Client Financed Acquisition

Client-Financed Acquisition:

This model is called client finance acquisition, and it is a new approach for some who may not have heard of it before.

But before we dive into that, let's first take a look at two broken models that many gym owners rely on: the organic model and the paid ads model.

The organic model refers to not running any paid ads and instead relying on referrals or organic website leads:

While this can be a good source of new clients, the industry average for referral conversion is only 10%, and even fewer actually end up becoming paying members.

On top of that, the average churn rate (the percentage of clients who leave) is 16%, meaning that even if you do manage to bring in new clients through the organic model, you'll likely lose some as well.

Simple Rat Race Example. Let’s say you have 100 clients. 10% Refer. You gain 10 new clients this month but your churn is 10%. That means you started and ended the month with 100 clients. You’re stuck.
The paid ads model, on the other hand, involves running ads to bring in new clients. While this can be a faster way to acquire new clients, it can also be expensive and may not be sustainable in the long run.

Additionally, without the right offer and systems in place, it can be difficult to convert leads into paying members.

That's where client finance acquisition comes in. This model involves offering financing options to clients to make it easier for them to join your program. By offering financing, you can acquire more clients and increase your revenue, while also reducing your churn rate. It's a win-win for both you and your clients.

So, how do you get started with client finance acquisition? It's actually quite simple.
  • First, you'll need to partner with a financing company to offer financing options to your clients.
  • Second, you'll need to create a compelling offer and sales pitch to present to potential clients.
  • Lastly, you'll need to have systems in place to follow up with leads and close them into the gym.

By following these steps and implementing the client finance acquisition model, you can scale your gym to over $100,000 a month in revenue. Don't let the broken models hold you back – start using client finance acquisition to grow your gym today.

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