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Old 02-16-2011, 08:41 PM   #23
John D. Burch
Member John D. Burch is offline
 
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Join Date: Sep 2007
Location: Santa Monica  CA
Posts: 419
Re: Cost of opening an affiliate

Hey Jay,

I've seen a lot of interesting theories and formulas in this thread. Since the BIZ program I run with Andy Petranek has trained over 400 affiliates here's what I would like to know FIRST.

Why NOW?

Unless you must open a space why should you do it now. And when I say must open a space this is what I mean... you've outgrown your dirt cheap sublease or have too many clients in the park AND you've saved $20K. That's a "must open a space" situation.

What no one tells you about starting a business is the hardest thing to do is to get a following. If you get a following you can learn how to monetize the interest that is generated from them.

Think of it like this... a group of 30 - 50 clients (your fans/referral machine) working out in a park (zero/low overhead) making you $5 -$10 per workout is much better than... 4,000 sq ft (big overhead) with $20K worth of equipment (an expense not an asset... assets make you money monthly) and no clients.

Also - how hard do you want to work? The harder you work and the smarter your approach the quicker you will realize a profit.

I also haven't seen anyone mention any time or money spent on business development courses.

You want to know how to develop power so you attend a Oly cert. Great coaching - L1 cert... business... nothing?

Here's a free start... it's a a link to our business system. Because, to emphasize someones point, it's easy ONLY if you know what you're doing.
(WFS)
http://www.crossfitla.com/cms/index....iz/new-lander/

Quote:
Originally Posted by Jay Hanson View Post
I'm currently exploring my options in terms of opening a new affiliate. I know what kind of money it costs to buy equipment. But what kind of total overall costs can I expect to run into to get my affiliate up and running? I'm sure I am overlooking some of the costs. I know there is the annual affiliate fee, equipment, rent, insurance, web hosting, advertising, etc. How long before I can expect any profit? Or how many clients are necessary to turn a profit if they are paying roughly 120/month? Any help/advice/tips would be greatly appreciated. Thanks
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