30 Ways to Increase Gym Revenue & Profitability (2024)

If you are here, you probably own a gym or other type of fitness club. Are you wondering what to do in order to earn more in your place?

Do you have some ideas but don’t know how to start? Or maybe you can’t think of anything at all and just need a nice list of tips? Stay with us in this article and earn more from your gym business.

How profitable is owning a gym?

You certainly shouldn’t assume an immediate revenue when opening a gym. But is fitness your passion and do you want to devote your time and professional career to it? Or do you already run your own gym and want to expand it?

Then there is actually a chance for really nice earnings. How much do gym owners make?

Check USA statistics:

Revenue of the fitness, health and gym club industry in the United States from 2010 to 2022, with a forecast for 2023 (in billion U.S. dollars)
Source: Statista, 2024

How can gyms increase revenue?

It doesn’t matter which business model you represent. What’s always important is to implement strategic planning into your gym business. 

Successful gym owners in the fitness industry have a long-term idea. They are also flexible and creative. This is how you can conduct a profitable gym.

A list of general ideas which can help gym owners improve their fitness businesses.

30 Ways to Increase Gym Revenue & Profitability

1. Define at least 3 main income sources

Think about the elements of your offer that strengthen your business. Marketing has been talking about the need to diversify the offer for years. 

It’s just like a table standing on 3 (or most often 4) legs, your business must also have different points of support.
How many income sources do you have in your gym? It’s high time to think about additional revenue streams. something more than membership fees only. 

Main revenue stream is defined as:

  • Operations/sales that cover all associated costs while increasing profit to over 25%
  • Operations/sales that represent more than 15% of annual sales

In fact, your goal should be to differentiate your offerings to provide more value to current and future customers. The benefit for you will be a solid revenue model. A helper in getting through the more difficult months of the year and ensuring constant growth of your fitness business.

3 main revenue streams – example

  • memberships
  • personal trainings
  • workshops/additional events

Homework:
Try to develop (or refine!) alternative sources of revenue by the end of this quarter 🙂 You will see how many potential customers you will be able to acquire, Just by providing your customers with a unique offer of additional services!

2. Automate your marketing with useful tools

Imagine a world where you don’t text or email each member separately. One topic, one announcement, information rushes to everyone. 🙂

And don’t worry if some of the members shouldn’t receive this message. Campaigns can be sent to various groups of contacts, including saved filters. Saves a lot of time, right? 

Automate your email marketing.

Good gym management software will find customers who meet required conditions. It will send them an email or text message then. Don’t be afraid about the content of the message. It can be created manually or the owner can use an automation library.

Automate your text message marketing.

3. Get more bookings with gym management software

Website integration and flexible scheduling options are those features which help more clients achieve your place. For example, schedules can be also integrated on gym website (embedded). You can easily change each class in the schedule:

  • cancel classes, 
  • update coach, 
  • adjust start time
  • inform members about any change done in the schedule. 

Technology
Implementing technology solutions like fitness tracking apps, online scheduling, and virtual training can enhance member experience and boost revenue. Gyms leveraging technology have seen up to a 15% increase in revenue (Source: Deloitte).

4. Don’t let your gym stay empty

Your gym cannot stay empty 😉This is a huge waste of your space’s potential. Take advantage of unusual hours. 

Direct your offer to people working shifts or freelancers. They will be happy to come to classes, for example in the morning.

A gym owner having breakfast in his empty gym.

5. Increase Gym Profit Margins

Where is your gym business according to the table?

gym profit margin [%]situation
less than 15%a tough time just staying afloat until you improve the profits
between 15% and 29%see some growth and feel a bit better financially, but there’s still a risk of problems
30% or morea strong, steady, and growing business like successful gyms

How to Increase Gym Profit Margin

  • Focus on Membership Retention
  • Offer Value-Added Services
  • Optimize Operational Efficiency
  • Utilize Technology
  • Implement Strategic Pricing

6. Use Whitelists Not to Lose Clients Anymore

Use gym management software feature called waitlist. When class is full (limit was reached), a member can sign up on a waitlist. When a member from the main list signs out, the first member from the waitlist can jump in.

What a member sees when signing on the WodGuru system waitlist.

7. Plan and predict the taxes WISELY

Follow these steps and stay proactive about tax management. This is how you can minimize tax liability and maximize your gym’s profitability.

  • Keep Accurate Records
  • Consult with a Tax Professional
  • Plan for Quarterly Payments
  • Take Advantage of Deductions
  • Stay Informed About Tax Changes
Dumbbells and next to them: notebooks and a calculator - things needed to calculate taxes in a fitness club.

8. Consider the proper location 

You have surely chosen the best location possible. But that was then and this is now. Don’t hesitate to change it if necessary.

If it comes out from your market research that there are better locations, go! Your loyal customers will follow you. There will also be new ones from the new location.

An icon of location with a background of modern skyscrapers district. A good place for fitness businesses.

9. Keep your customers

It’s easier and cheaper to retain your current members than to acquire new ones.

Implement strategies that will bring new customers. But above all, retaining members should be important.

What is meant by retention in fitness?
In other words, it’s the number of members who stay with you, compared with the ones who leave. The retention rate is formatted as a percentage. So, the perfect situation is 100% retention rate. Do you have it? 🙂

Membership Retention is Crucial: According to the International Health, Racquet & Sportsclub Association (IHRSA), improving member retention by just 5% can increase gym profits by 25% to 95% (Source: Health & Fitness Association, previously: IHRSA).

How not to lose customers?

A gym customer is taking her mat and saying goodbye.
  • Many clubs experience stagnation in the growth of club members. Even after a certain number has been exceeded!
  • Research shows that clubs are most successful when they have an average of about 152 customers. It is due to human behavior and the ability to effectively manage relationships. 
  • Clubs can effectively increase customer numbers by focusing on retaining existing customers and providing them with a high-quality experience. 
  • As you know, the best advertising is a recommendation from a satisfied customer.

10. Gain more customers

To attract more members to your fitness place:

  • Offer trial sessions or free classes to showcase your approach and atmosphere.
  • Collaborate with local businesses or influencers to reach a wider audience.
  • Don’t be afraid of traditional advertising. Who said that leaflets, posters and advertising gadgets are passe?
  • Host special events or challenges to create excitement and attract attention.
  • Provide excellent customer service to satisfy existing customers and encourage referrals.
  • Use social media to showcase success stories, customer testimonials, and engaging content about your fitness business.

11. Optimize your pricing

Pricing needs to be considered from many perspectives. They should be not too high, not too low.

It should be remembered that on the one hand, a low price attracts new customers, but on the other hand, a high price creates the image of the gym as a place with premium services. Once we have gained such an image, we only attract customers with higher earnings and from a specific social group. 

One dollar banknotes reflecting the idea of low prices.

Generally, prices should be based on competition research so as not to have too high prices. But if we have a great product that no one else has, let’s charge more! 

Additionally, for regular customers we give discounts on the second package of classes or after a year with us, one month for free and other tricks.

12. Create good website

Use a website builder like WodGuru or Wix to create a stunning website. Here are some examples of WodGuru creations: 

What’s more, when you already have your www, you don’t need to leave a place for your gym software management provider. It will perform behind your brand. This is what we call website integration.

13. Get strategic about your expenses

Marketing and branding strategies are crucial for attracting the right target audience. What you have to do is create a plan and stick to it. This is a part of your place’s marketing. Because you are a businessman, right?

Effective Marketing Strategies Pay Off: Investing in targeted marketing campaigns, especially through social media platforms, can attract new members and retain existing ones. Gyms that allocate at least 10% of their budget to marketing see a 15% increase in revenue (Source: Club Industry).

Is a gym a profitable business? A businessman going crazy because of so many expenses.

14. Offer Rewards For Referrals

A nice exmaple here is WodGuru Ambassador Program. An individual link that a club member can share with any number of friends. The register from this link gives the new person a discount and the recommender gains $ to his/her wallet to use.

15. Offer Something Different To Stand Out

Even if you’re one of the typical crossfit gyms, yoga centers etc, you can grow your gym. Just stand out.

A young woman stretching in a picturesque vacation setting.

You can organize boot camps, fitness events, or foreign trips with everyday training sessions. Why not, as long as it brings more profit, right? If they want to have a training session with you on a local bridge, let them!

A young man having a gym training on a bridge, using its elements as fitness facilities.

16. Collect & Analyze Data: make data-driven business decisions

Collecting and analyzing data about your members is really important. Without hard evidence to support your decisions, you’ll simply be guessing what benefits your members. This is an easy way to make poor business decisions that impact the profitability of your club.

A businessman pointing at the importance of data-driven decisions in a fitness business.

Utilizing gym management software to track member attendance, engagement, preferences, and buying habits can provide valuable insights. To make it effectively, easily and with pleasure, choose one of the best gym management software.

17. Don’t lose money unnecessarily

It may sound strange, but earning more comes also from not losing money in the areas which are not necessary. For example, you can reduce the number of marketing and customer relations staff only thanks to a good gym management software implementation.

An artistic vision of a method of having bigger profits

18. Your business idea: leave or modify?

What gym makes the most money? If you want to know what type of gym is more profitable than another one, here we go with a short summary. If you feel that your previously chosen business model doesn’t do the job, check which ones could be better. It is never too late for a change!

Type of GymAverage Profit MarginSource
Boutique fitness studios20-40%SoulCycle press release (https://www.soul-cycle.com)
Traditional gyms10-15%International Health, Racquet & Sportsclub Association (IHRSA) (https://www.ihrsa.org/about-the-industry/)
Franchise gyms10%FranchiseHelp (https://www.franchisehelp.com/industry-reports/fitness-industry-report/)
CrossFit boxes27%National Association of Professional Trainers (https://www.naptnation.com/)
Yoga studios20-30%Yoga Alliance (https://www.yogaalliance.org/)
Pilates studios20-30%Club Industry (https://www.clubindustry.com/)
Swimming pool and aquatic centers10-15%National Swimming Pool Foundation (https://www.phta.org/)
Gyms’ margins by gym type
Source: exercise.com

See also: 5 Online Business Ideas

19. Cost of Revenue: How Much You Have To Pay Before You Earn

After revenue this is the second most important number in your business. How much does a month of running a gym cost? If you get this wrong, it’s impossible to achieve high gross profit and operating profit margins. Look at these. Plan them. Remember about them. Because they will always be.

1. Equipment Costs

2. Facility Rent or Lease

3. Utilities

4. Staff Wages

5. Inventory Costs

6. Maintenance and Repairs

7. Cleaning Services

8. Insurance

9. Marketing and Advertising

10. Software and Technology

A sad gym owner losing money.

20. Scalability: Revenues Per Time Unit

Personal Training Drives Revenue
Personal training sessions can contribute significantly to a gym’s revenue stream. On average, personal training generates around 20% to 40% of total revenue (Source: Club Industry).

Personal training may bring a lot of money if you think about using your time and skills. But what if you should see your business more widely? Don’t you want to increase your income, counted per time unit? Group fitness classes is one of the solutions.

Groups:
Group training is a key revenue driver for many gyms. Research shows that offering a diverse range of classes can increase revenue by up to 10% (Source: Gym Insight).

Other ideas for scalability? A one-time written training plan to be sold whenever people are willing to buy it.

An artistic cartoon vision of a multitasking woman.

21. Is owning a gym passive income?

Well, it could be, if managed wisely. You need to hire capable staff, and ensure that the business runs smoothly without requiring constant hands-on involvement. 

Additionally, diversifying revenue streams and implementing technology can help automate processes and maximize profitability.

22. Upselling in fitness

Upselling Additional Services:
Encouraging members to purchase additional services like nutritional counseling, massage therapy, or specialty classes can significantly boost revenue. Upselling can contribute up to 25% of a gym’s total revenue (Source: Club Industry).

Up-selling is a sales technique of engaging the customer into:

  • a product of a higher standard
  • a product with greater functionality
  • something more than the one he is currently using/buying

It allows you to increase revenue. But it must be subtle and really personalized.

In the fitness industry, upselling can be performed as:

  • offering additional services or products that will intensify a client’s workout experience,
  • introducing health clubs offer too: nutritional supplements tailored to the client’s goals,
  • offering membership upgrades (access to exclusive classes or personalized training sessions),
  • using fitness apps with premium features. They can be: personalized workout plans or one-on-one coaching (for an additional fee).
“New arrivals!” - an artistic image of upselling in fitness.

23. Why Is Customer Experience so Important?

  • satisfied customers don’t leave so easily,
  • they recommend your place to other potential customers,
  • they are more willing to use additional and subsequent services and products from the same fitness business

Customer Experience
Providing exceptional customer service and a positive gym experience can lead to higher retention rates and increased revenue. Gyms that prioritize customer experience see a 30% increase in revenue (Source: Fitness Business Association).

24. Flexible Membership Options

Offering flexible membership plans such as month-to-month or pay-as-you-go options can attract more members who may be hesitant to commit to long-term contracts.

Gyms with flexible membership options see a 10% increase in revenue (Source: Health & Fitness Association, previously: IHRSA).

25. Writing applications, receiving grants

If you have a talent for paperwork, look for opportunities yourself. You can also use the help of companies that deal with this on a daily basis. You are most likely to receive money for educational and development initiatives:

  • Grants for fitness events as health promotion
  • Grants for organizing competitions and meetings
A person filling many documents carefully in order to receive a grant.

26. ‘Healthy cooking’ workshops for gym members

Organizing workshops on various topics related to fitness and well-being is an idea for additional income. Just don’t take it lightly. Invite a cool guest who will lead the meeting with verve.

Healthy cooking event for people who are gym’s clients.

27. Partner with local companies of the same sector

These can be spas, beauticians, hairdressers and wellness centers. Propose this kind of cooperation:

  • Offer discounts on their services to gym members.
  • Offer discounts if new members come to you thanks to the company’s recommendation. 
A beautician is recommending WodGuru brand.

28. Offer a ‘post-workout recovery’ program

Suggest meetings after training sessions as a complement to overall self-care. They may include, for example, massage and stretching services.

29. Organize special occasion events

Introduce special events for Valentine’s Day, Mother’s Day, Independence Day, Solar Eclipse… Everything that has a permanent place in the annual calendar and is important to people.

Sample poster for a Valentine's Day fitness event

30. Sell ​​vouchers as gifts

This can be personal training, dietary consultations, whatever you have on offer. The trick here is to wrap it up nicely. 

Print an elegant voucher and write the name of the recipient. Adding value to the service through beautiful packaging creates a gift with love.

Blue dumbbells and Christmas items representing the idea of a fitness service as a gift.

Final Thoughts: 

  • Running a gym can be a profitable business if done wisely.
  • As a gym owner you need to be flexible, engaged and creative.
  • Additional elements in the gym’s offer may be ideas for increasing revenue.
  • To increase the profitability of your gym, it is also worth controlling and changing your marketing strategy, if necessary.
  • Remember that more money stays in your wallet also when you don’t spend it unnecessarily. Invest in good gym management software that saves both time and money.

FAQ:

How much revenue does a gym make?

According to industry studies, a typical gym generates between $300,000 and $500,000 in revenue a year. The profit margins are between 20% and 30%. If you want to know how much money it is, then know that on average, gym owners make $90,073 per year.

It varies according to different statistics. The average annual salary for gym owners in the United States is between $30,000 and $76,000. Other sources say about $49,000 per year in North Carolina to $82,275 in Washington.

Please remember that these data are averages. Individual earnings of each fitness center will vary.

 Much depends on factors such as location, clientele, seasonality, offer, and costs. 

How to increase gym revenue?


As a gym owner you need to be flexible, engaged and creative. Additional elements in the gym’s offer may be ideas for increasing revenue. To increase the profitability of your gym, it is also worth controlling and changing your marketing strategy.


How can a gym make more money?


Introduce new elements to your offer. Be creative, stand out. Remember that more money stays in your wallet also when you don’t spend it unnecessarily. Invest in good gym management software that saves both time and money.

How can I increase sales in my gym?

Develop a strategy for retaining a customer and attracting new ones. Maintain the quality of services so that satisfied customers recommend your gym. Introduce a good gym management software, thanks to which you will be able to offer customers a waiting list or comfortable booking.

More from WodGuru

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How to make your gym profitable
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