The Sevan Podcast - Chris Cooper | How to Become a Millionaire Gym Owner

Episode Date: February 16, 2024

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Starting point is 00:01:02 Is that what that was? Yeah, that's it. Just setting the mood with my above head candle. It's prayer. Morning prayer. Good morning. Hey, Chris, do you remember telling me about your book? The Millionaire Gem Owner book? Yeah. I don't remember actually like texting about it or anything, but maybe it's a low,
Starting point is 00:01:31 it's a loaded question. I'm setting you up. Yeah. Sorry. The answer is just no. Yeah, dude. How could you not tell me about it? You guys, I'm, I, I text Chris. I'm like, Hey, will you come on the show? He's like, what for? I'm like, Oh, just to catch up. You know, I just want to catch up and hear your voice and like, just feel around and talk about what's going on in the world of gym business and he said yeah sure no problem i'll be on and then last night at four o'clock suze is like hey dude he got a new book so i went in the garage and got on the assault bike and listened to that thing at 1.5 time holy cow dude you should be so proud of that thing thank you yeah i am i i thank you in my car um recently i've been
Starting point is 00:02:14 listening to um napoleon hill i don't know when he wrote this book i'd never even heard of this dude probably suza turned me on to him but he's a guy from the turn of the century and he wrote a bunch of like i don't know what you would call them books like they're kind of like how to set values or character books i guess some people might call themselves help books or how to get rich books or business books but i guess it depends where you are in your life but it was interesting as i was listening to your book i was like man the title of this book what's the name of the title of this book, what's the name of the title of the book? Millionaire Gym Owner. Sorry, I have it. Or do you mean Napoleon Hill?
Starting point is 00:02:51 No, no, your book. Oh, there it is. A Millionaire Gym Owner. I was thinking, man, this book could have five different titles. Oh, thanks, man. Depending on where you're at in your life. How Not to Be a Burden on Your Kids. How about that for a title? Oh, man, that's the next book now how not to stress your parents out yeah um if you don't save you'll be
Starting point is 00:03:13 poor the only trick to being rich is save money i mean uh and i know that you wouldn't necessarily from reading this book you wouldn't necessarily say, uh, use the word save, but, but, but, but you know what I mean? If, yeah, no matter how much you make, if you're not investing some portion of it or taking it out every week, no matter how much you're going to be poor. The call I do remember with you, Seve, is when CrossFit made their greatest mistake ever in cutting the whole media team. And I called you and said, are you good? And the first thing you said was, we're good. I've got these rental properties. We've got income coming in. Like we, we don't solely depend on one thing for our income. And that to me, they'll have the same couch. I hadn't that I lived in, uh, that I had in the eighth grade.
Starting point is 00:03:56 I'm 50 years old. I recently just bought a couch from my friend, Alison NYC, her used couch. No kidding. Yeah. Cause I had the couch from, couch from when I was in the eighth grade at my house. Yeah. Way back in. And the carpet my grandmother had in her house. I have my grandmother's carpet as the main carpet in my house still. That my mom had, that I had, now I have. Yeah.
Starting point is 00:04:19 Cheap. They're a generational carpet. Her generational carpet. It is an intergenerational carpet. That's right. Yeah. Better than money. And you know what, Chris?
Starting point is 00:04:27 What the book goes off on. So when the two guys, Javier and Jose, delivered my refrigerator the other day, you know what the best part of my entire day was? Giving them $20 each. That's awesome. $40. Thank you, guys. You don't even know not because i have to i feel like i have to but because i want to because i can because i still have my old ass cheap couch and 40 bucks is nothing to me but it means the world to me that these guys
Starting point is 00:04:58 brought a refrigerator to my house i mean i i can't thank them enough yeah they work that's one of my favorite things too. That's amazing. Good for you, man. Your book talks about that. Overtipping. Yeah. It's one of the great choices.
Starting point is 00:05:11 Or just tipping it all. Like those guys aren't expecting shit. That's right. Yeah. Good for you, man. Yeah. It's a big unlock. Rosemary, I'm toasting.
Starting point is 00:05:21 How Not to Stress Your Parents Out would be a great book. That's so great my mom tried to teach me these lessons as a kid oh really i'm not surprised but they're in your book i forgot like we had little jar she gave us five dollars a week or ten dollars a week whatever and we had to put some in a jar for savings some in a jar to give away you you i mean i never stuck with it now we spent the money on video games and stuff but yeah you know i was thinking about your mom yesterday because careful careful chris yeah careful buddy careful we're live on the air i think she's like a model of a presentation that i'm giving next month um in out in vegas about blue zones in your life and like there's this certain point where you've got enough wealth that like your income comes from that you don't have to work anymore
Starting point is 00:06:17 and you've also got enough health that you know you're not confined to a bed and for most people in our parents generation generation, that time window, that blue zone of health and wealth was very, very short. They worked themselves to death or they retired and sat in a lazy boy for five years, developed diabetes and passed away quickly after that. And so I was trying to think of counterexamples. And I thought of your mom actually as an amazing example of extending out that blue zone and staying healthy as long as possible. Dude, I'm going to give you the cliff notes, but basically met my dad, eloped as a 20-year-old girl, came to California working jobs.
Starting point is 00:07:01 She was a school teacher. She cleaned apartments. Then she went to night school to become a lawyer while she was pregnant with me and my, either me or my sister, passed the bar, making, you know, $12,000 a year, just barely scraping by, single mom, raising two kids, built her lawyer business, worked like a, like a dog for, from when she was 20 to when she was 70 but always saved money always saved money always you know got some a rental property a couple two three four rental properties and then at 70 was able to retire now here's the thing the only reason why
Starting point is 00:07:38 it worked out for her is because of crossfit because at 70 she's not going into decrepitude and dying yeah because well and her personal responsibility and because at 70 she's not going into decrepitude and dying yeah because well and her personal responsibility and accountability so now she's 80 and you can't even tell but um but yeah it's an interesting combination um yeah she's she's a great example of it but unfortunately though she lives in california right so even though she even though even though she even though she listen to this you're right? So even though she – even though she – It's a low downfall. Even though she – listen to this.
Starting point is 00:08:06 You're going to love this story. She's going to be like, that's not true. This is true. She saved all this money. She's not a burden to anyone around her, a burden on the state, still contributes to the economy, has like handymen and shit coming around the house. And she wanted to buy a home in a in a trailer park because that's all you can afford for 750 000 in california but my mom had saved too much money and so she wasn't eligible to buy the 750 000 uh trailer home in santa cruz california because they had if you
Starting point is 00:08:40 have too much money saved in the bank you're not eligible to live in that community. Ah, good old California. You're punished. You're punished. What? You're punished. You're punished. Squatter's got more rights. I showed her. I'm like, Mom, for $750,000, move to San Antonio.
Starting point is 00:08:56 You could be like – Mega mansion. You don't have to live next to the meth heads. It's crazy. It's crazy. I don't wait. Wow. This is not – this book's not a joke uh this is it's fun it's funny uh um this is not to poo-poo on you at all uh chris but uh suza suza could have written this book this is how suza talks like when i talked
Starting point is 00:09:24 to suza like he i feel like he he read your book like 10 years ago. I feel like every time I talk to him on the phone, he's plagiarizing a paragraph from me or you're plagiarizing a paragraph from him. This really is the – this really is the guide to how to become a millionaire. Yeah. This is it. I mean in the first five – I listened to five hours in like three hours, and I'm'm like, Oh yeah, this is it. This is the guy. This isn't bullshit. This isn't like drink this water and you'll live forever. That's right. Yeah. Thanks. That's what, that's what we're going for. And, uh, more than anything, uh, like I'm sure you guys noticed,
Starting point is 00:09:59 but the first chapter is like, why should you care? You know, we get into this, we feel a lot of, um, you know, we, we feel great about the impact that we're having in the lives that we're changing. And none of us got into this for money. So why should you care about being a millionaire? And, uh, hopefully I made that case too. You, you absolutely did. I wonder if, I wonder if that will sink in with people. Uh, there's a, there's a line in there that's tremendous. I thought it would make a great clip too. Where is my Chris Cooper notes?
Starting point is 00:10:32 Here it is. So you run the largest gym mentor consulting business in the world. And you define what it means to be a millionaire. And we can get into that. We'll have you define what it means to be a millionaire, and we can get into that. We'll have you define that. But not only when people become millionaires through your program, you certify it, meaning you're like, hold on a second. Bring that shit forward. You look at their paperwork, and if they really do meet the criteria of being a millionaire, you celebrate with them.
Starting point is 00:11:01 And Two Brain Business certifies two new millionaires every month under the Two Brain mentorship. Yeah. Yeah. That's the mean average. Damn. That's awesome. Well, we audit because I'm a skeptic. And most of the stuff that you see online is, you know, it's set up to look good.
Starting point is 00:11:22 Like I have all these properties and are all these investments or I've got this jet, but these, these people are usually so leveraged that if the interest rates went up 1%, they'd be bankrupt. You know, any little thing knocks them off the horse. And so we audit these people to make sure that they're legit. And a million in net worth is like the first milestone to them, uh, knowing that their, their legacy and their gym can last as long as they want it to can you tell can you tell me um and you have a team of 50 is that correct it's bigger now it's like 70 yeah okay so the two-brain business is 70 people and those people um they they have success they're not the people telling you, go on, go on.
Starting point is 00:12:07 Yeah, no. So the mentor team is selected from our clients and they're picked for a few things, but like one of the things that they have to be is the most successful and, or they have to be successful. We don't want people up there, you know, spouting off opinion that they haven't done themselves or we want people who are inspirational because they've done it, but also they've got the experience that they can share. And that includes the highs and the lows. None of us did it easy. You know, when I started talking about this book, when it first came out, I was tagging a lot of the co-authors. There's 14 of them that share their entire story in the book. And a lot of them were like, oh, okay, I'm a little scared for you to have this out there. And I'd say, why? Like, you should be proud. Oh, because my gym isn't perfect yet. And
Starting point is 00:12:48 if somebody shows up to my gym, uh, they're going to see, like, I got a broken barbell in the corner. They're going to see like class doesn't always start on time. And, uh, you know, I think that's really good for people to hear too, because they, they think like you just make your gym more and more perfect and more and more perfect. And that's how you make more money and eventually succeed. And that's not the case at all. And we can dig into that. But that was one of the first things that I had to overcome in my head on the path.
Starting point is 00:13:16 Yeah. And actually, like the whole journey for me started because I finally got my gym stable to a point where I was making an income. I wasn't even writing about it yet. And then like the next day it hit me like, oh, I'm making enough, but I'm also still working 72 hours a week. And I don't see a way out of that. Like I'm gonna have to do this till I die, get sick or get injured. And I had just recently had a power lifting injury and that, so, you know, it scared the hell out of me. So I started looking for ways to create that, that, uh, end state for myself, the finish line. When you have, if you have a, if you have a guy who is, let's say 200 pounds overweight and he loses the 200 pounds and he's got a picture of himself on
Starting point is 00:14:03 the wall and it's him from 15 years ago. And you walk in there, and you see that he's still skinny, and you're a fat dude. That dude can say some crazy shit to you. He can say anything he wants. Yeah, he can be like, listen, fucktard. Stop going to Jack in the Box on the way here. And you'll be like – you'll take it. You'll take anything from him.
Starting point is 00:14:19 That's right. Yeah. So if you take – so what I'm seeing from your mentorship program is if you – there might be someone who's a great mentor, but they just can't do it for themselves. They're still poor. They're spending all their money. They got their – what's that called? House poor. You spent all your money on –
Starting point is 00:14:39 Yeah, house broke. Thank you, Sousa. But if you have someone who's successful, they can get away with murder. They can be like, are you kidding me? You keep buying Starbucks every morning on your way to the gym? That's $5.50. What are you doing? And they can just yell at you, right? to a good income level. And then we would graduate them out of our program and they're alumni and things are great. And then eight or nine months later, they'd be knocking at the door again. Like, well, I blew it. You know, I, I went and opened this coffee shop and you told me not to do it. And all my money went in that and my life is over. And now I hate fitness and coffee. Oh, poor Gabe. Darn it. So, uh, we, you know, we started a program to help them decide,
Starting point is 00:15:25 like now you've got a little bit of extra, where do you put it that gives you some security? And I don't just mean security to retire, but also security to know that like your gym is not going to just be wiped off the map next time there's some kind of shutdown or all your staff leave or whatever, you know, your roof breaks.
Starting point is 00:15:44 all your staff leave or whatever you know your roof breaks your your book gives gives the whole thing like you you go through the math you basically say you need to do this this and this and there's like five parallel pathways the entire time in the book so like if you're like you can't make any excuses you can't be like well i'm not doing bitcoin well there we have this other idea for an investment or we have this other idea. And there's all the different ideas going down that path. The premise – and you sprinkle it. You hit it hard in the beginning, and then you sprinkle it in throughout the book is that at the end of the day, you want is um freedom yeah that's really what wealth
Starting point is 00:16:27 is are you blown away when you i have i know a lot of rich people who still aren't free they didn't use their wealth to become free isn't that does that it owns them now huh or you mean it's kind of like this this is going to be a crass example I apologize But the difference between Having a harem and cheating on someone Is that you're just honest If you have like six girlfriends
Starting point is 00:16:54 And you're honest with all of them You have a harem If you're not honest with them You're a cheater And so there becomes a point Where you have enough wealth To where you don't have to play the game with society anymore. Like you can start chilling.
Starting point is 00:17:14 There's these societal pressures that other people in games that they're playing that you don't have to worry about. You can slow down. You don't have to be in as much of a hurry. You don't have to wear those clothes. You don't have to live up to your wealth. It just doesn't matter anymore to you. Yeah, it's true. And some people actually years ago would call this F you money. Like we're just not supposed to care anymore, but it's, and that's where happiness resides too. Right? Chris, like the more, right? Like when you're just like, Oh, I don't have to always put on makeup when I leave the house, you get this. There's definitely an underlying factor of confidence. You know, when you, when you walk in a room, just knowing like you're not going to struggle with things
Starting point is 00:17:57 that other people in the room are struggling with, like that does feel good sometimes. But you know, the example that you use when we started the show is more what I think is actually happening when gym owners become wealthy is it's not F you money, it's help you money. And, you know, where you find happiness is not lording it over these two dudes that brought your fridge in, you find happiness in giving them the $20 that they didn't expect. And I think, you know, I figured it out around the same time that you did that like that's where happiness comes from it's it's service without servitude and and it's like generosity without uh taxation or like you know force generosity it's empowering to reward people for um how you want to see the world i want to see these two dudes were so polite. They came in my house,
Starting point is 00:18:46 they delivered my fridge, they were quick, efficient. And it was empowering to me just to be able to reward them to contribute back to them. Yeah, it feels good for you. And hopefully it encourages them to do the same job at the next house too. You know, it's like, those are the people who should be succeeding. And by and large, those are the gym owners who are out there. Nobody got in it for money. Everybody got in there to help. And if you give those people money, they're just going to help more. They're not going to turn into Scrooge McDuck type caricatures of wealth.
Starting point is 00:19:15 The problem is that we've all been raised in a society, maybe you excluded, Seve, where wealth is villainized, right? Every Disney movie. No, no. I was raised like that. In my house, my parents were both in unions, but they're both anti-union. They didn't
Starting point is 00:19:32 like it because they felt like they were trying to get something that they hadn't earned. We were also taught you save money. You put it away. You tithe and you put it in savings accounts. You and you put it like in savings accounts, like you never spend. And the people who don't do that are like the wealthy miser hoarders and
Starting point is 00:19:53 they're greedy and they got their money from somebody else. And that's just not true, at least not with gym owners. And so these are the people who should have the money that gives them the leverage to do better things in the world from tipping the refrigerator guy to opening more gyms and saving more lives every single every single and i'm not saying it's every single but every single rich person i know every single um is the hardest worker i know and always does more than you expect from them. Yeah. Across the board. Every single really rich person. Greg always does more than is expected of him.
Starting point is 00:20:35 My God. I don't know if you remember this. Sarah Cox, the lady, the California peptide guy, I can't believe she works harder than I do. Hardest working person I know and all most generous person I know and always does more than you expect of her. It's crazy. Delivers every time. Yeah. Everything. Every time, everything she does, everything she does. Yep.
Starting point is 00:20:54 Everything she does. There was a lesson on giving that I actually got from Greg and I don't know how many people knew this, but like in the last year of CrossFit for hope, the, the foundation, like it like it raised, I don't know, 1.2 million. And it cost Greg $3 million of his own money to do that, right? Because he'd done so much promotion and he had flown us down to St. Jude to write about it and, you know, all this other stuff, right? Flown us to Kenya to write about it. And at the end of that year, he sat us all down and he's like, okay. You know, he definitely did not regret making that personal donation himself, but he said,
Starting point is 00:21:32 instead of what we're going to do is we're going to find one place where $10,000 makes an immediate and profound difference and just give them the money. Instead of like spending 3 million to raise 1 million, that's kind of a drop in the bucket for these worthwhile, but huge charities. 3 million to raise 1 million, that's kind of a drop in the bucket for these worthwhile, but huge charities. We're actually going to find like the client in the gym who, who like needs a new bed for her paraplegic son. This was an exact example that he gave, and we're just going to give her the money. And that's basically formed my philosophy of giving ever since I don't, I don't donate to like the Canadian Heart and Stroke Foundation. We buy bikes for 70 kids a year. You know, we don't send five grand to like the canadian heart and stroke foundation we buy bikes for 70 kids a year you know we don't um
Starting point is 00:22:06 send five grand to like the cancer society we send kids an xbox when they go into the hospital like yeah you know and that all came from greg that's awesome but anyway i think why why do you why do you do that do you not like getting down to the nitty-gritty, do you not trust – why do you do that? Because 10 cents of every dollar will go to the cause. I had this discussion with my dad the other day. I wanted to send – I knew someone that died, and I wanted to send a gift to their living member, and I wanted to send them a really nice candle that they wouldn't buy, you know, like a $250 just crazy nice candle. Yeah. And my dad's like, what does that do? And I'm like, well, someone had to make that candle.
Starting point is 00:22:57 Someone has to deliver that candle. You're giving something someone that they wouldn't buy themselves. He's like, well, wouldn't it be better? My dad's like to just buy a tree in in their name donate to a tree project in their name and he was so furious with me that he couldn't see the what i was going he wanted me to give them money to a charity and then a tree be planted in that person's name and i'm just like man if i if i'm going to do that i'm just going to go out and buy the trees myself and plant them and be like take a picture and be like hey I planted these in my yard for you.
Starting point is 00:23:28 Which is still meaningful. Right. Right. But no, it's exactly what Matt said. It's, it's bureaucratic seepage. You give a hundred dollars to this thing. And of course they have operating costs that they have to maintain and they have offices that they have to maintain. And, you know, by the time it actually reaches the researcher or it reaches, reaches like the caseworker on the ground, it's 10 cents now. And so I hate that bureaucracy is my biggest, um, hate in the only hate in the world. And so what we do is we just go straight to the bike store and buy to get a bike yep cut out all the bs yeah chris i'm sure you have people especially now people are going to come to you and be like okay i want to be i want to be a millionaire and by being a millionaire means you have a net worth of a million dollars meaning someone gave you six months you could and i choose that time arbitrarily you don't say that in the book but if i give i could walk so anyone could walk up to seven and be like hey um we need a
Starting point is 00:24:29 million dollars cash from you and within six months i could get it without using any credit i could that's whatever yeah yeah without credit that's important man yeah i could liquidate my shit and get it even bring you a suitcase duffel bag for a million dollars. Before we talk about what the first steps are, and that is what the two, so two brain business, that is, is that the end goal of two brain business? Is that one of like, for your staff, it's like, hey, we want to make people independently wealthy. Is that? Yeah. Yeah. But some people are not at that point of their journey where they're really ready to embrace that yet. So the first goal is like get your gym paying you. And then the second goal is we want your gym to pay you as much as you need for the life that you want and a little bit more. And the third goal is
Starting point is 00:25:14 to take that a little bit more and invest it somewhere so that you've got security, you've got growth, you've got like capital that you can leverage to buy out other gyms etc you know um late in like early in 2018 we were talking with greg about like what about these affiliates who are failing and at that time there were even like a large number but nobody was talking about them and he said you know that's what's supposed to happen like the this is just like how the free market works and the the weaker gym folds and the owner of that hopefully gets a job coaching at a stronger gym and the clients follow them to the stronger gym and the stronger gym gets even better and that's true and it happens naturally given a long enough timeline but if you can accelerate that timeline and you make some gym owners really successful
Starting point is 00:26:01 then you speed all that up and so what's actually happening with a lot of people in the book right now is they're buying up other CrossFit gyms, giving those owners, letting them keep some equity, which is amazing, hiring them as coaches and just letting them do what they love, which is coaching CrossFit or whatever it is, while the more successful owner takes over the marketing and basically turns it into a business for them. It's amazing to see it happen. A practical example you give in the book, by the way, when I asked Chris, so how do you get on the process to becoming independently wealthy? And he said, well,
Starting point is 00:26:36 there's a few first steps and maybe he'll give us some more road signs. But before you start, some of the signs that you're ready to make that leap are, um, you're no longer doing, uh, the marketing or you're no longer doing like, maybe it's the onboarding or you're no longer doing the taxes. Like you have systems. And can you explain that? Like some of the signs that, Oh shit, I'm ready to kind of make the next step. Yeah. So basically it's like the gym can run without you. And so a lot of people will immediately say, I don't want it to. I want to be the coach. Awesome.
Starting point is 00:27:07 But it could have had to. So if you had to take a month off because you were opening up a new gym across town, you could do that. If you had to take a month off because you're having a baby, you could do that. If you get sick or injured or you're going to Cancun, wonderful. You can do that. And that's the key. Like before you invest in anything else,
Starting point is 00:27:28 you should have a gym that can run like a business, doesn't need your constant presence, doesn't live all up here in your head. It doesn't require you to be there 70 hours a week. Like fix those problems first and then start thinking about the future. What does that mean? It doesn't live up there in your head.
Starting point is 00:27:44 I think this is the part that scares me. Yeah, this was my biggest problem, right? It's like I fell for the myth that if I was a really great trainer, I would have a great business. And for years, I just believed that. Like if I get the next certification, my business will grow
Starting point is 00:28:00 and people will think that I'm better. And like, that's all bullshit. That is a straight up lie. People write books just about how false that is. The, but the problem is that like, you know, we're happy to talk about training and we're happy to talk about fitness, but when it comes to the actual business, we don't tell anybody else how it should go. So we don't say to the staff person, Hey, you should be here 10 minutes early. And like, here's what a good warmup looks like. And here's what you should be wearing. And, you know,
Starting point is 00:28:29 here's how often we're going to like check in and talk about how well you're doing. And, you know, here's how loud you need to be. And so over and over and over again, I would hire these people with a lot of promise. I wouldn't tell them exactly what to do. I would keep the instructions up here in my head. And then I'd be really surprised when they failed. And like, you know, it took me probably five years to realize that people couldn't read my mind. And I had to just write it down. Yeah. And that was that was a massive unlock for me. Matt's laughing because it all seems so obvious now because I think we all went through that, right? Like, yeah, I hear I hear Matt go through it. I'm like, Hey, dude, what like hey dude what's up can you talk and he's like no i got to go back to the gym and i'll be like what for i went for it's 5 30 and i know you have 5 30 6 30 off like i know his schedule and he's like oh because i have to talk to one of my coaches because this happened i'm like oh but two months ago i heard you say that to the coach i'm like holy shit yeah yeah it's kind of like raising kids i had It's kind of like raising kids.
Starting point is 00:29:27 It's like raising kids. I've said the same thing to them like 500 times, and it's like – I guess you have to find different ways to say it. Wow. Okay. Hector Trinta. Savon, thanks for this show. They add value. Yeah, of course.
Starting point is 00:29:41 I love having Chris on too. I have a garage gym, and I'm looking forward to growing it, to grow it and affiliate. Where should I start to make the business part right? Go to start a gym. So all my books are free today, by the way, if you want to go on Amazon and get them. If you go to start a gym book. Oh shit, I bought your book yesterday.
Starting point is 00:30:01 Can I get a refund? Yeah, I can mail you. No, you're giving someone, you're giving. That's a giving. We donate all that anyway so thank you really do you really yeah man since day one we the um the money that we make from book royalties gets donated so that's i probably can send you a dollar 76 back but i'm gonna have to shake down a kid who I probably gave a bike to and be like, fair is fair, Chris. You better get a paper route. Where's my money, man? So sorry, actors, he should start with a start a gym book. I mean, the reality is the people who grow the fastest and get to millionaire status fastest are the people who start right. There are a lot of gyms in Two Brain where we have to spend years fixing mistakes that they made at startup.
Starting point is 00:30:47 And that's what slows you down. Like the gyms that come into mentorship before they even open or even the people who like read that book, the started gym book, they skip over like four years of beating your head against the wall. That's not an exaggeration. Like they get to the point I was six or seven years into gym ownership in their first year. Like, and one guy just actually broke our record. He opened up with 117 paying members on day one, Jimmy Davidson. Yeah. So you can get this for free today. You just go to start a gym book.com and that'll route you directly to Amazon. And you just like click the Kindle and you get it for free. And if you want to pay for the paperback, wonderful, you're buying a little piece
Starting point is 00:31:30 of a bike for a kid. That's where it goes. What were we just talking about before we, systems and getting it out of your head? Systems and processes, getting it out of your head. So the book for that is actually Jim Orr's handbook. So that's the second stage. So if you think about the stages of business, the first stage is ideation, which is just like you're trying things, you're trying to get good product market fit. That's the start of Jim book.
Starting point is 00:31:57 Start at jimbook.com. You get it for free. The next step is, okay, I've kind of got my audience figured out. I've got a good product. I'm proud of now I'm hiring staff. What do I do? That's gym owners handbook. And if the first stage is ideation, the second phase is income. You have to build yourself an income or your box is going to go out of business and you're not going to help anybody. So you can get that book for free. If you go to gymownershandbook.com, you have to do this today, by the way, Amazon only lets me do it for like 48 hours at a time. And then after the income stage, you get to the investment stage. Okay. Now, what am I going to do for the future? And that's where you're buying more gyms or you're just like buying real estate. Like I do, you can't really do that as well in California, but maybe you're
Starting point is 00:32:39 taking your money out and putting it somewhere else, you know, deferring taxes, even, you know, having a tax strategy will make you more than most other investments you can make. And so that, that stuff is clearly laid out in the book. Oh yeah. Yeah. Yeah. Sorry. I'm, I'm, yeah, no, no, keep going. If you go to millionaire gym owner.com, you can get that book for free today. And then, you know, the fourth phase is really impacts. Um, and that's where you're just doing stuff for free in your local community, you know, over tipping the delivery guy speaking at local universities about entrepreneurship. And that's kind of where I'm headed next. I should have told my I should have showed my kids me tipping the refrigerator guys. I should have had my kids do it because yesterday we were
Starting point is 00:33:22 at a stop sign off the freeway and it was pouring rain and a guy was begging for money. And Avi goes, hey, why don't you give him money? And I said, because I don't need the service he's giving. And he said, what service is he giving? I said, well, when you see him, what do you think? And he says, I feel bad. And I said, yeah, I feel bad too. And I go, so what would giving him money do?
Starting point is 00:33:43 He goes, it would make me feel better. I go, yeah. I go, I don't need that service. That's what you're buying. Yeah, that's bad too. And I go, so what would giving him money do? He goes, it would make me feel better. I go, yeah. I go, I don't need that service. That's what you're buying. Yeah, that's what I'm buying. I'm buying the fact that that's a profession, and what you're doing is you're making people feel sorry for you. And also I was in that profession, so I know most of the people who are in that profession are also – they have other jobs. They're thieves, and they do drugs. Those are their other two primary jobs. But it was interesting. I wish he could have seen – he would have been like to me, hey, did you have to pay that guy, the refrigerator guy, money? And I would say no. I wanted to because that's how appreciative I was of the service.
Starting point is 00:34:19 I mean that's the thing too. Let me say something or ask you a question that's really self-serving why why did you why did you take it upon yourself to make sure that the behind the scenes happened i know you didn't expect me to ask you this but i don't remember exactly how it went down but you basically reached out to me you said i don't even know how you knew i was going to do the behind the scenes maybe someone told you. And then you said. You called me. Oh, I called you? I did.
Starting point is 00:34:47 And what did I say to you? We were mowing the grass at one of our rental properties. And you said, hey, man, one of the best things that CrossFit is. The best thing that CrossFit has ever done for its affiliates is tell stories. And you and Mike Workington and Tyson the you guys were master storytellers and the best story to tell is the behind the scenes stuff at the games and i agree with that i love those stories more than i love like who wins you know i i just i love it and you're the master of that and actually that's how we met but that's a different story um we met at the games
Starting point is 00:35:24 while i was filming behind the scenes we met at the canada east regional in 2012 and i was i was the media director because everybody else they hired quit before the event started and i was the last man standing and you were out on the floor with your ball cap pulled low and i was like who the fuck is that guy get out of here and you're like sorry sorry sorry and then later. And then later on, I was like, actually, that guy is like the boss of my boss of my boss of my boss. I probably shouldn't have done that. But yeah, I agree. The very best thing that we can do for affiliates to help them grow is to get these stories told. And I'm very lucky that I get to work for
Starting point is 00:36:05 affiliates, but I don't have to work for HQ. And so when an opportunity to help affiliates comes up, whether CrossFit HQ is going to support it or not, I can just do that. And it falls back to Greg's original principle of like, find a place where this much money will make that much difference and just give the money. And that was in my head as you were saying it. And before you even stopped talking, I was like, let's do it. Like mine made up. I don't think I was, I wasn't good. Was I trying to pitch you on it? I don't think. No, you would never, never do that. You, you call me and you were telling me about it. And I, my son and I were mowing the grass at one of our rental properties. And, and as soon as you started talking about it, I was like, this is an amazing opportunity.
Starting point is 00:36:44 And I'll be candid. Like, uh, at the same time, CrossFit was asking us to sponsor more affiliate summits. And so we were debating doing that. And I was like, this will help affiliates way more. And so that's what we did. And I remember thinking, and maybe this is a poor man's mindset. thinking and maybe this is a poor man's mindset and um but i remember thinking and my dad was always guilty for the money he made even though my dad worked his my dad worked so hard my dad was always guilty because he came from a very poor upbringing so he always felt guilty for the for money he made um and he would express that to me like it was a fact like he should feel guilty
Starting point is 00:37:21 but then i didn't contact you for a month you're like okay someone send me an invoice and I'll send you over the money. And then a month later – and I was like, man, I don't think he knows. He must have been drunk or something. And a month later you contact me. He's drunk. Yeah, yeah. And then a month later you call me and you're like, hey, are we going to do this or what? And I'm like, I haven't even told you what I'm going to give you.
Starting point is 00:37:42 You're like, oh, it doesn't matter. And I'm just like, what is going on here? And then I read your book, and there's this section in the book that the whole reason you do what Chris Cooper does is because you want to get to a place to give away a million dollars a year. Yeah, yeah. You know what? I don't remember. What a tricky – yeah. That's in the Millionaire Gym Owner book. Yeah. Yeah. I, you know what? I don't remember. Yeah. That's in the millionaire gym
Starting point is 00:38:06 owner book. Okay. What a, I've never heard anyone have that goal ever. Like it is really, it is nice being nice. And of course only the people who have money can give money away, but I've never heard that as a goal. Well, so I was having this conversation with our CFO, Bob Govero at the time. And he's like, this was about a year and a half ago. And he's like, you know, some of the people on your like higher level staff are saying that your motivation is dipping. They're a little bit worried about your energy. And I was like, yeah, you personally.
Starting point is 00:38:35 Yeah. Yeah. Yeah. What's going on? And I was like, well, you know, to be honest, I'm old. What do you mean? I'm old. Yeah.
Starting point is 00:38:52 Withered up. I'm a dry punch exactly i can try taking like a testosterone batch if you want me to but no i was just like you know we two brain is bigger than i ever thought my gym is great like i have everything i need and then some i don't even have to worry about putting money away for retirement anymore like we're good you know i still drive a 2017, you know, GMC truck. Like I just, I don't care about that stuff. And he said, well, what's the best thing you did last year? And I was telling him like, this was the first year that we had bought a bunch of bikes for local kids. And we had set this all up with this bike shop and we had bought like 52 or 54 bikes. And I was like, that's the best. It was awesome. And also we gave 10,000 of this and 10,000 of that. And I was like, that's the best. It was awesome. And also we gave 10,000 of this and 10,000 of that. And he's like, well, how much did you give away total last year? And
Starting point is 00:39:30 I said, it was probably around a hundred grand. And he's like, what if you could 10X that? So forget about 10X in your business or your income or your profit or your savings. Like what if you could 10X what you gave away? And I just kind of went, holy shit. And from that moment on, uh, just had like renewed energy to grow everything. And so it's our mission now to give away a million dollars a year for the rest of our lives. And, um, 2023, we did about 250,000. Um, this year we're already like well over a hundred thousand. Some of that is, uh, donations. Some of that is just like that kid needs a bike. Some of that is angel investment in cancer research or other causes like that too. But like right to the entrepreneur, not to the cancer society. You know what else is interesting about that?
Starting point is 00:40:16 Thank you. You're doing it. Greg never did those things for brand value. No, he did those things because he could do those things and you're not doing things for brand value. No, he did those things because he could do those things. And you're not doing it for brand value either. You're doing it because you can do it. Well, I think it's part of happiness. Like you have to hit a certain level of wealth. And I, you know, most people in our economy actually have hit that, right? Like the, uh, a low income person in the North American economy is still wealthier than any other person in history. So we've kind of achieved that level of wealth. The problem now is if we're so smart, why aren't we happy?
Starting point is 00:40:54 Why are none of us happy? And when you start thinking about it, you start thinking about what actually makes you happy. And the paradox of wealth is what makes you happy is giving it away. For me, anyway. And maybe for Greg, I don't know. I went to, um, I went to Africa and, um, I lived at home with my mom and I was working for this company called vitamin angels. And I was making a thousand dollars, uh, a month, um, you know, working 80 hours a week, flying all over the world over the world and um when i went to this one village and i was filming and there was a guy there and he had five kids five grandchildren
Starting point is 00:41:31 um the mom they were five grandchildren from his daughter who is who's dead from five different fathers who weren't around and this was in a village where there were um there were no objects right like they didn't have pots and pans everyone lived in teepees you know there were it just didn't look anything like you had seen there were no stores they didn? Like they didn't have pots and pans. Everyone lived in teepees. You know, there were, it just didn't look anything like you had seen. There were no stores. They didn't deal. They didn't have any, uh, they didn't buy stuff with money. It wasn't like that. Um, prehistoric shit.
Starting point is 00:41:55 And when I was there, the, the, the father was like 80, 70, 80, 90. He was old, very frail. And when I was, when I left left i bought him five goats i think well when i came back two years later he had a wife and it was because of the goats i bought him he explained to the translator that when i bought him a goat he got a wife and then that wife helped him with the kids another trip i took there i don't know what ended up happening but i was in a village similar this was in malawi and i had once again i had no
Starting point is 00:42:29 money i bought a bike for this kid with the last 140 bucks i had in my pocket and i immediately turned him into middle class he turned that into a taxi service yeah exactly it was great it was crazy dude it was crazy that's what I love about a bike. And, you know, that's why I'm not just giving away free CrossFit kids memberships at my gym. I'm giving them bikes because, like, if you're a kid, and to be honest, like, we give them to foster kids first. So last year, every kid in foster care in our city got a bike from us. Wow. That's cool, dude.
Starting point is 00:43:04 Thanks. Yeah. It was awesome. That's was awesome really cool yeah because we lived on bikes as kids i'm sure you did too exactly i lived on my bike yep a bike can be a path to entrepreneurship you can get a paper route still that still exists it can also be a path out of a really bad situation like if you have to get away from and that's you know that's why we do bike and fitness and it was the only fitness i ever got it was the only fitness i ever got i didn't even know i was getting fit but i just
Starting point is 00:43:30 rode my bike everywhere yeah yeah you want to meet with your friends it's they're a mile and a half that way like go so when when people come to two brain do they just straight up say that now will they just say hey i want to be i want to be a millionaire gym owner. I want to get my net worth up to a million. No, never. I mean, 80% of the time, it's like, I'm, I'm close to the end. I'm burned out. I've been trying this, you know, we've had two CrossFit affiliates in the last two weeks have been around for 14 years and they're giving and giving and giving, and they've changed thousands of lives and they, they're just close to the end. Like they've never made the money. They don't see, they don't see a future. Like, how can I keep doing this? I'm going to have to go get a job in real estate. And, um, so a lot of the time,
Starting point is 00:44:14 that's the position they're in. Now we can turn that around most of the time pretty quickly. And then once they start seeing success, they can lift their head up a little bit and say, oh, okay. Yeah. This is actually going okay. Now, how do I make sure this continues or how do I like actually build a future? To be honest, most of them are saying now that I'm making an income, how do I do the same thing for my staff? Like that's their first concern. So we show them that. And then from there, it's like, how do I continue to keep this thing going so that my staff will have their jobs even when I'm done and my kids will still have, you know, there are stuff when I'm gone and I won't be a burden on my parents or on my kids either. Should I, should I, if as a gym owner, should I come to you like that?
Starting point is 00:45:04 Should I, should I be like, Hey Chris, hi this is Sevan. Hey, what's up, dude? I, I, I listened to the podcast. I'm ready, dude. I've been doing this for five years. I'm ready. Get me on the path in three years. I want to be like, okay, I'm working five hours less a week and I, and I can see my retirement in 10 years. I want to be like, holy shit, I'm working like five hours a week and I'm fully like, I see that I'm going to make $60,000 the rest of my life. And if I didn't lift another hand. Yeah, that's right. I mean, definitely you want to be emotionally ready. And I wasn't until I had to get rock bottom. What does that mean? What does that mean? Emotionally ready? What does that mean? What do you mean? Asking to chop off their hand or something? Yeah. I mean, prove it. Like, hurt yourself. Yeah. What do you mean?
Starting point is 00:45:46 No, it's... So I was a pretty immature entrepreneur, right? And I had this big ego. Like, I'm just going to figure this out. Like, I'm smart enough. I can grind. No problem. I'm going to figure this out.
Starting point is 00:45:56 And things just kept going downhill until I hit rock bottom and didn't have a choice anymore. And that's when I sought help. Most of the people who come into Two Brain are more mature than I was, and they're ready to accept help now. And those are the people who ascend fastest. And there's a lot of them in this book who they showed up and they said, I'm tired of trying to figure this out, screwing up, making mistakes, feeling like I'm failing. You just tell me what to do and I'll do that. And two and a half years later, their gym is super profitable. They're a millionaire.
Starting point is 00:46:30 They have like an Airbnb asset down in Arizona. This is like the Taryn DeBrieu story from the book. And it's just because they said, I'm ready. It doesn't matter how much revenue you're making or not making. It's in your head, are you ready to accept help? Just like your client's ready to accept coaching and fitness. Give me an example. Give me an example of what that looks like. Maybe you have to give me an example of someone who's not ready, but give me an example so I can kind of objectify it. Yeah, I mean, there's a bunch of examples in the book, right?
Starting point is 00:47:03 One of the best examples, man, and this is the most fun affiliate owner you'll ever meet. His name is Jake Fields. He got kicked out of two CrossFit gyms and he's like, but I just love this. I don't know what, how he got kicked out. I just love this. I need to buy, you know, a rogue cage and I need to put it in my garage. So he calls up rogue and he puts in his garage and then his neighbor comes over and then their neighbor comes over. And before he knew it, he's got a dozen people working out in his garage. Like you guys know this story. It's so familiar. And then he's like, oh, geez, I better rent some space. And so he rents some space and that becomes CrossFit devotion.
Starting point is 00:47:39 And then he becomes like, you know, the best gym in Seattle. becomes like, you know, the best gym in Seattle. And, um, the thing with, with Jake is that he's so humble that it didn't take him long for him to be like, I'm ready for some help here. Like, this is kind of happening by accident. Let me get some business help, you know? And so he reached out right away. What does he see? What does he see Chris that makes him know what's the first signpost? I think it's probably the realization that I didn't have. And they're like, I'm good at fitness. I'm passionate about this. I love helping people, but business is a different skillset. And it's like not being able to even pay the bills. Like what? Like I'm looking for something like really tangible. Like what is it? Like, Oh shit. Chris just described me. Like I, I don't pay the bills. I don't know how to do my taxes. I'm scared to look at my bank account.
Starting point is 00:48:27 I don't hire a bookkeeper. I don't know how much money is coming in March 1st on my billing cycle. I've never looked at that report in my payment processor. What's my term percentage? What's the lifetime value of a customer? What are those even? Yeah. Where are the next five customers coming from?
Starting point is 00:48:44 Okay. Right. You don't even know. You don't are the next five customers coming from? Okay. Right. Like you don't even, you don't even know. You don't even have a plan. You're just like hoping and like, Oh my God, I hope somebody walks in today or not even knowing like, Hey,
Starting point is 00:48:54 if Matt walked into my gym today, what do you sign up? Like, if you don't know that or the path to, to fix that, like you're ready for help. And, and I didn't know that,
Starting point is 00:49:04 you know? So the smart people, the smart people the mature people they embrace that help early on you know another example sorry but i want to sorry i took out so then jake comes to you i want to keep you back on the story so then jake comes to you it sounds like he has a positive attitude a lot of energy um and then humility humility and so you start helping put them these systems in place and are there pages in the book like this thing that you talked about going back in the beginning of podcast where um uh do you does it live in your head or is it written down like first thing you do what you always have to turn the lights off always turn the heat down yeah
Starting point is 00:49:40 always make sure that there's a schedule every mond at 3 PM. Do you have all of that in the two brain mentorship? So I don't have to write it all down. Like a hundred percent. Yeah. It's all there. Yeah. Copy paste, copy paste tweet for your gym. Right. Like you guys, you know, you said turn the heat down. Like that's in my playbook for my staff. That might not be in your playbook for your staff. Right. But those things are like, those are the things that like, um, I saved you $10 here a month. I saved you $10 here a month. I saved you $25 here a month. I brought in two more clients here a month because of just these things.
Starting point is 00:50:10 Like, don't forget to print, turn your open sign on. Like, don't be, if it, if your open signs burnt out, that needs to be the number one thing you call when you go in the morning and get someone to come fix it. Like, Oh yeah. Right. There's these things you can't have the R light out on your, on your sign out front. You look like a douche. And who do you call to fix it? When you call how do you schedule the appointment who schedules it oh yeah you need a wife you need a wife exactly my wife often jokes that she needs
Starting point is 00:50:34 a wife i can't make a missed appointment and don't let the chris chris kind of like the way he's talking about is like yeah we have all that set up but i want to express that that will take you years to figure out the first year you're going to be super gung ho. You're going to take on the world. You're going to be like, I don't care that I wake up at 4am and I work until 930 every night. I love this stuff. Yeah. Call me in about five years. Cause you're going to fucking hate it. But what he's talking about with the systems there and to be able to copy paste something and then just massage it to your individual needs saves you an enormous amount of time. Because when I first started down that pathway, I was like, I don't know what I'm
Starting point is 00:51:10 doing. How do I, so I write this down and it's like, yes. And then where do I put that? How do you disseminate that to your other coaches? Is there a booklet that does that? Do you do that on digital? What happens if it's something that takes more explanation? Does that include a video of you explaining it? Right? So this is not something just to gloss over and the value that just having systems laid out that you could quickly't care what your job is. It doesn't matter. I don't own a gym. I don't want to own a gym. Nothing. It changed me already.
Starting point is 00:51:50 It pushed things to my forefront of my brain that I really need to think about. And it does it in a gentle way. The book didn't stress me out at all. Get that book. It's on Audible. I couldn't find it on Apple. Download it. Get on the assault bike put it at
Starting point is 00:52:05 1.5 speed and um and and just listen that's what i did last night i made it through three quarters of the book i'm telling you everyone will be so happy um that you listen to this it's just going to remind you of some things okay i need to do this i should do this oh it's going to inspire you it's i wasn't stressed out once by the way way. It just inspired me. Thanks, man. It confirms some things. And everything in there is just stuff that people already know. It's like movement. It's like CrossFit. You already know it all.
Starting point is 00:52:33 But as you go to a gym or your L1, it reminds you. You're like, oh, yeah, this is the truth. Here's the steps. Yeah. That's what was really important to me. So I had, um, I had somebody do the interviews for me in the book because I was so familiar with each of these people that I would probably just fill in gaps in my head. And I didn't want to do that. So we hired an interviewer and over the last year, he went back to them again and again and again. How exactly did you do that? What exactly were
Starting point is 00:53:01 the steps? How much money did you do with this? And that's what's in there. So if they, if they told you they did it one way, one time and one day, the other time, then they can be like, okay, which one was the truth? And they could like pin it down. I don't mean that in a nefarious way, but that's the way life is. Did you really put your right shoe on first or your left shoe first? And those are the details that people who are ascending the ladder want to know. Yeah. And I didn't also just want to just like share what i did because that's not going to work for everybody you know like the the last story in the book is trace kennedy and his real epiphany here was like he he started a church and then sorry sorry chris i think
Starting point is 00:53:37 this happened last time we'll do we'll do the church hold it hello Hello Yeah, this is me are you gonna come fix my fridge and this order was created on February 7th, 2024 and I just want to ask for Sevan your last name as well as your email My last name is Matosian and my email is Sevan Matosian at Gmail Hey, could I give you my wife's phone number and you call her? I'm in the middle of a podcast Would that be possible?
Starting point is 00:54:20 Oh, okay You're very sweet, thank you It's 805 You should probably mute yourself Oh, okay. Oh, you're very, very sweet. Thank you. It's, it's eight Oh five. Uh, hold on there. You should probably mute yourself. Yeah. Yeah. Haley's phone number. Hey, Chris, I got a question for you. So I'm in, this is, I'm going selfish with this one here, just because it's like legitimately a question that I have as, as I'm building staff, I have somebody now and I have for, um, officially kind of wrote out all the procedures and gave the system of like a GM, right?
Starting point is 00:54:48 So like this person, I want to run the gym and literally replace everything that I, that I do. Um, can this, can, can they also sign up for the two, two brain mentorship and then have you work with them as like the head coach and charge it? Cause I would give them autonomy to make any adjustments or changes, um, that you guys would recommend. Yeah, that, that actually happens quite a bit. Um, in fact, I, I put my own managers with a two rate mentor too, because I don't really just have the time to mentor them or work with them myself. So you find that quite often with people at this level, the gym's going well. I want it to maintain.
Starting point is 00:55:25 I don't want it to go backward while I'm working on learning about investments or opening the next location or, or exploring the purchase of other gyms. So like my save game button is get the manager, a mentor. And, um, you know, the, the manager's job is really to maintain what you have. It's rare that a manager can keep growing the gym for you, but we can teach them how to do that. Okay, cool. And then I keep going back to this question that I feel like, how do we create generous incomes for coaches? I feel like this industry in particular has a very much like, I volunteer because I love to do this, but I have another job.
Starting point is 00:56:07 I want to do this full time, but I have to coach at three gyms in order just to be poor. Right. And so I'm to buy that trailer park. Oh, I got to qualify. Yeah. And so have you like have you thought about this question? The reason why I ask it again, I'm just going selfish here because I have you in front of me.
Starting point is 00:56:26 Like I have contracts with departments. I have to turn down more contracts with departments than I could take on because number one, I don't want to continue to load those onto my plate because I love to help out with the podcast and the other stuff that I do. Right. But I need somebody who's a really high qualified individual that could run their own department. Have you put any thought towards that as far as where do you find these individuals? Should I just poach them from other gyms and be like, how much are they paying you? I'll double it right now.
Starting point is 00:56:58 Well, right now in this economy, you often do have to look outside your gym to hire, but there's steps. So the first step is like, make sure your gym can pay you, right? Like you are the proof that your gym can actually afford to pay somebody a good wage. And so that's why we mentor the owners first. But definitely, we want to pay your coaches a good wage. And the way that you do that is not by cutting out income or kicking your profitability down the road. Because what you're doing is you're getting somebody to take a risk and quit their full-time job and work for you on this sketchy premise that maybe it'll work out. And it often won't. So you have to prove that your business can afford a full-time person by paying yourself that first. The next step is you have to
Starting point is 00:57:49 say like, okay, where can this person add value? And what will I do with the time that I save? So if I've got somebody who's going to be the general manager, for example, that's wonderful. You've, you've given yourself the freedom of time. Like that's half of wealth, but what are you going to do with that time? You're young enough that you have to know where you're going to reinvest that time for it to be worthwhile hiring a manager. Most gyms are an owner-operator business until you reach the point where you're like, I need a little bit more free time or I'm ready to retire. To create that margin of now I've got this new $80,000 a year manager salary to pay for, what am I going to do with my time to generate that? And typically what that means
Starting point is 00:58:32 is that the, the owner upgrades their marketing skills or they double down on, um, you know, whatever that locations or whatever to create those opportunities. Okay. Makes sense. Oh, that was a form of freedom i can just on my podcast take a call from uh uh the best buy guy i i really mean that that that is that's my freedom i made this world so that i can give out your wife's cell phone number for the important stuff yeah i could just act like a jackass host people be like how how unprofessional of you i agree 100 but it's my freedom chris a church. So there was a gym owner who ran a church. Yeah, Trace Kennedy.
Starting point is 00:59:08 Okay, tell me that story. Trace had two passions in life. First is church, second CrossFit. His wife was a substitute teacher, and he decided that his calling was to found his church. And so he says he planted his church, which I love. And so he started his church, and then he's like, actually, this takes a lot of time and money. I better get a business going that can support me and my family and this church. And so he started with a gym and he's like, all of my energy is going into running this
Starting point is 00:59:36 church. You tell me how to run this gym. And we started working with Trace very early. He just recently became an actual millionaire. And where's that money go? Into growing his church. And it's a really inspiring story. And it's the 14th story in the book. This is way off topic, but what is the church business? You open, you get a space and you start telling people about God and then they donate money. Is that the business model? What's the business model for a church? Depends what you? What's the business model for a church? Depends what you're in. Like the business model for a Catholic church is very different than a
Starting point is 01:00:10 business model for starting up like a Baptist church with one pastor in Alabama, like, like trace did. And like, there's, there's no college governing churches. You can start up a church this afternoon in your garage if you want to and,
Starting point is 01:00:24 and create your own path to faith, whatever you call it. But churches are – I've never paid to go to church. Like you just go – like how do they make money? How do churches – Well, you have to – you give like tithing or like donations or like my parents' church is like a collection plate that they pass around. Yeah, yeah. They had that. My dad would be like, hey, put this in there.
Starting point is 01:00:43 Yeah, exactly. And then that money is usually split between like local things, paying the pass around. That's the business passing that plate around. Hey dude, that's some of people's gyms. That's funny. That's what gyms do still this day. Hey, really? Just put the check in the box and I'll remind you on Instagram and I'll text you when you don't. Wow. That's how this show, Hey, that's how this show works. you when you don't wow that's how the show hey that's how this show works oh this is what we've been building too okay okay go ahead pass the collection plate here yeah that's how i swear to god that's how this show works i mean you you that you you were like
Starting point is 01:01:16 hey savvy give me the collection plate i mean that's seriously how this show works this show's a mess it's not true i mean in some instances that works just fine right uh or so good so far yeah exactly exactly wait till they see what we're hiding in the basement oh nelly we're in big trouble pass the plate first before you have the uh the confessional do you do you know any gym that's um that's just stumbled upon success sorry suze i know you're gonna ask a question do you see gyms that have just stumbled upon success and if they do are you weary of it are you like okay you stumbled upon it but it's going to be hard to keep yeah yeah short term for sure you see that a lot like um i was the first crossfit gym in
Starting point is 01:02:01 my town that attracted you know 20 people on opening day. A lot of the early affiliates in big cities, you know, and a lot of them are with us now, they saw this early success. And like, what they didn't understand was that the market was good, not that they were good business owners necessarily. So, you know, I could pick out a random city. I don't know, Give me, give me a popular city. Like, I don't know anybody. There aren't any in the United States anymore. Okay. So I'm going to, I'm going to pick like Dallas, right? I don't know who owns CrossFit Dallas or whoever did. So I'm not, I'm not singling anybody out here, but if you're the first CrossFit affiliate in Dallas and you call it CrossFit Dallas, you are catching this massive
Starting point is 01:02:43 wave of early adopters, people who are curious, people who have been paying attention and waiting for a box to open. That doesn't last very long. And it lasted two to three years in the States. That's literally what's happening right now in mid-Europe. And two or three years ago, that's what was happening in Western Europe. You would open your gym, it would be like Cross. Okay. And you would just have 300 members and you would say, Hey, I am damn good at business, but really you're not good. The market is good. And that, that market changes over time. And so that, that early adopter phase usually lasts two to three years. And then things start going downhill.
Starting point is 01:03:29 And I got this call, I don't know, three or four years ago from this guy in Atlanta. He opened up the first CrossFit in Atlanta. And he's like, you can't sell CrossFit in Atlanta for more than 79 bucks a month anymore. There's so many affiliates. We're driving the prices down. Now that isn't true. Like there were a lot of good affiliates in Atlanta, Miles Davis, Rick Thompson, like I can give you, you know, Brandon Brigham, these guys are selling CrossFit for 200 bucks a month, delivering a great product, but they knew what they were doing, you know? And so like, is there like an advantage to some people luck into it? I don't know if it's luck or if it's foresight, like, Hey, I want to be the first person to bring CrossFit to Spain. or if it's foresight like hey i want to be the first person to bring crossfit to spain like that's smart in my opinion but like the tactic that gets you that first 300 members is not going to work for very long so you have to eventually like set up a real system
Starting point is 01:04:15 um it reminds me of the gas station down the street from my house it's the shittiest gas station in town and i would never go there except it just happens to be close and it's just a complete exactly just the way the the in and out of the driveway is the way the curbs are set up the way one pump's always out of order the way there's always some crackhead out by the door it's just like but but they're lucky they got the location and in the market everyone wants gas yeah yeah first mover advantage is huge. Yeah. Hey, so what I heard you just say is you don't need to wait to start reading these books until shit hits the fan. Like shit's really good for you, but you're working 50 hours a week, but you're bringing home, let's say, $100,000 as the owner. You're bringing $100,000 a year.
Starting point is 01:05:08 Now is the time to like, dude, don't wait until shit hits the fan. Start reading these books now and put the systems in place now because this moment might not last forever. If you already have made it past the first few rungs, but you don't have an ability to walk away for two months from your gym and make sure it survives, then now's the time. Do it. Yeah. And more than that, it's like all these things take time. When you're starting up, the stuff that you have to do, you can do it in a day. Later on, if you have to fix mistakes that can take a year and you know when you start looking at like investing in things you know my first investment was buying a building i just read
Starting point is 01:05:50 rich dad poor dad it took me two and a half years to find a building and save up like the down payment to get it you know and then i quickly paid the building off and that was kind of my first step now we own a bunch of them but um it it takes time you like you're better to learn it right now so that you're aware of and looking for opportunities. Would you recommend that book, Rich Dad, Poor Dad? 100%. Yeah. 100%. I keep 20 copies of it on my shelf and I give a copy to every kid in our family when they graduate high school, along with How to Win Friends and Influence People. And I try to keep books like that on hand when entrepreneurs come into the cafe. I just say here, go read this, you know, all the time.
Starting point is 01:06:31 What cafe? Um, so I bought the building that the gym is in and then an office building next door, uh, came up for sale within a year. And, um, it was, it was a kid's daycare. It really not a good one. The biggest asset they had was the chef. And so, uh, you know, Mary was 62, maybe years old. And I said, Mary, like, why don't you open your own cafe in this building? I'll buy the building. You open the cafe. And now who's Mary. Mary is the chef at, uh, this cafe. Okay. Yeah. okay yeah yeah how sexist of me i assumed it was when you said it was a good chef i assume it was a male i apologize god i'm such a sexist her husband's not a good chef no um but now i've got this you know this couple and she just told me yesterday like she loves this every day she runs this cafe it's super profitable it's tremendous for me like
Starting point is 01:07:23 i twice a day i'll text her and say, can I have lunch? And she'll just like walk it back to me. Anybody that comes to visit me at Two Brain HQ, like we eat really, really well. But there was an opportunity for entrepreneurship for her. And like, honestly, that's my favorite thing about gym ownership is most people in our society do not have a clear path to wealth that entrepreneurs do. And so the best thing to do if you ever want to become wealthy or create like freedom of time and finances for yourself is open a business. You pretty much have to do that. One of the easiest
Starting point is 01:07:57 and best businesses to open is a gym. And so that's why I'm so passionate about painting that entire journey from starting to like sorting out the mess to actually becoming wealthy for people to attract more people to gym ownership. You can start a gym for $15,000 today and be a millionaire in five years. And that's not just TikTok, Instagram garbage. 107.22. That's why. Yeah. I want to hear more about this cafe so this it's it's a legitimate cafe where like you have an inspector come and check for roaches and make sure that your soup is hot enough and like they do all that shit like where they come and dime you and and mess with you yeah it's it's
Starting point is 01:08:40 this amazing little microcosm so there's's a psychotherapist feeding your soul. Okay. Yeah. Microcosm. Yeah. So the gym is connected to this building, which has a cafe, a psychotherapist, and some other small business entrepreneurs in it. And yeah, it's just an amazing place to go and spend the day. That's wild.
Starting point is 01:09:03 So you own a cafe also? don't own it i'm their landlord oh so you just you persuaded the chef from the preschool to open a cafe in the same spot yeah i don't want to open a cafe right like um as a friend of mine said to me when i was talking about opening a coffee shop years ago he's like why do you want to ruin the other thing that you love? Like, you've already got a gym. So, yeah, no, I don't want to open a cafe ever. Right. That sounds like that's the reason why not to have a mistress.
Starting point is 01:09:37 Why don't you ruin the other thing you love? Collection plate. Thank you. Zach. Oh, absolutely. Two bucks. Oh, $1.99. Oh, look at this.
Starting point is 01:09:44 Oh, monthly tithing. Oh, thank you. Monthly tithing. I mean, you know, in our modern society, very few of us pay a monthly tithe to a church. Why wouldn't you pay a monthly tithe to a gym and look at your $150 membership as like tithing? Like if you're not going to invest 10% of your income in spirituality, why wouldn't you invest 10% of your income in your health? To me, what'd you say susan i said clip that one too yeah yeah uh 109 uh hey to me it seems like a complete no-brainer if you wanted to donate money to your um community even if you didn't
Starting point is 01:10:21 belong to a crossfit gym is to give your money to the crossfit gym i yeah i seriously don't think that there's anything i'm trying to think i don't think there's anything better you can do for your community than have a crossfit gym it's it's a place where people are going to go into and when they walk out an hour later healthier happier more generous greater contributor demand of fewer resources from the community. Like every way it's a net positive for the community. I made a post on some CrossFit Games athletes account one time. Like, hey, if you want to donate to a charity, donate to a CrossFit gym. There's no better charity, and you should have seen the hate I got.
Starting point is 01:11:02 But to me, it's purely logical. It's 100 purely logical. It's one. It's 100% logical. Every every other place in the community benefits from a CrossFit gym. There's no there's no downside. But they dropped the barbell. Shut up. Like figure it out.
Starting point is 01:11:20 I figure it out. Sponsor a kid in a CrossFit kids program. If you want to better your community, CrossFit kids don't sell meth. Put a kid into CrossFit kids for three months, change their life. And it's a force multiplier too. We're all just mirrors here. So every person that goes to CrossFit is now a walking example of what everyone else should be doing in society. Just taking accountability and personal responsibility for their health. Yeah. Go ahead. I think it's important to state that too. I mean, we could talk about like what
Starting point is 01:11:52 CrossFit could do for affiliates and stuff if you want to, but you know, one of the, one of the key messages that CrossFit started with that's been lost is that we're forging elite fitness. And a lot of people look at that as a divisive term, like, oh, you have to be elite to go there. That's not actually the case. What we're doing is taking ordinary people and bringing them to an elite level of fitness to serve as an example to everybody else and pull the entire circus tent up. And I think that's something that CrossFit should be talking about instead of apologizing for. I agree. Yep. I agree.
Starting point is 01:12:34 I think the primary element of the brand value is the fact that it's not easy. And that if you do this relative to the other people who are in society today, you are, you should be proud. Yeah. You should, you should be proud. It's hard and it makes you better and it makes everyone around you better. You should be proud. And it shouldn't be something that we should shy away from. What do you think about this notion of when you speak about trying to speak to everyone? Well, I mean, unfortunately, like the best law of marketing that just becomes clearer and clearer to me over time is that you have to know your niche really, really well. Like you have to know who your product is for. It's not for everyone. You know,
Starting point is 01:13:15 so when you guys said who should start with two brain, like I gave you a couple of things, like you've got to be this and this and this, right. It's the same at a CrossFit gym. And so, like you've got to be this and this and this, right? It's the same at a CrossFit gym. And so, yes, you do want media out there saying it's hard. It's not for everyone, but it can be for anyone. You want that, but that can't be your entire media. Like you, you also have to say, here is why you don't want average fitness. Average fitness is not good enough. You want like elite fitness that nobody else in your friend group has, and you should be striving for that. You might never hit it. Right. And here's why you should be looking at the fittest people on earth. Not because you're going to compete in the CrossFit games, not because you're going to throw down ever maybe, but you want to be looking at them as like examples of
Starting point is 01:13:58 how far your body can go and how much buffer you can build for your own health and how far ahead of chronic disease you could get. That's why we need these examples. And that's where CrossFit needs to serve as an inspirational source, as a picture of elite fitness, and not shy away from that. Yeah. Do you see a future? Do you have thoughts about where the future of CrossFit is going?
Starting point is 01:14:26 Like as a, as a, where do you think, where do you think it's headed as a, as a company, as a brand, where do you think it's going? Okay. Yeah. Thanks for saying that. Cause as a method, it's, it's great the way it is. You don't really have to change anything. I mean, you, you could talk about like zone two once in a while and stuff, I think, you know, whatever, but as a company, I think like something that hit me really hard this year that I hadn't figured out until we started getting approached by private equity companies that wanted to buy two grain is that private equity companies don't buy a brand because they're going to keep it for 30 years. They buy it to increase its value by about 20% and then they sell it. So this epiphany to me this year was that the current owners of CrossFit are probably not going to be the same owners of CrossFit in about
Starting point is 01:15:12 three years. And that's just how private equity works. I haven't heard that from Don Fall or anybody else. Nothing gives me that impression other than understanding how private equity works. If you see a boat on land, you know, eventually it's going to go in the water. That's what boats do. Yeah, exactly. No judgment. That's just what boats do. Yeah. And so that's right. Like that, that's the business that they're in. And so, you know, understanding that gives you a little bit of clarity. Like somebody will always want to own the CrossFit baseball card. It's not going to always be the same people. They're going to trade it for something else. So understanding that, like the play is going to always be, we need to increase the value
Starting point is 01:15:53 of this thing that we just bought by 20%. And we need to have potential revenue streams that appeal to the next buyer so that they can increase its value by 20%. Okay. So far, nothing wrong with that. That's their business, but that explains why they will start things like we're going to, we want to start our own software company. We want to start our own mentorship practice. We want to have our own soda company. We want to settle the NSCA lawsuit as quickly as we can.
Starting point is 01:16:20 You know, we, we want to raise affiliate fees like fast. What I'm hearing you say is there's no long-term brand value goals. Well, the CA case was a long-term brand value goal of Greg's. I mean, he wouldn't state it like that, but it would have been, you know what I mean? Like that would have been, that would have paid huge dividends in 15 years. Massive. Yeah. Right.
Starting point is 01:16:44 So like there's value to that but the the typical or any private equity company that i've been exposed to they're not thinking like 15 years they're they're you know they're thinking like usually a three to five year time horizon and what's happened now with most private equity companies is because interest rates have gone up so much, there's way more pressure on them to make back their investment faster. So if you look at actual affiliate numbers, they've actually gone up a little bit over the last year. And I can share those with you if you guys want. What numbers have gone up over the past couple of years?
Starting point is 01:17:20 A number of affiliates. So keep in mind, I don't work for hq they've got like the set of books but if you count up the number of affiliates on the main site over the last year um i've got them right here that makes sense by the way because we're when the economy struggles the affiliates go up when the economy's good the affiliates go down oh that's interesting yeah yeah yeah but um yeah so you can kind of imagine why right people start chasing their dream job people yeah taking the l1 when the economy's bad i mean 2008 and 9 were amazing for crossfit i mean just
Starting point is 01:17:59 yep yeah well that's great right like yeah i just got fired from middle management i might as well try this. Chase my dream. Yeah. Chase my dream. Yeah. I love it, man. I never made that connection before. Okay. And then obviously a commercial real estate, right? If commercial real estate becomes available, it makes it easier to open affiliates, right? Totally. Yeah. Unfortunately, if businesses are going under, there's more space available to rent and rent prices probably get depressed too. So yeah. Unless you're in Livermore. Then they go up. Yeah, that's where California sucks. Okay. Sorry, Chris, I've interrupted.
Starting point is 01:18:36 No, no, it's fine. So the numbers are trending upward a little bit which is fantastic news for everybody that said like with the affiliate dues going up like tripling in my case you're not going to see the full effect of that for another year because the the dues don't actually go up until your renewal date so like if my renewal my renewal date's june we affiliated in june 2008 um i won't see the price increase until then you know and then so that's when gyms will really make the decision on whether they're going to stay affiliated or not. I think probably most gyms will there, you know, there's a historical, in my case, I feel like there's this historical debt. I should have been paying more all along. I'm happy to pay it. But will it be another raise
Starting point is 01:19:22 after that? You know, I don't know. So that's, that's something that like the owners of CrossFit are always going to have to, to weigh is like, just was a significant rate hike. Can we possibly do that again? And that's going to figure into any valuation in the future. the three of us just came up with is that if mom only wants you in the house for three years, you're not really mature enough to leave the house at the age of three. What I'm saying is, is if the owners are only going to keep the company for three to six years, their vision and their time horizon is not in, I don't know if the word's parity, but it's not where the affiliate owners are. I mean, the affiliate owners need someone who has like a 15-year plan.
Starting point is 01:20:15 Well, here's the good news. In order to align, right? Doesn't there need to be an alignment? There does, but I'm not sure that has to come from the people that own HQ. Okay, so the affiliate owners, instead of blaming HQ, they need to take responsibility and accountability and step up the process? They do, and the great news is that there are companies on the edges that are not owned by HQ that are tremendously invested in making sure this movement continues. And I'm talking about noble, honorable companies like Rogue, like Beyond the Whiteboard, like Two Brain Business, who really want to make sure that the method continues,
Starting point is 01:20:52 that the community continues, that the movement continues, regardless of who's holding the CrossFit baseball card. And I don't mean to say that we're at odds with the owners of HQ, nothing like that, but we are invested in the continuity. I have no incentive to encourage CrossFit HQ to sell to another investment group. My incentive is make sure that the movement continues. And if any affiliates are in doubt of that and they want to see it in action, true to life, go to the Rogue Invitational. of that and they want to see it in action, true to life, go to the rogue invitational.
Starting point is 01:21:29 That's not an HQ event. That's a Bill and Katie event. And you will see, yeah, the CrossFit movement is alive and well, and we're good. Like this is going to be- What did you see there? Just the investment Bill and Katie make and just how nice it is and how good the people are? It felt like CrossFit 2014. It really did. Wow. And like, I know if you're fairly new to CrossFit, that might not mean anything. But here's the reality. Like, you know, Two Brain had a little booth and Mayhem had a little booth. And people would come up and they'd be wearing the Savant shirts, right? And I'm sorry, like, I should have included you in that list. Like you are invested in this for the next decade to making sure that maybe more than anybody else.
Starting point is 01:22:05 Like you were doing this for no money and you're invested way beyond what anybody could reasonably expect you to do. So thank you for that. But this is part of the circle that surrounds affiliates and protects the community is brands like yours and Two Brain and and two brain and rogue and and like rogue is powerful man very so when you go to the rogue invitational down in austin it feels like we're in this fitness festival and like you know the world's strongest man was there and i just went up and was like what's up and he's like you know yo and um know, like Kalipa is there and he's shooting funny videos with,
Starting point is 01:22:48 um, Miranda and they're like hiding in the, in the outhouses. And then they're going over and like toilet papering the mayhem tent at night. And like, it's that stuff. It's, it's amazing. Um, you know, when I first found CrossFit and went to the crossfit games i was blown away because as a as a hockey player as a kid i was like yeah i just went to an an open skate and shook wayne gretzky's hand like that's how i felt about jason kalipa right and like that's really true you shook wayne gretzky's hand you really did do that no but that's how i felt when i met kalipa for the first time right right right and i wrote this blog post called, you know, Our Debt to the Best, Why You Owe Jason Kalipa 20 Bucks. And it's like, because he's going to inspire my kids.
Starting point is 01:23:32 Like someday they're going to be doing pull-ups and saying in their head, I'm Jason Kalipa, you know, and like I did with Wayne Gretzky. Right. And, you know, you still get that. And the Rogue Invitational for me this year was like traveling back in time. And if you, another place where you'll see that is the two brain summit and like, you know, we're going to sell out. There's already 700 gyms going. Um, it's in, it's in June two brain summit.com half of those gyms in Chicago again. Yeah, man. Yeah. Is it, uh, it has been in Chicago for the last six or seven years. Um, but yeah, I mean,
Starting point is 01:24:09 we were looking at Dallas this year and, and honestly, I just, I just was down in Dallas about two weeks ago and it's just not convenient enough for gym owners. So like the, um, if you go to the summit, like half of the gyms, there are CrossFit and half are not, but you're still part of this community and the community is the gyms that you're at your summit or not CrossFit. Yeah. Yeah. Wow. Congratulations. That's impressive. Oh, thanks. Yeah. Yeah. Um, but like, you know, our mission is that we're going to provide this knowledge, whether you're, it doesn't matter what method you pick. If you're a CrossFit gym, that's wonderful. We can give you a model for that. You know, yesterday I spent time talking
Starting point is 01:24:49 at length to a Fit Body Bootcamp owner. There's Pilates and yoga and everything in between, F45 gyms in there. And what we try to do is deliver like a free affiliation or a free franchise through this group that we have called Gym Owners United. Any gym owner can join this group. We try to give you more value than you would ever get from a licensing deal or a franchise deal with any other gym chain. And it's just free.
Starting point is 01:25:18 Like you can just have it because we want you to succeed. Is there a website, Gym Owners United? GymOwnersUnited.com. Yeah. It's a facebook group there's 8 800 gyms in the in gym owners united now and um sharing the transparency is amazing there's no egos if somebody's an asshole we kick them out like that minute um you know and we do a lot of free stuff in there every single day chris i'm so sorry i didn't mean to i didn't mean to i
Starting point is 01:25:44 just got too wound up can you unkick me out of the facebook group no no one in doubt damn you know the rules yeah just be a good person and so that that's that would never last in there i would never last in there well let's do it let's have you join and we'll we'll put a stopwatch on it one one comment the first comment he makes yeah the meter's running done yeah uh uh uh see my boobs oh chris what do you think about mccoy medical integrating into proven and other affiliates i don't know anything about that i'm sorry okay. Okay. I think that there's, I think this guy, McCoy, McCoy was on the podcast, right? He was on the podcast and he spoke at the CrossFit for health summit. Yeah.
Starting point is 01:26:32 What are they doing? They're opening up a, like he's, and he's a real doctor. He's like a real doctor. So he put his medical practice like inside of a CrossFit gym. Yeah. So cool. That's not the first, I mean, there's been a bunch of those, right? Correct. Yeah. I think he's just been the most forward facing. yeah so cool that's not the first i mean there's been a bunch of those right correct yeah i think he's just been the most forward-facing i know there's one in la for like a while like multiple years now i i haven't um talked to the individual like myself so i don't know how successful it was
Starting point is 01:26:56 or how things are going but it's still around so that kind of speaks to itself there too we have a bunch of examples of this in two brain where a physician will open up a CrossFit gym and make that either part of their practice or in the same building or just part of their prescription. And they quickly realize it's a lot of work. And so they come to Two Brain and say, how can you turn that into a business that I don't have to be at because I've got this physician's practice to work on? be at because i've got this physician's practice to work on so chris have you seen this have you seen examples of um gym owners owning multiple crossfit gyms and still being successful because and the reason why i ask is like and i know you know this to be true too usually we have a great first successful first location and the second location makes us poor oh yeah i mean it did me right so like one big trend that you'll see
Starting point is 01:27:46 in our highest level group, which we call the tinkers is people, they get into that group and they got two or three locations and then they consolidate down to one and they, they actually do better with one than they were doing with three. And it's just like, you know, you think that, okay, this gym is doing well. If I have a second gym, it'll be double the work, but I'll make double the income. And really it's like four times the work. And it's probably, you know, a year before you see any income and you're absorbing the loss and it's like choking the life out of your first gym. That's exactly what happened with me. Um, luckily I had the personal training studio that could feed the CrossFit gym while I figured it out. Uh, and eventually that almost ran out of
Starting point is 01:28:23 rope. So the old mile stick used to be like how many affiliates do you own but these days um a good percentage of the most successful affiliates in the world own one gym and there's you know there's lots of reasons for that like um if i look at like uh crossfit metis in Stockholm, two current locations, they want to have 10 locations because they want to change lives with CrossFit, not because they can't make enough money. Like they're, you know, well over a million dollars in revenue a year. Wow.
Starting point is 01:28:56 That's what they want to do. Um, there are also gym owners out there right now who are like, okay, I've got this box figured out. What I'm going to do is take like a 50% stake in another box that's nearby. And that owner is going to keep equity, which is tremendously generous. They would have failed without the buyer, but I'm going to run the marketing. I'm going to run this gym. I'm going to mentor them. And then those gyms succeed too. And you're starting to see those crop up both in Europe,
Starting point is 01:29:25 but also more in like the Eastern seaboard. There are also cases where like a gym is just not worth buying and they probably should fail and somebody else can start from a blank slate there. Yeah. And when you, you're seeing people purchase gyms, is there a proximity in which like the locations should be somewhat close to each other? Like, meaning like if I buy a gym, that's a mile up the street and kind of do the deal, like where we both split equity, but I run the marketing. So essentially I run, I own both of them versus I own a one that's 30, 45 minutes away in traffic, right? There's a sweet spot. Yeah. I mean,
Starting point is 01:30:00 if you're in a high population area, like LA, you want one on every block. If you're in Sault Ste. Marie, like that's a bad example because all the small gyms in Sault Ste. Marie like meet up for lunch once a month. But if you're in a more rural place and you've got another community 25 minutes down the road, then yeah, like you do want to have one in each place. in each place. The thing you have to understand is like, if you're the only gym for 50 miles around, opening up another gym 20 miles away is going to cannibalize your current gym. And you have to weigh like the cost of that versus the cost of exposing yourself to a new audience.
Starting point is 01:30:37 There's a lot of factors that go into that decision. And to be transparent, like I don't think I'd ever buy out another gym. Now that I've got the template, I'd rather just start from scratch. But I know a lot of the mentors on my team do that. decision and on to be transparent like i don't think i'd ever buy out another gym i now that i've got the template i'd rather just start from scratch but i know a lot of the mentors on my team do that they acquire other gyms okay yeah because that was going to be my next question is do you have a template for that last year was it last year about a year and a half ago i got approached to purchase two gyms one was a little bit further one was like a mile up the road and the one that
Starting point is 01:31:04 was further i turned down the the opportunity didn't make sense i was exposed to too much risk and the second one almost closed the only reason it didn't is because they didn't realize that in the lease the landlord had put that if you sell more than 20 of the business i have to now become a second landlord to that until their lease time was up caused a huge headache totally screwed myself and the owners over as to how that deal was going to go down um But that's the reason why I was kind of asking, because I wonder if we're going to see a consolidation of gyms. We have a lot of these part-time owners that are happening and have been for a while, but as the cost of living comes up, the cost of doing business comes up,
Starting point is 01:31:36 and then the affiliate fees rise and everything that go with it, I wonder how much longer those type of gyms will still be in business. And if we'll see this consolidation where these larger gyms that they're pretty much all in as their own job are going to start eating those gyms up. I think so. Like there's definitely a polarizing effect happening where the best gyms are doing better and better. And the worst gyms are just kind of falling off the radar,
Starting point is 01:31:58 whether they de-affiliate or go to business or they get bought up. And it's kind of like the middle are disappearing right now. And it's not always bad. Like, you know, a consolidation, this was Greg's point, is like if you bought out that other gym, you are giving the former owner of that gym a more secure future. You're giving them a little bit of reward for the work that they've done that they couldn't have achieved on their own.
Starting point is 01:32:19 You're giving their staff probably a better future with a better solid foundation and systems. And you're going to give their clients a better home. Like's what should happen um so i'm not against it i think the other great opportunity for crossfit hq is that as gyms become more successful you start to attract better entrepreneurs into the fold you know and that's not a bad thing either like i know greg wanted to create opportunities for owner operators. He and Dale Saran explained that to me one time. And that's, that's awesome. But the reality, I mean, and if you get people who know how to run a good business buying CrossFit gyms, that just accelerates the growth of CrossFit for everybody else. And we all benefit from that.
Starting point is 01:33:04 You know, if i've got a crossfit gym opening up in my city and they wind up being a better crossfit gym than me that's fine like i will still benefit from having them there because they will raise the profile and scope of crossfit in my town makes sense yeah uh the name of the book is millionaire gym owner written by chris cooper uh you can listen to the audio book like I did I'll leave you with this paradox Which is no one should be afraid of getting rich Because the paradox here is
Starting point is 01:33:31 At the end of the day So many of us want to serve That's what brings us happiness But you'll be your best server When you have wealth So you can serve more, you can serve better You can serve freely So there is that paradox And Chris Cooper and Two Brain Business understand that well when you have wealth. So you can serve more, you can serve better, you can serve freely.
Starting point is 01:33:49 So there is that paradox and Chris Cooper and Two Brain Business understand that well. Thanks dude for coming on. Really appreciate you. Thank you. Thanks so much. Congrats on the new book. Thank you. Always appreciate it guys. All right. Talk to you soon. All right. Ciao.
Starting point is 01:34:10 Fuck. What a, what a, what a wealth of knowledge right yeah i didn't want to put him on the spot but i was gonna ask him and be like hey do you do any uh mentor like immersion stuff and then when he's gonna say well what does that look like i'm gonna be like i'm gonna come fly and hang out with you for two days and just follow you every day every step of the way right and just see i don't know i'll shoot him a text at the end i just don't want to put him on the spot the thing where he has to be like yeah and then yeah yeah yeah put up yeah i agree i agree i agree because you know how i work i will all this fucking show up there oh shit caleb had a question he had a great question uh sign up for uh signed up for startup when sebon had chris on a year ago ryan mcfadden is our mentor and he's been great thanks for the great product yeah that's cool and earlier too
Starting point is 01:34:50 i just want to point out there was somebody in the comments that put like oh i joined uh two brain business and then they wanted to make my gym owner only think about money and they didn't focus on the base listen you don't fucking own the gym. Okay. Your gym owner being broke the whole entire time. So you could play fucking online qualifier in the corner with your buddies. It doesn't mean shit. So go fuck yourself in accordance to how I want to run my business. And if I want to turn into something that's profitable, that's going to make meaningful money for me and my family and opportunities for other trainers. And that happens to push against your idea of
Starting point is 01:35:25 how the gym should work. Then suck it, bro. Cause you don't know. What's the example? What's the example? When a member feels gouged, what is that? What is that? Fuck them. What do you mean? Gauge? That means that the price has exceeded the value in your perception of what's happening. So like, if you want to rent a space and do your online qualifiers and be competitors and have yourself referred to as an athlete, put in your fucking Instagram bio. Like, then go find a gym that's going to do that. Okay? But that's not my gym.
Starting point is 01:35:51 And, yes, I want the 35 to 45-year-old families. You know why? They have disposable fucking income. And they invest into the community things that we do. And they invest into the community that we live in. Save the 20-something-year-old that's going to be there all day, that's going to ask for the fucking discount, and that's going to want the highest demand of your time
Starting point is 01:36:10 and resources, but then not pay you anything for it. You can't help anyone if you're broke. Graziano Rubio. Mr. Hartle, spicy suza. Can we at least criticize gym owners that don't fix their toilets, please? that i will agree
Starting point is 01:36:25 with you caleb yes if you had anything you were talking about like in case it was too close to home you wanted to uh well i mean it's the affiliate i go to i swear to god i've gone to this affiliate for years have you thought about fixing it yourself like what's the problem what's the deal can you just go in there which can you just show them with a tool belt i'm honestly i'm i'm on the i'm on the verge of just going to buy the supplies myself and fixing it for him so it'd be like hey dude oh fucking annoying does it back up does it back up yeah just like you could get like six sheets of toilet but like just six individual sheets of toilet paper try to flush it and it just won't and then you're in the you're just fucking plunging it
Starting point is 01:37:01 so yeah i think i'm gonna fix it myself there's toilets that there's toilets that scare me so much that as i'm shitting i'm flushing it's like a five flusher that's this that's there's like there's three toilets in the in the affiliate and one ladies one dudes and one neutral there's you should put a sign in the door don't shit in this toilet yeah number one only number one yeah this is the number one too only first thing in the morning that toilet gets fucking trashed it's so bad this is a good spouse when she says it just needs a good snake
Starting point is 01:37:35 alright guys thank you very much let me see Shut Up and Scribble is coming on soon that will be with jr howell and taylor self and then uh let me see who we have on tomorrow oh nobody oh good well aren't you traveling yeah well i don't know i don't know what I'm doing tomorrow. No, I don't think I'm traveling. I'm just like, I'm just, just, I'm going to Cilantro's tonight. Oh, fun. Cilantro's.
Starting point is 01:38:10 I think Greg's coming to town tonight. I'll be at the gym from 1 till 9.30 p.m., so. Till 9.30 p.m.? Yeah, we started the youth strength and conditioning back up, and that runs from 8 to 9 now. the youth strength and conditioning back up and that runs from eight to nine now um just seven just an fyi fyi for today's new show google rachel dozal fired from teaching job for oh oh uh let me see i'd love yeah please i need i need news stories can you guys help me with news stories um she's an activist send me
Starting point is 01:38:45 send me news stories let me see Rachel isn't this the chick that was part of the like some BLM society and they were like you're not actually black
Starting point is 01:39:00 oh she's not a crossfitter no oh yeah this is the chick that's black but not black yeah that's not a crossfitter no oh i don't know if that oh yeah this is the chick that's black but not black yeah that's what i thought me and her would have made a great she's on milano tan she's racial fluid yeah god uh chris cooper gives me hope for all canadians he gives me hope for all Canadians He gives me hope for Canada Yeah He's a good dude
Starting point is 01:39:29 Heidi Kroom I'll be your Wisconsin news correspondent Thank you Alright Love you guys talk to you soon Buh-bye

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