When it comes to gyms, people often assume they’re all in the same business: helping people get fit.

But the reality is, they are two different businesses. It is like comparing being able to google tax laws and having a lawyer when going to court. Which would most likely give you a better outcome?

The biggest difference between big gyms and smaller spaces like microgyms or personal training studios isn’t just their size, it’s their business model, the science and their purpose.

Big gyms focus on marketing and sales. Microgyms focus on science and results. While both are labeled as “fitness,” they operate in completely different industries.

Big Gyms: Selling Access and Scale

Big gyms are built for scalability. Their business model is simple and effective: sell access to as many people as possible. This approach is easy to market, easy to sell, and highly scalable, which is why franchises thrive in this space. There is a massive demand and pain on the market for fitness and this model scratches the hope and dreams of people to think they are solving their problem.

The catch? Big gyms don’t need to invest in creating results for their members, just mimic the attempt of doing it. Memberships are sold based on the idea that clients will get motivated by the “new thing” and then if they figure it out themselves it really does not matter. For some (about 4%), that’s fine, but for most (96%), it leads to frustration and eventual drop-off.

Many franchises that attempt to copy the results-driven model and charge a higher ticket of microgyms struggle because they don’t shift their focus. They may market themselves differently, but at their core, they’re still just selling access without delivering outcomes.

Microgyms: Delivering Results Like Professionals

Most microgyms and personal training studios operate completely differently. Instead of focusing on access, they focus on the results clients achieve. Or at least they should if they want to grow.

What makes microgyms stand out is their application of science to their programs. They’re constantly evolving, using research and data to refine their methods and improve outcomes. It’s like running a lab, systems are tested, adjusted, and optimized to deliver the best possible results for clients.

In this model, the priority is to see people get meaningful progress and multiply this on future clients.

Two Completely Different Business Models

Despite both being labeled as gyms, big gyms and microgyms couldn’t be more different in how they operate:

1. Big Gym (Access-Based)
   • Business model: Built for scale, focused on volume.
   • Core offering: Access to equipment and facilities.
   • Member responsibility: Results depend entirely on the individual’s effort and knowledge.
2. Microgym (Results-Based)
   • Business model: Built to deliver consistent outcomes.
   • Core offering: Personalized coaching, accountability, and measurable progress.
   • Shared responsibility: The gym and client work together to achieve results.

Big gyms thrive on marketing and scale, while microgyms thrive on trust and results.

Microgyms as Laboratories of Progress

One of the greatest strengths of microgyms is their adaptability. They don’t rely on outdated methods or assumptions. Instead, they evolve like a lab, always refining their systems based on science and feedback.

For example:

• If new research points to better ways to build strength or reduce injury risk, microgyms adjust.
• If client feedback highlights challenges, solutions are implemented to address them.

This adaptability ensures that clients not only make progress but stay engaged and committed long-term.

Don’t Be In The Middle

I see one of the hardest places to be for a gym is to be in the middle. It is not clear if you are selling access or if you are delivering outcomes.

Offering “HIIT” or “Boxing fitness” can be great but is it clear for the customer what the difference in outcome is? Is it even clear for you?

Being in the middle is hard because you need to charge more but you have no proof to be better just because you are smaller. Clients will quickly compare you with any other gym as any other commodity in the market. If you want to be able what you are worth you need to know your position.

Positioning and Association

The difference between big gyms and microgyms goes deeper and really it would be best for both to be branded as two different things.

Why this matters is because it helps the clients to differentiate and make better informed decisions. This is where brands help to direct the client to a better option.

In my opinion there is a big need for professional microgyms to educate the audience, because nobody else will do it. It has to be as clear for a client as between choosing McDonald’s over the best Italian Restaurant in town. Right now, the big gym chains benefit from this confusion and microgyms will continue to suffer under being compared to low priced access gyms.

3 Quick Questions

1. Is your gym built to scale or to deliver measurable progress?
2. Does your gym clearly communicate its positioning?
3. What’s more important to you: more members or better outcomes?

If you’re trying to grow a business, it’s easy to get caught up in the idea that you need a big marketing budget or a fancy strategy. But some of the best growth stories don’t come from gimmicks, they come from focusing on the right things. CrossFit is a perfect example of this.

CrossFit grew from a small, niche program to a global phenomenon, not because they spent millions on ads, but because they understood what really mattered. They had a great product, focused on the people using it, and built something people wanted to be part of.

Here’s a blueprint for growth inspired by their success.

1. Start With a Product That Works

Nothing grows if your product doesn’t deliver. CrossFit took off because the workouts worked. They were simple, adaptable, and got results. It didn’t matter if you were a top-level athlete or someone who hadn’t worked out in years, there was a way to start, and there was a path to improve.

The first question to ask yourself is: Does my product or service actually solve a problem for people? If it doesn’t, growth isn’t going to happen.

2. Let Your Customers Tell the Story

CrossFit didn’t promote itself. It promoted the people doing it. Instead of focusing on the brand, they told the stories of the people who showed up every day, worked hard, and transformed their lives.

They didn’t just highlight the elite athletes. They told stories about the single mom who found time to get stronger, the retiree who wanted to stay active, and the person who went from struggling with basic movements to hitting their first pull-up.

When you focus on your customers’ success, others see themselves in those stories. They think, “If they can do it, maybe I can too.”

3. Build Something Bigger Than a Transaction

Many think growth happens if you mystically triple your sales, but real growth only comes when your customers keep coming back. They stick around because they feel connected to your product, your service, or your brand.

CrossFit didn’t grow because people wanted to work out. It grew because people felt they belonged to something bigger. Each gym became a place where members supported one another, pushed each other, and celebrated milestones together.

If you want to grow, you need to give your customers something they can connect with. It could be a community, a shared mission, or even just the sense that they’re part of a journey with you.

4. Keep It Real

CrossFit’s early content wasn’t polished or flashy. It was raw, real, and relatable. That’s what made it work. People didn’t see a corporate marketing campaign they saw other people, just like them, achieving things they didn’t think were possible.

Don’t try to be perfect. Share the real stories behind your business. Show the process, the challenges, and the wins. Authenticity isn’t a buzzword, it’s what builds trust.

5. Show the Progress, Not Just the Result

One of the smartest things CrossFit did was highlight progress. Showing someone at their peak performance is great, but it is more effective to show how they got there.

For example, they’d show someone struggling with their first day opening a gym and then succeeding months later. That journey made the results feel achievable and inspired others to start.

If you’re trying to grow your business, focus on showing the steps people take to get results with your product or service. Progress is what motivates people to believe it’s possible for them, too.

6. Make Your Customers Your Advocates

CrossFit didn’t grow because of traditional advertising. It grew because the people doing it loved it so much that they couldn’t stop talking about it. They told their friends, shared their progress, and brought others along for the ride.

If you focus on creating results and delivering value, your customers will naturally become your advocates. Word of mouth isn’t just free, it’s the most powerful form of growth you can have.

7. Growth Comes From Impact

CrossFit didn’t set out to become a global brand. It set out to make fitness measurable, repeatable and testable. Growth happened because it made a simple formula to define what fitness was. And what you measure can also be improved which then lead to results of the clients.

If you’re trying to grow, start by asking yourself this: How can I create the biggest impact for the people I’m serving? Focus on that, and growth will follow.

3 Quick Questions

What steps can you take today to build a stronger connection with your audience?

Is your product or service solving a real problem for your customers?

How can you use your customers’ stories to inspire others?

As business owners and entrepreneurs, we often find ourselves obsessed with reducing Customer Acquisition Cost (CAC). The logic seems sound: the less it costs to acquire a customer, the better for our bottom line. But what if this fixation on lowering CAC is actually hindering our growth and profitability?

After listening to the Chief Marketing Officer of Revolut, Antoine Le Nel, it occurred to me instead of relentlessly chasing a lower CAC, it’s time to shift our focus to Return on Investment (ROI) and Customer Lifetime Value (LTV). By doing so, we not only consider the cost of acquiring a customer but also the revenue and profit they bring over time.

Obsessing Over CAC – The Downside

Reducing CAC can indeed bring in more customers at a lower upfront cost. However, a sole focus on CAC can lead to unintended consequences:

• Attracting the Wrong Customers: Lowering CAC might mean targeting a broader audience that isn’t the ideal fit for your product or service. These customers may not stay long or engage deeply with your offerings.
• Compromising on Quality: Cutting costs in acquisition efforts can reduce the effectiveness of your marketing strategies, leading to lower-quality leads.
• Short-Term Gains, Long-Term Losses: A low CAC doesn’t guarantee profitability if the customers acquired don’t contribute significantly over time.

Why ROI and LTV Matter More

• Quality Over Quantity: Focusing on ROI ensures that your marketing efforts generate profitable returns. It’s not just about how many customers you acquire, but how valuable they are to your business.
• Sustainable Growth: LTV measures the total revenue a customer is expected to generate over their lifetime with your company. By maximizing LTV, you foster long-term relationships that contribute to sustained profitability.
• Informed Decision-Making: Prioritizing ROI and LTV provides a more comprehensive view of your business health, allowing for smarter investments in marketing and customer retention strategies.

Balancing CAC with ROI and LTV

This isn’t to say that CAC should be ignored. Instead, it should be balanced with ROI and LTV:

• Calculate the Ratio: Use the LTVratio to assess the efficiency of your acquisition strategies. A higher ratio indicates that the value of customers outweighs the cost of acquiring them.
• Segment Your Customers: Identify which customer segments have the highest LTV and focus your acquisition efforts there, even if the CAC is higher.
• Invest in Retention: Allocate resources not just to acquire new customers but to retain existing ones, thereby increasing LTV.

Action Steps

1. Analyze Your Metrics: Start by thoroughly understanding your current CAC, ROI, and LTV. Identify trends and areas for improvement.
2. Refine Your Target Audience: Focus on attracting customers who are the best fit for your product or service, even if it means a higher CAC.
3. Enhance Customer Experience: Invest in quality customer service and support to increase satisfaction and loyalty.
4. Leverage Upselling and Cross-Selling: Introduce complementary products or services to increase the value each customer brings.
5. Monitor and Adjust: Continuously track these metrics and adjust your strategies accordingly.

Quick 3 Questions

1. Are you attracting the right customers who will provide the highest LTV, even if it means a higher CAC?
2. How can you enhance your product or service to increase customer satisfaction and ROI?
3. What strategies can you implement today to balance CAC with a stronger focus on ROI and LTV?

—Rickard

This this help you? Feel free to reach out to me over instagram https://www.instagram.com/rickardlong/

How can a business with no sales department expand to more locations and grow faster than Starbucks?

Greg Glassman, the founder of CrossFit, often said they never had a marketing or sales department. People came to them because they wanted to be part of what CrossFit offered. Instead of traditional sales tactics, they had a committee to review applications from prospective affiliates.

The selection process was simple yet profound. Applicants who expressed a genuine mission to help people got the green light. Those who touted their MBA degrees or claimed to have a unique business model were often declined. Glassman knew that the only way to succeed with a small gym was to be entirely client-centric starting and ending with the client’s needs.

The success of CrossFit boiled down to two key elements:

1. A Great Product: CrossFit delivered results like no other. The workouts were effective, the community was supportive, and the transformations were real. This made people naturally enthusiastic about sharing their experiences.
2. Authentic Storytelling: CrossFit produced media that shared genuine stories from clients, gyms, and athletes. These videos garnered millions of views because they showcased real proof of the product’s impact. They were rough. They did not look like commercials. The stories resonated because they were honest and relatable.

Most affiliate buyers were individuals who had experienced their own transformation through CrossFit. The product was so compelling that it inspired people to become part of the mission themselves.

The Takeaway

Marketing doesn’t always require a massive budget or a dedicated department. Sometimes, it simply requires an exceptional product and authentic stories that resonate with people. When your service genuinely helps others, they will become your most powerful advocates.

Quick 3 Questions

1. Is your product or service so good that people can’t help but talk about it?
2. Is it so authentic and impactful that you could bring in a camera at any time and capture compelling stories?
3. Are you genuinely starting from the client’s perspective and focusing on their needs?