The Game with Alex Hormozi - HOW TO GROW YOUR GYM WITHOUT ADVERTISING💰🔥 ...and how learning how to market can make up for the fact that your gym isn’t as good as you’d like it to be | Ep 58

Episode Date: May 30, 2018

"There's really no way for the business to grow unless you have the ability to generate cash flow at will.” Today, Alex (@AlexHormozi) discusses the importance of exceptional customer service in growing a gym business. While organic growth is ideal, marketing and sales can provide the cash flow needed to improve service delivery and scale the business.Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.Timestamps:(0:14) - Two schools of thought: marketing vs. organic growth.(1:37) - Learn marketing to fix cash flow and scale gym.(3:06) - Satisfy non-fitness needs for customer retention.(3:58) - Overdeliver with extra services and exceed expectations.(5:15) - Improve service to facilitate organic growth.(5:48) - Learn marketing and sales to enhance gym potential.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Hey, what's going on, everyone? I wanted to make you guys a quick video this morning. I've been MIA, so I apologize. I've just been busy growing back my facial hair. I'm just kidding. We have our gym Lord Summit in a week, and so I've just been prepping all of our presentations and all that kind of stuff. But the topic of today that I wanted to kind of dive into with you was how to grow your gym without marketing. And what I want to kind of talk about was kind of like the two schools of thought that kind of exist out there. There's like one school of thought that's like all about marketing. Like you need to know how to run Facebook get ads, need how to, you know, learn how to sell and all that kind of stuff, right? The other school

of thought is the don't buy ads. You know what I mean? Like, don't market at all. Don't spend any money. You should be good enough to grow on your own. And so, you know, where do you lie? Right. And so in the beginning, a lot of times, at least for me, when I started my gym, I didn't know how to market. And so my gym grew organically. So I was like, okay, that's what I need to be doing. But what ends up happening and this happens to most people is that their gym stops growing organically at a certain point. And usually it's because your ability to give service to every single person that comes into your facility goes down as it grows, right? It grows organically. You get word of mouth. You're asking them like, hey, we're starting the gym. Like, please bring your friends.

You know what I'm like? You have that kind of vibe. It's exciting. It's new. People come in, right? And the issue is that as you get to 50, 60, 70, 80 members, all of a sudden, like, you can't be there all the time for everyone. And so your ability to scale service, delivering service goes down. right and so that's usually the place where most gyms start stalling because they grew up to that point organically and then they stop because the level of service that they're providing versus what they're charging is equal or less right so if it's not good enough that people are going to tell their friends about it right and so then the question is well then which is right in my opinion you should be able to grow your business without marketing right the problem is what happens

when it's not growing without marketing right and you need to still pay bills and you still have cash flow issues. And so where my kind of, where I fall with this is that you do need to learn how to market unless your gym is good enough to grow organically, right? But if it's not, there's no way for you to be able to fix that issue without cash flow. And so with marketing, you can get cash flow and then cash flow can give you the ability to breathe, pay payroll, hire more people, et cetera, and then actually scale delivery, solve the problem that you originally had to begin with, which was that like you couldn't scale you. And you didn't have the money to get other people to help you out and that's kind of where marketing comes in that being said the kind of ultimate scenario

is where and this is kind of what we fell into so i would say that i started from a marketing camp um in terms of like how i approached business and then we really fell into understanding that having an unbelievable service um just makes your marketing dollars multiply so much further than anything else and it was because i was already good at marketing in sales and then what i ended up selling was marketing and sales. And so the actual product that we made with gym launch is really good. And so I learned that having an amazing service is amazing product totally compounds how much money you make. And so now, like, it's totally made me rethink all of the things that I originally thought about with regards to the gyms, which is like, if I knew what I know now when I was running my gyms,

I probably would have run them a lot better. You know what I mean? Like, I would have really, really, really looked at every single person, been like, how can I get this person to bring one more customers. How can I get, how can I totally blow them away? Like what they come in for and pay you for for for fitness and services is what they come for. But what they stay for is everything else that you're able to give them that they didn't ask for. Right. Hey guys, real quick, if you're new to the podcast, I have a book on Amazon called 100 million dollar offers that over 8,000 five star reviews and it has almost a perfect score. You can get it for 99 cents on Kindle. The reason I bring it up is that I put over a thousand hours into writing that book. And it's my,

biggest give to our community. So it's my very shameless way of trying to get you to like me more and ultimately make more dollars to that later on in your business career. I can potentially partner with you. So that's my give. Go check it out. Amazon and back to the show. It's everything that you can possibly think of to make their life easier. Like giving them like impromptu massage, like literally like insanity like impromptu massages, daycares, events, social gatherings, community, like all these other things that you can give them to satisfy all their other needs. But you don't need to say that everything that you do that you didn't promise is over delivering because the worst part is if you over like you over promise and under deliver it's better to under promise and

over deliver right and so like I said if I went back in time I probably would be running things so just basically the way we run gym launch now exceptional customer service um etc but the thing is is that unless you've turned that corner there's really no way for the business to grow unless you have the ability to generate cash flow will. And that's where the marketing and sales comes in. And so what that allows you to do is it gives you the cash flow to learn. It gives you the cash flow to buy information from other people. It gives you the cash flow to invest in yourself, to invest in the business more.

Because unless you were lucky enough to have started with an unbelievably clear idea of how to scale delivery, how to scale service, how to train the teams, etc. But likely the gym won't grow past a certain point because the delivery is just not good enough. Straight up. It's just not good enough. That's why it's not grown. Chipoli doesn't advertise that much because the food's amazing, right? It doesn't need to advertise. And that's how the gym should be.

But the reality is that most gyms aren't, right? And so in the meantime, that's why you need to market and sell so that you learn, like, you get the cash so that you can have the time and the resources to go learn how to make that gym the way it should have been originally. Right. It'd be great to have a perfect gym model right when you started, but most of us weren't so lucky. And so that's where marketing and sales comes in. The good news is that you can learn it real fast. So anyways, I just wanted to make that because it was on my mind this morning because I saw someone comment about like, should I like shouldn't I not shouldn't my gym grow organically or should I be like learning how to market and sell? The answer is yes. It should grow organically. But if it's not, then you need to learn how to market and sell. So anyways, guys, lots of love, tag a friend. And if you're a gym owner and you're in here and you're not in gym launch, you should be because it's really good. All right, guys, have an awesome day and I'll talk to you soon. And gym lords, I'll see you at the summit next week.

Alright.