Mike Arce, CEO of Loud Rumor, provides valuable sales training for gym and fitness studio owners. He focuses on the three main categories of increasing sales and revenue: gaining more members, selling more to existing members, and increasing pricing. Arce stresses the importance of having a sales mindset, targeting the right demographic, being a great listener, managing and feeding leads, using confident language, giving prospects certainty, and knowing your numbers. He also introduces Loud Rumor Virtual Training as a helpful business training program for gym owners.
00:00:00 , we'll tell you that sales is the lifeblood of any successful fitness studio or gym. In this section of the video, Mike Arce promises to deliver the most valuable sales training video ever created. He acknowledges that there are more than seven ways to increase sales and revenue in a fitness studio or gym, but he's going to focus on the three main categories: getting more members, selling more to existing members, and increasing pricing. He also encourages viewers to grab a pen and paper to take notes and interact with the training, which is 100% interactive and will include links to additional resources. Arce is the CEO of Loud Rumor, a company that has helped over 2,000 fitness studios and 50 franchises grow and get more members globally.
00:05:00 In this section, Mike Arce, CEO of Loud Rumor, talks about how they founded Loud Rumor Virtual Training (or LRVT), which is the best business training program for fitness studios and gyms across the world. They fly in some of the most successful fitness city and gym owners globally to teach members their strategies in sales, cross-selling, retail sales, retention, finance operations, referrals, hiring, firing, PR, and HR. He explains their three essential wants: a very profitable business, one that runs without you, and one that delivers an excellent product, and how these contribute to gym owners' long-term success.
00:10:00 important but sales is more than just trading goods or solving problems. In this section, the speaker emphasizes the importance of sales commandments and the mentality of a sales professional. He shares the principles and commandments of successful fitness studio owners, including having the right mentality and mindset. He asks viewers to share their definition of sales and emphasizes that successful businesses prioritize developing their people, delivering a good product, and increasing profits. The first commandment, according to the speaker, is to have the mindset of a sales professional.
00:15:00 In this section of the video, Mike Arce, CEO of Loud Rumor, defines sales by explaining that a sales interaction involves a salesperson identifying the problems and needs of a prospect, and matching them with their product or service in a way that is exciting for both parties to move forward. He goes on to compare how people can enjoy things like music or sports, but still dislike bad examples of them, to how many people have encountered bad salespeople, leading to a negative perception of sales in general. Arce also addresses the belief that some employees might have about not being salespeople, arguing that anyone who represents a company that specializes in sales needs to understand it at a foundational level.
00:20:00 In this section, Mike Arce, the CEO of Loud Rumor, shares his personal experience to explain why people tend to dislike things they are not good at and why proper training is essential for improvement. Mike also emphasizes that everyone wants what they sell, making the gym industry unique, and how there is never a peak because people seek better and more results. Many gym owners complain that the free trial clients come through the door with no intention of joining, but Mike explains how ludicrous this notion is as these people could have gone on a walk or done any other activity besides hitting the gym and making themselves uncomfortable.
00:25:00 In this section, the speaker emphasizes not to assume that people visit gyms just for a free pass and to avoid targeting everyone. He points out that it is important to identify a target demographic and that people buy what they can't afford if they want it badly enough. The speaker shares the staggering amount of money people spend on non-essentials like clothes and entertainment and emphasizes the importance of knowing if health and wellness is an essential or non-essential investment for people. He also shares the average number of times that an American woman starts or restarts a diet in a year and encourages gyms to provide an environment that motivates people to perform better, with the hope of making a change.
00:30:00 In this section, Mike Arce talks about how people often put off joining a gym because they believe they don't have enough time or money. Arce challenges this belief by citing statistics about the amount of time people spend watching TV and purchasing non-essential items, despite claiming they cannot afford a gym membership. He also uses Apple as an example of a company that targets a younger demographic, who are typically thought to have less money, yet they sell the most expensive products and have a two trillion dollar net worth. Arce urges gym owners to stop believing limiting beliefs about their target demographic and to focus on selling their service in a way that gets people excited to join.
00:35:00 In this section, Mike Arce, CEO of Loud Rumor talks about how salespeople should be great listeners instead of talkers to close more deals. Many salespeople make the mistake of telling clients things that do not matter. Instead, asking questions to learn about the client's wants, needs, and problems would help close more deals. The video goes on to provide a helpful tip on answering questions by returning them as questions, maintaining control of the conversation, and ensuring potential clients remain interested. Additionally, Arce emphasizes that sales is hard, not impossible, and that salespeople need to whip the horses, feed the tigers, and shoot the dogs metaphorically speaking.
00:40:00 In this section, the speaker compares salespeople to dogs, horses, and tigers to illustrate the importance of managing and feeding them leads. Dogs are helpless without ready-to-buy leads and require assistance from strong marketing. Horses can work hard but need guidance and management to stay motivated and achieve success. Tigers, on the other hand, are instinctively driven to succeed and require constant feeding of leads to keep them performing at their peak. The speaker also stresses the importance of speaking with certainty and avoiding weak language, such as "try," and how it can affect your ability to close sales.
00:45:00 In this section, the speaker uses a hypothetical scenario of a coach picking players for a crucial game to explain the importance of language in sales and business. He points out that the language used by gym owners and staff can have a significant impact on how their services are perceived by customers. He emphasizes that using language with certainty, avoiding the word "try," and articulating what one will do instead of what one intends to try to do can make a world of difference in sales and business. He explains that while people may not consciously pick up on these cues, they can have a significant impact on their perceptions of a business and its services.
00:50:00 In this section, Mike Arce discusses the importance of giving prospects certainty in their fitness journey and how to avoid creating a mindset that builds glass ceilings. He also emphasizes the need for consistent scripting to increase sales and provides an example of a successful sales rep who struggled until he started using the script provided by the company, resulting in a 500% increase in sales.
00:55:00 In this section, Mike Arce emphasizes the importance of knowing your numbers in the fitness industry. By identifying revenue and cost, you can pinpoint areas where you need to spend more or less money and determine if your business is winning or losing. Professionals focus on cost per acquisition (CPA) rather than cost per lead (CPL) as an effective way to determine the cost of acquiring a customer, as it is just one of seven key performance indicators (KPIs) that matter. Mike breaks down the numbers to show how much a conversation and a booked appointment would cost with a $2,000 ad budget, emphasizing why it is vital to track all the numbers and metrics in your business.
Mike Arce, CEO of Loud Rumor, shares seven ways to significantly increase sales for fitness studios and gyms. He stresses the importance of improving all seven levels, including contact rate, book rate, and closure rate, for better ROI. Referrals are also emphasized as beneficial for gaining leads at zero cost per lead while improving customer interactions. Advertising is discussed as not optional, and building effective email and phone lists is highlighted as the most valuable asset. The importance of knowing one's numbers, following up with leads, and increasing pricing and margins through upselling and cross-selling are also discussed.
01:00:00 In this section, Mike Arce, CEO of Loud Rumor, discusses the importance of knowing your numbers and improving all seven levels to raise ROI in the beginning stages of acquiring a member. He suggests that instead of just focusing on decreasing cost per lead, which is only one of seven levels that can be improved, it's more valuable to increase contact rate or book rate, for example. By working on the other six levels, a significant impact can be made on the ROI. Arce emphasizes the importance of improving numbers little by little, such as increasing the number of people showing up or closure rate, rather than just focusing on decreasing lead costs.
01:05:00 In this section, Mike Arce, CEO of Loud Rumor, emphasizes the importance of referrals for fitness studios and gyms. He asks the question of whether viewers would prefer 100 leads from Facebook ads or from referring members. He argues that it is more beneficial to get referrals, as the best studios get five referrals at the point of sale with each sale made. By improving customer interactions, studios can gain a significant number of leads they would not have acquired otherwise, and at zero cost per lead. By combining referrals with other strategies, studios can see an ROI of over 1800%, making it a valuable tool for gaining customers without breaking the bank.
01:10:00 you own, which is a combination of paid and earned traffic. In this section, Mike Arce emphasizes on the importance of advertising for fitness studios and gyms. He explains that advertising is not an option as brand obscurity can be very costly. He goes on to recount his experience during the recession of 2008 where he saved but did not invest, while in this current recession, Mike invested five times more than in the booming economy. He even offers to show anyone interested how the company spent five times more during the recession. He concludes by citing the three types of traffic- purchased, earned, and owned.
01:15:00 In this section, the importance of building and effectively using email and phone lists is discussed. The speaker emphasizes that a list of potential customers who have opted in to receive your communications is the most valuable asset for your business. There are three types of lists to build: retargeting, email, and phone lists. The first type includes people who have already shown some interest in your product or service. The latter two types allow you to stay in front of potential customers and maintain a connection with them. The failure to utilize an email or phone list makes it worthless and ineffective.
01:20:00 In this section, Mike Arce emphasizes the importance of knowing one's numbers in advertising, stating that having a clear understanding of the math behind ad spends and revenues can help turn advertising from a cost to a profit. He also stresses the need for a constant flow of leads and the benefits of running paid ads and following up with leads quickly to increase the likelihood of making a sale. Arce provides statistics from Hubspot to illustrate the importance of having a large pipeline and following up multiple times with prospects before giving up on making a sale.
01:25:00 In this section, Mike Arce, CEO of Loud Rumor stresses the importance of following up in sales, especially in the fitness industry. He cites a statistic that 44% of salespeople give up after just one follow-up call, and suggests that gym owners should call their own studios to see how their sales team handles potential customers. He even ran a "nickel game" experiment where he called 21 studios, but only one booked him. He emphasizes that following up with pause members and best members are important, as well as referral partners to generate more referrals and sales. Lastly, he recommends watching his episode with Mike Mikalowitz on how the best businesses spend time with their best people to scale their business.
01:30:00 In this section, CEO Mike Arce discusses three ways to increase sales for fitness studios and gyms: getting more members, selling more to current members, and increasing pricing. He emphasizes the importance of upselling and cross-selling to increase margins with ancillary sales such as retail supplements, water, drinks, and other products. Arce also advises gym owners to know the real objections and how to overcome them, and to use their intake form as a sales tool rather than a mere formality. The real objection, he explains, is a lack of certainty which can be in one of four categories: lack of certainty in the style of fitness, lack of certainty in the sales person, lack of certainty in the company, and lack of certainty in oneself.
01:35:00 In this section, Mike emphasizes that closing a gym membership is easier than it seems. By asking great questions early on and presenting the pricing correctly, coaches can successfully close a sale. He also encourages viewers to check out Loud Rumor's website to learn more about their program and potentially work with his team. Mike ends the video by asking viewers to comment on what they found valuable and what they plan to focus on implementing in the future, as he plans on creating more content based on their feedback.