Thread: Too much $$$
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Old 10-23-2011, 12:18 PM   #57
Brendan McNamar
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Join Date: Mar 2010
Location: Glendale  AZ
Posts: 2,216
Re: Too much $$$

Just to give people an idea what it cost to get started.

I started my affiliate with the approach that I would not cut corners on equipment. I might not have a lot of it but what I have will be good equipment.

Including my Level 1 Cert. class I spent a little over $25,000 first year on my home affiliate. This money was spent between basically June 1st and Dec. 31st. I opened for business August 1st. My first year income from memberships was $1,955. I had another full time job.

I did start at a disadvantage because I had just moved 35 miles away from my job and where all my friends live. This causes my membership growth to be slower then normal.

Cash flow year 1 negative $23,045.

Now I have been open 14 months. I still operate from home but I use my full two car garage and a big room inside my house. I have about 30 members and bring in about $3,000 a month. I charge $125 a month for regular member, $90 for additional house hold member and first responders. More then half my members are additional house hold members or first responders.

I now need to both buy more equipment (I have 4 C2 rowers I need 4 more at $900 each for example, I need more of everything) and start to look at moving out of the house. This means rent or building payment of $1,250 to $2,000 a month. That is money that is no longer available to help me pay my mortgage on the house.

I will have positive cash flow for 2011. It won't be much. I'll only recover part of the $23,000 from year 1.

None of this counts pay for me. I currently work 55 to 60 hours a week on and at the gym. By the time I really start to draw a pay check I will have somewhere between 3,000 and 4,000 hours invested that were basically unpaid.

This is not a sob story. I have never been happier working then the last year. I love my job. It is incredibly rewarding to help my members accomplish their goals. I believe I charge a fair price for my area so I'm proud that my gym is a great value. As I grow I will build a better and better gym and also be able to pay myself, hire some help and take some days off.

Just wanted to dispel the idea affiliates are making a lot of money. Most are not.
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