Gym Challenge 30x ROI

A story about how Alex Hormozi achieved exceptional marketing ROI with his gym challenge program in 2013.

"Let me walk you through the math. Back then Facebook was way cheaper - I was paying about $10 CPM. We were getting 4-5% click-through rates, so I'm getting 50 clicks for $10. My landing page was converting at 50%.

In some markets, we were getting 25-cent leads. The highest markets were around $5, giving us an average cost per lead of $2. We'd get their name, phone, or email. From there, we'd schedule 50-70% of those people, half would show up.

On closing, the average gym closes 35%. Our team averaged about 50%, but when Layla and I sold, we averaged 80%. We'd collect $500 upfront, then 24 hours later they'd come in for a nutrition consultation where we'd sell $200 in supplements.

Three weeks later, we'd talk about their long-term goals, and because they 'won' the challenge, we'd take that $500 and spread it over the next year as a discount. Three weeks after that, they'd get their first billing. So if you follow the money: $500 upfront, $200 in supplements, and then they'd start their recurring billing, even though they won the challenge.

Six weeks after that, we'd upsell them to a more personalized 1-on-4 training scenario with more advanced exercises."