Stop the Bleeding! Why Your “Free” Memberships are Costing You a Fortune

Gym owners, gather ’round! You might think offering free enrollment fees and introductory discounts is attracting a swarm of happy customers, but let me tell you, the truth is scarier than a Halloween squat challenge.

Here’s the brutal reality: those “free” members might be silently draining your wallet. Don’t believe me? Consider this:

• You charge $0 enrollment, but your new member acquisition cost (MAC) is $100. That means every new member starts you in a $100 hole. How many “free” memberships can you afford before your gym becomes a financial black hole?
• They pay $50 the first month, but churn out before month two. Sounds familiar? That first month barely covers their acquisition cost, leaving you with zero profit and a lost member. It’s like paying for a gym membership you never use — frustrating, right?

But wait, there’s hope! By understanding two crucial metrics, you can turn the tide:

1. Member Acquisition Cost (MAC): This hidden price tag reveals the true cost of acquiring a new member, including marketing, sales, and onboarding. It’s like a flashlight exposing the hidden price behind every “free” sign-up.

2. Point-of-Sale Profit: This metric goes beyond just membership fees. It tracks the total revenue generated at sign-up, including upsells, introductory offers, and additional services. It’s the difference between a membership treadmill and a…