The Sevan Podcast - CrossFit Affiliate Discussion | The Day After

Episode Date: December 2, 2023

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Starting point is 00:01:07 either we will resume the regular scheduled friday shows across the games update shows i believe next week uh susan what's up dude hey how you doing just getting home from work yep actually uh yeah i will just because we're setting up for our holiday party feels like we just had a party and we're gonna have another our holiday party it feels like we just had a party and we're gonna have another party you did just have a party um so you're staying affiliated yeah yeah yeah i don't have to make the decision until december 16th and i got another year before my increase so oh oh so this so you'll pay for sure and then you got a year yeah exactly the only people that really got that super short notice is if your dues were up in january so january has one month to decide february has two months march
Starting point is 00:01:50 has three months i'm in december so i got 12 oh yeah that's awesome um asymmetric ears uh 25 dollars for 25 000 subscribers milestone oh no shit no shit. Thank you. Congratulations on 25K, Sevan. I now also hereby pledge in front of all the Sevanistas $50 and $100 when we reach 50K and 100K respectively. Who else is in with me? Dang. Good to match. Good to see you guys. Vittorio, what's up? Eric Weiss, what's up? Sabir, what's up? Sabir and Kelly. Isaac, Miss Kroom, you're always a pleasant one to see. Bring your humor tonight. Rambler, good to see you, buddy. And StreamYard, hi. No. Um, so yesterday, the day before, uh, there were the fee hikes. There were some, basically some changes in the structure of how you can become a CrossFit affiliate, a place where you can create the fittest human beings who've ever walked the
Starting point is 00:02:55 planet and where you can also cure the world's most vexing problem. Places that I think that we all agree are, uh, I was going to say so important, but let me say something, if I can say it differently. They all have profound impacts on the communities that they're in, just like a nuclear reactor might have a real negative effect. If it collapses in your community, a CrossFit gym pops up and you have this kind of center of health, the center of wellness, the center of positivity, all the stuff you want to attribute to what happens inside those doors. And it's always been a crazy low barrier to entry. It's a very, very unique community. Um, who the fuck knows if anyone really understands how this, uh, this being moves around and exists, but at the helm of this ship, uh, is, um, the leader
Starting point is 00:03:43 Don fall. And then his boss is what people call venture capitalists or private equity or a board of people who bought this thing from Greg. Owners. Owners. And so this thing does need to make money just like you guys need to make money, and I personally like to see as many people make money as possible. The mas greenbacks mas bueno. as possible. The, the, uh, MAS, MAS Greenbacks, uh, MAS Bueno. Um, and so the increase has gone from, uh, let's, these are the general spirit of it has gone from $3,000 a year to fly the CrossFit flag to $4,500 a year, depending on where you live on planet earth. And then with a, a requirement, uh, an additional requirement in order to open the gym, which we discussed about yesterday.
Starting point is 00:04:25 And, and Susie dropped some pretty important tidbits on us of why he thinks the L2 is important and why he supports that. And maybe Susie, you can just give us a recap of that. I wanted to fight with them yesterday because I, cause I'm, I just want to fight. Cause I just liked the super low barrier to entry, but it has sat with me now for the more and more it sat with me. I was just on the phone with someone and we were talking and they were pushing back against it too. And I realized, oh, I think my position has shifted. I didn't realize it had shifted because I sounded more like Sousa than myself.
Starting point is 00:04:56 Sousa, let's start there. Just why do you think it's important that you get your L1, you open a gym, and then you have a year to get your L2? Why do you think that's important, the highlights? I think it's just important because the L1, you open a gym, and then you have a year to get your L2. Why do you think that's important, the highlights? I think it's just important because the L1 gives you the methodology. The L2 gets you to really understand the flow of the classroom and actually coaching the class. Like the hands-on work you're going to be doing every single day in the gym. And so as the owner, I think that you should at least have exposure to what that professionalism and standard looks like in the ideal setting.
Starting point is 00:05:23 And then you're still free to go do your own thing, obviously, but to have those tools. And I like the fact that you want the people that are going to own and represent a CrossFit to be able to always want to take that next step and elevate their education. And if I go, well,
Starting point is 00:05:36 it's just a fucking money grab from HQ. You can be like, well, that's irrelevant. You're not arguing my point, money grab or not. It doesn't diminish your points. Correct. Yeah. and what i liked um one of the things that really stuck with me that you said was is that if everyone has their
Starting point is 00:05:52 l in the l2 you learn how to teach classes you learn how to turn learning the push press and into an entire class um and once you if we can get and that will add to continuity between all the gyms which has always been sort of not a nagging problem but just it's been a little bit of a but it's a steady buzz that there's not continuity between the gyms so you get everyone into the level two and you might build some continuity between all the gyms which though does feel like a franchise but the thing is is it's not enforced can still take, if you want to teach it back the way you used to do it, better or worse, you still can't. Yeah. And here's the thing too.
Starting point is 00:06:29 Like I have a process that everybody that comes into the gym goes through, whether you're already been coaching and already have your L1 or whether you're brand new to, you know, you don't have your L1 or anything yet. And it's all based off of the standard that the L2 was taught because I just thought that it was so well in the way it lays out the class and understanding the logistics and how to lesson plan and the deep understanding of running the day-to-day operation that it was good enough to teach to everybody before they got in front of our class. And I'm going to read a bunch of DMs today we got. I mean, hundreds.
Starting point is 00:06:59 I apologize. I'm not going to get through all of them, but hundreds of the affiliates popped in. And one of the most compelling DMs you get falls into the spirit of this. I have a gym. It has 80 people. I charge $120 a month. It's in my back 40 of my ranch. I've built a shed back there, and I'm not going to be able to afford this. And I'm really sad because I really want to fly the CrossFit flag, but I'm not going to anymore. This really hurts me. And I said that to you yesterday. And with your business cap on, you kind of don't give a fuck.
Starting point is 00:07:33 You put on your venture capitalist hat and you're like, bye. Yeah. I mean, we talked about a story where I got hit with a much more massive charge that I had to have retroactive pay for the building that it got sold. And then there was a cam increase, which is the common maintenance area. And I got hit with not only a $125 a month bill, but a $2,200 a month bill. With that month notice, your rent at your gym was increased by over $2,000 a month. A month. And by the way, that wasn't one month notice. That was retroactive pay is due on your next rent. So due now.
Starting point is 00:08:11 So I had to back pay to the first of the year, which resulted in me having to cut a check for $15,800 right there. So seven months, they retroactive paid, made you pay seven months. No, it was three months worth of camp. Yeah, plus my rent. That was due that month. And, but in all fairness, I knew you at the time and you were like,
Starting point is 00:08:27 fuck, I might shut the doors. Yeah. I mean, that was like a dark time because also too, my lease was running out. It got sold to, it used to be owned by one guy, very similar to CrossFit. Then it got sold to a cop, a corporation after he passed, his kids sold it. And then they started, you know, squeezing all the renters and that's what happened with me i had to pay a retroactive pay cut a large check and then from that month immediately going forward i owed another 2200 a month on top of that so it increased my overall um um yearly by over 24 000 uh joel kelly uh joel so just so you know, so in a nutshell, the spirit of what, uh, Sousa is saying is the government charged his landlord more and his landlord, like, look in the lease, it says,
Starting point is 00:09:13 if the government charges me more, I'm going to charge you more. So when Greg sold the company, these guys are in charge and now they want more money. So you can kind of think of them as the government in a way. So Joe Kelly, I agree with vindicate. This is soulless corporate greed. It's what set Greg apart. He believed in something more than business. He believed in humanity and pushing life
Starting point is 00:09:30 for all people forward. Here's the thing. Let's say that is true, what you're saying. I don't know what you want these people to do if they bought the company and now they want money. So let's say you're worth $400 million and you gave your buddy Eric Rosa $30 million to buy 15% of CrossFit. You didn't do that because you believe in CrossFit. It's because you want $42 million back, right?
Starting point is 00:10:02 100%, yeah. Yeah. I think we have to accept that at some point well you don't have to but fuck it i don't give a fuck like you can be like fuck you i'm starting my own it's just the reality now yeah yeah yeah yeah i was i was talking to a friend today who's about to expand into um you know 27 new gyms and uh and he's like fuck it doing doing my own thing well at least well we'll see okay um so i'm gonna start reading some of these to you and then and then we can we can discuss them feel free to i'll even uh if anyone uh has the uh to call in you can even call in and uh and bitch it's it's a
Starting point is 00:10:40 pretty you know what's crazy is there's not really anyone who's, it's very tempered. It really is somber. It's like a lot of, I feel like it's a lot of emotional somberness. None of the DMs I got were like, hey, fuck HQ or fuck, this is amazing. Or it was just kind of this somberness like, oh, okay. I think we all knew it was coming too. Oh, here we go. Just right off the bat.
Starting point is 00:11:03 Okay. Oh, it's a regular caller. Travis, what's up? No, no, no. Stand by. And the point of the show is just a process. The point of the show is to process. I think we're too early to too early.
Starting point is 00:11:22 That's why I was fucking with Susan in the beginning. I think the point of the show is to process. Hello? Oh, maybe you can't call in. Maybe you're not allowed to call in. Hello? There's no call in. There you go.
Starting point is 00:11:37 Now there's a call in. Go ahead, Travis. Hey, can you guys hear me? Yeah, are you an affiliate owner? I'm not an affiliate owner. My brother is, 10 years. Okay, okay, fair. Yeah, yeah. Let's get this party started.
Starting point is 00:11:51 No, I just wanted to clarify that comment. To me, the hard part right now is not knowing where the money is going and not knowing that the people who are in charge actually care about CrossFit. that the people who are in charge actually care about CrossFit. To me, if Greg was in charge, and I think Greg would probably raise prices at some point, if it was Greg in charge and the prices went up, there would be less of an uproar because we know Greg gave a shit. Well, he always told you, hey, he told you where the money was going right he would say hey i litigate legislate um educate uh litigate legislate educate there's one more so not
Starting point is 00:12:33 masturbate but something like that there were four and um and you knew here's the thing dude to be frank with you to respond to that tra, I don't care where the money goes. I just wish you would be honest. I listened to the meeting they had today, and they said that they gave a lot of talk of how they were going to drive more people into the gyms. I basically didn't understand so much what Dawn said, what Dacoon said, or what Dave said. I did understand what Nicole said because she was pointing at some tangible things that I could get my head wrapped around. The other stuff was just like, hey, we're going to make things better.
Starting point is 00:13:09 That wasn't enough for me. I needed to hear, we're going to start producing media every day. I needed some tangibles. We're going to give everyone a sticker they can put on their car. I need that. Me personally, I don't like the 200,000 foot view, but I'm also okay if Don goes, I'm really okay if Don goes, Hey motherfuckers,
Starting point is 00:13:25 it's three grand. We're only raising it to 45. It's been 11 years. Shut the fuck up. We're giving all the employees here a raise. I'm also very cool with that. Very cool. Very cool. I don't need them to tell me. I don't need them. And then you can decide whether it's worth it for you or not, but this whole, you know, what's going to happen in one year. It's going to be very, yeah. Anyway, go ahead, Travis. Sorry. Go ahead. I think there's just a lot of the timing of it is a huge thing too. With all these hires, we don't know what the fuck they're doing. We don't know who these people are, why they were hired. And now, Hey,
Starting point is 00:14:00 we're going to throw another $1,500 a year on top of everything. There's just, there's, I don't know what they're doing. Did you feel bad for Dacoons today at all, by the way? Like, oh, dude, you just got. I didn't hear any of it. He did okay. The problem is, is like, we're the hell's angels. We've all delivered meth.
Starting point is 00:14:20 We've all killed people. We've all fucking rode motorcycles. We've all been to jail. And so we got this new guy. And like like he's really put into a really tough situation he's addressing the fucking hell's angels and the rest of us are like dude what's your like we don't even know his fran time yet yeah you know what i mean we like we haven't seen him do a month like you know what i mean i mean we're yeah it's weird has he done like catholic church has he done communion if this was greenpeace has he has he has he uh stopped aolic church has he done communion if this was greenpeace
Starting point is 00:14:45 has he has he has he uh stopped a japanese whaling boat like what are his creds it's hard we're a tough group it was weird seeing him like trying to address all of us who who uh who got our stripes yeah like olivia said we got to jump him in but but i don't think he did like i don't think he did bad i just just... It was tough. It was awkward. It was tough. Yeah, I didn't hear any of that. I just wanted to call in to clarify that comment about knowing that it just feels soulless and corporate because there's just long-winded emails with, like you said, nothing tangible.
Starting point is 00:15:25 We don't know where the money's going, what it's going to benefit. Nicole crushed it. She basically said, whether you agree with her or not, she said, these are the problems. This is what we're going to address. This is how we're going to do it and when. I mean, she laid it out. She went at it. That's what they need.
Starting point is 00:15:40 Yeah. So I like that part. Good. All right. Thank you for calling. Okay. Makes it seem like a real show. Okay, here we go.
Starting point is 00:15:51 I'm going to read these, and here we go. Good afternoon, Sevan. In regards to raising affiliate costs, we have been an affiliate for over eight years. In eight years, we have increased our rates for members three times in response to rising costs of goods and to add value to our product. There has always been a tangible value added. That's an interesting line. Over that last few years, HQ has added the affiliate playbook, affiliate starter kit, affiliate roundtables, affiliate summits, free cap programming. The only extras that you consume is the affiliate summits and cap programming.
Starting point is 00:16:21 In my opinion, it is value added. Cap as long as it stays included in affiliation. The timing of notification could have been better. We have one month notice and owners learned about the cost increase at the same time as everyone else, which now puts owners in a reactionary stance, reassuring members as opposed to an offensive posture
Starting point is 00:16:38 for reassurance we could have been in if we were notified sooner. The price increase is understandable. So this is from an eight-year affiliate saying, hey, I'm good, and that there's value added. We could have been in if we were notified sooner. The price increase is understandable. So this is from an eight-year affiliate saying, hey, I'm good, and that there's value added. Timing, not so much. The timing's never going to be perfect.
Starting point is 00:16:55 I'm just going to say they're never going to win that battle. It's best to see how everybody's spread out. Someone's going to get the short stick. That's a wash. I'm going to give HQ 100% pass on that. Giving $500 credit for L1 and L2 is beneficial. Another good point. Offsets a little of the extra cost as well as waiving the extra $600 a year to be in the payment program. Yeah, that's probably a pretty smart move that they did too, right?
Starting point is 00:17:14 The extra $600 for the payment program? Yeah, they used to have a payment program, but it increased your affiliate dues by 20% over the year. Now, you can still be on the payment program, but you don't have to pay the 20%. Yeah, and I imagine that that will probably shift over the year. Now you can still be on the payment program, but you don't have to pay the 20%. Yeah. And I imagine that that will probably shift in a year. I think they'll probably go back to charging you for spreading it over the month time. Oh, really?
Starting point is 00:17:32 Yeah. Back and forth. And it's not going to make, so I would take advantage of that this year, guys. If you're going to those ones who's on the fence, take advantage of that this year. Good.
Starting point is 00:17:40 Well, that'll give us another show to do to be mean to them. I'd pull the rug out in another year. If the goal is consistency in the delivery of CrossFit methodology to improve the health, fitness, and experience for this within and who may come into our community, L2 requirements for ownership is a good start. Okay, so she's saying, yeah, that she likes the L2 because it's going to help all these things. Teach the methodology, improve health, fitness, and the experience. For now, trust the process. I don't know why i think this is a woman maybe because it's just the same letter for now trust the process patience to see what value will be added to change
Starting point is 00:18:13 lives and stay the course to positivity changes people's lives through crossfit a eight-year affiliate been around a while. Sober. Yeah. Do you want kind of thoughts on that or do you want to do this? I mean, no thoughts. It's up to you. No thoughts. Next question, please. I mean, there's so many, dude. I can. I know. I know. And everybody's kind of processing it the same way. I just think that a couple of the things that we already talked about is that the sequencing was already off right like with these new hires with the lack of communication around that with the lack of trust that's already happening at hq and then you kind of drop this
Starting point is 00:18:52 bomb that sequencing was jacked from the get-go they couldn't foresee that i mean well they knew they were hiring those people they knew they did or didn't tell like they knew what was coming down their own pipeline they walked out of the house with their pants down and they didn't know their pants were down. I'm not saying that they should be absolved of walking outside with their pants down. They walked outside with their pants down and now their message is and now they're like telling us they're delivering a message and we're all staring at their naked. They're they're high. Right. I mean, the hires are the metaphor for their pants down. Right. OK, so we'll give it that. And then I think the other big mistake was, um,
Starting point is 00:19:26 the, the, you know, what was said around the town hall with the lack of what was said around town hall. I missed Nicole's portion of it. I really wish I could have heard that because I heard that it was great. Um,
Starting point is 00:19:35 but the little bit that I did catch at the end of it, where it was, uh, Dawn and the coons and stuff like that. Uh, again, it was a lot of just kind of fluff. Like there just wasn't anything tangible,
Starting point is 00:19:44 you know? Yeah. I, I want them to say, But again, it was a lot of just kind of fluff. Like there just wasn't anything tangible. Yeah, I want them to say, we're going to take the money and we're going to buy ads. We're going to take the money and we're going to hire a person who's just going to work on our Instagram and it's going to be better. I want to say they're going to use the money to do a film contest. But there wasn't like that. And in defense of Dave too, Dave was not on there long. He was the shortest. I think Dave was just kind of paraded out to be like, look, but there wasn't like that. And in, in defense of Dave too, Dave was not on there long. He was the shortest. I think Dave was just kind of paraded out to be like, look, there's Dave. You know what I mean?
Starting point is 00:20:09 Like you're a Mickey Mouse. You don't see Mickey Mouse. You're kind of pissed. Yeah, exactly. Yeah. I completely agree with that, but here's the deal as the owner, as a CEO, um, and those executives coming out of the company, like it is their job to walk around and just talk about the vision of the company all the time.
Starting point is 00:20:25 You have to keep the excitement. You have to keep the mission. We have to understand the bigger picture of where we're going. And I think some of the best owners do that. Literally, I was just talking with the coaches yesterday, and we were getting fired up about the future of the gym, what it can be, the different things we could evolve to, how we can make a bigger impact on our community and things around us. And that everybody leaves like fired up about that. Right. And there's, of course, a couple of tangible things. This is what we'll start with first. And this is how we'll do this. And so when you don't really have the meat and potatoes of like the vision of where we're, where we're going out into the long, the long shot. Um,
Starting point is 00:21:00 and then you couple it out with the fact that there's nothing really tangible that they're pointing at where it's going, that's where it gets lost. Without someone banging we're the cure for the world's most vexing problem, we are sliding back into the meathead universe. Eric Wise, $1.99, bring Justin Berg back. Easy, easy, easy. Don't get crazy. Let me ask you this about every time you were around greg when you guys were working specifically in crossfit and let's take it back to a throwback a golden year if you will like 2014 2013 right just unstoppable force that's coming
Starting point is 00:21:35 through how often was greg talking about the vision 2017 and 18 those were don't get those were huge years those were our biggest years after probably 13 and 14. I don't know why people don't point that out more. 17 affiliate growth, like with new net affiliates was like. It was so strong and stable in 18. The games were massive. The open was massive and all metrics were up except retention. So there were, we did have a pretty big churn rate,
Starting point is 00:22:04 but all metrics were up. People signing up a journal. We had the journal. The journal was, we did have a pretty big churn rate, but all metrics were up people signing up a journal. We had the journal, the journal was making $2 million a year. Yeah. And more importantly, what was inside that journal, right? That was making CrossFit affiliates multiple millions of dollars a year across the world. 95% free. And it's probably 99% free 90. So, so you didn't have to even sign up. Greg always just considered paying – the stuff he told us to put in the journal was just make the game stuff cost money. Everything else is free. All core content is free. Yeah, he taxed what he wanted more of.
Starting point is 00:22:35 It was nonstop vision to the point where you would be kind of scared to engage him. Like if you saw him come down, you're like, oh, shit. Five in the morning, I'd see him. Fucking it's on. Yeah, exactly. And he's just going toward the ch's just the chasm the business the methodology does this add years to your life what's he think about you always it was not i mean before my relationship that i have with greg now i remember when i would see him out on stuff and all you'd have to do is ask one or two questions about what was going on and what's cost of in like boom he's off you know and then you left
Starting point is 00:23:02 the conversation like fired up you're like yeah that's what that's what this is about um uh patrick clark uh heidi i'd rather have lifelong executives that grow with the company than a revolving door like we've had dude i couldn't agree with you more like i'm so ready to give anyone a chance who just wants to stay there and just like the rest of us take our ass poundings and grow around us but but i don't think we're gonna get that dude i think it's like a two or three year cycle um continuity is crucial in growth and change unfortunately crossfit hasn't had that yeah we need continuity so bad we need it to let yeah we need continuity so bad okay um here we go number Number two of 6,000 DMs. I've ran a gym since 2010 and took over ownership of that gym at the end of 2018.
Starting point is 00:23:55 I could barely make payments on the current affiliation requirements along with rent, housing, and life. And this year also had to renew my credentials. I actually had my facility poached from me and were forced out last year by my landlord. A bunch of CBD companies came into our town and did this to businesses giving more than asking prices for the warehouses, people with deep pocket and government funding in New Mexico. This changed the market forever. We weren't able to relocate into another facility because things got out of reach and expensive and no warehouse space was available since those companies took them all. I had to go to my parents and my entire family is now in an endeavor to build my future gym. These changes along with everything for the past couple of years, I listen
Starting point is 00:24:33 to you regularly, makes future affiliation questionable and worrisome. That's my story and opinion anyway. The big picture, I wonder what percentage of gyms are in this situation. Just big picture, the spirit of what he's saying. Just in some method or another between the so-called pandemic, between the shakiness of CrossFit and the economy, that they're just like, oh, fuck. This is the straw that broke the camel's back story, right? Yeah, 100%.
Starting point is 00:25:01 But still sober, right? He's not even mad at HQ. He's not like, fuck these bitches. He's just like, dude, this is it. Well, I think the reason why you keep using the word like these things are coming in sober is because they're actual affiliate owners. And if you're a business owner that's been around for any length of time, you have to realize that you can't be super emotionally reactive to decisions because it'll put you out of business faster than the actual problem will. So you have to learn to kind of take it with a grain of salt and take a step back and try to logically work through the steps and start working to solve the
Starting point is 00:25:29 problem. And by the way, just to cap that last story that we said about the rent increase for my building, those were the options at the time. It was either like, fuck, I'm just going to hang it up. This is the straw that broke the camel's back. Or I started problem solving, did the necessary things that we had to do, and we were able to survive and grow and become stronger because of it. We just need a new sexy name to rebrand. All right. Interesting. Heidi Kroom.
Starting point is 00:25:56 Patrick, there's nowhere to grow when the execs are probably starting at 300K a year. Way better people to raise up with in the company. uh way better people to raise up with in the company so i made way more than that way way more than that and i fucking murdered and uh i i killed and um and i deserve twice as much as i got and i don't think it's how much that they're paying those people um so i i don't i don't think you can be like hey they're paying those people. So I don't think you can be like, hey, they make $300,000. First of all, $300,000 a year if these dudes are living in – I think one guy was living in downtown Seattle or something. It's like – he's got a two-bedroom condo that cost him $1.8 million. They need people who – let me tell you hillar's worth four hundred thousand dollars a
Starting point is 00:26:47 year all they have to do is pay hillar four hundred thousand dollars a year and be like hey don't attack people inside the mothership and they got them and the content will start flowing it's worth it it's worth it it's worth it it's worth it but but you got to find the right people i i don't i don't think uh i i i don't i didn't i don't think that that's um i don't i don't think that that's a uh i don't think that's an issue uh ryan uh sansam uh someone have you talked to greg about this in depth his thoughts i haven't talked to greg in two days i think he's just laying around by the pool and boning. Working on kid number 10.
Starting point is 00:27:31 It's a good ass life. That's how all of you were made, by the way. I don't know if you know that. Anyone have any questions, DM me on the side. Unsporty Beth. If Dawn is serious about having... God, look at those arms on that dude. Looks incredible.
Starting point is 00:27:43 If Dawn is serious about having 30 million members by 2030, charge affiliates on how many members they have, $10 a member generates $300 million. Dude, I think that's a horrible idea. You're punishing people for having successful gyms. I think Greg would hate that idea. And let me tell you, you're also encouraging people to lie. Jay Hartle, I pay pay more to hire Hiller. Yeah, if I was running CrossFit, I'd pay him $500,000. I'd bring him on board.
Starting point is 00:28:13 I'd get a team of like two or three other people. He'd be a slave driver. No one would have to do blackface, but he'd be a slave driver. Okay, here we go you guys ready number three of six thousand i understand making affiliate owners require the level two to be an affiliate owner by the way these are all affiliate owners i'm not reading anyone who's not an affiliate owner i understand making affiliate owners require the level two to be an affiliate owner i think it's a bit of a joke that they don't need any experience do a two-day course and then open your own affiliate the level two goes into more depth of the coaching aspect and also by doing it it shows you're committed
Starting point is 00:28:54 to crossfit as you've had to have had your level one for at least a year in coaching experience i agree with 89 of that that's kind of cool get your level one open a gym and then a year later get your level two it's kind of cool right yeah and i mean so therefore like did it even really increase the barrier to entry that much because you could still get started you could still start to make a little bit of revenue and make it yeah i like it and you got your 500 towards it yeah um the 1.5 times price increase is a farking joke i understand that they haven't had a price increase is a Farking joke. I understand that they haven't had a price increase in 11 years But to bump it up by 150% In one go, come on. They could have done it
Starting point is 00:29:31 Slowly over the next 3-5 years. That's my two cents. Oh, it says my two Bob. Is that English money? Maybe this is an English affiliate. Imagine if I increased my, oh that's why they said Farking too. Imagine if I increased my membership rate For my members by 150 i'd lose half half of them i reckon um jeff baker why is uh suza so nasally no he's always like that what are you talking about
Starting point is 00:29:55 because since you've been in the geriatric ward for the last six months and came back you forgot what he sounded like uh what do you what do you think um what do you think about the increase this guy agrees with you on the level two i mean nobody wants to pay more than they already do but again i just think like this is just an just it's just part of business like if you're in business as long as like you know most of these affiliates have five eight years like these guys are saying you're just kind of used to it right like you just got hit with the pg&e increase in bill we just got a hit um and so you're kind of yeah you're kind of just used to it i think they also did steps for people that were uh grandfathered right
Starting point is 00:30:32 actually you know i did hear that in the meeting today that it's one it's one year there's going to be a step for a year yeah and then full later on. I did actually hear that today. That was the first time I'd heard that. Yeah. And so some of the arguments that were coming back were those really early gyms that paid like next to nothing. And they're saying, well, what about them? That's such a huge increase. Some of them are $400,000 more now. And it was basically just like, well, now you're going to pay half that for one year than the other half. So they kind of, you know, solve that problem. Which seems fair, right?
Starting point is 00:31:08 It does. I think that maybe what they should have done is just given people a year. You know what they should have done? Wow. They should have given all the people one year at the same price. That had given them a year to emotionally fucking chill out. So then you would have gotten two years. Oh, I see. But the thing is,
Starting point is 00:31:29 is like if this really is a revenue play and we don't know how bad they actually need cash, they might not have that much runway to do that. You know, we don't know how. Okay. They're like, hey, we're doing this and we're just going to step this up because we need that revenue right away
Starting point is 00:31:42 to do whatever it is they're going to do. They would get the new, they would get more revenue from any new gyms yeah but i'm not as much though right okay and i mean how fast are affiliates opening and coming in now and hey uh in defense of hq here um the people who are having their affiliate fees reduced i bet you that's not going down in steps those guys aren't like oh don't reduce us all that much all at once do it in steps the guy in fucking nambia or wherever he's stoked he's like about time i'm a crossfit here we go i'm a crossfit gym owner in new jersey i'm coming up on 10 years congratulations i understand the need for increasing pricing
Starting point is 00:32:22 we're implementing a price increase ourselves in in January to support the plans and expansions we have planned for 2024 and 25 and beyond. It would be hypocritical to do that, then criticize another business for increasing prices. My barber's increasing his fee from 23 to 28 in January. Not a word from me. And listen, the barber's not giving you more value. He's not like, dude, got these scissors. You're going to be twice twice as good looking blow jobs up 1.8 it's not like that right my barber's increasing is free from 23 to 20 in january not a word for me on it because i'm in it and i understand see that's what i want from that's what i prefer that from don yeah that's what i would prefer from HQ. Just like, just, yeah, hey, price of haircuts gone up.
Starting point is 00:33:08 Not a word for me on it because I'm in it and I understand. The question owners can ask is whether or not they trust the leadership. If you do, trust this will make the product better. If not, then just leave. For some of you, this would be the second time. Oh!
Starting point is 00:33:23 Shot at the end there. Shot at the end there. Whoa, shot at the end. I've seen, I've seen, I've seen it. God, I can't believe we're in the CrossFit community. What a great life. I've seen increased effort and quality from ownership under Don Fall when it comes to support and communication. I, that is true.
Starting point is 00:33:43 I'm not a big fan of how much crossfit communicates if you like communication yeah like they do all sorts of communication i just think it it's it's um a lot of it is just chatter that confuses shit but our our motto at a crossfit was don't talk to the affiliates and just make content like like don't spam them don't send emails like they're like we haven't do this this and this. Greg's like, fuck you. We're working. Like, you know. But this guy likes the communication and ownership under fall.
Starting point is 00:34:12 Good on him. I hope this money can go towards a real quality CrossFit app. We used to have one. That alone would be worth it. Thanks, Sevan. So I like that. Like, that would be awesome if they could say that. Hey, we're working on this app and
Starting point is 00:34:26 you're going to get notifications when new media comes out and you're going to get notifications about the open and when stuff's due and you can pick what notifications I mean I love notifications from the people from the apps I have that's my favorite about apps yeah I mean we're just going to sound like a broken record here but I would rather just I would rather just see CrossFit everywhere I think that they would if Don came out and said, hey, we're going to make the investment into getting 30 million people a fit. By the way, my name is Matt, guys. I'm a 10-year affiliate owner.
Starting point is 00:34:51 I'm your new chief marketing officer. Thank you for the opportunity, CrossFit. And here's what we're going to do. We just raised everybody's rates, but we're going to bring media back in such a huge way. Our job is going to be publishing and distribution of the media. We're going to be jacking it up across every single platform three times a day, just posting crazy content. And the development of that content is going to come from you. We're going to open source it. We have a lot of awesome,
Starting point is 00:35:11 talented creators in the space. Start sending your guys' stuff in. We'll start paying you guys. We'll start finding other ways to elevate you in the space. And then affiliates, we want you guys to tell the stories of what's happening. Other companies would die for the testimony that is happening every single day in your CrossFit gym. So whether you're making an impact in your community or you've just changed a member's life that walked through your door, make a story we want to hear about it.
Starting point is 00:35:31 We'll be elevating those stories. Secondly, we're going to get back to America's heroes. We're going to be focusing on our base, our first responders, our law enforcement, our firefighters, and especially those of you guys that are doing CrossFit that are in healthcare. We know that that system is broken and it is our job as CrossFitters to make a difference
Starting point is 00:35:48 in a huge impact there and disrupt that like crazy. So we're going to really be reaching out, leaning on our doctors. That way, if you guys go on February 3rd to the health summit of CrossFit, this is going to be kicking off the new vision that we're going to bring back, which is going to be harpooning healthcare because we know we have the cure to the world's most vexing problem. So creators, pick up your cameras. Affiliate owners, pick up your cameras. By the way, everything in this is going to be shareable and for free for anybody else to distribute however you see fit. And furthermore, please join us on February 3rd in Austin, Texas. That's a real thing, by the uh the suzer is really not the uh chief marketing officer but
Starting point is 00:36:26 besides that the only edit i would put is we're raising affiliate prices and you said but i would like to just check that and put and and yeah brilliant i like by the way that's your strategy repeated back to you oh thank you i joined crossfit when it was another affiliate uh dm i joined crossfit when it was three affiliate DM. I joined CrossFit when it was $3,000 to affiliate. There's more tools than there was when HQ started. It's just a matter of taking advantage, going to the summits, roundtables, Zoom meetings, et cetera. There's also an affiliate toolkit. I like that there's a requirement for affiliate owners to have an L2.
Starting point is 00:37:00 It will help professionalize CrossFit. And honestly, I'd spend at least $500 on a coach to get certification anyways which they're giving each gym for 2024 and for every gym owner that is successful they know they have increased their members rates CrossFit only only mistake was not doing it little by little as they rolled new additions once again the timing thing but I'm going to give CrossFit a pass on that even if you have a very small membership base increasing prices by five or ten a month will more than cover the cost of the new affiliate fee i'm 28 and there's a few other young gym owner friends that i have that feel the same we want high quality crossfit so if you don't have your l2 peace out oh dang hey they're a fan of it I got nothing I mean yeah that's my money that person's saying take my money hey and what if what if there was an option um and I don't even know if this would work but I'm just throwing
Starting point is 00:37:55 this out there where you could almost do like a type of thing where you affiliate your home and they would do it by square footage to where it was very obvious you weren't running full CrossFit classes and if you had your L, you could apply for a home affiliate. We send you a banner. You get to hang it across the gym to let all your neighbors know you do CrossFit. And your space is small enough to where you can impact a few of your neighbors and teach them and have some friends over and maybe make a little crash. Dude. But not enough money to where it's going to go bigger to an affiliate.
Starting point is 00:38:20 Then when your square footage changes, we elevate your rate because you're a big affiliate now. A garage gym affiliate thing would be huge. make it super low barrier to entry there and then you could potentially have both um uh aaron uh shy bell uh suza matt suza matthew suza owner of crossfit livermore can you have a high quality gym without someone having an l2 have you ever seen that oh absolutely yeah i agree too yeah i mean even when you go to both those courses like all your learning is going to happen out on that floor you got to get reps in with the class you got to get reps in with the with seeing and correcting movement for a long time yeah i'm mike mccaskey what if i have an l work out in my garage and already have a crossfit banner there you go don't pay thank you for getting the banner out front
Starting point is 00:39:12 make some content send it our way we'll post it up if it's good uh why isn't uh crossfit hiring suza um jay hartle suza has a degree in the aerosol arts i'm'm not an NBA from Harvard. He wasn't right for the fit. Hi, Sevan. I met you once at CrossFit HQ back in 2018. What the fuck happened there? As an affiliate owner, I sure hope you and Greg are cooking something up because
Starting point is 00:39:39 HQ just shot itself in the head. That's a kill shot. Raise in fees. I hope you are doing well and I love your work. Keep it up. just shot itself in the head. That's a kill shot. Raise in fees. I hope you are doing well and I love your work. Keep it up. I hear that and I wonder if I'm still not convinced that person is going to de-affiliate. I think a lot of them too,
Starting point is 00:40:02 depending on how soon your new rate is, there might just be that emotional reaction and you could say I'm going to de-affiliate and you might not have to pay for another eight months. So are you really just saying that out of a knee-jerk reaction because you can, because you don't actually have to make the change yet? Or are you one of these that are paying right on January 1 and you're actually making that decision that shortly, that short of a window? If you if you or jim and you're paying five hundred dollars a month and you make forty thousand dollars a year and they increase it to forty five hundred and then you also have to take your l2 this next year it's
Starting point is 00:40:34 going to be five thousand dollars how much i say make you make forty thousand a year yeah that is um uh what is that it's just twenty of your, more than 20% of your income. No, sorry. 10%. It's more than 10% of your income. They just took. So I kind of understand that. I mean, I'm going to understand that.
Starting point is 00:40:58 If you're that 10%, if you're a $40,000 a year guy. And here's the thing I'm going to say, at least you got away with it for 15 years, however long you were paying that rate. I wish I was paying $500 for the last 10 years. It would be a big upset. And here's the thing,
Starting point is 00:41:16 we said it last time about the hobbyist, right? Like the people that have the nine to fives that are still trying to pull off this cross-stitching, that's who this is going to affect the most. That's what's going to be really troublesome because it might not be worth it for them. But if you're in your business every single day and you're solving these problems all the time,
Starting point is 00:41:32 it's just going to be another one of those. It's another price increase. How could we add value at the gym or what do I need to do to make the adjustments to survive and move on? You're keeping, as of now, you don't have to decide for another 13 months. As of now, you're saying you're not going to de-affiliate.
Starting point is 00:41:48 You're going to deal with it. What – is there any world where you could see yourself not – could you see yourself de-affiliate? Like, can you see that world? Like, you went through three or four – you went through five years of – Yeah. Yeah. Funness. through three or four you know you went through six five years of yeah yeah um funness um is there any world where you see you do de-affiliate um yeah give me an example well let me wait before you say that do you see a world do you see is there any gyms that you would recommend de-affiliate right now yeah the ones that are going to break them and they're going to go into the negative and
Starting point is 00:42:28 accrue debt for this yeah yeah you need to de-affiliate because you can't afford it what as opposed to just close down yeah as opposed to close down but then again i'm like i'm thinking to myself man is that if that really breaks the bank then there's a lot of other probably issues within the business that if we drew some attention to we could solve that would help make this problem a lot easier for you do you think that it would be callous if hq were to say uh hey dude if this breaks you you don't belong in the space anyway get the fuck out of here it would it be callous to say that yeah but you know yeah you have a little bit of that sentiment
Starting point is 00:43:09 you have a little bit of that sentiment no because I empathize with him it's not a justification for raising the price by the way it's just a it's that's not something maybe HQ should say let me rephrase that it's kind of like the bible like don't point that shit at other people point that shit at yourself to make yourself a better person like you need to ask yourself that that maybe that's how maybe i just answer
Starting point is 00:43:28 my question that's not something hq maybe should say to people although maybe greg might say that to them yeah yeah yeah but you said it because they made the price oh they okay right so they made the price okay they said it in their actions right you can't knock out you can't go to hq and knock on the door and be like please cut me some slack and cry it that's the price here's the thing i hope that they do make exceptions like that core city crossfit or something like that let's say you're doing like a non-profit deal and you're making really big impact you're the last gym in detroit and you have 20 fucking kids working out there free your scholars your
Starting point is 00:44:05 scholarship didn't and we're sending somebody with the camera right like that would be the deal or we're gonna you know work that rate some other way um again with uh my new initiatives as a cmo here i'll say it in corporate speak so that way hq understands as well here we'll bridge the gap my new campaign is going to be called america's heroes so also if you're in law enforcement or a firefighter or you're an md or health care provider your affiliateship is also going to be called America's heroes. So also if you're in law enforcement or a firefighter or you're an MD or healthcare provider, your affiliateship is also going to be dramatically reduced because you also are active in those jobs and maybe don't have enough,
Starting point is 00:44:34 but you're the type of people that we want to highlight. And then by the way, I'm going to send somebody over there with a camera. How much do you think we should charge HQ to run commercials for the L1 and affiliateship at a yearly cost? Like $100,000? Like $50,000? Yeah, just right here.
Starting point is 00:44:53 Like if we were to run a commercial here. Like if I was HQ, I'd be like, fuck, I'd run a commercial on that podcast. Yeah. Charging $50,000 for an L1 commercial and $50,000 for an affiliate commercial a year. Okay, so here's the… You're the CMO. Yeah. Yeah. Yeah. So here's, here's what I would do. And then you probably get me to fucking dance a little, like, you know, dance a little. Yeah. So I would have, I would have two options and I would say, number one, Hey, we're going to give you $500,000 in resources to make this commercials on this,
Starting point is 00:45:22 but to also use your network, Sebon, of talented creatives that we know you have in the space and other people in the media. So that way you could give resources to them to highlight your stories more in depth that you see fit. And then we're going to pay you. You'd give me money to grease. I didn't say that. I said, we're going to find people within your network that want to make positive changes and give them a camera. Or if again, I was in this and that would be offer number one and then offer number two i would say hey no uh we're going to not pay you that much i'm only gonna pay you 100 grand so it's basically personal salary for you to give you a little scratch but we're going to
Starting point is 00:45:56 elevate everything you do give pedro ten thousand dollars to give away uh 12 free l1s to give one away a month on his coffee pods and wads. Yeah. So many, so many cool things to do. Okay. Here we go. Next one. Affiliate owner of 10 plus years. I knew it was coming due to the survey I got about a month ago. I'm really on the fence about continuing as an affiliate. My local community knows our gym for what we do, not because we are a CrossFit gym. Clearly leadership has been an issue since Greg's departure. On one side, I do see them trying to do more things to help the affiliate owner, mostly targeted at new affiliates, which doesn't help me at this point as I sought out and
Starting point is 00:46:34 paid for that help on my own. That's a pretty strong, valid point. I have time to decide, but to say I'm disappointed overall is an understatement. A 10-year-plus affiliate, to say I'm disappointed overall is an understatement, a 10 year plus affiliate. Um, uh, they're basically saying there's been struggles with, uh, HQ.
Starting point is 00:46:49 I mean, since 2018, or it's, it's on a roll. Um, Don's, I think the most stable thing that they've had there and for sure in four years.
Starting point is 00:46:59 Right. Yeah. Um, and, uh, this person definitely has their feelings hurt 10 year plus affiliate do you think that there's any desire do you think that that was in the equation
Starting point is 00:47:12 they're like fuck maybe we don't want to burn the old affiliates or do you think that part of them is like fuck let's get these fucking Greg Eastas out of here maybe both you know maybe they again I think they kind of drew the line like hey we'll just do this now and we'll we'll see how it shakes out and the naysayers that are already on the fence like okay they're gonna go that's fine we're comfortable with that and the ones that stay we know are like
Starting point is 00:47:35 ready to continue the fight right but that's them out do you know what else i think don knows i think don knows that if they fucked up and people left, that he has the ability to woo them back. I mean, he wooed Kalipa back. That's exactly what I was going to say. We've already seen him do that. Yeah, he knows he's capable of that. Yeah, big people in the space, right?
Starting point is 00:47:57 Someone leaves, they're not leaving forever, maybe. They go out on their own, they're like, fuck that, I want the name back. Yeah, and then again like i feel like the gyms that are most suited to do that where they could drop the crossfit name are usually already the big really established ones with like stable revenue and things like that so it's like you kind of get into this place of like the ones that really could afford to easily do that with no skin off their back um probably aren't going to do it because the extra money isn't going to bother them that much.
Starting point is 00:48:30 Zach, me adding one member to our gym gives us $2,200. Two members pay for the affiliation for us. Blue Cord, CrossFit. If CrossFit said we were going to do a national Super Bowl commercial with all the extra revenue, would people have a problem with that? 113 million viewers i would be happy with any media but yeah i would i would have a problem with that strategy because i think that with the stories that we have and the amount of talented people in the space that we have with the camera that we'd be far more better just open sourced media
Starting point is 00:49:02 and just using us as a distribution platform for all that media than to take all that money and hone it into one commercial. I, I, I hate it, but, but, but I like,
Starting point is 00:49:15 I like the sentiment. I like the sentiment, at least then blue cord. Then you, at least you know where the money's going. So I like the sentiment. You could point at it. There's our commercial.
Starting point is 00:49:26 Uh, Allegra, our, uh, You could point at it. Where's our commercial? Allegra, NC Fit re-affiliated when Don took over. Yeah, I think that there was a courtship process there. Yeah. And Don and Jason, I think Don was a member of Jason's gym early on or something. I think they had a previous relationship potentially. The deal, Sergeant. Commercials don't get clients coaches who give a shit do. Okay.
Starting point is 00:49:50 Here we go. You guys ready? Big one. This is a big one. Dear Sevan, thanks for what you do. I'm an affiliate owner for just over 10 years. The affiliate fee is not a huge part of our budget even with the increase. But I've been questioning renewing for the last few years before the increases i don't see the value in the 300 a month we are paying i think there is a
Starting point is 00:50:11 negative public perception around the brand that is causing injuries and that you need to be in great shape to start by the way nicole uh addressed that today i i i finally i think i find that as part of the what's interesting is i find that as part of the charm of the brand. That's why I like the brand, because of the reputation. I like a Harley Davidson because it's loud. I like a shotgun because it makes big fucking holes, scattered holes everywhere. I like a sledgehammer just because it breaks shit. So it's interesting that he doesn't.
Starting point is 00:50:42 But what is HQ doing to change this perception of the brand question mark what is hq doing with the tens of millions they get from affiliation fees and don't we have a right to know uh i don't know if you have a right to know but since you're paying into the pile it sure as fuck is fine to ask okay to ask nothing wrong with asking that's for sure and if that's a deal breaker for you i get it i ain't hating most affiliates will tell you that they're struggling to find any coaches. That's a good point, right? Finding good coaches is really hard right now.
Starting point is 00:51:11 Yes. Much less quality coaches. What is HQ doing to address that? And finally, what is the plan for this additional revenue? If this actually results in a revenue increase after how many gyms cancel the email has a bunch of vague buzzwords and nothing of substance yeah that's how a lot of the talk was today unfortunately too yeah i don't know if buzzwords or substance it's just so fucking high level it's like um i have to use my imagination to figure out what he's saying what
Starting point is 00:51:40 people are saying i've never gotten even a single lead much less a member from crossfit.com despite completing our gym profile including coaches photos etc starting in 2024 we will be spending 450 on google ads and getting every search for fitness in our geography sent to our website instead of an affiliation and hq can keep their affiliate playbook so this kind of is the same sentiment the other guy had all the had. He feels like the new tools are for new gems, or the tools are for new gems. Yeah, and I think they are. I mean, you're not going to hand a 10-year affiliate a playbook and be like, hey, I understand your lease.
Starting point is 00:52:16 You're like, yeah, dude. Have you gotten any leads from the affiliate map? No. Have you ever gotten an email from the affiliate map? No. I wonder if it works. Has anyone tested it out? I think...
Starting point is 00:52:31 Did I test yours out one time? Maybe you did. Maybe that was the only one. Now that I'm thinking about it, I'm like, shit, maybe you're right. Maybe there was a... I think I tested mine out one time on the air. I wonder if Grace did one time when we were traveling. Yeah. Oh, listen. Athena, I get several a week. time on the air i wonder if grace did one time we're traveling yeah oh oh listen uh athena i
Starting point is 00:52:48 get several a week well no shit fascinating really yeah i mean several weeks crazy if you get one a week that's crazy yeah i mean if you like if you get yourself like an actual like engaged lead which a lead is yourself like an actual like engaged lead which a lead is someone you could contact an engaged lead is someone who's interested in your stuff that you could contact like that's incredible yeah because that's each one of those is probably worth between 40 and 60 bucks uh adam blakesley affiliate maps for people on vacation looking for drop-ins that's 100 true uh mike they if you mike mckeskey says how do you understand track that if you go to the affiliate map i you and you click on a gym that's on there it just sends them an email and the email i'm guessing looks like it comes from hq
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Starting point is 00:55:28 in business that doesn't justify raising them though i get it it's like if you can't look go ahead go ahead okay so i don't like this argument that you guys are saying i mean i get it i get it you're just if you own a business you're used to just fucking having to deal with the shit all the time. I mean, that's all you are as a business owner. It's like you're just going around and solving problems and putting out fires and like dealing with shit coming at you all the time. That's why it's so freaking hard. And here's the deal. I mean, I just got my trash pickup, Live More Sanitation, raised their rates.
Starting point is 00:56:02 Not by like 50%, but they raised my rates on me. Am I going to now like go to them and be like, hey, what more value are you adding? You know, like spray something when you leave. So it doesn't- You don't have a choice. You have to pay for that. You don't have a choice.
Starting point is 00:56:15 You don't have a choice. You got to pay. And as a business, it's just like that type of stuff happens all the time. And, you know, you just have to be able to adjust to it. I think this is different for us as a CrossFit community because we always felt so connected to HQ. Like we had a relationship with HQ, especially affiliate owners and the messaging. And I just think we've been drug through the mud with poor leadership, poor communication.
Starting point is 00:56:35 Trust is pretty much broken. So now when we're putting, now you did all that and then you ask us to put more money into it. You cannot be surprised that some of us are just like, fuck off. Like, I don't, you know what I mean? There's a little bit of like, hey, they put their thumb in your butt. And then ask you for money. Yeah. Miss Burns from Sabbath Essentials.
Starting point is 00:57:00 That's where my wife gets all of her products. Sabbathessentials.com. Mrs. Burns. I can't afford – this is like some good hippie shit, by the way. Go over there and check out the website. Like if you want like – Yeah, my wife really likes the like oil thing. Like this isn't for people who like spray Windex on their dining room table.
Starting point is 00:57:18 This is like the other shit. Holy fuck. I go to this sushi place and they spray the tables while I'm in there eating why? no spray when the restaurant's open just a moist rag, no spray nothing scented, I don't want to smell anything
Starting point is 00:57:35 when I'm eating Mrs. Burns, I can't afford the $2,000 a year increase in my homeowner should I not own a home I mean yeah I guess that is it homeowner should i not own a home i mean yeah i guess that is it yeah you should not own a home i mean susan did say something interesting i said hey do you think crossfit should just say hey fuck you if you can't afford it it's your problem well there is that component to it without them saying it if they just raise the rates this isn't like cvs where anyone can go in and just rob and steal anything
Starting point is 00:58:06 you don't get to pick your price yeah yeah yeah this is crock fit uh hairy pair of testes um uh if or if the 4500 doesn't make sense as a figure did 3000 ever make sense what exactly were you getting before that you're getting more or less of now seems like a descaling of the eyes for some hey um i thought i was getting my garbage for free for like four years i lived in berkeley and i thought i was pulling one over on the city and then one day i looked at my like um uh property tax from the city and it was in there i've been paying it you know i mean so they got on this emotional high for four years yeah i'm pulling over a fast one they pick up my garbage everything i'm like motherfucker i pay for that they just built that into the property tax they'll get you okay um ready yep hi steve when i took over as an
Starting point is 00:58:57 owner of at my affiliate just over a year ago it has been the hardest but most rewarding year of my life with a lot of low points, but ultimately an infinite. I'm infinitely stronger sense of meaning and purpose in my life. I get to help people every day become stronger physically and mentally. Following along with you and Susan Hiller and the gang has helped stoke my passion even more through this tough year. We've turned our affiliate around doubling our revenue, increasing our membership by roughly 30 percent and providing an amazing service to our community through CrossFit. I feel more bought into the methodology than ever before. I have no plans to de-affiliate in light of the fee increase. I'm grateful that our gym is in place where an extra $150 won't affect us too much. I would have been totally different story a year ago. Oh, this is a great, this is a great
Starting point is 00:59:39 DM. The delivery of the change was not ideal Given it's never going to be ideal But Susan made great points yesterday I know Susan kind of took the cobweb Out of my brain too CrossFit is clearly trying to select Dot dot dot I don't know if I didn't copy the whole thing Okay so here's a person who's
Starting point is 01:00:00 Last year they had been fuck you And they're like dude we've doubled our revenue And she's still saying the timing's bad she's already stated the timing's perfect for her i don't know why i think these are all women i know so do i have that it's weird oh it was thanks for reading my message select their customer she finished oh okay all right there you go yeah felt a warm and fuzzy okay good okay rebecca faye right. There you go. Yeah Felt a warm and fuzzy. Okay, good. Okay, rebecca faye. Yeah Yeah, there you go And she and rebecca's even like yeah, like even though she said the timing's not good
Starting point is 01:00:32 The timing was great for her actually. Yeah, rebecca. I'm gonna edit that and the timing was perfect for me And we were lucky enough to be able to shoulder it at this time. Yeah Yeah All right, also too like I think rebecca just said it right like the the the answer is is like what did she do to turn her gym around and double the revenue right right did somebody from hq did the coon show up from hq and start greeting members at your door like no like you implement asking him to do that either let's be clear you're just saying like hey as an affiliate owner you got to do your own shit yeah a certain part of it's going to be your, like you implement asking them to do that either. Let's be clear. You're just saying like, Hey, as an affiliate owner, you got to do your own shit. Yeah.
Starting point is 01:01:07 A certain part of it's going to be responsibility. Like you really want them to just completely just shower everything in content. So that way, everywhere someone looks, it's just like around, around, around that helps push, make them, you know, make that decision to walk through the door. But even once they come in through the door, it's still your, it's still your job to like figure that out, to keep them to add value, everything. Right. Oh, right here. She said it. Absolutely. Very fortunate. Tons of free resources from two brain affiliate you and you guys. Wow. Two brain. There you go.
Starting point is 01:01:34 Two brain. Yeah. She says he rolled her sleeves up and got to work and made some changes and implemented some stuff. And that's great guys. I don't have the link here, but since there are so many affiliates watching these shows, if you haven't received one of these you should get one you can download the pdf um it's uh the two brain business state of the industry fourth edition uh two brain is a company owned by chris cooper it's the largest um gym mentoring consulting service uh on planet earth chris cooper's been a guest on the show several times you definitely want to look through this this thing is you you'll love this it's like candy and the letters are big and the writing's big and lots of pictures it's good it's a great resource and you guys could use that qr
Starting point is 01:02:13 code on the screen right now too unless you're listening to this on your phone i apologize you have to oh thank you go back and do that later but there it is right there so we'll leave that up for a second um but yeah this is by the way athena just sent me this oh cool and this is this is what it looks like uh it's this person wrote i'm a drop-in uh prospect found your gym on the crossfit map and it says the person's name and their phone number and their email it says hey uh i'm new to the area i'm looking for a gym oh i'm looking for a gym to send patients can we jump on a call dang okay yeah crazy okay thanks athena yeah so she's getting them and she's a small gym i think she's a small gym yeah that's awesome like a like a one or
Starting point is 01:03:07 two three clients at a time she's like a personalized like a um um uh one-on-one gym one-on-one she's at 400 square feet oh yeah it's as big as the house uh i had my kids work with large bodies congratulations you know you would uh qualify for the uh gym uh the garage gym package we're going to be lowering your affiliate rate and uh sending out a flag and a banner for you and uh keep doing the good work but if we ever see you have more than five, four clients in there, we will send the execution. We're going to tax that ass. Yeah.
Starting point is 01:03:47 Yeah. Okay. Here we go. I'd probably pay a lot more than that. To be honest, the brand name still holds so much power. People are acting like this is the biggest assault to the viability of their business.
Starting point is 01:04:00 Try doing 300 days in lockdowns, then a $14,000 fine for being unvaxxed then come talk to me uh let me guess australia or canada uh okay uh that person is uh suck it up quit being a pussy uh okay they have other hardships that's like what you're saying you're saying you're numb you've been tossed up a little bit yeah. You've been tossed up a little bit. Yeah, man. You've been tossed up a little bit. Mm-hmm. Mm-hmm.
Starting point is 01:04:28 When they raised your rent last year, the state, you have a tax passed on to you that's $2,000 a month. You're like, yeah, okay. Another speed bump. Dude, I mean, I don't think I got into this even when Pedro asked me about it. But you know the story of right when I took over my affiliate and signed on the dotted line, I'm like, I'm a sole owner now. I owe this money back now to the people that originally went in with me. And I called up my landlord because I knew my lease needed to be renewed.
Starting point is 01:04:55 I had about an eight-month runway. I called him up and he goes, wait, you don't know? I thought we already had talked to all the owners and everything else. We sold this building. And now I had just accrued a whole entire gym, a bunch of debt, and I had nowhere to go. And I had to find a new building. And at that time, we weren't making any money either. Someone told you a gym without telling you that the lease was up?
Starting point is 01:05:16 Well, that might be a little harsh, but I don't think we were aware of how short that runway was. We've been able to kind of keep getting a year at a time out of this guy and everything else. And then all of a sudden it just went to like, Oh no, you don't know. Yeah, I sold it.
Starting point is 01:05:29 You got to be out. Uh, international affiliate implications. You mean that we can't even start an affiliate now? What's that mean? I don't know. I think she was referring to, I thought I saw Heidi's comment,
Starting point is 01:05:41 say something about that. No, but I think they were going to look at different areas and make price adjustments per the area, internationally speaking. Isaac Abad did a perfect enunciation of that. I live in a mountain town that is super expensive to live in. Good coaches are hard to come by. Not sure what coaches make,
Starting point is 01:06:01 but you can't rent a place for less than $6,000 a month. What do you do? Run the gym and use the CrossFit name and don't pay them. Yeah. Can we have a Jeff Bakos comment real quick? I was going to bring that up because usually he says a bunch of BS, but that is actually the very truest statement ever. I was young. I was super excited. I didn't care. I wanted to do it. It took the affiliate and I just dove in headfirst. Jeffff bako got his first uh three venereal diseases yeah so he knows he knows yeah to his point and that's what you know that's that's how you that's you learn the hard
Starting point is 01:06:36 way right stupid as a tax and i definitely paid it uh okay here we go uh i know this news came out yesterday but i am not heartbroken over the price increase. It does suck, yes, but I'm upset about the L2. I got my L1 in June and wanted to open my own affiliate within the next six months. Now I need to get my L2 sooner than I had planned. Just changes things. I don't think that's true. You can still open the gym with your L1, right?
Starting point is 01:07:01 Yeah, and you have a year. Okay. We have that correct, right? We're not the official we're not the official uh affiliate team we're the official marketing team okay yeah yeah you got y'all got a year okay here we go people uh next one ready here we go a reaction to increase it's hard to see something i love so much floundering continue to make moves that seem to hurt the community that stands it up increase won't end us doesn't hurt the bottom line I say yes because CrossFit has not shown the affiliates the value the current regime is still riding off the coattails of the original
Starting point is 01:07:34 message coach put out CrossFit was run by a man we all called coach because he continued and continues to coach us that presented the value and made the brand fuck hq for this move side note massive props for the l2 move interesting right just fucking eight sentences of just you douche nozzles and then it will be completely overshadowed by the affiliate fees i i'm curious what greg would say i can't when greg comes on here on tuesday i'm gonna ask him what do you think about the l2 requirement i'm really curious what he would say. When Greg comes on here on Tuesday, I'm going to ask him, what do you think about the L2 requirement? I'm really curious what he says. In the past, I think he would say it's bad,
Starting point is 01:08:10 but part of me thinks that maybe things have changed. I mean, the thing's spread all over the world. Like, it's spread all over the world. Here we go. Next one. We are literally finishing the building that was going to be our garage-based affiliate, massive detached garage just waiting on drywall and power hookup. We planned on trying to affiliate.
Starting point is 01:08:37 I believe in Greg's vision and lost my previous co-ownership and an affiliate because I refused to turn my back on him or ask for vaccine passports. Oh, I like that. I still believe in CrossFit. I want to advertise that I'm a CrossFit gym, but this is too much money for a garage-based gym. We are running on nothing but pure love for CrossFit as a methodology. Before and after working regular jobs, I just don't see how we can swing that much every year and it sucks so let me just take this back one second crossfit is going to lose
Starting point is 01:09:14 the mom and pop passion community is a piece of the community going to die? How did you get to there? Let's say 20% of the gyms are just garage gyms, mom and pop gyms, just these gyms with 40 or 60 people or these passion projects. I'm trying to think who we had on who had one like that. like I'm trying to think who we had on who had one like that are those going to go away is like we agreed yesterday that it's going to professionalize god I hate that word it's going to professionalize and – there was another word we used. Bring a certain continuity maybe to these, maybe standardize the gyms a little bit more.
Starting point is 01:10:11 Is that going to be bad for the brand? Is that like we've gone from – I wish I could think of a parallel. Is there some intangible we're going to lose? What is the – It's got that monster energy drink and those like strippers that come and pour the energy drink on people i mean people you know whatever those girls are you know what i mean their bodies don't look like our girls bodies you know what i mean yeah yeah yeah raps and shit they look like girls don't look like dudes like our girls
Starting point is 01:10:39 hey let me ask you this out of that percentage of the people that have their gym in their garage what percentage do you think is also hoping one day that they could do this full-time and it's their dream to move it out of their garage into a larger brick and mortar location so all of them all of them but the problem is they have a job that pays 222 000 a year at the ship plant in their city you know what i mean they work at like the sewage plant making 225 000 a year and they're three years away from retirement and where they're going to get 60% of their pay and they have health insurance. So they don't want to pivot to their gym, but they're dying to do their gym full time. I think there's a shitload of them, like five or 10% of the gyms, maybe more.
Starting point is 01:11:16 Fuck 20%. 20%. Wow. That'd be. Yeah. What do you think? What do you think? I don't know.
Starting point is 01:11:21 What do you think? I don't know. When you... All the gyms in my... All the gyms... There's no gym in my town as big as your gym and there's a lot of fucking gyms. That's interesting. I would have thought there would have been one at Lisa's.
Starting point is 01:11:37 Our gym at HQ wasn't as big as your gym. Hmm. Give a... Craig Howard's gym is as big as all the gyms in santa cruz put together yeah yeah you know okay so i i look at this in two different ways and people are probably going to hate it because it's just a dichotomy that i'm going to like bring up here but the business side
Starting point is 01:11:59 of me says like like okay that's fine and i hope they go and find affiliates and i hope affiliates bring them in to offer them coaching jobs and i hope some of those coaches that are moving out of their houses go search other affiliates that are around, find one that suits them and then shows up with their, you know, a dozen members, right? You could add a ton of value to that affiliate. Well, walking members that sign up that day is something you could leverage to kind of get in there. So hopefully there's some collaboration. And then on the business side, again,
Starting point is 01:12:27 I'm still here. I would just say, you know, what we want to do is we, we want to do, we're going to be doing a massive media campaign that just push CrossFit everywhere. And we want to make sure that they're being pushed towards big gyms that
Starting point is 01:12:38 are easy to find. And they're not, you know, being pushed towards these small. So there's going to be a cultural shift. And then I go to the emotional side or like the OG side of me. And I said, yeah, that, that sucks that we should find a way to keep all of them. Uh, extra sloppy. Um, yes, seven, you're on it.
Starting point is 01:12:56 That's exactly what's happening to me right now. My garage means a lot, but only to a few people in comparison to many, they're saying goodbye to me. Meaning they HQ is saying goodbye to him. in comparison to many they're saying goodbye to me meaning they hq is saying goodbye to him yeah that's probably going to be the uh biggest you know tragedy that comes out of this the price increase and again you already know my thoughts i would have figured out figure out a way to uh to somewhat regulate that due to like square footage size or something or your intention with it or the hours or the like you know different ways to like you know regulate that due to like square footage size or something, or your intention with it or the hours or the web, like,
Starting point is 01:13:25 you know, different ways to like, you know, regulate that. And then I would give them a, a reasonable price to stay. And like I said, I'd send them a banner,
Starting point is 01:13:32 make sure they, they could raise the flag in front of their house. Uh, Jeff Baco, uh, from a business standpoint, uh, Susan sounds like,
Starting point is 01:13:39 uh, Sean Woodland. I think it's, uh, E A N not that it matters. Uh, Jeff Baco, uh, from bako uh from a uh media consumption standpoint it sounds like you listen to the lone ranger podcast
Starting point is 01:13:50 you see uh not where you've been jeff for the last six months over at the lone ranger podcast jeffy uh can't you still run it just not be affiliated yeah that's what but then you're out of the community dude yeah and that's the part that sucks. Yeah. I do agree. That's the worst part of this, is to try to preserve that piece of the culture somehow. Okay.
Starting point is 01:14:19 So, yeah. So that guy was building a garage gym and kind of like his dreams have been stopped. Affiliate fees are a joke. Announcing it one month in advance is as unprofessional as fuck. I'm disappointed and there's basically no support in Germany. And I don't know how that looks in the motherland of CrossFit. I like the idea about the L2 and 12 months of ownership.
Starting point is 01:14:39 But again, this is the very first time that I consider to say I'm out. There's nothing left of credibility of the brand. The changes are made all against uniqueness. and Greg's idea doesn't exist anymore. My gym is going to be called Community Fitness and I really hope that Greg comes up with some new shit by the end of the year. This will probably never be read, but it felt good to blow off some steam. Our country managers are simply hand puppets with no real opinion and it seems like no one is allowed to talk openly or state their opinion. I've been in this for 12 years.
Starting point is 01:15:08 My gym is non-competitive, yet I fulfill the spectrum as a coach. I have international weightlifter and games athlete, and then they say the games athlete. I mean, that's some fucking crossfit. That's some passion. Dude, yeah, that's some fucking crossfit that's some passion dude yeah that's some passion international people
Starting point is 01:15:34 speaking out I wonder if their sentiment is different than the US or it's like the percentages are the same he was okay with the L2 the L2 thing seems to be like a like a everyone's kind of cool with it yeah I mean
Starting point is 01:15:52 if you've ever taken every like everyone yeah like of course it's so good everyone's like fuck you fuck these guys I'm out L2 is good idea yeah that's yeah we literally got one of those a few weeks ago right i mean i joked around with you guys i was like hey i'm gonna start my own fucking affiliate program but
Starting point is 01:16:10 i'm still gonna make you take the level one at crossfit a seven affiliate you what you're gonna get it with from me is media yeah it's crazy okay um um hey seven i've been listening since the josh matt and seven days you made a comment uh on the Jethro Cardona show wondering how many people started an affiliate because of your affiliate series. I just wanted to share with you that I opened my affiliate three months ago because of your show. Thanks. That's cool. Yeah, and by the way, that's because you just highlight and talk about all the stories that are happening inside the affiliates. And that inspires people to want to either do more of what they're already doing or go and start doing it themselves. So we also have our proof of concept for our media too.
Starting point is 01:16:57 HQ. We have the proof of concept. We know it works. There's not – I've told this before. There's not the humility over there. They don't have possessed that. To understand that. At all.
Starting point is 01:17:11 Zero. Although I used to think that they lacked the humility. Now I'm thinking maybe it's the mental horsepower. I don't know. I don't know. But I'm going to say the humility. They would rather go down with the ship. Than bring on the guy who can plug the hole. Kind of weird, right?
Starting point is 01:17:31 Which is crazy for private equity. Feels like gym owners are lobsters in a pot of water and HQ is slowly turning up the heat. How much longer will they stay in the water? Do you agree with that? Is $4,500 turning up the heat? It's definitely, yeah. Yeah, and they're going to want the people that could stand it.
Starting point is 01:17:51 Judy Reed, my husband registered me for L1 at Mayhem because of your show, Sebi. I love hearing that. Hope you use the code CEO. Yeah, you can use code CEO. That will give you a 50% discount on your L1. Don't tell anyone.
Starting point is 01:18:09 Okay, here we go. I'm an affiliate owner. I just passed my 11-year anniversary. January 1, we went up. We raised our monthly rates, but we're also in a small market. Price increase over the course of a month isn't much, but nothing has been shown of much value these past few years. Hard-pressed on if it's really worth it.
Starting point is 01:18:26 When they haven't shown us much backing, then to require the L2, yeah, that's great. But it's really just another money grab. Very on the fence about this and where we're heading. Like we said, whether it's a money grab or not is a totally different, it doesn't diminish the value or what value taking the L2 does. Yeah. That's cool that everybody got behind that.
Starting point is 01:18:51 Affiliate owner said this to me. I've literally been coaching for 20 years. Now they're forcing me to take the level two. LOL. LOL. Okay, that's the first. That might be negative. Yeah. okay that's the first that might be negative yeah uh as a three location gym we are out
Starting point is 01:19:10 we've watched crossfit as a brand buffer and all the people who wanted greg out i hope they like what they got god that that is a fucking interesting Thing some of you have left twice I hope Those of you who fucking Shat on hey hey I'll tell you what Half those people Who shat on them they're not even around anymore
Starting point is 01:19:38 Yeah their Shits gone right and the other half Are two years away from their games career ending and we Never fucking talk about them again. Except to fucking smash their face in the ground, talk shit about them. Man, can you imagine, though? I always think, like, in an alternate universe, if Greg, you know, didn't sell and it changed the other way, like, how popular Greg would be right now?
Starting point is 01:20:00 7,000. If even half the gyms left because of the pandemic, he'd be like Elon. He'd have just been walking around like this. Lawsuits everywhere. And we'd be winning the lawsuits now. All the lawsuits of... You know how Rosa wanted to make a deal with the government? Greg would have fucking law-suited,
Starting point is 01:20:17 and now they're all winning. Everyone's beating the government down. You can see what's happened with the U.S. military. They're having to give everyone back. New York City had to give people their jobs back. Holy shit. He would have buried the U.S. military? They're having to give everyone back. New York City had to give their people their jobs back. Holy shit. He would have buried the NSCA.
Starting point is 01:20:31 Not the settlement and the numbers, but the actual organization, which then would have made us the largest shareholders of the certification courses in the health and fitness space. I'm not – it was great. Nicole's talk was great today. One of the things she said and someone else said about the perception of CrossFit being dangerous, that all came from the NSCA. And that's the damage that did and and and the the original leadership of this company before dawn fall um but let that slide that was a huge fucking mistake and that was greg's whole plan the whole time that's why he never settled that he wanted that case to always be public so we could always point at it and say that would have been that was the ultimate tool crossfit could have had you guys understand that i think think it was the University of Ohio and the NSCA had a case.
Starting point is 01:21:29 They forged 16 people in the study who said they were injured. Greg sent lawyers to their houses and deposed them and none of them were injured. And to this day, CrossFit could be parading that around, being like, look, we're the most potent thing in the world, and they know it, and they're threatened by us, and we can't do that now. You can't really do that because the fucking case was sealed. Settlement was sealed. Huge fucking catastrophic fucking mistake. And so in defense of you who are kind of upset about that, that's what happens when you're just about the money. Yeah, that was a fuck up.
Starting point is 01:22:09 Hey, and that also was the first tell and then make it gives less tools to poor nicole way less tools for nicole she could have used those sorry go ahead and and i just think it shows that they didn't really understand what they were doing by settling that case and oh you went like i think that they were way too focused on the shiny object that was the clown in the parking lot to sell the cars and forgot that they were selling the cars. Yeah. He had no idea what he was doing. Hey, you know what I just heard the other day for the first time? I didn't know this, but I heard that it was the social media attention that Rosa got that broke him. I had no idea. I thought it was just some personal shit. He was like – I don't know. Like he fell into the clout? Like he was too focused on his likes and his comments?
Starting point is 01:22:49 Yes, yes, yes. Yes, that he couldn't handle the heat coming from our community because our community is savage. And he came into it thinking he was going to be the golden boy, and he got destroyed. And I think I heard that broke him. I'd never heard that before. I thought he just had some mental health. I thought he was a crackhead or something. He smoked a bottle.
Starting point is 01:23:11 He smoked weed and lost his shit, spun out of control. Yeah, I mean, he was obviously fucking up. He fired Dave, and then the board fired him. Yeah, that's what I heard. I heard that from someone for the first time, that it was just fucking the onslaught of social media pressure. Like, what broke Mal O'Brien or Haley Adams or he got broke too. Wow.
Starting point is 01:23:30 Too many Reddit threads. Damn. Too many. And Hiller wasn't even big then. No. God. Hiller would imagine now. Oh,
Starting point is 01:23:38 what he got. Fuck. Uh, bam. You and I are live. I own and run a CrossFit gym X and consider myself a Glassman disciple. He can have all my money because he earned it by giving me a blueprint for efficacy and no other could. Corporate CrossFit has given me a playbook programming I won't use in platitudes. Don't forget the platitudes.
Starting point is 01:23:58 I want to join Greg's new gym program when his non-compete is up and have a vastly superior, even more efficacious group training experience. Thanks for reading this. Yeah, interesting. To be completely frank, I wonder how many people would stay with CrossFit if Greg did start something how many people would stay with CrossFit just because of the games not many well let me throw this to you
Starting point is 01:24:35 out there there would be times of the year where people would you know a thousand 10% of affiliates would be behind on their affiliate payments and we roll up to the open where people would, you know, a thousand, 10% of the affiliates would be behind on their affiliate payments. And we roll up to the open. And Greg did not like the affiliate team collecting money from the affiliates, right?
Starting point is 01:24:54 He wanted to leave them alone. Like, hey, don't be, like, he didn't want, like, bill collectors. But he would roll, they would roll up and they'd call people and they would say, hey, open's coming. If you want to participate in the open, you should pay your affiliate fees because you're going to have to register your affiliate. And fucking A, that people would pay their affiliate fees. It was a crazy carrot. Was it the open or was it the call?
Starting point is 01:25:21 You went again. Because he did not call. He did not call. He did not bug. So I, you're right. You're right. God, you're like a real scientist.
Starting point is 01:25:31 Initial reaction on price increase is always negative. No matter how big or small. I agree. If an affiliate owner can keep two members at $150 a month price point for 15 months, it pays the affiliate fee. I think having L twos to be affiliate owners will only give those attending that affiliate a better experience and the coaches and that affiliate will be better for it too the general community seems to be flipping out i think the sting will wear off
Starting point is 01:25:52 people react emotionally not logically i i agree with the last part of this completely yeah i think people are just crazy emotional yeah they just need they're just processing yeah i mean anytime you get some news that's like that like what i mean even with like uh going back to my sanitization increase there's the opening of the mail like fuck fuck that we're just gonna cancel it i'll dump the trash over there right yeah but then all of a sudden life takes place you're doing some other stuff and the bill comes and you're like oh damn that hit oh yeah there's a little less in there okay and then you just kind of move on jeffrey birchfield I've done the Open for the last four years and never was part of an affiliate
Starting point is 01:26:26 Weirdo Interesting Bruce McLaughlin The open generates energy In our box the games does not Or just indirectly yeah I really The opens dope okay here we go I agree with this increase and honestly think it's way overdue as gym
Starting point is 01:26:47 owners. We raise our rates all the time. Why can't they? Yeah, I have one that that's interesting. Okay, let's go. I'm amazed that owners are bitching at this price increase.
Starting point is 01:26:57 It's a hundred percent worth it. Add one extra member and over the year, it pays for the increase. Any owner that's ever increased their monthly membership fee has no right to complain about this this is part of business i mean i just go back to it's theirs and if you don't like it leave and you were kind of saying that too i'm like hey do you think crossfit hq should say if you can't handle it get the fuck out and you're like they don't have to they raise the price. They'd said it. Yeah Paul Sebastian curious if it she would rethink this if Big Jim is like mayhem threatened to de-affiliate dude They don't even know that the fees went up over there
Starting point is 01:27:51 seema did uh did uh seve just call himself a weirdo no no jeffrey birchfield's a weirdo i'm cool i'm normal because i said sanitized i'm normal as shit that's annotation he's on it he's on he's on the case. My brother and sister-in-law will most likely de-affiliate. They have a very small CF gym in the rural eastern Sierras of California, about 50 or 60 members. The $3,000 was hard enough. We will continue to work out, but there seems to be no direct benefit of these fees to the affiliate. This is not what the CF community needs. The extra money can go back to the gym directly for upgrades and equipment. All the coaches are volunteers, and it's a strong community that will continue whether it has cf name next to it or not so this is the gym how many of these this gym nails it 50 or 60 in the mountains somewhere and they'll continue on and they'll just use that money that they were spending um this is this is so is this what is this what you mean it's not professional all the coaches are I mean, there's volunteer fire departments probably still in Tennessee. No, I mean, I have coaches that would categorize under volunteer. Like, no, I don't. Okay.
Starting point is 01:28:53 Yeah, that's the tragedy of this. That's what I'll say. Okay. That sucks. So you do think that's a little bit of a tragedy? Because part of me is not feeling that you actually think it's a good thing because it ups your brand value by those guys going away. I don't know if it does or if it doesn't i i think if you're in that rural like mountainous town and there's only a you live in a small population no i think it just unfortunately
Starting point is 01:29:13 like a like a like a leaf dries up and withers away in the wind and nobody notices i unfortunately think that's more like those those locations and that's why i think it's a tragedy because i i would love to be able to, and again, I don't even know logistically how you would do that, or like some of the other stuff I mentioned, Sleeky, I wrote in here, she was like, well, then how do you keep track of that?
Starting point is 01:29:34 And it's like, yeah, that's really great points. So that's why I think it's a tragedy. Because if those gyms ultimately go away, in those small little pockets like that, that sucks. in those small little pockets like that, that, you know,
Starting point is 01:29:43 that sucks. Um, thoughts on Dom fall, getting his L two soon, leading from the front. Uh, I don't know if Don has his L two or not. Uh, but yeah,
Starting point is 01:29:58 he should get it for sure. Yeah. They shouldn't announce that he's going to get it though. He could just go get it. it though he should just go get it no he should just go get it right i mean i i think he i think he should be visiting a lot of them a lot of l2s a lot of l2s i don't think he needs to sit in front row and like go through all the notes but i think he needs to do have you ever taken your l1 all the way through maybe four maybe four or five times oh okay but i was gonna
Starting point is 01:30:25 say even if you didn't like just by being in there by interacting by watching it by doing that over thousands of times like you have like yeah yeah you know you're right you're right and probably only two or three times now that i think of it yeah but you could walk into an l1 and you could watch it for a minute and you go something's off this flowmaster is not as sharp as we should be i've sat through them from beginning to end 50 times but holding a camera yes and and so exactly but you know the feel of it you know what it should feel like how everything should run and you know if that standard's slipping even though you're not directly you know hey i took it one time so i think you know sam walton who started wal, his famous thing was he would just show up and always go walk through all of his stores.
Starting point is 01:31:07 And I think the equivalent of Don Fault showing up at these random certs all the time is huge. Not only can he interact with the up-and-coming culture that's going to be the new wave of CrossFit coaches, so it's a really good PR move on his part. But at the same time, he's showing up and he's watching how these things are going to making sure they're up to the standard do you know who does do that dave yeah hey you know what i used to use for my coaches back in the day what this is kind of disingenuine a little bit but i would joke around and say like actually i wouldn't joke around i didn't say it's serious and i'd be like yeah dave um dave's doing stuff where he's touring in this area they let they let the affiliates know he's gonna most likely be here within the next month or two so make sure all this stuff stays on point because you don't want to be the guy whose class he walks into and it's not up to what
Starting point is 01:31:57 what the level that we know we could be at and everybody be like oh and i like obviously had no idea if he was ever coming i looked. I looked at his story yesterday and he was at two separate affiliates yesterday. Yeah, well, that's why it was believable. Yeah, damn, I can't get a story to play. I don't know if what's going on. You guys know we
Starting point is 01:32:21 I shouldn't I shouldn't dog him. God, I think my Instagram account is gone forever. Hi there. My name is Josh. I'm a five-year affiliate owner here just west of Atlanta. Honestly, I have mixed emotions about the email. I'm not 100% against an increase in rate, but I definitely believe they need to put their money where their mouth is. Media is key. No doubt about it. I want to feel the CF name means something.
Starting point is 01:32:59 Bring back Forging Elite Fitness. I'll stay for now. I believe in this shit, but unfortunately many won't because many don't. Origin Elite Fitness. I'll stay for now. I believe in this shit, but unfortunately many won't because many don't. I think that's probably like a pretty, that's the general assessment. Like when someone asks
Starting point is 01:33:11 you for more money, you're going to be like, and then basically you could have your head down working and then all of a sudden you could look up and just like basically by doing this, Don knew he was going to, like we said, he's going to get 65,000 opinions on the subject yep yep and a percentage that are gonna leave and they knew that um i think this is um
Starting point is 01:33:34 a a pretty good oh let me read this one uh 15 year affiliate here someone not happy at all about the rate hikes we just moved into a new location at the start of this year and our expenses increased by 40 i'm personally so sick of this one step forward one step back life i'm here on this planet to help people and raise a family and i've had to launch a second career just to maintain a gym that feeds my soul instead of my wallet i could have opened a gold or planet fitness and become a salesperson and made a killing but i was drawn to the mission crossfit created this is just ridiculous again they I was drawn to the mission CrossFit created. This is just ridiculous. Again, they're talking about the mission,
Starting point is 01:34:09 right? A lot of these things are saying the mission or what Greg started or what Greg did and the methodology and stuff like that. That's the unfortunate messaging that we're not seeing from CrossFit right now that they definitely need to get back to. I think you'll win a lot of these people over, especially if they don't have to de-affiliate for a really long period who would do that there how would they do that
Starting point is 01:34:27 yep that's the problem huh i mean like you're asking me like if i had like what's the strategy i would have because i i i thought of one yeah tell me which one you had i i i thought of one that i would do what's one that you would do in terms of turning around I would do. What's one that you would do? In terms of turning around the messaging? Yeah, like that message that you keep saying you want to hear, I have the cure for the world's most vexing problem, nuts and seeds, little starch, no sugar. We need to be in every hospital. We need to talk to doctors. Just this vision of what the company is about and where it's going who would you have drive that who there is going to drive that as of right now as it stood out as i could pick the characters that are there yeah it would definitely be it would definitely be
Starting point is 01:35:15 nicole um here here's what i would do i would and i sound like a broken record i would just go into the l1s since that's all Greg's material. And I would be filming those like crazy and posting shit from there every single day. Yeah. It's a, such a successful model. There's so many gems in there. You posting from there every single day. Yeah. Content from the L one, because at least then you're tapping into the vein of what Greg's saying.
Starting point is 01:35:41 I mean, I think the internal message to my team, and then number one, this would definitely ruffle some feathers at HQ, but I would basically say, hey, we're going to build the CrossFit headquarters and here's where it's going to be. This is what it's going to look like. If you still want to be a part of the company, you have X amount of time to move
Starting point is 01:35:58 because we're not doing the remote shit no more. Yeah, that would be good too. And then I would say the next piece would be the health of the L1 is directly would be the health of l1 is directly related to the health of crossfit as a culture in the health of a company the company as a total that's our focus boy bringing everyone together would be smart um okay so what god there's so many i know i'm trying to find a little bit it's there's hundreds i so appreciate you guys sending me all these it's crazy um uh what what what do you think that general i want to go um
Starting point is 01:36:35 my family's like out doing tennis and and it's like they play tennis and then they they eat at the tennis club and it's this big party there i want to go be with the kids what do you think the general sentiment is i think that that was a pretty i'll say this but you tell me what you think the general sentiment was from what i read do you think that it's a quality sample and um are you surprised by it those three things what do you think about the sentiment are you surprised but do you think it's quality sample and um oh are you surprised by it yes i think it's a quality sample no i'm not that surprised by it and i think everybody's reactions are relatively fair and also what what we would expect um uh do you think crossfit's uh lost its way do you think crossfit's going to be gone in two years this
Starting point is 01:37:16 price right rate is going to break the community and crossfit xq is going to go bankrupt i think that um we've kind of been in this wait and hold pattern for a long time. And I think after this increase that if we don't start to see something like massive from them, that speaks to the message of the L1 that, yeah, that could be a serious potential in the next, you know, 24, 36 months. Do you think that this was a brilliant business decision that Don has made and that the revenue at CrossFit is going to increase and the quality of service is going to increase? And that the revenue at CrossFit is going to increase and the quality of service is going to increase. From the outside looking in, I have no way to understand that.
Starting point is 01:37:54 If I was, let me put the CMO hat back on as hello, CrossFit affiliates. But what about just from these emails? My feeling is from reading all of these DMs I got, hundreds of DMs, is that his bosses are going to be really happy he's succeeding in his mission he's going to um do a very subtle standardization of all the gyms revenue is going to go up and um and the and uh and quality is going to go up it's i think it's going to be a win-win on three fronts from from what i'm reading here yeah i mean i i think so as well too but we still need to give that time to see how it shakes right but i'm asking what you think do you think that this was if if like if you're if you're don's buddy and you're out drinking with him tonight are you like dude you fucked up are you like dude bold move i think you got this i i would say dude bold move i think you got this i can't believe we booked nicole carroll on so many massive
Starting point is 01:38:46 platforms to be on podcasts to spread the mission the way you did how'd you get all those awesome contacts especially in the health and fitness space it's nuts having her and rogan's gonna be incredible i love you all right uh if this backfires don is done yeah for sure uh no seven you are losing no seven you are lose no seven you are losing people from this you're losing um members at gyms you think or you're losing affiliates here's the thing i hear what you're saying i'm talking about um i'm talking about if you're his boss, do you like the books better after this decision? Yes. And I think for Don, he scored.
Starting point is 01:39:35 I think so too. Yeah, because I don't think these fucking guys are leaving. This guy's not leaving. And the ones that are leaving aren't the ones that i think that the the don's bosses are worried about uh it wasn't just his decision that's true definitely was i that's the interesting thing did these strategies come directly from the board or is don how much autonomy does don have are these strategies is he just there to implement the strategies um i disagree with sarah cox here i hope this won't affect my bottom line i think this decision was his and people below him no no i don't think so i don't i'm in that camp i'm in
Starting point is 01:40:20 the camp yeah no i don't think that they're i don't think you think nah i don't even think they know what the fuck's going on over here i don't know nope i don't think they got one crossfitter on the board i agree with that yeah i don't think i don't think they know what the fuck is going on here yeah i mean i think they know how to listen these guys that are in the venture capital we don't know who the board is, but we know that they got a lot of money and you don't make a lot of money by being an idiot like that. So they have some idea of what they're doing.
Starting point is 01:40:54 Newport. Damn it. So again, so sorry. We know the board guys have a lot of money. What? Yeah. And I just think that you do that you you make that money and you have success in business because you're able to process and make better decisions and so you know were those will those decisions apply to crossfit
Starting point is 01:41:16 because crossfit is very unique uh time will tell but i think that um i think that the board knows what knows what they're doing in terms of trying to create more revenue and business opportunities as they look at it you know as they look at crossfit as a total stay high on your paper street coffee people use code word seven make sure you get your peptides if you want to be yoked like me if you're gonna have a baby go to birth fit you can have a baby if you want to make a baby go to birth fit if you have a baby, go to BirthFit. If you want to make a baby, go to BirthFit. If you have a baby, go to BirthFit. Be smart. Go to Vindicate and get your CEO shirts.
Starting point is 01:41:54 Great Christmas gift. Susan, thanks for being here. Oh, God, please tell me we have no guests tomorrow. Please tell me we have no guests tomorrow. No guests tomorrow. Oh. Yeah. Oh. guest tomorrow please tell me i have no guests tomorrow no guests tomorrow oh yeah oh we had
Starting point is 01:42:06 like a kind of a bigger one in there i think in terms of like stuff you want to talk about but they got moved so oh you and i will be hanging out tomorrow morning again oh that's awesome there is one i want to finish you guys this video. It's not a country manager tonight. This is at a supermarket here in Santa Cruz. And I think this is apropos to the thing we're in. You can see this as depressing or you can see this is that you guys have tons of, as affiliate owners, tons of opportunities. Here we go.
Starting point is 01:42:45 I think the people behind us are about to get soda. She's tapping the can. She's literally tapping the can of the soda. Excuse me. Are you down to quit soda for 30 days for $100 right now? It's still doing soda because it's required right now because my son has to be- Has to drink soda? What the hell? They're trying to get more get more people to drink soda. Well, what if you went back home and you went, hey, this crazy guy at a grocery store came up to me. And he said he's going to give you $100 if you quit soda for 30 days. What do you think he'd say?
Starting point is 01:43:17 And if you didn't have the soda? If you don't give the dollar. I have the dollar. What if you go home and you give him this $100? I'm taking a challenge for my son because he doesn't know about this challenge. I will give him the $100. No. Right now?
Starting point is 01:43:30 No. You're going to get the soda. Okay. That is fine. We tried. Common occurrence where they're like, I'm not really drinking the soda. But we know from what he was saying, he slipped up. He said, I do drink the soda.
Starting point is 01:43:40 My goal isn't to, you know, rip people away from their habits, but to gently guide them with cash cold hard cash and approach so uh you guys are in the business of selling people personal accountability and personal responsibility you want 150 bucks a month from people this guy can't even give someone 100 bucks stop drinking coke so you have an uphill battle crazy i'll leave you with that the good news is there's tons of unhealthy sons of bitches out there go get them love you guys have a good day i will see you tomorrow morning peace

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