Member Experience

How To Create A Profitable Gym

This is a step-by-step guide for potential owners on how to create a profitable gym.

Eric LeClair
October 15, 2021
How To Create A Profitable Gym
This is a step-by-step guide for potential owners on how to create a profitable gym.
profitable gym
profitable Photographer: Mark Bertulfo | Source: Unsplash

A business is said to be growing when it retains existing customers while getting new customers at a fast rate. Customer retention is one of the effective methods to increase profit in your business. Retaining members in your gym will always lead to more sign-ups because once people are satisfied with your service, they spread the good news effortlessly.  This is one one the number one ways to create a profitable gym.

Human to human marketing is still the most efficient form of marketing, hence for your gym to increase in revenue you might need to find ways to retain your members.

Look at it this way: if one member pays $50 per month for membership and you already have 30 members, you should find a way to make a profit from each existing member to increase your $50 to say $80 -$100. Also, when each satisfied member stays longer in the gym, you are rest assured of getting at least 1 to 2 new members paying $50 monthly from their referrals.

With this in mind, how do you make revenue from your members? The influx of people registering for gyms these days due to excessive weight gain has made many people go into the gym business so you might not be the only gym owner in your area.  How do you position yourself to be the best and make more money from your gym despite the many competitors?

Worry not. In this article, I will help you discuss various means you can make your gym more profitable for you. Keep reading to learn more.

Pricing Plans = A Profitable Gym

One of the best ways to increase revenue at your gym is to adopt a pricing plan. A three-tiered pricing plan is the best marketing system that helps to position customers based on their budget and membership privileges.  It is also a great way to increase your membership price without attracting many complaints from customers.

So instead of having one flat-rate price for your gym, you could adopt a pricing plan for three categories. Before you do this, you must have tracked the attendance of the members, kept reports and understood their preferences. This is to help you to create a perfect model for each plan and help drive a profitable gym.

For instance, you could have a basic plan for members who attend occasionally and will not have access to ancillary services. A premium plan for members who attend more frequently and will have ample access to some premium services. Then a pro plan will be for elite members.

The trick to this is that more people will opt for the premium plan because they feel it is better off than the basic one and not too expensive as the pro plan. That way, you have successfully increased your price rate without losing customers because those that don’t upgrade will stick to the flat rate which is now a basic package while those that want extra services will upgrade.

Offer Rewards For Referrals

To generate more leads in your business, reward people who refer others instead of offering free membership training or discounted promotions. As a result of the incentive, your customers will refer more people and you will gain more revenue from new members to recover the money spent on the reward.

Offer Retail Products

Selling retail items in your gym is a smart way to grow your profit for your gym. You could sell items that are beneficial to members during exercises like water bottles, lunch packs, gym wear, shoes or health supplements.

For better results, during your sessions, you can inculcate a selling strategy by speaking about the importance of the right gym wear, the importance of drinking water or how to improve nutrition by taking the right supplements. By selling these items, you will be able to make more money off your members apart from your membership fees.  Most of those margins, in addition to memberships, are where owners can create a profitable gym.

Add a Concession Space

Partner with complementary businesses like food vendors, massage therapists, hair stylists, smoothie vendors, nutritionists etc. You can set up a concession area within your gym premises where they can pay a fee to use it.

In the same way that malls give concession spaces to cinemas or restaurants, you could do the same for your gym.

Organize BootCamps/ Workshops

Using workshops and boot camps will help your business earn more revenue and improve retention. It helps members stay motivated and achieve their fitness goals more quickly. If you organize paid workshops or a seasonal boot camp, you will also create awareness about your gym as many of your members will invite friends and family to your gym.

Go Digital

The future of digital is no longer a futuristic statement but a current phenomenon. Many fitness brands are taking advantage of the growth in technology to incorporate the digital experience into their fitness routine and if you want to increase revenue in your gym you need to tap into this space.

You could create a  mobile app where members can register electronically. In addition, you should also have software that allows you to track a member's progress and even send them pre-recorded videos during times when they cannot attend the gym.

Due to your online and offline presence, you can serve your customers better due to distance, rather than losing customers due to distance.

Keep in touch With Members

Keeping in contact with your gym members is key to retaining them. Send them weekly newsletters to remind them of updates and announcements in the gym, and keep track of their progress with monthly messages. A good customer experience makes clients keep coming back to you.


Making a gym profitable requires you to be very attentive to your members' wants and challenges. That way, you can easily access what will work and what will not. Make adequate research of your competitors too and create a realistic gym plan. If you adopt most of these things I have listed, you would find your gym making more profit than before.


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Eric LeClair

Eric LeClair works on the Marketing Team at PushPress. Eric has been a CrossFit Affiliate owner for 16 years. He's built three separate gyms and developed over 20 staff members to run operations at those facilities. He's a Veteran of the US Army, married with two little kids, and spends lots of time with his two boxers backpacking and exploring new adventures!

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