I've been getting asked questions the past couple of months about Lifetime Value (LTV).

It's something my team and I talk about A TON.

But what is it, why is it so important, and what is good?

The LTV of a member is the estimated amount of money a member pays you over the duration of their membership.

The larger this number is the happier you should be.

If your LTV is larger, that means you can have fewer members and make more money.

For example, if your LTV is 2,000 dollars compared to 1,000 dollars, you could have half the amount of members and make the same amount.

This means 50 members at an LTV of 2,000 dollars would pay you the same as 100 members with an LTV of 1,000 dollars.

What's even better... if you have 100 members with an LTV of 2,000 dollars, you are making TWICE as much as if you have 100 members with an LTV of 1,000 dollars.

To maximize the LTV for each of our members, we are always asking ourselves this question...

"If I never had the opportunity to sell a new member...

And could only service or sell my current members...

How would I service them and what would I sell them to make their experience better?"

This will make you think hard about how you can improve your service.

Improving your service is the biggest factor in improving your LTV.

Over the last 17 years, we have found that if we can keep our LTV for general memberships around 1,000 dollars and our LTV for training around 2,000 dollars...

We can keep our margins between 25%-30%.

Which is always the goal!

If you want access to more training like this.

You can do one of two things.

1) Join our exclusive Facebook group of gym owners & myself sharing what is working in 2023 by clicking here.
2) Request access to our Gym Growth Secrets Course. (usually $1,999 but today absolutely free) Get it by clicking here.

Hope this helps!

Andy