- The TTMM is simple to execute
- The foundation is raising your rates
- This should be done periodically (every 12-24 months)
- Do this when usage is high
- An increase of 5% is very reasonable
- Resistance to this is a sign of low value
- Contact old clients and offer them the new rate for a 12 month commitment
- Touch base through various forms of communication
- Intensify deadline-driven offers through final 48 hours
- A 12-month commitment is longer than the national average of membership
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Hey, Pat Rigsby here and in today’s episode. I want to talk with you about what I call the triple threat moneymaker. There’s a lot to unpack here, but it’s going to help you grow your business. So let’s get started.
Welcome to The Fitness Business School podcast – the show for fitness business owners who want to grow their income, increase their impact and improve their lifestyle. Be sure to listen til the end of this episode, because we have a brand new special offer exclusive for listeners. So stay tuned.
The triple threat moneymaker is something that I’ve been coaching people on you know, for offline training businesses, online businesses for well over a decade. In fact, probably fast approaching 15 years and almost without exception, it has always enjoyed great success. The best part is it’s really simple to execute and, you know, there’s, there’s not much in the way of excuses to, to not put it into action relatively immediately. So, so here’s what you need to do. And then we’ll kind of go through a few details on the how to make it work at its best.
So the first step is that the foundation of this triple threat moneymaker program is raising your program rates. And realistically, we should be raising our rates periodically. You know, I would say at minimum, every couple of years now you can raise your rates every year. You can raise your rates every couple of years, when you get past two years, we start to run into this issue of either we’re going to have to raise our rates too much at once. And it’s going to be a little bit of sticker shock, or we’re not going to raise our rates enough to keep up with some of the increases that we see in costs. So ideally every 12 to 24 months now, the best time to raise those rates typically is going to be the fall or that kind of February window. It’s always better when usage is high for somebody, when you’re going to ask them to pay more, we don’t really want to raise our rates when people are not using your, your services as much. And, and let’s face it. Most fitness businesses do not raise their rates. Often enough, a rate increase of 5% is pretty reasonable for a group training business. So let’s say that you’re charging, you know, $180 a month. Well, I mean, going to 180 9 is not going to be this, this daunting thing for your clients, right? And then if you’re doing one-on-one or semi-private adding three to $5 per session, usually will be met with virtually no resistance. And if you get resistance from somebody who is getting that small of a price bump, this is somebody who’s probably not valuing the services at the way, you know, at the level that you want them to value your services and wasn’t going to stay around a whole lot longer. So what we want to do is to notify our current clients, that the rates will be increasing on the beginning of next month, at whatever rate you determined was right. However, they can lock in their current rate by committing to a 12 month membership or six months. If all you’re doing is month to month at the moment, and then contact all of your former clients and, and your prospects and let them know about the upcoming rate increase and let them know they can lock in at the current rates, if they enroll in a 12 month program well this offers going on, right? Well, this window is here. So basically what you have is a deadline driven offer. You have this fear of missing out that creates urgency for prospects. It wins back old clients. It gets current clients to lock in. You can even get current clients to upgrade. Let’s say somebody’s doing one-on-one or semi-private twice a week.
Well, they can upgrade to three times a week and lock in that rate. So there are all sorts of fun, little tweaks and twists with this, where you can get people to actually spend more, not just commit longer by, by making them aware of these, these opportunities that they have to, to essentially pay less. But in reality, it’s paying what you’re charging now, but you’re getting this longer commitment. So here are a few other details that we’ve used to make this work even better. The first is use a variety of means to contact everybody, make personal calls, send texts, send out emails, talk to people in person, make sure everybody knows, right. And then make sure everybody’s questions are answered. You know, sometimes people don’t want to make a long-term commitment. But if you talk to them and help them understand that they’ve been consistent already, that you know, the, that this is going to be a big savings for them just overcome any sort of objections they have. And then again, use the same type of approach for former clients for unconverted prospects. I mean, we’ve sent letters, emails made phone calls, we’d done voice broadcast drops and left stuff on people’s answering machines to, to make sure there was plenty of awareness. If you’ve got a free private Facebook group, make the same type of posts there that you’re sending out via email.
And then, you know, as with virtually any deadline-driven offer, it always works best when you intensify the push during the final days of the offer, leading up to that deadline, people are procrastinators by nature. So make sure you hit everybody with multiple touches with multiple forms of outreach during that final 48 hours. And preferably that last day now, really you’re, you’re going to make money in three different ways, right? You’re going to get current clients to commit for 12 more months, which is to be honest, that’s longer than the average lifetime or lifespan of a membership for people in the fitness industry right now. Now, hopefully yours is higher than that. I think that the people that, that I have the fortune of connecting with tend to outperform the industry averages as a whole, but getting somebody to commit for 12 more months is powerful. So we’re maximizing lifetime value. You’re going to get a surge of former clients and unconverted leads who don’t want to miss out and they’re committing to. So instead of having to go out there and use an FTO to win somebody back and discount things, you’re getting people to commit for an extended term. And yeah, sure. If you don’t want to do a 12 month offer, you want to do a six month offer.
You’re certainly welcome to do that. And then moving forward what’s even better is all the new clients are going to be paying more, right? You’re going to be raising your rates and people who don’t want to commit are going to pay more. And you know, so if people want to stay month to month, great, well now they’re investing more with you. So when you do this, the other kind of side benefits, like I said before, are that you can get people to upgrade, to lock in the lower rate in, in, in bigger or more expensive programs. You, you have more people to generate referrals with. You have more people to make back in offers to. So there are so many benefits to, to this. Multi-Faceted moneymaker that if you’re not running something like this, at least once every two years, you’re really missing out on what I consider a little bit of a goldmine. So that’s the triple threat moneymaker. Hopefully it Works for you. I know it is worked for virtually anybody that has put it into action. Put this into action. Let me know how it goes.
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