https://www.youtube.com/watch?v=\_tF3ODk56hg

1 00:00:00.000 --\> 00:01:00.000 gym owners uh happy monday hope this uh
video reaches you at a good time wherever you're at um this is uh i
think this is a very important video that i want to make uh it's been on
my mind for probably the last month or two um but it became apparent to
me that we needed to clearly state our position i think it starts with
context of where the industry is at right now and then kind of how uh
jim launch sees ourselves best supporting the industry and uh gym owners
within it so right now uh as i see it from the various sources that i've
collected 25 to 30 percent of all independent gyms have permanently
closed i believe and i said at the very beginning that i thought it
would be to 30 um but i think i was wrong i think i underestimated how
many more gyms

2 00:01:00.000 --\> 00:02:00.000 would actually not be able to stay in
business and so i think that number may climb over the next six months
to maybe 40 or even 50 of independently owned and operated facilities
the reason that i wanted to start with that is that in the world of
investments in finance they have a saying which is in a if you have can
pick between a strong operator and a week in a weak market or a strong
market with a weak operator in both cases the market wins which is you
can be the best you know entrepreneur in the world but if you're trying
to figure out something that helps newspaper companies you're probably
not going to succeed because newspapers are going out of business and
i'm not saying that gyms are newspapers that's not my point the point is
more so that just to illustrate growing versus static versus shrinking
markets so where do i think the market is going i think the gym industry
has a very very

3 00:02:00.000 --\> 00:03:00.000 rough next year ahead i think that the
vast majority of consumers as i said earlier have already had the
opportunity to switch to different fitness vehicles i think that the
brand of fitness that we have to offer right now given the constraints
in the political environment and what we are forced to do whether right
or not are our massive constraints on the business right we cannot
create the experience that we have wanted to create for our customers we
want to create a memorable experience for them and i don't think that
the constraints that are there give us that opportunity i also think it
creates tons of variability in workforce and labor because we cannot
predict uh how if we're going to get shut down again or if it's going to
reopen or if there's going to be a spike or there's going to be a new
constraint or we have to do temperature or thermometers or this type of
mass or they have to you know all of these different things massively
weigh into and i don't know if you've just to illustrate this for you
personally i am not going out to eat at

4 00:03:00.000 --\> 00:04:00.000 restaurants nearly as much mostly
because i just don't feel like dealing with the hassle and i think that
that is true amongst many people who are looking at coming back to
service-based facilities right now if you're looking at you know if
you're a woman and you're trying to get your nails done or you get your
hair done or any of those types of things go in and ask them how
business has been right they have the same constraints that you know jim
has and many of those people would like to go back and have that desire
and yet they have not and so i think what we've done or what what's
happened in the marketplace is that we've permanently trained consumers
uh to consume or fill this need in a different way and i think just by
nature of you know from zero to a hundred if if we had a hundred percent
of our clients before this if all of those clients are introduced to a
new type of service or a new solution for this need an amount greater
than zero uh will stick with that and so i i think that the market
overall uh is shrinking and will continue to shrink for the foreseeable
future

5 00:04:00.000 --\> 00:05:00.000 so to put this statement open and clear
gym launch is loyal to gym owners we are not loyal to gyms my goal is to
equip everyone here in this 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 that
has been the goal since date one jim's at the time for the last three
four years has been a vehicle for that individual which when put
together with you know 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 which is the goal to that end jim
launch as a company will be pivoting and that is because i believe that
the best opportunity for gym owners is remote for a variety of reasons i
think that first off from a lead generation standpoint for most small
businesses lead generation is the hardest thing

6 00:05:00.000 --\> 00:06:00.000 in a remote environment or an online
environment you have virtually unlimited lead generation you will never
fatigue the united states's need for weight loss you won't even fatigue
a 50 mile radius for weight loss but a five mile radius it's definitely
possible right it's much more difficult and i can tell you this right
now first hand on the glx side the people that we're working with for in
person versus remote they they cycle through the copying creative at
three to four times the rate it burns out much faster so there's more
effort that has to go in for a lesser volume result at a higher cost uh
and the the lead costs if you just think conservatively if 30 of people
are not going to like people already have excuses to not going to the
gym when they have no constraints but if you add even a little bit of
friction towards something that they already kind of don't want to do
then that constraint may double and that's pretty much what we're
already seeing the lead costs on average across all the markets for in
person is about thirty dollars for many people that does

7 00:06:00.000 --\> 00:07:00.000 not and that's for free offer right not
even paid right that's average now some people might be better some
people worse but this is just on average what we're looking at and so
when we take these things into account right we can get way more leads
at a way lower price with less effort and more consistency factor one
factor two the model itself how difficult is it to implement how much
margin remains for the business owner uh how does it enable the business
owner's lifestyle in an online setting or remote setting the business
owner can move and live wherever they want they don't have to be in a
single area they can have freedom with their family they don't have to
show up at the gym at four o'clock in the morning they don't have to be
there until nine o'clock at night they don't have to drive in for an
appointment to have that person no show and then have another one at
seven o'clock at night that they just sit there and wait for right a lot
of those things that we've had to deal with as gym owners and small
business owners in a brick and mortar

8 00:07:00.000 --\> 00:08:00.000 setting no longer has to exist all
right and very frankly i have always wanted to figure out a way to make
online work at scale why because you no longer geographic constrained
you're far less temporally constrained and financially the model is more
profitable period and as a like just from the business setting that
would probably be enough for me but on top of that many people achieve
superior results in a one-on-one setting compared to a group workout
setting right many of you have hired tkn have worked with trevor have
worked with an online coach whether on the strength side or the
nutrition side or body composition or whatever and you did that because
you knew the one-on-one attention allowed you to get a better result
right if you had to change someone's life then you if they signed on and
somebody in your family were going to die what way would you train them
if you had

9 00:08:00.000 --\> 00:09:00.000 the option of group workouts or
one-on-one coaching online if you had to which one would you do because
if you say group workouts but then you'd start doing the one-on-one
education that's not the model that's not the question the question is
which would you because that is realistically what we're offering in the
marketplace all right and so i already said there was enough of a case
from a business standpoint to make that argument but on the fitness
component side i believe that the actual fulfillment is better for the
end user and is more profitable on top of that you have fixed margins in
the business you do not necessarily need to have rent now if you have to
deal with the fact that you have rent then that's a separate issue but
the business model itself is not constrained by the sunk cost of
decisions that have been made in the past and the reason that i did not
have an online business model until covett hit was one because we didn't
have to but two because no model that i could find and i looked at
everyone's out there could be done at scale by anyone without a superior

10 00:09:00.000 --\> 00:10:00.000 skill set without uh having an
authority or having a following or requiring an inordinate amount of
effort for example there are three primary models that exist in online
today excluding the glx model that i'm going to talk about vehicle one
outbound messaging right we have the cold messenger training i bought
two or three ten thousand dollar courses i took all the best findings
and i put it into a course for 37 right you guys all have access to it
fundamentally why is it not something that i see is enormously valuable
because it requires effort right simply put you have to spend two three
four hours a day outbound messaging people does it work yes does it
require a ton of effort yes can you scale that not really right and so
that is opportunity vehicle number one and if you've seen all the gurus
over the last 70 years the reason none of them have an enormous business
is because the vehicle is not that good it's okay right with an okay
vehicle you

11 00:10:00.000 --\> 00:11:00.000 can build an okay business all right
so that's vehicle one vehicle two is doing a webinar so it's building
out a sales presentation that edifies you generating traffic online to
register for the webinar watch the webinar pushing to an application
that they then schedule a call with you so you can do a two thousand
three thousand dollar plus sale typically those models do not make a ton
of money one because the webinar is fatigued two because the cost per
application is extremely expensive you're looking at a hundred dollar
applications many times three some of the people who are who i know in
that space who are experienced only get one to one two to one up front
on their ad spend with a high ticket sale and that's the people who know
what they're doing that doesn't seem like a model that i would scale to
others third model is doing an online challenge model what that means is
not the way that we're talking about it but they do group challenges so
that's where you tell everyone to sign up for a group it's a five-day
challenge you make content day one

12 00:11:00.000 --\> 00:12:00.000 through four and then you make a pitch
on day four and try and get a pitch on day three it doesn't matter the
point is is that you're trying to solicit people from a free group where
you provide value where you're somewhat edified to then get on the phone
with you to buy some stuff right um and that model is again a very
effort effort based model it's very stop and go it's very clumpy um and
in my opinion it's very difficult to scale which is why you don't see
any massive online weight loss companies that just do these five day
online challenges and i'm gonna say massive i'm saying real massive not
like small personal bias i'm saying real big businesses and so because
of that those are the three models that i saw that existed for people
who did not have a following and it was not a consistent acquisition
model and so i could not put my weight behind it because i knew that if
i were to implement one two or three or all three of those together the
vast majority of the people in our community would not succeed period it
is what it is all right so the reason i like the model that we have now
is that after all the trial and

13 00:12:00.000 --\> 00:13:00.000 error that we've been able to create
we can start a new business which is essentially what this is overnight
because in a semi-regional marketplace so it's the same state as you you
have a certain amount of trust that exists with a free trial front end
it does not require a tremendous amount of skill in order for you to
sell it or scale the sales to someone else try and outsource a three
thousand dollar high ticket fitness sale you're not going to be able to
do it well i can promise you all right if you have any trouble
outsourcing a 200 sale try out sourcing a 3 000 sale it's not gonna
happen all right so the front end we know that the acquisition is easier
because we have unlimited leads that's massive for consistency of
business operations and for consistency of cash flow all right on the
sales side or so on the lead nurture side allen has already solved this
problem at scale up to this point you couldn't get 800 leads a thousand
leads a month and have

14 00:13:00.000 --\> 00:14:00.000 any any any dream of being able to
work that lead flow without two to three full-time people not gonna have
it right with alan we can do that and we can set the price at fixed so
you always know what it costs to get a new customer right on the phone
period for the sale itself for a free trial sale someone with very very
low skill set can still sell a free trial on the phone it is such a low
risk offer and so the magic of the model is the fact that we have now
found out after this whole community has tried and tested it that the
trainerize app that we've built out my accountability right when paired
with a free trial person in the model that we espouse which is
supplement sale number one and then abandon hope number two right both
of those sales are easy enough that you can scale them and break even or
come close to it on the first transaction and then by day 30 you will be
able to convert those customers at the same price as you were able to
before in a gym setting except you have far more of them

15 00:14:00.000 --\> 00:15:00.000 you acquired them for less and they're
staying at a higher profit margin you no longer have to do sessions
there's no rent that you're that you're you're forced to do and
ultimately there are many of you who over the last month have built out
three or four thousand dollars a month recurring revenue that's in 30
days right for those of you like marcia and i hopefully didn't mean to
call her out here she's built up forty thousand dollars in recurring
revenue rawls built out another forty thousand dollars in recurring
revenue and she's been doing it as well all right this model if you give
it one month two months three months four months it is going to be far
superior to the the revenue and profit that you were able to make at the
gym except it has no signs of slowing down right you do not have to be
constrained by your geographic uh five mile radius if you've had the
desire to impact your community in a much bigger way if you've had the
desire to not be constrained to the five miles around the location of
your gym that's only uh valuable to you when your ads are converting
because you have the combination of ads

16 00:15:00.000 --\> 00:16:00.000 copying creative and placements that
are actually working in this specific market at that time with the
promotion made which is real talk how it works right if instead of
having all that you can virtually have an unlimited front end and all
you have to do is tweak the skills on the back end that you can
consistently create because there's only three roles that exist in the
model the person who sells the trial up front the coach and that's it
right and there's you as the owner and so as long as you and if you
wanted to at scale you could have one person does all three right um but
the point is is that each of these roles getting someone to sell free
trial is not difficult getting someone to convert on a same-day offer
they don't even have to pay on that day which is like hey normally it's
59 today it's 49 you don't have to say yes right now or so you don't
have to pay right now just say yes right now you want to use the card
java file many people can make that sale for the nutrition hey don't
need to buy all these things i changed you get this stuff to get started
right great most people can make that sale these sales are not
complicated but can be done at

17 00:16:00.000 --\> 00:17:00.000 absolutely massive scaling retain a
customer at a 2000 price point where you can acquire them in high volume
very consistently all right and so i need everyone so i wanted to at
least clarify this for everyone in terms of where jim watches position
is in this marketplace we are going to be serving gym owners and we're
going to be serving gym owners in the way that we know best and we're
going to align ourselves with the model that's going to make them the
most money and very transparently i'm going to be doing this because i
believe that i would like to serve a marketplace that's going to grow
and make the most money because the more money you make the more money i
make and you know that i'm a capitalist at heart and always have been
transparent about my intentions right my goal is to run a profitable
wildly profitable business that grows fast right and so to that end if
i'm in a b2b space i have to align with a model that i believe has the
highest likelihood of success and profitable growth for my customers and
so for the foreseeable future that is where gym launch is going to be
focused we're going to be focused

18 00:17:00.000 --\> 00:18:00.000 on bringing the online revenue to
everybody here and i can tell you that if you have been on the fence it
is not going to get easier if you're if you're if you're clinging to in
person it is not going to get easier now is there anyone in this
marketplace that i believe is better at running in person no why because
they all bought my book to try and build their whole temp coaching
program right like the business the business mentality the business
models behind that system are running in parallel we're using the exact
same skill sets the exact same choreography of sales the only thing
that's changing is that we're filling through an app instead of
in-person workout that's it that's all that's changing and so if you
have the same five thousand dollars to spend on marketing if you spend
that same five thousand dollars for online clients you will make more
money simply put it is easier right now to get 50 new online clients
than it is to get 50 in-person clients and i don't see that trend
changing anytime for the rest of 2020 right and

19 00:18:00.000 --\> 00:19:00.000 it and the thing is is what i do feel
is known is that the rest of 2020 is going to be for gyms in general
what is unknown is whether 2021 is going to get any better and so it's i
feel like i've been i've been holding this back i've been hinting at it
i've been alluding to it but i have not been able to be transparent in
the fact that i believe this is the best model for this community i've
been always loyal to gym owners and i believe that this is the best
opportunity vehicle for you to package your skills serve your community
serve your family and in terms of roi on your time and your capital and
the skills that you need to train your team on this model i believe is
more scalable more profitable will have higher roi over the next six to
12 months than the in-person model the the fallout questions that happen
as a result of that is well what do i do with my my in-person business
so there's something called a sunk cost fallacy in economics which
basically means because i've invested xyz before this moment

20 00:19:00.000 --\> 00:20:00.000 i'm going to use that to cloud the
current decision at hand right and so it's like if i've spent i'm trying
to um hopefully everyone knows what sunk cost is but it's basically you
have a cup you have you've made an investment that is irrelevant in the
in the variables of the current decision in front of you right and
you're using that like i committed to you know like i spent money on xyz
and all right hopefully you get the point that being said if you still
need to make decisions about it you have a couple of different versions
that you can handle this with all right one is that you can simply walk
away from your gym and deal with the ramifications of that i don't think
that the court systems i don't think that evictions and creditors are
going to be hitting hard on businesses that so clearly were affected by
this i think that we'll have if there's ever a time that you'd be able
to get out of a lease this would be it this would be the time where you
would be able to get out virtually scot-free and many of you already
have

21 00:20:00.000 --\> 00:21:00.000 the second solution is that you make
enough money in the online setting that you can pay for it because if
you think about it you have the same five thousand dollars that you're
going to spend you're gonna have to spend it on whatever business you're
doing right if you spent it on the superior opportunity vehicle you will
make more net money doing that and then you can still like you will make
more money doing that even though you have this gym as your anchor if
you spent five thousand trying to fill the gym up because you have it
versus spending five thousand dollars on something else you will make
more money and still be able to cover the cost better because the
opportunity vehicle is superior think about it let it sink in right and
so anyways um my entire my entire goal is always to make people the most
money possible is to get is to give them the freedom they want give them
the security they desire and i believe that this is the best way for us
as a company to do that and so all of my focus will be to that end i do
think that we are actually on the precipice and we're currently in a
golden opportunity era where there's this huge amount of demand for
online

22 00:21:00.000 --\> 00:22:00.000 services and there's not a lot of
supply i don't know how long that window is going to happen but for the
people that take action now most of you already have but if you were on
the fence this is the time to take that action what you don't know is
that many of our seven-figure gym owners the top guys you see in this
group have pivoted 100 online some of the guys who hear me talk about
their names all the time they've already sold their gyms and they've
pivoted 100 to just going on because they sell all the math they didn't
let their emotions cloud the judgment now i understand that everyone
listening to this is human makes emotions emotional decisions and then
puts logic to them later so let me just speak to your emotions if you
have the desire for more security if you have the desire for less
unknowns in the future if you have the desire to not have to worry about
acquisition not worry about where your next customer is coming from
worry of whether or not your lead cost is getting too i worry about
whether you're going to have to have just another creative another home
run to save the month right if you if you don't want to have those
concerns right you want to be able to travel with your family you want
to be able to leave your gym for god's sake you know i

23 00:22:00.000 --\> 00:23:00.000 didn't take a vacation for five years
i never even left because i was so afraid i went back for for christmas
and every single year for three straight years came back after two days
because i couldn't handle the stress of being gone right and so if you
don't want to deal with that i do believe that there is a time winder
that we're in right now where the entire marketplace understands now
what online training is and there is a massive massive shortage of
professionals who have the skill set like gym owners right like us we
are all very experienced fitness professionals if you compare us to some
guy who's interested in fitness on instagram right or compare us to uh
even even to some of your trainers right we're more experienced than
they are and so if you want to do the market a favor let people work
with the best professionals and that's you because they're going to do
it anyways and they might as well work with you so anyways um to wrap
this up uh that is what all of my direction is going to be on is going
to be on executing the model because this model

24 00:23:00.000 --\> 00:24:00.000 now is as clean as a whistle in my
opinion you don't like this thing is as just about as robust as the
original gym launch model the front end offer is compelling we will
always be able to get people to sign up for free things for weight loss
period that is something i can bet on second do i believe that people
can sell free trials at scale with low skill yes do i believe that you
can sell supplements to people who want to uh lose weight in a in a in a
one step in upsell environment yes do i believe that getting people to
stay on continuity at forty nine dollars a week thirty nine dollars a
week fifty nine dollars a week is something they will do for one-on-one
training and support yes do i now believe that people prefer or value or
get a superior experience from a one-on-one customized uh meal plan
customized workouts in groups online yes i do and because of those
beliefs that i have and you may not share those beliefs but i've made
some pretty big bets in the past in this space and most of them have
been right and so i'm asking you

25 00:24:00.000 --\> 00:25:00.000 to at least factor that in if it's
something that you're still on the fence about that you can at least
consider the the argument that i'm giving you right now um because
genuinely my interest is in making you money and so our interests are
aligned it's just a question of whether you believe the vehicle that i'm
talking about right now is the best way most of you already made this
call but that is what we're going to be doing with gym launch and it's
been it's been very transparent that the people who run that simple
model can scale and can make a lot of money because 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 anyways and that is so much easier
than having to worry about trainers and sleeping with clients and broken
equipment and cleaning out the bathrooms and getting the right music
like all of that stuff is gone now or it has the opportunity to be gone
if you make the choice um obviously the choice is yours we will support
you at gym launch independent of what you choose if you want to rock in
person we will help you all right we've done it and i honestly

26 00:25:00.000 --\> 00:26:00.000 think you're like having seen and
talked to most of the people in this industry with half of them being
ex-clients of mine slash ex-employees of mine right with half of them
being that i can tell you without any drop of of doubt in my mind that
we are by far the best not even close like there's not like oh yeah
we're like we are ages we are eons above and the proof of that if they
were as good at business as we are then they would be bigger than us but
they are not and so i would say trust the people who've been doing this
the longest and doing this the best with the biggest uh biggest reach
and biggest data set all right if you want to stay in person we will try
and set you up for the best success but given your skill set and your
desires and your and your wants and needs i think that that same skill
set desires and beliefs would be better packaged in this vehicle the
question is just whether or not you want to take the jump all right so
anyways for those who have made the jump i think you made the right uh
the right the right call hopefully this entire video is just reinforcing
that belief for those who have made that jump uh for

27 00:26:00.000 --\> 00:27:00.000 those of you not hopefully this um at
least gives you some transparency you know why we're gonna be talking
more about online why it's gonna be my focus um and all the clients that
we're going to be bringing in are all going to be gyms who want to go
online and or you know experienced fitness professionals who want to go
online and scale um because now for the first time ever that's possible
right you couldn't do this without an authority you couldn't do this
without a following before this but now you can so um that is that is my
perspective um i hope that provides value to you i hope that provides
clarity um in the direction of our company and where i believe that the
fitness industry is going and where we're going to be aligning our
company and we do that because we want to align on the winning side and
i think that that is going to be the winning side um no one 50 years
from now would say if you're thinking about it known 20 years from now
i'd be like man who would have thought that in-person gyms were going to
survive this long right that online fitness was not going to be bigger
10 years from now than it is now right i don't think anyone's going to
make that argument and so i think that

28 00:27:00.000 --\> 00:28:00.000 it's um it was time for me to make
that that make that line in the sand for us as a business of what we are
going to focus on um and that is what we are going to focus on so
anyways lots of love um as always we're still going to release plays
we're going to release you know the stuff that we do to uh to help gyms
because that is what we've always done but i just want to be honest
about what i see so that you can be on the same page as me you
