Running a gym is a hands-on business: coaching, programming, sales, marketing, accounting, handyman work, and everything in between. Needless to say, it’s a grind.
This raises the question of passive revenue streams: Can gym owners generate passive income to lessen the need for constant effort?
Two-Brain Business owner and business mentor Chris Cooper doesn’t really think so.
- “There really is no such thing [as passive revenue]…Subleasing your space is about as close as it gets,” he said.
While subleasing some of the gym’s space might be a good option for certain gym owners, it can be difficult because finding the right sublessee is hard, and you need to have enough space to rent out initially.
With all that said, while truly passive revenue might not be possible for a small gym owner, there are definitely some strategies to create essentially “hands-off revenue” – income that doesn’t significantly increase your workload.
Three Ways to Build “Hands-Off Revenue”
1. Unattended or 24/7 Access
Offering unattended or 24/7 access can be an effective way for small gym owners to generate easy revenue.
In case you missed it: HybridAF is a company many CrossFit affiliates are using to provide unattended access.
- They offer an app-based entry system for your gym, letting members and drop-ins access your facility with their phone, removing the need for physical keys, cards, or door codes.
Furthermore, HybridAF integrates with all popular gym management platforms, enabling users to register, sign the waiver, pay, and access the gym without requiring any effort from the gym owner.
- “Some gyms in our network are able to generate quite literally thousands of additional dollars a year in what is essentially passive revenue,” Phil Tabor, one of HybridAF’s founders, told the Morning Chalk Up. “On top of it, helping gym owners add revenue, it can also be a cost-savings as, for those who offer open gym hours, they no longer have to staff the gym during these times.”
Joe Tepe, owner of The Strip Barbell in Las Vegas, NV, charges $25 for each drop-in and sells over 60 passes weekly, which requires no extra effort from him.
Beyond drop-ins: If your gym isn’t located in a busy tourist area, you can still generate income from unattended access through other methods.
- 1. Add-on fee: Many gym owners in the HybridAF network charge an extra fee between $25 and $75 for unattended access on top of regular group class memberships.
- 2. Unattended access-only memberships: Other gym owners provide an unattended access-only membership option and have found it to be an excellent way to attract new members.
- Lexi Bengston, who owns Hybrid Fitness in Chippewa Falls, WI, said that allowing unattended access helped her gain 10 new members in the first month of offering it.
- Raise your rates: Finally, some gym owners offer unattended access as part of their regular memberships, and this value addition makes them more confident in raising their rates to match the upgraded membership they provide to all their clients.
2. Apparel, Especially Hoodies
A well-timed apparel drop, such as a fall hoodie launch, can quickly turn into a profitable venture with little financial risk. Also, if you take pre-orders, you won’t face any upfront inventory costs.
According to Matt Albrizio from the apparel company Forever Fierce, gym owners can easily earn $1,000 to $1,500 or more from a single hoodie campaign.
- “With a well-executed plan, gyms [with 100 to 150 members] should see $2,000 to $7,000 a year from apparel,” Albrizio added.
Worth noting: Forever Fierce handles all the design and behind-the-scenes work for the gym owner, so once the yearly plan is in place, the gym owner really doesn’t need to spend any more valuable time on apparel, Albrizio explained.
- Read more about Albrizio’s Q4 apparel tips here.
3. Downloadable Evergreen Programs
Although individual design can take time, creating a scalable program that you can sell is an effective way to earn extra income with less ongoing work.
- These programs can be uploaded directly to your gym management software, enabling members to pay from their phones.
Pro tip: If you don’t want to pull people away from group classes, design them as supplementary – to be added on top of their regular training program – rather than stand-alone training sessions.
Three ideas:
- My first pull-up: Create a multi-level program that includes pulling and accessory exercises for individuals to do before or after class, helping them achieve their first pull-up or muscle-up.
- My first HYROX race: Design a three-month program that offers additional homework alongside regular group classes for those training for their first HYROX race.
- Glutes and hammies: Create a posterior chain accessory workout to do after a regular training session.
One More Thing: Personal Passive Revenue is Possible
Veteran financial advisor and CrossFit fan Ben Beck identified the economic hurdles of operating a gym.
- This is why, earlier this year, his firm, Beck Bode, launched Forging Elite Finance, an educational division of the company that provides tools, guidance, and accountability to gym owners and athletes, helping them build long-term financial resilience.
Beck works with both CrossFit Games athletes and gym owners to manage not only their business finances but also their personal finances. He emphasizes the importance of investing even a small amount, so your money starts generating income passively.
Many people mistakenly believe that you need a lot of money to start investing, Beck explained, but he compares this to someone thinking they need to get fit before joining a gym.
- “That is the most wrong outlook you can have,” Beck said. “You just need to start. Progress over perfection.”
- Read more about Beck’s financial tips for gym owners here.
The Big Picture
While true passive revenue may not be realistic in the gym business, it is possible to find easier ways to earn income without increasing your workload.
Unlocking these opportunities can significantly help small gym owners establish sustainable, scalable systems without burning out.
