Latest / Gym Business Coach Podcast / Facebook Ads and ROI

Transcript

Facebook Ads and ROI · Gym Business Coach Podcast

• 0:08
  [SPEAKER_01]: You are listening to the built-a-grow podcast delivering the knowledge in all the fitness business we help jimrollers win here your hosts Tim Lions at Randy angston right welcome back to the built-a-grow podcast and we're host Tim Lions joined in studio by Randy angston what's up dude how are you doing welcome back
• 0:38
  [SPEAKER_00]: Yeah, take a little, little hiatus, little five day or six days out in the Caribbean sea man.
• 0:45
  [SPEAKER_02]: Yeah, look fun, guys got a lot done there.
• 0:49
  [SPEAKER_00]: We did, that's awesome.
• 0:50
  [SPEAKER_00]: It was, it was so funny, um, well, tell y'all for one.
• 0:54
  [SPEAKER_00]: It was just funny stories.
• 0:55
  [SPEAKER_00]: Let's get into this, get into this episode.
• 0:57
  [SPEAKER_00]: This episode is very relevant right now.
• 1:00
  [SPEAKER_00]: This is, uh, it seems to be a pattern going across all gyms.
• 1:05
  [SPEAKER_00]: The cost-break position on Facebook is exponentially higher than it was, even just a year ago, cost-per-lead is higher, and even the quality of said leads is higher or non-existent.
• 1:20
  [SPEAKER_00]: I'm sorry, lower.
• 1:21
  [SPEAKER_00]: The quality is lower.
• 1:23
  [SPEAKER_00]: What is happening?
• 1:23
  [SPEAKER_00]: You're getting form fields filled out.
• 1:26
  [SPEAKER_00]: You immediately call the lead.
• 1:28
  [SPEAKER_00]: They don't remember ever submitting that information,
• 1:31
  [SPEAKER_00]: who are you, no clue who you are, and it gets really frustrating, really fast.
• 1:36
  [SPEAKER_00]: You know, for every 10, there's might be one in there that you need, that is real.
• 1:41
  [SPEAKER_00]: And, again, I'm gonna throw us out there just for the record, about a year ago,
• 1:47
  [SPEAKER_00]: I mentioned, I feel like there's some type of bot activity happening, where for some something's going on in a Facebook where it appears you're getting leads, and maybe a bot submitting people's information without their knowledge, it appears you're getting a lead, you call the lead, and there's nobody understands, they don't speak English, or they don't know who you are, or they didn't even, they haven't been on Facebook today, was talking about.
• 2:13
  [SPEAKER_00]: And I believe it's a conspiracy theorists.
• 2:17
  [SPEAKER_00]: I believe that some bigger company that's spending millions of dollars a month in ad spend is going to find out or figure out that we've all been getting
• 2:29
  [SPEAKER_00]: bought bought info and there's gonna be class action lawsuit and one day you're gonna open your mailbox you're gonna see $17.47 as your reparations for the thousands you've spent for the hundreds of thousands of dollars right so
• 2:44
  [SPEAKER_00]: it's just really weird and you know I wouldn't say this on a podcast just to say it it just seems to be a huge theme and we speak to so many gems and including ourselves where we're experiencing the same exact thing where you're just the leads aren't real there's not real leads and so you know I know agencies out there are gonna say well you're just not calling the leads or they're just you know you
• 3:10
  [SPEAKER_00]: your sales process is broken and you don't have automation set up.
• 3:13
  [SPEAKER_00]: It's not any of that, guys.
• 3:15
  [SPEAKER_00]: I trust me.
• 3:16
  [SPEAKER_00]: I'm deep in the weeds on this stuff.
• 3:18
  [SPEAKER_00]: And it's just not, there's just not real leads.
• 3:21
  [SPEAKER_00]: Yeah.
• 3:21
  [SPEAKER_00]: It appears they are.
• 3:23
  [SPEAKER_00]: Your cost for lead looks somewhere in the like acceptable range.
• 3:26
  [SPEAKER_00]: So you leave your account running and you just try to call and reach these leads.
• 3:31
  [SPEAKER_00]: They're opting out immediately.
• 3:32
  [SPEAKER_00]: All of the things.
• 3:34
  [SPEAKER_02]: Everything downhill.
• 3:35
  [SPEAKER_02]: Yeah, I mean, so marketing the bookings.
• 3:36
  [SPEAKER_02]: You're not getting the people show up.
• 3:38
  [SPEAKER_02]: You can get a hold of them, like you said.
• 3:40
  [SPEAKER_00]: So yeah, or if you do, they don't have any recollection of you of submitting a form.
• 3:44
  [SPEAKER_00]: So, so like what do you mean, what's going on?
• 3:46
  [SPEAKER_00]: So do I believe you should completely stop?
• 3:49
  [SPEAKER_00]: No, we have for for intermittent periods because we're trying to figure things out, relaunch, try something new, and nothing's really hitting very well these days.
• 4:04
  [SPEAKER_00]: What does that mean?
• 4:05
  [SPEAKER_00]: It means that you need to, we're gonna have to talk about the acquisition cost as a total lump sum of how many dollars it takes you to actually acquire a client I.E.
• 4:16
  [SPEAKER_00]: Have somebody signed up for a membership at your gym through the marketing channel, like Facebook, and what to do to monetize it?
• 4:23
  [SPEAKER_00]: How do you get even get a return on investment when it's three or four times what it used to be for cost-break position?
• 4:32
  [SPEAKER_00]: And so we've got some ideas.
• 4:33
  [SPEAKER_00]: I don't know that there's some catch-22s in here what we're gonna kind of break down.
• 4:38
  [SPEAKER_00]: So let's just say two years ago, your cost-brake position was, you know, $150, your membership was $200, you know, you're profitable on the front end and you just roll with that.
• 4:51
  [SPEAKER_00]: your buying clients for 150 bucks and every month are paying you 200 so you're always you're always above one return on ad spend and the way we calculate ad spend just for everybody like this is our own internal formula i wouldn't say this is the only formula it's just
• 5:07
  [SPEAKER_00]: what we use because what we like to do is take a 30-day window because in the fitness space, a lot of times you're collecting either a front-down payment or maybe you're building weekly, but adventure or you're building once a month, you know, what is the revenue collected from the client?
• 5:25
  [SPEAKER_00]: Over the first 30 day window, you lump some that in against all of your ad spend and whatever that ratio is let's just say you spend 2000 and you made 3000 in in the first 30 days from all of your acquisitions You're at 1.5 row as and you're in good shape so for every dollar you spend a good dollar 50 back all good right, so like that's that's kind of the formula we use
• 5:53
  [SPEAKER_00]: but when it's costing you six hundred seven hundred eight hundred dollars for an acquisition on a Facebook ad campaign you're taking three months four months to make the just the acquisition cost to make that cost so you're you're taking three months or at a point three three row as if you're memberships or two hundred dollars right and so this is where what is the thing that you what lever can you pull in that equation
• 6:23
  [SPEAKER_00]: Well, the most, like the thing that's gonna be the easiest for you to do is gonna be that what you're charging the client in the first month, so there's different ways to do it.
• 6:36
  [SPEAKER_00]: One, you know, if you're a large group training facility, you're kind of in this lower and membership, it could be a cross-fed, it could be a boot camp.
• 6:44
  [SPEAKER_00]: So you're kind of living in this 150 to $250 range.
• 6:48
  [SPEAKER_00]: What are the things that you can do at that level
• 6:51
  [SPEAKER_00]: to get your money back, at least in the first 30 days, right?
• 6:56
  [SPEAKER_00]: Yeah, what at the end is one.
• 6:57
  [SPEAKER_00]: And so there's two things that come to mind.
• 7:00
  [SPEAKER_00]: One would be a bigger down payment.
• 7:02
  [SPEAKER_00]: Right?
• 7:02
  [SPEAKER_00]: Hey, we do a sign-up fee.
• 7:04
  [SPEAKER_00]: It's $250.
• 7:06
  [SPEAKER_00]: What that gets you is your program design or I'm not in the laundry.
• 7:09
  [SPEAKER_00]: I'm in the laundry room.
• 7:11
  [SPEAKER_00]: You know, your check-ins, maybe a nutrition plan, something up front to give you kind of like some more cash of front and more value to the client.
• 7:19
  [SPEAKER_00]: And you still collect your regular 200 bucks and now you're above one.
• 7:22
  [SPEAKER_00]: That's like the simplest one would be an initiation fee, okay?
• 7:27
  [SPEAKER_00]: A lot of gems that we work with are doing this now because of what we've told them.
• 7:32
  [SPEAKER_00]: And they're getting right back above one and it's been and they can continue to market profitably.
• 7:37
  [SPEAKER_00]: Yeah.
• 7:38
  [SPEAKER_00]: that's the very first thing and easiest thing.
• 7:40
  [SPEAKER_00]: We need to do is define what is included or possibly nothing.
• 7:45
  [SPEAKER_00]: For us, the down payment or the initiation fee is between our month to month option or annual payment plan and the one that's the open ended one, we require them is kind of like them buying the right to cancel.
• 8:02
  [SPEAKER_00]: So you put $500 down and it gives you the opportunity to go month-to-month.
• 8:06
  [SPEAKER_00]: You do pay more per month, but you have no commitment, no term.
• 8:11
  [SPEAKER_00]: You can freeze as much as you want.
• 8:13
  [SPEAKER_00]: And for us, that really helps a lot of things.
• 8:16
  [SPEAKER_00]: One, it gives the client a choice, it makes our annual programs look better, and it gives us a little bit more cash up front to be able to liquidate the cost of marketing.
• 8:25
  [SPEAKER_02]: And I mean to your point, they're not committing any term, right?
• 8:30
  [SPEAKER_02]: 52 billing cycles of our 99 in this situation a little higher weekly charge But they're again, they're only committing to seven days so because of the front-loaded work setting up their program and getting things done Yes, we charge the initiation to yeah kind of cover, you know cover the work that takes to get everyone started Whitty in lieu of the lack of a commitment.
• 8:50
  [SPEAKER_00]: Yeah, and they could they can cancel on one week two week three weeks and it's somehow like look I mean
• 8:55
  [SPEAKER_00]: they blues the 500 is what it is, right?
• 8:58
  [SPEAKER_00]: So anyways, back to kind of collecting more cash on the front and that's one way to do it.
• 9:04
  [SPEAKER_00]: The other way to do it kind of goes against kind of like our ethos of like challenges, but like the reason the six week and those transformation challenges worked really well is because your cost for acquisition may be higher or even lower, but you're getting a return on an aspect because you're collecting so much of front.
• 9:21
  [SPEAKER_00]: you're collecting 1,500 bucks up front and allows you to mark it profitably over the long term.
• 9:26
  [SPEAKER_00]: Now the catch 22 is what what what those type of hooks and offers attract into your gym are typically short term mindseted people that are only looking to train for 6, 8, 12 weeks and then they're kind of down the road.
• 9:45
  [SPEAKER_00]: Yeah.
• 9:45
  [SPEAKER_00]: And what we think or what we see happening, not that we think.
• 9:48
  [SPEAKER_00]: This is exactly what happens.
• 9:50
  [SPEAKER_00]: is one of two scenarios kind of shake out when you're doing some type of promise of weight loss or transformation over a short period of time, either they hit their goal or they don't, either way they're gone.
• 10:03
  [SPEAKER_00]: And here's what I mean.
• 10:04
  [SPEAKER_00]: They hit their goal.
• 10:05
  [SPEAKER_00]: Great.
• 10:06
  [SPEAKER_00]: Thank you.
• 10:06
  [SPEAKER_00]: My pain's gone.
• 10:07
  [SPEAKER_00]: I paid you for the transformation.
• 10:09
  [SPEAKER_00]: I got that transformation and I go and go down and live life again.
• 10:13
  [SPEAKER_02]: Yeah.
• 10:13
  [SPEAKER_02]: Probably not even another facility.
• 10:16
  [SPEAKER_02]: Just
• 10:17
  [SPEAKER_00]: Correct.
• 10:18
  [SPEAKER_00]: Yeah.
• 10:18
  [SPEAKER_00]: And that's kind of situation.
• 10:22
  [SPEAKER_00]: One situation.
• 10:22
  [SPEAKER_00]: Two is they don't hit their goal.
• 10:26
  [SPEAKER_00]: And you do your best to say, hey, we just need some more time.
• 10:30
  [SPEAKER_00]: They don't trust you anymore.
• 10:31
  [SPEAKER_00]: And then they leave.
• 10:32
  [SPEAKER_00]: So yeah, you may be liquidating your
• 10:36
  [SPEAKER_00]: ad's pen upfront but then that's the end of the road for that client value and at the end of their six nine twelve weeks.
• 10:43
  [SPEAKER_00]: They disappear into the ether in your starting all over again in your really not running a gym or a recurring revenue model subscription based model.
• 10:52
  [SPEAKER_00]: You're just doing sales deliver sales deliver every six weeks and every six weeks and so you get in this
• 11:03
  [SPEAKER_00]: to run type of some type of challenge to liquidate your ad spend because at the end of that little term of transformation or challenge they're going anyway, whether or not they get their goal or not.
• 11:16
  [SPEAKER_00]: And in your head, you think, and I believe that this is how I thought too, hey, you know what, we're going to get them started and they're going to love it.
• 11:27
  [SPEAKER_00]: And then they're going to continue forever because now it's a lifestyle for them, the opposite could and be more true, what you're doing, what you're trying to say is I'm taking a transformational minded client and I'm going to turn them into a lifestyle client.
• 11:43
  [SPEAKER_00]: And that typically is very hard to do as we fractional, right?
• 11:48
  [SPEAKER_00]: What I mean by a transformational client is somebody that's got some weight loss or transformation or result or goal in their mind.
• 11:57
  [SPEAKER_00]: And then once they hit it, you believe their mindset shift is I feel so good.
• 12:03
  [SPEAKER_00]: Let me just stay on this path.
• 12:06
  [SPEAKER_00]: but what we have to become a lifestyle client, our lifestyle clients are just coming to the gym because it's part of their lifestyle.
• 12:11
  [SPEAKER_00]: Let's literally what we call it.
• 12:13
  [SPEAKER_00]: And so what we believe is gonna happen is they're gonna stay, they love it and they're just gonna continue on, but what typically happens is they hit their goal.
• 12:22
  [SPEAKER_00]: They're out of pain.
• 12:23
  [SPEAKER_00]: they're not uncomfortable anymore.
• 12:26
  [SPEAKER_00]: They don't have that motivation to get in shape anymore because are kind of in shape now and you kind of lose them anyway.
• 12:33
  [SPEAKER_00]: Yeah.
• 12:34
  [SPEAKER_00]: So it's like this catch toy too.
• 12:35
  [SPEAKER_02]: What's the biggest thing to do is change somebody's mindset around it all.
• 12:39
  [SPEAKER_02]: You know what I mean?
• 12:40
  [SPEAKER_02]: And to somebody who is, you know, people move away from pleasure or should we move towards pleasure and move away from pain?
• 12:46
  [SPEAKER_02]: And it's somebody's an transformational mindset.
• 12:49
  [SPEAKER_02]: The goal is to
• 12:51
  [SPEAKER_02]: and it's the second you check that box, the transition that has to happen in their mind said is now okay now I have to go move towards the pleasure of how good can you know do I feel, how good can I continue to feel and that's just it's got very little teeth in the game you know what I mean and it's not enough to keep somebody put it this way it's not enough to keep the majority of people that are on those types of transformation challenges and in low
• 13:19
  [SPEAKER_02]: to make that transition.
• 13:21
  [SPEAKER_02]: I mean, I was talking with a gentleman who has, he's got a great program and he does a initial, a higher ticket, initial, and true point.
• 13:29
  [SPEAKER_02]: So it's a six week, it's not a challenge, but it's six weeks to get into his business.
• 13:33
  [SPEAKER_02]: Everybody starts in the same path, and it's more of like an introduction, you know, a little bit of higher touch points, accountability, new trash.
• 13:40
  [SPEAKER_02]: All of the things that we, you know, again, help create more of a lifestyle-based client.
• 13:45
  [SPEAKER_02]: his average conversion into membership on the back end of that is as low as 40% and that's a great month a great you know conversion for him and so he gets 10 on that front end deal he liquidates ads been in maybe four today four might stay interesting but then and again you liked your point you create that cyclical marketing selling delivery marketing like
• 14:06
  [SPEAKER_02]: you never really shift to just serving your clients, you know what I mean?
• 14:10
  [SPEAKER_02]: You're always replacing the majority of the people that just left, you have to keep your feet in the fire to go out pace the people that just continue to move through in a short term commitment.
• 14:22
  [SPEAKER_02]: Yeah.
• 14:23
  [SPEAKER_02]: And to your point, it kind of goes against our ethos of attracting lifestyle clients, bringing them in on a membership, deliver to those clients who know that fitness is going to be part of my life two to three days
• 14:36
  [SPEAKER_02]: But I think kind of the sweet spot, or if I would like to just talk through it, avoid the challenge conversation.
• 14:46
  [SPEAKER_02]: Don't make it about the transformation, the short-term weight loss, that type of thing.
• 14:50
  [SPEAKER_02]: If you're going to do a six-week initiation program or something along those lines, it should be a hundred percent in alignment with what your membership still.
• 15:00
  [SPEAKER_02]: maybe you just collect a little bit more upfront, you know, get the commitment a little bit.
• 15:03
  [SPEAKER_00]: Give a little bit more attention.
• 15:05
  [SPEAKER_00]: Maybe there's more of a sit-down process and, you know, here's two names, just we used to use these all the time, we'll probably will again, jumpstart or kickstart.
• 15:15
  [SPEAKER_00]: Those are both names of programs you could use to
• 15:18
  [SPEAKER_00]: get somebody started and it's very it's it's non weight loss it's just like hey we're going to kickstart your your journey everybody starts on this kind of a little bit more intense program make sure you get it you know your foundation right and we make sure you're you know sleeping
• 15:34
  [SPEAKER_00]: hydration and nutrition and everything else.
• 15:36
  [SPEAKER_00]: Then after that we're kind of just rolling into regular memberships and that's kind of how everybody starts and you can do a Netflix conversion on the back end and there's you know right there there's three different things we want to share with you but the last and the most probably long-term best solution for all gems that are are struggling with high cost of acquisition and low membership numbers is to switch your
• 16:04
  [SPEAKER_00]: This is our flag in the grand and it has been for well over a decade.
• 16:08
  [SPEAKER_00]: This is what we do here at my gym This is a higher touch higher price point Delivery of training.
• 16:17
  [SPEAKER_00]: It's some it's called semi-private and we call it semi-private personal training or semi-private training or even personal training all those You know, sending it our synonyms of each other in our world
• 16:29
  [SPEAKER_00]: And what we believe that the value in for the client is in the custom program design that they get at at the training sessions.
• 16:39
  [SPEAKER_00]: So they're not doing a ward with regressions of progressions.
• 16:42
  [SPEAKER_00]: They're truly doing a specific program that's based around their movement quality, their goals.
• 16:48
  [SPEAKER_00]: And it allows us to deliver a higher.
• 16:51
  [SPEAKER_00]: quality product for a much higher price point.
• 16:55
  [SPEAKER_00]: So instead of one 50 to 209, we're at 425 to 5.50, 5.79, even $600 per month on annual program.
• 17:08
  [SPEAKER_00]: So getting anywhere from 5 to $7500 a year per client versus 1,800 bucks.
• 17:15
  [SPEAKER_00]: Yeah.
• 17:15
  [SPEAKER_00]: And that move alone will allow you to combat the higher cost of acquisition over the long-term and build a more profitable business without doing challenges without doing this high-friend and stuff, sales and marketing, business, ask and getting people that are lifestyler clients staying over the long-term for two, three, four, five, seven, ten years paying those prices.
• 17:41
  [SPEAKER_02]: Yeah, that's the biggest one.
• 17:42
  [SPEAKER_00]: that's what we recommend.
• 17:44
  [SPEAKER_00]: If you guys need help with how to switch your gym to a semi-private training model, something that's a scalable semi-private training model, then this is exactly what we do.
• 17:54
  [SPEAKER_00]: We've got a URL for you, Jimbusyscoach.com.
• 17:57
  [SPEAKER_00]: Go check that out.
• 17:59
  [SPEAKER_00]: This is our both of our springboard, our switches semi-private, our iron circle, all of these guys, all of the people that are in our ecosystem have kind of all a dissected this path and they're
• 18:11
  [SPEAKER_00]: with great success guys hopefully that helps you guys do need help hit that link in the Show notes and we'd love to chat with you Hopefully that helps you guys until next time keep changing.
• 18:22
  [SPEAKER_00]: I'll have to see you in the next show.
• 18:24
  [SPEAKER_00]: Bye
• 18:25
  [SPEAKER_00]: Alright, thanks for listening to another episode of the built-girl podcast.
• 18:28
  [SPEAKER_00]: If you want more help growing your business, join our free Facebook group, profit accelerator, helping training gyms grow to $30,000 a month and beyond.
• 18:37
  [SPEAKER_00]: We'd love to see you there.
• 18:39
  [SPEAKER_00]: Go check out the show notes for the link and keep building something great and we'll see you in the next episode.