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.
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.
Originally Posted by Jay Hanson
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