Million Dollar Personal Training Business Managing a Highly Profitable Personal Training Department

Sherri McMillan holds a Master’s Degree in Exercise Physiology and was awarded the 2010CanFitPro International Presenter of the Year, 2006 IDEA Program Director of the Year,

Inaugural IDEA Personal Trainer of the Year, & 1998 CanFitPro Canadian Fitness Presenter ofthe Year. She has been in the fitness industry nearly 25 years and has presented hundreds of

workshops to thousands of fitness leaders throughout Canada, Australia, New Zealand,Germany, England, Spain, South America, Asia and the U.S.A. She is the Author of 5 FitnessBooks and Manuals (Go For Fit - The Winning Way to Fat Loss, Fit over Forty - The WinningWay to Lifetime Fitness, The Successful Trainer’s Guide to Marketing, Hiring and Training

Master Trainers, and The Business of Personal Training) and is the star of a variety ofeducational Fitness DVDs. She is a Nike, Schwinn and PowerBar sponsored Fitness Athlete andis a fitness columnist for various newspapers, magazines and journals throughout the world. She

is the owner of Northwest Personal Training a 5000 square foot Personal Training studio inVancouver WA which generates over a million dollars per year in training revenues and which

was recently awarded the Better Business Bureau’s Business of the Year.www.nwFitnesssEducation.com

www.BusinessofPT.com

Roles of the Manager/Leader• See the Big Picture – Foundation, Mission, Vision, Values, Brand, Goals, Action Steps

– “A leader is one who sees more than others see, who sees farther than others see, and who sees beforeothers see” - Leroy Eims

– Work on your business not ‘in’ your business– 10-15 On-floor Instructing/Training; the rest of the time is spent managing

• Administer Systems– Managing– Once the systems are in place, your department/business will run itself

• Rally the Team– Leadership– 90% of your time is spent here– How can you get them more excited? How can you get them performing at their best?

How can you get them more focused on your customers? How can you keep themlearning/growing?

– The Leader finds greatness in the group, and he or she helps the members find it inthemselves

• Produce Results– This happens if you spend your time correctly– Share stats/results regularly

• Determine your High-Yield Activities

Can you instill the passion?

It’s more than just a job, more than just anexercise program…

We are changing people’s lives.

COMMITMENT

• Financial• Time• Energy• Sometimes you have to take a few steps backwards

to take leaps and bounds forward

Short-term pain for long-term gain!

1. HIRING SYSTEM

• Ask the right questions – open, scenario…• Look for action right from the beginning!• See them in action before you sign on the dotted line• Check references• Hire the Best people you can find, develop them as much

as you can, and hand off everything you possibly can tothem

• Slowly hire only unbelievable people!• If there are things about a potential team member that you

don’t like during the interview…you’ll like them even lessafter you hire them!!

Compensation: What $$ Split is Best?• Depends how much overhead and involvement the business

has vs the trainer• Depends on goal of the PT program – profit vs retention or

both• Be fair• Benchmarking and Review the IDEA Compensation Survey Options:

• Straight % of revenue• Sliding scale• Tiered Plan• Hourly/Salary

The NWPT System

• NWPT, Vancouver, WA• Average client fee $40/30 minutes• We only hire full-time trainers• All are employees• Trainer Pay

– Guaranteed Hours = 30-40 hours / week– Comp sessions /Administration/ Meetings – approx. $10-$12/hour– Paid PT = Average $16-$27/hour– Many trainers after one year on salary or set hourly wage– Offer Paid Time Off, Education Benefits, Health Allowance etc.

• Pros/Cons

• Good Business Rule of Thumb– Payroll should not exceed 40% of total revenues– NWPT at 50%

Teach Me What to Do and How to Do It

Set high standards for yourself and for others and don’taccept anything less

• Initial Training• Clear set of expectations– Job Description– Corporate Manual

• Ongoing Training

Foster an Environment That Keeps Me Growing and Learning

• The minute your team stops learning, is themoment they begin to look elsewhere for otheropportunities…

• Invest in your team - #1 Asset

• Monthly Group Meetings– Give schedule a year in advance– Allocate agenda time for social catch-up, business and

educational information– Offer food and a meeting or administrative wage

• Monthly Individual Meetings– Social conversation– Evaluations– Individual Training– Discuss clients and issues/concerns

• Evaluation Systems - Have a yearly system!

– Bi-monthly Indicators of Performance Review– Yearly peer evaluation– Yearly video evaluation– Yearly Comprehensive Organizational Review– Client feedback forms– Monthly stats and reports– Manager’s Evaluation

• Continuing Education opportunities• Access to Trade Journals, PT on the Net, Resource

Books, Audiotapes, Videos• Lecturing opportunities

A company that plays together,stays together!• Team Incentives• PT & Client outings

• Parties

Show Me The LOVE!• Do you know your team? How much face-to-face time do you give them?• The Heart Comes First!• Praise and Recognition = Great things happen when you give others the credit

• “Soft” rewards• Thank you cards, letters, notes• Post client feedback forms and letters in memo book, newsletter or on club

boards• Group incentives for meeting financial goals• Wildly celebrate all successes/special moments

• Responsibility and Authority– Team members must feel a sense of accomplishment, success and personal

achievement– Give your supportive trust– Know that it’s not always going to be done exactly as how you would have done it –

give the boundaries of success and practice self-restraint– This will also allow you to work “on” your business and not “in” your business –

empower and make yourself dispensable– Ask me my opinion – PT Survey

2. EXERCISE PROGRAMMINGSYSTEMS

• Client forms• Training templates - 1st session, 2nd session etc. • Type of Training Style• Personal Training Equipment usage• Develop cutting edge programs– Team Training options– Daily challenges– Seasonal challenges – Olympic Decathlon, Spring Makeover– Clubs & Clinics – Walking, running, hiking, biking, triathlon, fat

loss…

3. SALES SYSTEMS• Which systems do you have in place to enhance conversion to clients?• How do you track progress?

– Closing ratio– Retention ratio– Productivity ratio

• Which systems do you have to increase referrals?• Which systems do you have to follow-up with past clients?

– High yield activity for trainers – Face to Face Time & Phone Calls, Phone Calls,Phone Calls

• How often do you role play with your trainers?– Comp sessions– Overcoming Objections– Increasing client frequency– Asking for referrals

4. CUSTOMER SERVICESYSTEMS

• Which systems do you have in place to enhance clientretention and maximize client enjoyment and satisfaction?– Amenities– Motivational phone calls– Client follow-up– Letters/Cards/Parties/Client get-togethers– Foster friendships (Group Training, Events, Parties, Social get-

togethers)– Education– Trainer praise– Fun sessions– Results

5. ADMINISTRATIVE & ACCOUNTINGSYSTEMS

• Client inquiries• Pricing and packaging• Money handling• Scheduling• Revenue Tracking• Payroll• Client follow-up systems• Customer Service Systems• Policies and Procedures Manual

IMPORTANT!

• Need to get system automated and centralized!• Most departments fail to recognize the importance

of an automated system and a CSR staff thatmanages the day-to-day operations of the trainingdepartment so trainers can focus on high-yieldactivities

6. PERSONAL TRAINING DIRECTOR

• Responsible for Recruiting, Training, Hiring &Evaluating Trainers

• Responsible for all operational areas of the PTdepartment - administrative, promoting, customerservice, program development etc.

• Responsible for enforcement of all policies andprocedures

7. MARKETING “MUST HAVES” & INTERNAL CAMPAIGNS

• Brochure• Business Cards• Uniforms• Bios for Trainers – Posted & Framed– Highlight your trainers any chance you get

• A ‘spot’ for Trainers• Website/Social Media

IMAGE is everything!

Most fitness industry budgets do not allow for TV/Radio advertising– Let’s focus on print

• Develop eye-catching literature: establish an image and be consistent!– Color increases readership 30%

• Clean, clear, readable layout and typing. Use photos or professionalgraphics

• Clarity over Cleverness…where, how, why• Recognize the power of “You”• Use testimonials• Quality and no errors!• Use multi-use materials

Preparing Your TextWhat triggering events might have happened in your

potential clients’ lives to cause them to want or needyour services?

Reasons people will buy:• To feel good, be sexy, be attractive, have fun, be healthy,

save time, be comfortable, gain knowledge, for convenience,out of guilt, to feel important, live longer, save money...

• People buy to change!!

Alvin Eicoff’s Formula• State the problem• Explain the solution• Demonstrate how your specific service best provides

the solution

Can you come up with a promise, proposition, positioningstatement?

McDonalds, Coca-cola, Lenscrafters…Have you had your workout today?

Feel good in less than an hour

Most Important Tip!

Work with a professional. Make the investment – it will be well

worth it!

INTERNAL PROMOTIONS• E-Newsletter• Strong client referral system (feedback forms, client

information packages, gift certificates, clientincentives). – Some trainers ask each client for 3 referrals.– Send a personal thank-you note or gift to the person who

refers to you. – Phrasing of referral programs

INTERNAL PROMOTIONS

• Gift certificates - 90% renewal rate…• Complimentary 1st session for new clients• Offer monthly/quarterly Personal Training events for clients and

client friends/colleagues/family• Offer monthly/quarterly Health Lectures for clients and client

friends/colleagues/family

Internal PromotionsClub setting

• Bulletin boards (or local businesses)• Program flyers & brochures attached to all cardio machines and

displayed in key areas (or local businesses)• Use the club’s full membership mailing list to offer promotions• Spotting in fitness classes• Spotting/handing out literature in weight room (15 min. free tips)• Develop strong relationships with all staff

Initially, spend all your time and $$ ensuringinternal marketing initiatives are in order.

Then, once this task is accomplished, you cantackle External Marketing and pull bothinitiatives together for a complete plan!

Face to Face Marketing!• Chamber of Commerce & other business

associations– Leads & Needs– Trade Shows– Social Events– Seminars

• Business strategic alliances and Cross Promotions

Media Alliances• Develop a list of media contacts (print, radio, TV) in your

area• Do regular mail-outs and fax-outs to develop relationships• Offer to write a free weekly/monthly column• Offer free sessions and perhaps propose a “Fitness

Challenge” or “Getting into Shape Challenge”• Offer human interest stories

ESTABLISH A YEARLYMARKETING PLAN

• Examine each month for holidays, time of year,special local events

• Establish goals for each month in relation to yourinternal and external promotions

• Keep a detailed record of which promotions work andwhich ones don’t

9. DIVERSIFY YOUR REVENUESTREAMS

• Private Training• Group Training• Supplements – Energy bars, shakes, multi-

vitamins, joint support formula• Fitness products/Books• Fitness Education• Writing

The End…But really just the beginning!

www.nwFitnessEducation.comwww.BusinessofPT.com