There we go, okay, good. Everybody should be looking at how to double your membership sales leads – a fitness marketing Master Class. I’m so excited you guys are here. Um, we had a major mishap where the email went out. We had several hundred people ready for this webinar, ready to dive in, and we realized like five minutes before that the link was broken to the webinar. So we changed it to a quick Zoom meeting and sent it out, so hopefully, people can catch the replay if they’re missing it now. So hey, thank you for joining me.
We’re gonna make it and try to make it in about half an hour and then leave some time for Q&A. If you guys have specific questions that you want to ask, we’re going to dive into some really interesting stuff that’s happening in the fitness industry from a marketing standpoint right now to help you guys move the needle forward. Some of the things that you’re going to learn today is something called the offer pendulum. So you’re here because you want to increase your membership sales, your revenue, your lead volume. One of
the things that’s a key factor in making that happen is the offer. So what we’re going to look at is we’re going to look at something called the offer pendulum and how to craft the right fitness marketing offer to maximize lead volume without sacrificing quality. We’re also going to take a look at the four hottest lead generation channels in 2022.
And then we’re also going to look at what’s interesting, the new kid on the block, which is TikTok, and how you can get leads for as low as three to five dollars per lead from TikTok advertising. And actually, here are a couple of examples of that. You can see here, three dollars and 45 cents per lead at 47 conversions, 372 a lead at 44 conversions for those health clubs. Here are two more, 3.74 cents for 48 leads, 69, 78 leads,
right around that four-dollar mark. So these are really fantastic numbers, and we’re going to show you exactly what to do and how to do that. So for those of you, some of you may know who I am, some of you may not. So let me give you a quick 30-second introduction here. I’ve been in the fitness industry for about 23 going on 24 years here. I used to be in the 50-data space and was in charge of Business Development and sales training for 50 health clubs, lots of employees. That brand got acquired by LA Fitness, and then I ended up going out on my own.
I had my own facilities and had multiple locations. I owned and operated those for seven years, and then had to exit after that. So, I know what it’s like to do everything from sales, membership tours, cleaning the toilet, running a sales team, and the whole thing of what it’s like to run a fitness company. We’ve also, as an agency, been trusted by one of the sharks from Shark Tank. We cut their acquisition cost by 73 percent. Kevin Harrington, he was on the first several seasons on the panel. Also, a fitness industry speaker and
host and founder CEO of Lead Lion Marketing, a fitness marketing agency. So, if you guys ever get a chance to check it out, listen to the Fitness Industry Success Show. If you’re interested in hearing other people’s stories, this is fellow Fitness Company owners, everything from the single Studio owner all the way up to owning 20 or more 50 more locations. Jeff Dyer was on here. He’s building a billion-dollar Crunch brand. There are so many really interesting stories on here that you guys may find fascinating that you’d
enjoy listening to and get something out of it. We work exclusively with fitness, so all the data that we’re pulling for the stuff that we’re sharing with you today is coming across a lot of different brands from within the fitness industry because we get a firsthand look and glimpse into that. And this is just showing an example of who we work with. So, who is this not for? This is not for fitness business owners and operators that want to be an influencer. So, if you’re looking to build your following, your profiles, and get more of,
you know, Instagram followers, TikTok followers, this is not for that. This is high-performance marketing. This is lead generation that we’re talking about here. This is also not for those looking for magic beans. It’s not going to fix all your problems. If you have a sales problem or you have a follow-up or automation problems, that’s not going to fix this. And it’s also only for businesses that can handle lots of leads. This is not for, like, a one-on-one personal training studio who can’t
handle high enough lead volume to get through that. So, this is for gyms, health clubs, athletic clubs, boutique gyms, mass market studios who are looking for more memberships. So, if you guys are looking for monthly membership sales increases, then this is for you. Fitness business leaders that have a growth mindset. If you guys have been in the fitness industry long enough, you know there’s always the folks that, ‘But we’ve always done it this way.’ So, it’s not for you guys. And also, those who have room for at least 25 growth or more.
So let’s talk about the key things before we dive deep. Today, we will be discussing filling your sales funnel. Every fitness business experiences great growth in the first three to five years. However, after three to five years, you hit what’s called market maturity. You face a little bit of saturation, more competition in the area, and you’re always trying to outrun attrition, those cancellations. You’re always trying to keep your head
above water and outgrow that attrition rate so that you have growth instead of a steady decline. Today, we will focus on how to keep the pendulum swinging upwards, how to move the business forward, get a positive ROI on your marketing, and see continued growth over time, even when you’ve hit market maturity. Here’s an interesting study from the Institute for Marketing Science, which I believe is based out of Australia. They conducted a really interesting five-year study, and you can see here
that these are big brands, like Budweiser and Coca-Cola, and down here are regional brands, small brands, and single mom-and-pop one-location spaces. So, what happens when brands stop advertising? They did a five-year study, and the only one that grew for two years after that was the largest of brands that were already growing. But everyone else immediately experienced a steep decline after they stopped advertising, especially smaller brands, which we consider to be those earning under 50 million dollars a year.
So, if you’re earning a hundred thousand a year, five hundred thousand dollars a year, a million, or 10 million dollars a year, you would still be considered a smaller brand. There’s an immediate steep decline year after year for five straight years as soon as they stop advertising. This study shows that advertising is the fuel that’s really going to help you earn and maintain growth. Most fitness businesses rely heavily on
walk-ins, referrals, their sales team (if they have one), and their organic or grassroots marketing. However, what happens is a steady decline. In fact, I had multiple conversations this week with people who talked about the steady decline. They were club owners or gym owners, and they were like, “Hey, you know, over the last several years, they’re thinking maybe it’s COVID.” I said, “Well, how much advertising have you done?”
What have you done in the last three years?” “Like, oh we don’t know.” “Well, there you go. You’re going to experience a steady decline. What we want to do is drive more walk-ins, referrals, organic marketing engagement opportunities, and fill your sales team through advertising. But not just brand advertising, we’re talking about lead generation, which is actually filling the funnel. So here’s a good example. If you guys like numbers, if you look on the left-hand side, let’s say in your local market, you’re going to
touch about 30,000 people through social media advertising. Of those 30,000 people, 200 of them may raise their hand and say, ‘Yes, I’m interested in what you have to offer. Here is my first name, my last name, my email, my phone number. I’m interested. I’m in.’ Of those people, maybe 140 people book an appointment, come in for a tour, free trial, whatever that may be, and then 80 people book an appointment, and then 80 people actually show up for that, and then 50 people join, and then 10 people
behind that would be upsold to a higher training package, group training, team training, something like that, nutritional coaching, whatever other upsells you might have on the back end. But you can see here, this is all about getting you an ROI, a return on your investment, making sure that you have people showing up and signing up. So let’s talk about how to do that. If you were to look back maybe 10 years, maybe even not that far, there was a heavy reliance on television advertising, radio, print,
direct mail, magazines. It was a very different landscape. Digital was thriving, but it was kind of in a weird spot. It was digital, and they were coexisting together really well for smaller companies. Now it’s heavy online, heavy digital, and those other antiquated methods are slowly declining. Some are even dying a very slow, quick death. The difference is you’re dealing with something called an algorithm. So when you’re doing any type of advertising online, you’re dealing
with an algorithm, whereas before, you never had an algorithm. You’d throw a radio ad out there, you’d put a television, you’d throw direct mail out there, or a billboard, and it was just there. So it would be all about the messaging. The messaging was front and center. It was all about the messaging. So fast forward to today’s day, 2022, and now it’s more than just messaging. You’re dealing with an algorithm, an algorithm that’s going to tell you whether your ads get seen more or less, whether you’re going to pay more or less.
For those ads based on engagement levels, it’s more important than ever before in history to have the right offer market fit. Not just to get people in your door, but to appease the algorithms as well. So let’s talk about that. We work with a lot of health clubs, athletic clubs, and fitness studios all across the country, and we’ve been able to test thousands of different ads and lots and lots of different offers. After a while, we started noticing patterns and some
different things that really had a huge impact on what would generate higher lead volume versus lower lead volume. I’ll give you an example. Like five or six years ago, the giveaway was really popular. You know, you give something away or you can win a prize or a contest or a free year or something like that. Those are no longer as effective. But anyway, on the left side of this pendulum, you’ve got high friction and low perceived value. Okay, so this would be your low lead volume. And then
on the right side, you’ve got high lead volume with high perceived value and low friction. So an example of that would be high friction like “Join for $100,000 and get a free day pass.” That’s very low perceived value. High friction, you’re going to get zero leads. The other extreme to that would be “Give me one penny, and I’m going to give you a two-year membership.” That’s an extreme example, but you would have people knocking down your door or questioning why you’re in business. So you don’t want to swing the pendulum all the way to one side or all the way to the other side. There’s a sweet spot right here where the blue is marked, where you want to be just over on the right side where you can cast the widest net possible while also keeping your lead quality up.
So for fitness industry owners, operators, and managers, here’s what that looks like. You’ve got three main levers. Let’s say you own a health club. You’ve got your pass, which is your time. The typical pass is the one-day pass, three-day pass, five-day pass, seven-day pass. There is a 14, 21, and 30-day pass now which has taken the industry by storm because of COVID, with people trying to get attention. You also have enrollment. So, Crunch does a great job of this. They’re always either one-dollar enrollment, no enrollment, 10-cent enrollment. They’re always playing with the enrollment lever on this offer pendulum. And then you have months. So, you’ve got your monthly dues. If you’re a high-volume, low
Price is key for fitness centers. It’s easy to give away one or two months for free because you’re not losing much. However, if your prices are $60, $80, $100 or more per month, giving away free months will have a bigger impact on your revenue. Moreover, if it’s public knowledge what your prices are, it may swing the pendulum too far against you. So, the goal here is to boost your lead volume by testing and crafting the perfect market-fit offer for your fitness business.
This could be one of these offers or a combination of them. Let me give you an example of some offers that have worked really well. We had a club out west that was in a very competitive market, where there was probably a health club every two blocks. These were huge, 40-50,000 square foot clubs in a very competitive marketplace. They were having a hard time breaking through the noise, so we suggested moving the pendulum and offering a 30-day pass.
This was before everyone else started doing 30-day passes, years ago. All of a sudden, they were getting more leads than they knew what to do with. The good news was that they had a strong enough back-end sales process to convert at least 50% of those leads that were coming in each month. That’s the key. You also have to match that with the correct amount of sales skills on the back end. So, that’s an example, but you can play with the pass, the enrollment, the months, and you can do what’s called value stacking.
That means creating a jaw-dropping offer that’s so good, people would be stupid to say no. For example, when January comes around, you could say, “Hey, we’re offering zero enrollment, first two months free, and a 21-day pass for a friend or family member.” It may seem ridiculous, but think about it. People in January are shopping, and they’re either going to join your facility or someone else’s.
If you have the option to pull them into your ecosystem and get them on your monthly draft for the next two to three years, you have to think long term. The ROI is definitely there. So, you want to play with that offer pendulum to try to swing it just over to the right side. I’m going to save some time at the end for questions. If you have any questions on this, write them down, and you can drop them in the chat.
We’ll answer those for you. Some other factors that may be affecting your lead volume are obviously the creative in the copy, the time of year. The fitness industry, most markets will very closely follow the school calendar, so January, February, March, it’s like mid to late January, February, March, April, very strong months. May can be strong as well. Summer, the summer slow or the summer soft. And then you’ve got depending on when you go back to school, August, but September and then all the way up through just before
Thanksgiving, very strong. And in between Thanksgiving, Christmas, it’s the lull, and then you’re back up again. So you want to make sure that you’re putting the right offer at the right time of year. So, if you’re really hurting for lead volume and you want to go stronger, you can. But my suggestion would be, if you can hold off, run more of a brand strategy during the slower month, and then really, really pound it and come out with something extremely strong. So you’re going with the grain instead of
against the grain, like in January or a September. You’re going to see a huge influx and a high conversion rate. Other factors that will affect your lead volume will be supply and demand, where you’re using marketing strategies like urgency and scarcity. So a lot of you guys probably have maybe a pass on your website, and it’s just always there. And then, when you go to marketing, you’re going to put some ad spend behind something. Here’s are we, are you hear this all the time? Well, let’s just run a day pass. Okay, great. But you’ve had a day pass for 10 years on your website. Yeah, exactly. Let’s just run the day pass. You’re not going to get anything out of it because it’s not unique, it’s not special, it’s not going to create urgency. There’s no scarcity, there’s nothing amazing about it. So you’re relying on brand and messaging at that point. You’re not really generating leads at a low cost at a high volume. So keep that in mind. You want to have that offer and that supply and demand. Use things like, hey, there’s a
limited supply of this available, or it’s going to end at a certain date would be how to create that urgency and scarcity. And then we’ve already talked about the algorithm. Four hottest lead gen channels for 2022. Let’s take a look at these in order from number four, starting with number four is Instagram. I bet this is a surprise because maybe you were thinking Instagram would be remember one or number two at least, and it’s actually number four. So Instagram’s fantastic. It has two billion users, 62%
Of those users, are between the ages of 18 to 34, so it is a pretty young demographic. And it’s got huge adoption in the younger gen like Gen Z. And then average user time is about 28 minutes a day. Instagram’s number four though because the platform itself and the way that is structured for ads and scrolling. Instagram is really big on images and videos, and it’s a fast-moving platform. You’ve got stories you’re just flying through, so if you ever watch somebody or yourself, pay attention to
how you scroll Instagram. It’s very quick. And so there’s very little ad copy shown. There’s a “learn more” button on your ad, so it doesn’t convert as high. Can it convert? Yes. You’ll pay a little bit more cost per lead, and it’s still very effective if it’s your only strategy that you can choose from. I wouldn’t pick Instagram as your only platform. If it’s only you can only afford to do one platform, I would make this an add-on platform if you’re already running on other platforms. Okay.
All right, so Instagram number four. Number three, SMS. Ninety percent of people prefer text messages. I haven’t met somebody in 10 years that doesn’t have a smartphone, and you’re going to get a 70% opt-in, and open rate is going to be even higher than that, so it’s huge. If you’re not communicating through SMS with your follow-up automations database reactivation campaigns, two-way communication on lead follow-up, and nurture sequences, make sure that your SMS is really dialed in, and also that you’re compliant. But you want to really
make sure that this is a platform you’re utilizing as much as possible because it’s going to have a significantly higher response rate versus email and phone calls. Phone calls are awesome. You want to get that face-to-face or that conversation over the phone if you can. The issue with phone calls is people are busy. They don’t pick up, and if they don’t recognize the number, they’re definitely not going to pick up. So text messaging would be the way to go. Number three, Facebook. So Facebook’s
still the behemoth in the marketplace. Cost per lead is fantastic. Three billion users. Sixty percent of them are between 18 and 44. 35 or 45 and over, so you’ve got this really great middle segment on Facebook, and they’re using Facebook for an average of about 33 minutes a day. So it’s still very sticky. It’s still producing really well. You know, depending on your price point of your health club or your studio or your gym, whatever fitness company you have is going to be also kind of where you
ant to advertise. If you have an especially premium-priced club, and you’re targeting those over 39, 49 up to 100 plus, Facebook’s going to be your spot. So, Facebook is number one. If you’re not running Facebook advertising now, you have to be on it. But let’s go to number one, drum roll please! No surprise, TikTok – the fastest-growing platform in all of history. So, TikTok is weird, it is for me, I’m a little bit old school. It’s strange for me,
but I can’t ignore it, and we’ve been rolling TikTok out for clients, and it’s working extremely well. So, TikTok is up to 1.2 billion users and counting by the second. That number’s probably much bigger right now. 46% of TikTok users in the US are between 20 and 39 years old, that’s a big number. That’s your gym demographic, your fitness demographic. But here’s the kicker: 33 to 95 minutes per day, it is the stickiest, most addictive platform of all the platforms out there right now.
If you haven’t been on TikTok, I don’t recommend it because you might never get off. So just be very careful, I warned you, don’t say I didn’t warn you. But it’s a very sticky platform, and the users on TikTok are fast, they have short attention spans. So you would think, how would ads convert on TikTok? They actually do, and we’re seeing like I told you before, those really, really low-cost leads, and they’re converting very well. So let’s talk about this, how do you get three to five dollar leads from TikTok ads?
Okay, very unique, very different platform. I’m going to give you some, run through some tips, even show you a sample. But number one is you have to use vertical video. So everything on TikTok is vertical, you have to hold your phone vertically. It’s not hard to do, to get the actual vertical videos that you need. The other parts may be a little more advanced and complicated, but this part is really easy to create that vertical video of your studio, your fitness club, your gym,
your athletic club. Really simple to do, some examples of some videos would be like gym shots, action shots, front desk waving hello, people doing certain exercises have worked really well. And so we have found because you can upload up to 60 seconds for a TikTok ad, and TikTok’s ad platform recommends that you actually do like 15 seconds, but the sweet spot for conversion is actually between 30 to 45 seconds, stitching together various scenes throughout the ad, various themes, meaning the videos changing like every
Seven to ten seconds. Okay, so we also recommend using trending music and speech-to-text for TikTok ads. There’s certain music that’s always trending, and there are certain speech-to-text voices that are always trending. So let me play an example for those of you that have never been on TikTok or scroll TikTok. You’re not sure what speech-to-text is. I’m going to play this quick two-second clip here. Over 200 four-star reviews.
Okay, there you go. So you can see you’re panning the club. It’s got some speech-to-text overlaid over that. What that does is it helps the ad feel more native to the platform versus being like a graphic billboard Nike type ad, which is not what you want to do because that’s not going to convert very well. Another tip is not to recycle your Instagram or Facebook stories or posts or ads onto TikTok. It will not translate whatsoever. So make sure that everything that you do there is really
unique to TikTok and made specifically for TikTok or it will not convert. Make sure that your ads look like TikToks and not like an ad. We talk to clients about this all the time, and it’s really important to understand that there’s a lot of marketing out there where it’s just beautiful design, lots of graphic overlays, and it just really almost looks like it should be winning an award for some sort of advertising trophy. But that’s not what converts. Because we’ve hopped in the account, and when we take
over the account, and you’re paying 35, 40 a lead, it’s absolutely ridiculous. You should be way below that, three, five, ten dollars a lead tops in that area depending on your market. But so what’s happening is if you look like an ad, people don’t go onto social media platforms saying, “Hey, what ads can I look at today?” It’s just not going to happen, right? So you want to think about that. The more organic you look, in other words, the more native you look to the platform, if it looks like a TikTok
and not like If your ad looks like a Facebook post rather than an ad, you will experience higher engagement rates and conversion rates due to click-through rates and other factors. Additionally, you don’t need to dance for your TikTok ads, so don’t worry about it being weird. As previously mentioned, we recommend taking some different shots of the studio, people exercising at the club, or the athletic club. Take 15-20 minutes to capture these shots with your team
together, hold the phones like this, and just start shooting away at some different ideas. Somebody doing squats, a trainer working with a client, front desk staff doing something like waving or checking somebody in, somebody giving somebody a tour, a group fitness class, a team training class, or different things like that. Somebody high-fiving somebody else, and these highlights can go through and be part of your TikTok ad that will work incredibly well. Now, full disclosure, the trouble with TikTok ads,
there’s a gotcha, there’s a catch. Okay, so one of the problems right now with TikTok is that it’s really new and TikTok ads have not been around more than a few years. It’s very young. That’s why it’s a blessing in disguise. It’s so cheap. You can get in front of thousands of people for dollars. You can get leads for two dollars, three dollars. We’ve had some clients get leads for one to two dollars from TikTok over time because it’s so cheap, because it’s so new. But that’s
going to change in the next 12 to 24 months because everyone’s going to be jumping on the platform. The problem right now is that with Facebook advertising, Instagram advertising, you can target a one-mile, a three-mile, a five-mile radius. You cannot do that with TikTok ads. You’re targeting what’s called the Nielsen designated market areas, which are your television and radio broadcast markets. So, what does that mean? Instead of being like a one to three-mile radius and maybe four counties, it may be five
or six counties and maybe two counties. So, it’s going to be a larger area that you’re targeting. We worked really hard and we found some ways that we can get people to identify if they live in a certain area. We’ve got some backend infrastructure that we had to set up to be able to run ads to make sure that we’re getting people that live within driving distance of the facility. And that way, we’re not wasting ads. Ben, so there are some workarounds around that, but I do want to be very upfront with
you and let you know there is a gotcha. You have to know how to work around these DMAs until later down the road if they ever do, when TikTok releases the ability to target a one to three-mile radius. Okay, the difficult part. TikTok ads are easy to create. TikToks difficult to run successfully. So, we’ve been testing lots and lots of TikTok ads. We’ve cracked a code on that, and we’d be happy to share more at a later date if you’re interested in that. So, let’s do a quick review.
I promised not to keep you long because I wanted to open this up for Q&A. But before that, remember that everything starts with your offer. You can have the most beautiful facility, the most amazing pricing or service offering for your fitness members or clientele, but if you don’t have the right offer-market fit, your marketing is going to fall flat no matter how good your messaging is. So swing the offer pendulum a little bit to the right side, get that high lead volume,
cast a wider net, and reduce that friction. You’ll have more at-bats and more opportunity to grow, and get that snowball rolling. Remember that money flows where attention goes, so focus on the hottest platforms – Instagram, SMS, Facebook, and Tick Tock – the trending platform right now. Marketing science tells us that if you don’t advertise, you’re not going to win, and you’re already dying a slow death. So if you haven’t been
advertising, you’re really missing out, and you may be losing members to your competition. Make sure that you’re doing some form of advertising on a regular basis throughout the year. And then, the gold rush – run, if you’re not on Tick Tock ads right now because it’s going to be more expensive in a year from now. Facebook ads used to be cheap like this, but that has changed quite a bit. Even though it’s still the second least expensive platform compared to all the other ones, definitely do it now.
If you want to learn more, you can book a discovery call with us at leadlandmarketing.com. Now, let’s open it up for some questions. You can direct message me in the chat, or you can drop your questions into the chat, and I’ll be happy to answer them. We’ll do two questions.
Question: You’ve done the social media channels. The one that’s been presented to myself lately for advertising is Hulu. Have you guys had any experience of working with that? Actually, it’s funny you say that. We just got an email on Monday from Hulu saying that we’ve been approved for the beta ads manager program. The answer is no; we have not done it yet. But that would be more in line with YouTube TV, Hulu, all your streaming services where it’s more display advertising.
To where you’re going to be showing commercials to people during shows? Yeah, yeah, okay. So, yeah, the answer is no, we haven’t. If you do it, let me know how it goes, but we just got approved to beta test that this week. Great question. Alright, let’s do one more question, maybe two more questions if we have time. You can go ahead and unmute, or you can just drop it in the chat, it’s up to you. Go ad spend. Okay, someone DM’d me ad spend. Okay, so the question is, how much should I be spending on social media?
It really depends on a couple of different factors. One is how dense is your marketplace? Like if you’re in the Northeast, in New York, New Jersey, certain areas where there are a lot of households in a really small area, you can afford to do more ads, you can spend more money because your frequency rates aren’t going to be overly high. If you’re in more of a rural area or a suburban area where it’s more spread out, and your density is not 60, 70,000 people in a one-mile radius,
it’s more like 10, 20, 30,000 people, you’re not going to be able to spend as much, no matter how much you want to. You’re not going to be able to spend as much. So, that would be the first thing I would take into account, is how dense is my area? Secondly, I would look at the platform itself. So, I’ll give you some examples, I’ll give you some starting numbers. So, Facebook, 15 a day would probably be your baseline, going up to 20 to 25 maybe a day would be your sweet spot. You could spend more
if you have more audience size. TikTok, there’s a minimum requirement of 20 bucks a day. So, if you’re going to do TikTok ads, it’d be 20 bucks a day, and then up from there, anywhere between 20 and 40 a day would be the sweet spot there. You don’t want to go overboard on that. Your frequency will get too high. Instagram, same thing. Okay, so Matt, you’re looking to revamp, maybe augment what we currently have. Let’s go. Yep, Matt, I got you. I’ll send you that link in the chat here
in a second. Don’t leave the meeting until I can send you that link here real quick, okay, because I’m still sharing my screen. We’ll do one more question, guys, and then we’ll wrap it up, and then, Matt, I’ll take care of you. Make sure you get that link. All right, any other questions? Good. Well, if there are no other questions, guys, thank you so much for joining. I apologize for those watching this on the replay. For all of you guys watching this replay, we had a massive mishap.
The link was broken. We had so many people sign up for the webinar today, and we had to get you a link last minute. So, we just put together a Zoom meeting real quick, but unfortunately, the webinar was broken. I apologize for the inconvenience, but thank you for watching the replay. If you have any questions, we’re here to help, and we’re glad to help. Thank you all for joining, and I’m going to stop the recording now. Matt, I’ll get with you soon, and we’ll talk to you guys soon.
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