Alex Hormozi: STATE OF THE UNION

The video discusses the current state of the gym industry and how Gym Launch is pivoting towards remote opportunities to best support gym owners.

This video by Alex Hormozi was published on Oct 1, 2020.
Video length: 27:24.

In this video, Alex Hormozi discusses the current state of the gym industry and predicts that 25-30% of independent gyms have permanently closed, with that number potentially climbing to 40-50% over the next six months.

He believes that the gym industry has a rough year ahead and that the constraints in the political environment make it difficult to create a memorable experience for customers.

Hormozi also states that Gym Launch is loyal to gym owners, not gyms, and that the company will be pivoting towards remote opportunities for gym owners due to the unlimited lead generation in an online environment.

• 25-30% of independent gyms have permanently closed, with the number possibly climbing to 40-50% in the next six months.
• Gym Launch is loyal to gym owners, not gyms, and aims to equip them with the best opportunity vehicle to package their skills.
• Remote opportunities are the best for gym owners due to unlimited lead generation and cost-effectiveness.
• Gym Launch is committed to providing tools and resources for gym owners to pivot their business models to remote opportunities.
• One-on-one online coaching is more profitable and flexible than in-person training, and the GLX model is the most profitable online coaching model available.
• The free trial model with a semi-regional marketplace and unlimited leads is easier for acquisition and consistency of business operations and cash flow.
• Webinar and online challenge models are difficult to scale, while the GLX model and free trial model are successful for acquiring and retaining customers at a higher profit margin.
• Many gym owners have built out thousands of dollars a month recurring revenue in 30 days with the GLX model.
• The GLX model allows for impact beyond a five-mile radius and is not constrained by geographic location.

STATE OF THE UNION [ALEX HORMOZI] - YouTube

Current State of the Gym Industry

• 25 to 30 percent of all independent gyms have permanently closed.
• This number may climb over the next six months to maybe 40 or even 50 percent of independently owned and operated facilities.
• The gym industry has a very rough next year ahead.
• The vast majority of consumers have already had the opportunity to switch to different fitness vehicles.
• The constraints in the political environment and what gyms are forced to do create massive constraints on the business.

Gym Launch's Loyalty

• Gym Launch is loyal to gym owners, not gyms.
• The goal is to equip everyone in the community with the best opportunity vehicle to package their skills to be able to provide for their families and be able to serve their communities in a way that makes them healthier.
• Gyms have been a vehicle for that individual which when put together with the Gym Launch system creates a profitable business for the gym owner and creates a superior experience for the customer and helps people get healthy.

Pivoting Towards Remote Opportunities

• The best opportunity for gym owners is remote for a variety of reasons.
• From a lead generation standpoint, for most small businesses, lead generation is the hardest thing.
• In a remote environment or an online environment, you have virtually unlimited lead generation.
• You will never fatigue the United States' need for weight loss.
• You won't even fatigue a 50-mile radius.

STATE OF THE UNION [ALEX HORMOZI] - YouTube

Gym Launch's Support for Gym Owners

• Gym Launch is pivoting towards remote opportunities to best support gym owners.
• Gym owners need to be equipped with the tools and resources to be able to pivot their business models to remote opportunities.
• Gym Launch is committed to providing those tools and resources to gym owners.
• Gym owners need to be able to adapt to the changing market and consumer behavior.
• Gym Launch is committed to helping gym owners adapt and thrive in the new market.

The Challenges of In-Person Gym Training

• Remote training is more cost-effective and requires less effort than in-person training.
• People are less likely to commit to in-person training due to geographic and temporal constraints.
• Lead costs for in-person training are higher than for remote training.
• Remote training allows for more consistency and flexibility for gym owners.
• Online training can be more profitable for gym owners.

The Benefits of One-on-One Online Coaching

• One-on-one online coaching can lead to superior results compared to group workouts.
• Online coaching allows for more flexibility and freedom for both gym owners and clients.
• Online coaching is more profitable for gym owners due to fixed margins and no sunk costs.
• Online coaching can be fulfilled without requiring a superior skill set or authority.
• Existing online coaching models require an inordinate amount of effort to scale.

The Limitations of Existing Online Coaching Models

• Outbound messaging requires a lot of effort and cannot be easily scaled.
• Webinars require a lot of effort to build and generate traffic.
• Existing online coaching models require a superior skill set or authority to scale.
• Existing online coaching models are not easily scalable.
• Existing online coaching models are not as profitable as the GLX model.

The GLX Model

• The GLX model is a remote coaching model that is more cost-effective and profitable than existing models.
• The GLX model allows for more consistency and flexibility for gym owners and clients.
• The GLX model does not require a superior skill set or authority to scale.
• The GLX model is easily scalable and can be fulfilled without requiring an inordinate amount of effort.
• The GLX model is the most profitable online coaching model available.

Models for Gym Industry

• Webinar model involves pushing to an application and scheduling a call for a high ticket sale, but it is not a consistent acquisition model and is difficult to scale.
• Online challenge model involves group challenges and providing value to solicit people for a high ticket sale, but it is effort-based, stop-and-go, and difficult to scale.
• Free trial model with a semi-regional marketplace and unlimited leads is easier for acquisition and consistency of business operations and cash flow.
• Free trial sale is low risk and easy to sell on the phone, and supplement and abandon hope sales are easy to scale and break even on the first transaction.
• Trainerized app with accountability paired with free trial person is a successful model for acquiring and retaining customers at a higher profit margin.

Benefits of Free Trial Model

• Unlimited leads make acquisition easier and provide consistency of business operations and cash flow.
• Low risk free trial sale is easy to sell on the phone.
• Supplement and abandon hope sales are easy to scale and break even on the first transaction.
• Trainerized app with accountability paired with free trial person is a successful model for acquiring and retaining customers at a higher profit margin.
• Allows for impact beyond a five-mile radius and is not constrained by geographic location.

Comparison to Other Models

• Webinar and online challenge models are difficult to scale and not consistent acquisition models.
• Free trial model with a semi-regional marketplace and unlimited leads is easier for acquisition and consistency of business operations and cash flow.
• Low risk free trial sale is easy to sell on the phone.
• Supplement and abandon hope sales are easy to scale and break even on the first transaction.
• Trainerized app with accountability paired with free trial person is a successful model for acquiring and retaining customers at a higher profit margin.

Success Stories

• Many gym owners have built out three to four thousand dollars a month recurring revenue in 30 days.
• Model is far superior to revenue and profit made at the gym and has no signs of slowing down.
• Allows for impact beyond a five-mile radius and is not constrained by geographic location.
• Trainerized app with accountability paired with free trial person is a successful model for acquiring and retaining customers at a higher profit margin.
• Rawls and Marica have built out 40,000 recurring revenue each.

Gym Launch's Focus

• Gym Launch is going to be serving gym owners in the way that they know best.
• Gym Launch is going to align themselves with the model that's going to make gym owners the most money.
• Gym Launch is going to be focused on bringing the online revenue to gym owners.
• It is easier right now to get 50 new online clients than it is to get 50 in-person clients.
• The rest of 2020 is going to be for gyms in general what is unknown is whether 2021 is going to get any better.

Why Gym Launch is Focused on Online Revenue

• The business mentality and models behind the in-person and online systems are running in parallel.
• Using the same skill sets and choreography of sales, the only thing that's changing is that Gym Launch is filling through an app instead of in-person workout.
• If you spend the same amount of money on marketing for online clients, you will make more money.
• The online model is more scalable, more profitable, and will have higher ROI over the next six to 12 months than the in-person model.
• The fallout question is what to do with the in-person business.

What to Do with In-Person Business

• One solution is to simply walk away from the gym and deal with the ramifications of that.
• The court systems, evictions, and creditors are not going to be hitting hard on businesses that were clearly affected by the pandemic.
• Another solution is to make enough money in the online setting that you can pay for the in-person business.
• You have the same amount of money to spend on whatever business you're doing.

Conclusion

• Gym Launch is focused on bringing online revenue to gym owners.
• The online model is more scalable, more profitable, and will have higher ROI over the next six to 12 months than the in-person model.
• There are solutions for dealing with in-person business, such as walking away or making enough money in the online setting to pay for it.

The Golden Opportunity Era

• There is a huge demand for online services and not a lot of supply.
• Many seven-figure gym owners have pivoted 100% online.
• There is a time window where the entire marketplace understands what online training is.
• There is a massive shortage of professionals who have the skill set like gym owners.
• People prefer or value or get a superior experience from a one-on-one customized meal plan customized workouts in groups online.

Executing the Model

• The Gym Launch model is as clean as a whistle.
• The front-end offer is compelling.
• People can sell free trials at scale with low skill.
• People can sell supplements to people who want to lose weight in a one-step in upsell environment.
• Getting people to stay on continuity at 49 a week thirty-nine dollars a week fifty-nine dollars a week is something they will do for one-on-one training and support.

Vehicle Superiority

• If you spent money on the superior opportunity vehicle, you will make more net money doing that.
• You can still make more money doing that even though you have a gym as your anchor.
• Spending money on filling the gym up versus spending money on something else will make more money and still be able to cover the cost better because the opportunity vehicle is superior.

Alignment of Interests

• The entire goal is always to make people the most money possible and to give them the freedom they want and the security they desire.
• The interests are aligned, and it's just a question of whether you believe the vehicle that is being talked about is the best way.
• The Gym Launch model can scale and can make a lot of money.
• The only thing you really have to do is just make sure that you're fulfilling the clients using the app that automates 80% of it.
• The choice is yours, and Gym Launch will support you independent of what you choose.

Gym Launch is Pivoting Towards Remote Opportunities

• Gym Launch is the best in the gym industry and has the biggest reach and data set.
• They will try to set up gym owners for the best success, but they also suggest remote opportunities.
• Gym Launch is focusing on online fitness because it is now possible to scale with an authority and following.
• The fitness industry is moving towards online fitness, and Gym Launch wants to align with the winning side.
• Gym Launch will still release content to help gyms, but their focus will be on remote opportunities.
• Alex Hormozi hopes this provides value and clarity for the direction of their company.

Watch the video on YouTube:
STATE OF THE UNION [ALEX HORMOZI] - YouTube