Years ago I wrote about the gym business and what an amazing model it is. Basically gym’s are oversold by about 1500% of what they could possibly handle.
If everyone who paid for a gym membership actually showed up their would not be enough room in the gym for anyone to work out.
So gyms price everything based on this concept. They can charge far less because they know very few people will use their product… yet they will make money off them no matter what.
I have made money on this model at times… I know when I sell an info product that probably only 5% of the people that buy it will actually use it… after all if they did I would lose money because of the resources it takes.
The one thing you can count on when you sell anything that is going to require hard work is that 95% of the people will not do it. Period.
Keep in mind I have been in that mindset for a LONG time. Its only been in the last couple months since we did the PAR Program that I have had to completely change my outlook on my company.
I figured out why a couple of my previous ventures had failed… and why this one was going to succeed.
With the PAR Program we have 100% client consumption rate. Everyone has a dedicated account representative and we can do 100% of the work. We can do all the copywriting, graphics, programing, and whatever else the client needs and we only charge our true costs for that. If the client has it then there is no costs for that.
The bottom line is if you don’t consume it we don’t make money…
With the gym analogy its like you get a personal trainer that has a key to your house and ensures that you get exactly what you paid for.
For me this is a completely different model and its taken me a bit to really believe in it.
I am happy to say though that its working very well.
I guess this is what they teach you when you actually pay attention in college.
And I appreciate you guys who have sent me messages about the PAR Program and thanking me for sharing things as we evolve from the inside.
This blog has always been about me sharing my experiences… well that and selling you shit from time to time but for the most part sharing experiences!
I have built 3 companies that I have sold in the last 3 years. Some for multi millions. All of my readers went on the journey with me from start to finish.
On this one I am going to take you on a ride that I never have before in building a real company and taking it where I should have taken many before
.
Are Your Products F’n Nasty (NSFW)
6 Things I Learned From Sifting Through 724 Blogger Emails 



.jpg)







{ 19 comments… read them below or add one }
Solid
I wish you the best Jeremy for your new PAR Company.
I love it when you share your successes and failures to the world. It is so inspiring for a business owner to look at someone like you and be able to relate for once
Ughhhh biggest pet peeve of mine is going to the gym and not being able to run on the treadmill because they are all taken
Keep up the hard work and know that building a company is not easy but it pays off in the end that is for sure
I am ready to ride
Great business model by the gyms… wish there was a way to do that with other services like online businesses
I paid for a gym membership for 3 months before I froze my account and I got suckered into a personal trainer….
Thanks for all of the great information Shoe you are truly one of a kind in this space
Love the dedicated account manager to take everything off of my plate. I hate signing up for things and then never knowing where to start because I am so overwhelmed.
How many projects do you handle every year Jeremy?
This is pretty much it now.
Just on the gym analogy. If you haven’t already, you should check out Duncan Bannatyne’s biography. He owns a huge chain of gyms in the UK, and talks about indepth the dynamics of the business.
Thanks an extremely interesting way to look at the gym business model I never thought about it in that light before.
Im a fifth year senior business major and they don’t teach us half this crap and I actually do “pay attention”. Great advice, I love hearing from peoples personal experiences, keep it up and good luck
Keep on keeping on I have faith in PAR and what it can bring to its clients. while it isnt a good fit for me now I seriously plan on using it once my business gets rolling.
I managed a gym a long time ago and I wondered that too. We literally were signing 5 per each 1 that cancelled there membership.
The second model, where you pay for what you consume, is more consumer-friendly. It takes an ethical business to make a pro-active move to get consumers to maximize the value of their money.
You are so knowledgeable! Meet you newest fan:)! This is my very first time visiting your blog, and all I can say is WOW!! I thought I was making money via affiliate marketing, but after being on your blog a few hours, I see that I have left alot of money on the table:(. I would love to hear more about your trials in affiliate marketing.