and private classes)
Muay Thai
Wrestling
Bjj Gi & No Gi
Judo
Sambo
Karate
Kick Boxing
Capoeira
General Self Defence
s
2. Offer other health and fitness related services
Yoga
Gymnastics
HIIT
Cross Fit
Box Fit
Personal Fitness
Nutritional Analysis
Pilates
Cardio
Kick Boxing
3. Offer preschool and postschool programs for children
You can get creative with this to really stand out and provide great service. Some gyms offer transportation from schools, or many local gyms get schools to pick up and deliver children. Some schools combine an after school program with tutoring and home work assistance.
With children’s classes make sure you have regular progress reports and certificates of achievement. This is important for children and parents alike. Show care and attention to detail.
4. Offer Summer Camps / Xmas Break Camps for kids
Another potentially great revenue earner. Be creative and resourceful in designing programs.
You can include a mixture of activities, one in the morning (e.g. kickboxing) and another in the afternoon (BJJ). This can be very appealing. Include activity of the day like a movie in the gym, park visits, excursions etc. You can get parent members involved in this, many will be will be willing to help out.
5. Offer birthday parties for kids
This is not only highly profitable but great for marketing. A child invites 10/15 friends for a fun experience and they will pester parents to sign them up for the gym. Make sure doesn’t interfere with the schedule of the paying customers and weekends usually best. This is a great way to make money and increase enrolment for children’s classes.
6. Seminars
Bring well known fighters for seminars. This will get you lots of exposure and is a good source of revenue. You can possibly offer one on one training with guests. It is great for marketing and getting attention.
You will generate huge publicity from this. They can promote it and you will instantly get more people interested in becoming a member.
7. Workshops
‘Stranger Danger’ and ‘Bully Buster’ works shops are immensely popular. They will generate great revenue and even more importantly they are fantastic for marketing.
Consider doing free events to attract protentional clients from local schools. This is a great way to approach schools with an eye to spread the word and increase enrolments.
8. Offer woman’s self defence
Teach basics practical tips. Talk to the local council about sponsorship so the class is free for people to attend. Most cities have a budget for free to attend classes – good for women to learn basic valuable and important life skills
You can also approach businesses with the idea of team building and bonding exercises.
Strategy #2 - Cross selling
1. MMA / BJJ Uniforms
Have your own uniform for your gym. It’s a great way to build your brand identity and a great opportunity to increase revenues.
Become a supplier of MMA gear – current members at discounted prices if you have not implemented this already it’s a must. Gi, rash guard and shorts at the very least.
2. Merchandise
Make merchandise appealing for even non-members to wear. Make it look good. Members will automatically gravitate towards the merchandise to show loyalty to the team.
Emphasise MMA instead of the name of your gym to capture a wider audience. Think what would be appealing for people to have on their hoodies, sweatshirts, caps and T shirts. Something simple and appealing is the key for effective marketing and branding.
With appealing design and branding you can potentially target the entire MMA / BJJ market with digital marketing initiatives. When the merchandise has this appeal, users will be doing your marketing and advertising for free.
3. Supplements
If only there were supplements at hand, post training specifically designed for MMA / BJJ athletes. Most member suffer injury, aches and pains and there is little at hand to supplement recovery. Can you solve this problem for your members? Get in touch with supplement suppliers to start generating additional revenues.
Alternatively, you could take it to the next level and become much more profitable by producing your own brand. Yes, some research is required to find suppliers, distributors and packaging firms. However, if done properly it could prove to be an extremely profitable revenue stream. Include the essential vitamins, nutrients and of course a unique touch like a super food (for example goji berry or acai) to make you stand out. Again, if successful this can easily be expanded to a wider online audience online.
4. Water
Great basic cross sell opportunity not to be underestimated. Over the counter at the gym or buy and stock your own vending machine (look for good quality second hand machines)
5. Coconut Water
Nothing better for rehydration and a better profit margins than with regular water. Negotiate with suppliers, get 90 days credit (30 at least) so no upfront costs and you only pay for what you sell.
6. Protein / Energy Boost Bars
Ideal for immediate post training boost. Again, negotiate with suppliers and see who gives you the best deal with credit. Of course, the product has to be good.
7. Electrolyte / Sports Drinks
Another popular option that will generate extra revenues. The same as above applies.
8. Acai
The super food of the legendary Brazilian MMA & BJJ legends. If you can source it and educate members, it will prove to be a great hit. It will prove to be very profitable. You will however need a fridge /coolers so, like everything, look into this and do your research.
Growth & Profit Formula #3 – Retain Customers
Strategy #1 – Unique Customer Experience
Care, attention, gratitude and dedication to your customer. This matters more than anything else. This will earn you credibility and recognition. It is the personal touch that can set your apart from the rest and will ensure your members keep coming back.
Customer service and customer experience is your top priority. Show more dedication and commitment to your client. Ensure them this is the right place for learn, improve, grow and harness their skills.
The aim of your MMA /BJJ gym, and any business, is to provide “Value” for your customer. Value goes beyond the price paid or associated costs. Provide more value than anyone else. It will retain customers, increase loyalty and drive referrals. Below is a list of things that MMA gym customers "value"
Facilities
Instructors
Atmosphere
Time table
Class Sizes
Camaraderie
Cost
Location
Friends
Environment
Martial Arts Spirit
Services
Products
Personal Attention
Trackable Progression
Status
Reliability
Empowerment
Fitness
Fun
Health
Learning
Self Defence
Discipline
Community
Unleash aggression
Skillset Development
Self-Assurance
Therapy
With this is mind;
· Offer one or more of these values in a way that is "better" than anyone else.
· The more value you can offer the more customers you will attract.
· Recognise and develop the value offered
· The more value you offer the more successful you will become
Strategy #2 – Understand your customer
When you understand the wants and desires of your customer you can offer what is specifically valuable to them. Know you clientele and the different crowds for example;
· 9-5 workout crowd before or after work
· Self defence enthusiasts
· Fitness focused
· Training amateurs / pros
· Children classes
· Teens
Ensure that the timetable fits the needs of your clientele. Do you have classes for the pre work crowd? During the day for those with a flexible timetable? After school and weekends for children? Do not underestimate the value of a well thought out schedule. It has massive appeal and enables you to cast the net wider and further with respect to capturing clients.
Consider increasing class size and frequency. It may be a good idea to promote from within and see which of the higher belts are interested and capable to teach. You’re paying rent for 7 days per week 24 hours per day, so fill up the gym as often as you can. Test what is working and what’s not and make changes as and where are necessary.
Understand people have different criteria when choosing a gym
· Safety
· Environment
· School vs Gym
· Martial arts spirit of progress and mutual benefit
· Technical competency
Don’t pigeon hole your gym, create the right atmosphere to appeal to a wider range. It is important that other coaches and teachers hold the gym to the same standard. This is why good recruitment is so important. Remember a great competitor doesn’t necessarily mean a great coach or teacher. Make sure fighters don’t intimidate or go too hard on the more casual members. Encourage a family feel and togetherness.
Understand the customer you are aiming for and offer them what they want. The more value you can offer the more customers you will attract. Implementing this strategy will see the business grow and become more profitable.
Growth & Profit Formula #5 Accounts
Your numbers are the language of your business and the only way to track your progress. Do not ignore your accounts because they tell the true story about what’s happening with your business. You become more profitable by increasing revenues and minimising expenses. A few quick ways to increase profits
Strategy #1 Increase Prices
Don’t think too much about it and go ahead, bite the bullet. You will start increasing the value for your customers so a price increase is justified. A price increase will make little difference to your customer but a huge difference to the profitability of your business
Strategy #2 Reduce Expenses
Scrutinise all your expenses and eliminate whatever is too costly and unnecessary. Pay close attention to this and be frugal.
Gym expenses are variable. Equipment is usually a one-off expense AND don’t forget to include depreciation of these assets as an expense to reduce your tax bill.
· Negotiate cheaper rates with landlord to reduce monthly rent expense. It may not work but at the least will give them seconds thought about increasing the rent.
· Offer free classes to admin staff to reduce expense
· Negotiate with suppliers to get better deals
· Always look for new better suppliers
· Continually test what is proving profitable and ditch what is not. Track the numbers to see exactly what’s working and what is not.
· Make sure you are getting good rate on return with respect to marketing costs. Track everything
Strategy #3 Reduce your tax burden
Reduce your tax position. Taxes are the number one expense in our life. Invest in a good knowledgeable accountant who can save you more money with good advice with respect to tax relief and where you can and cannot save money.
Strategy #4 Reinvestment
Your business can only grow by reinvesting back into it. Reinvestment back into your business is also a great way to reduce your annual tax bill. Make sure you reinvest 10% of your profits at the very minimum so your business can grow.
Growth & Profit System #6 Innovation
Be innovative and be profitable. New ideas will help your business stand out and grow. Innovations are based on assumptions and it is vital to get feedback on all activities to test whether these assumptions are true. This feedback will determine whether you continue or pivot. It is a crucial component for the development of any business. Here are some innovations to consider;
· Innovate by focusing on other complementary niches for example; the fitness niche, build a network of nutritionists, health advisors and specialists. Supplement your member’s fitness endeavours and get a % by introducing new customers.
· Provide fitness services consulting to other gym owners.
· Personal home trainer, remember that everything is moving towards convenience and delivery.
· Home-school – virtual martial arts class 2 classes per week for home schoolers. If you have x10 students paying $100 p/m that’s $24000 per year with no extra expense and no limits to local area. You have the world as your potential client base for home-schooled children. Go to home-schooled face book groups for potential clients etc.
· Add a concession space. This allows you to charge rent to another complementary business like a smoothie franchise. A pop up space that could be rented outside or inside premises. An option is to have a smoothie / refreshment van permanently outside the establishment, who doesn’t want healthy refreshment after an invigorating workout? It can prove to be very profitable. Earn rental income or if you want set it up yourself to generate a whole new revenue stream.
· Renovate changing areas, this can make all the difference
· Target local business, law enforcement, offer workplace lunchtime sessions, 10 memberships for the price of 8.
· Community outreach initiatives, local organisations, community centres that want to promote healthy living especially for youths. Find ways to get in front of new audiences.
· Health and well-being coaching
· Nutritional planning and consulting
· Sell digital and downloadable content
· Film student rolls, training with recommendations, tips, critique from coaches. Specialised sessions /workshops / bootcamps such as leg lock bootcamp or closed guard mastery
· Host health and fitness retreats / training camp
· Give consultations and updates to students- improvement tips -this level of detail / care/ commitment will set you apart from anyone else in your space and ensure members for life
· Fitness plans with food coaching
· Online personal training / Digital group fitness
· Research trends in your specific local area using Google Trends, a FREE resource which assess interest according to Goggle searches.
· Blogging- technique of the day / nutrition tips etc. How many chokes are they in bjj alone? You have years and years worth of content that you can make and post on your phone with ease. Put them across all your social media channels and formulate a library on your website. You can make countless 1 min clips. These initiatives have long lasting value and the content can be used across multiple platforms again and again.
· Video - Especially tutorials or technique of the day are a great way to get people interested and come to your gym.
Live events - Hold programs and talks in schools, neighbourhood community and recreation centres. Talk about the benefits of MMA, the discipline and focus involved, how it is especially good for young people to channel their energies. Good for adults to stay active and build life long friend ships camaraderie etc.
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