How to Select the Perfect Gym Business Model?

How to Select the Perfect Gym Business Model

No matter whether you are a seasoned or a startup gym, it is never too late to evaluate your business framework, right? If you are perplexed about whether you are generating revenue using the best possible way, you are in the right place!

In order to streamline your gym business revenue, it is crucial to implement the right business model. Most gym business owners are only aware of membership- and subscription-based business models, but there are a lot more options. So, you need to pick one that aligns with your gym’s business objectives, services, and value proposition.

Wondering how to find the best business model for your gym? We have got you! Here, we will discuss various types of gym business models and how you can choose the perfect one for your gym. So, are you ready to learn more? Let’s get started!

Understanding the concept of the gym business model

A business model is basically the foundation of your gym business. It is a framework that helps you decide how your gym will generate revenue, operate administration, and serve customers. However, the business model may differ from gym to gym depending upon a few factors. These may include pricing structure, target audience, business goals, and services.

Types of gym business models

No matter whether you are a seasoned gym or looking to open one, you must know that there are numerous ways to run your business. Surprising? Yes, there are many types of gym business models you can choose from. However, it depends upon how you want to maximize your ability to make your gym business lucrative. So, without further ado, let’s take a sneak peek into the types of gym business models.

Membership-based business model

Whenever you think about gym business models, we bet the first thing that pops into your head is a membership-based business, right? A membership-based gym business model is the most prevalent approach to date. In its essence, membership-based models allow you to charge a fixed price for your services and facilities, typically monthly. 

The idea behind implementing this business model into your gym is to boost member’s interests. Simply put, when members monthly invest an amount, there are more chances for them to engage with your gym better.

The biggest advantage of the membership-based gym business model is that you get an anticipated revenue every month. Leveraging this business model, you can prevent fluctuating cash flow while sustaining your financial plans.

However, benefits come with downsides too, right? The primary disadvantage of employing a membership-based model is it can make your members feel bound and trapped. This means that they get charged for services they might not use very frequently.

Franchise business model

If you want to grow your business without putting in a lot of effort, the franchise gym business model is your way to go! For that reason, you can buy a franchise license to open your own gym branch. To put it simply, you can hunt a famous gym business chain and ask for a permit to start your own in their name.

Franchise business model

When someone buys a gym franchise license, it gives them a legal right to operate their business using the franchise identity. In the franchise business model, the franchisees can start a tried and tested business without any worry. So, it is a win-win situation for both parties.

Investing in a gym franchise is a lucrative option since it comes with a ready-made yet viable business plan. In addition to that, investing in a gym franchise provides you with better financial security. This simply means that there is less risk of losing your money as compared to motivation to start an independent gym business.

However, employing a franchise business model can be pretty challenging, too. As you know, buying a gym franchise permit can burn a hole in your pocket, so if you have a limited budget, don’t go for this option. Lastly, it offers you less flexibility than an independent business.

Pay-as-you-go business model

In the pay-as-you-go gym business model, the customers pay for the services when they avail them. This means if someone is not regular and visits every once in a while, they will have to pay only for the days they availed your services. However, pay as you go gym business model is not very viable for gym businesses.

However, employing this business model in your gym business can help you tailor customer experiences. This is also beneficial for customers who do not want themselves to be restricted to one membership. So, people who are interested in attending various classes can easily book different classes without worrying about buying memberships for all.

If you find it daunting to build a huge member base, leverage pay as you go model. In this model, you can offer profitable packages and a set of classes to your customers to boost their experiences. So, if you want to be consistent and be the easiest option for customers, this is your model.

The pay-as-you-go business model comes with a few drawbacks as well. You must know that employing this type of business model can not help you build a loyal and strong member base. In addition, the pay as you go model does not enable you to estimate cash flow.

Hybrid fitness business model

Over the past couple of years, the trend of the hybrid business model has increased wildly. The hybrid fitness business model is the one in which you offer options for in-person and virtual gym classes. This way, you can run your digital and physical gym business without any hassle, keeping your members happy.

To make a hybrid fitness business work, you must have a gym vicinity along with an online streaming platform or on-demand videos. Leveraging a hybrid fitness business model, you can enhance customer reach manifolds. This is because you have not only a physical customer base but a digital one as well.

One of the biggest benefits of building a business on the hybrid model is flexibility. Yes, you can allow your members to choose whichever option fits them best. In addition to that, the hybrid model approach improves members’ regularity and boosts attendance, making your business lucrative.

On the other hand, there are a few downsides to using a hybrid fitness business model. There are potential cyber risks with offering on-demand videos, which can be pretty upsetting. For that purpose, you must ensure you offer private links to keep your data secure.

Digital subscription business model

With 9 to 5 jobs and hectic routines, people prefer almost everything online. So, you can take advantage of that and start a digital subscription model. Additionally, if you are tight on budget, the digital subscription business model can be the wisest choice.

With the digital subscription business model, you can operate your gym business completely online. So, using the digital subscription business model, you can manage everything with just a few clicks, eliminating the need for you, members, and instructors to visit the gym facility to keep it running.

Needless to say, there are many benefits of an online-based business model. The biggest one is that you do not have to worry about setting up a gym facility and paying hefty rent. In addition to that, it eliminates the need for you to buy expensive pieces of equipment. Lastly, you do not have to stress over capacity limits or accommodating everyone.

However, starting an online fitness business is not free from risks; yes, you’ve heard it right. Since the pandemic, everything has been digitized, and so does gym businesses. That is why the competition is vicious, and it requires you to keep modifying your strategies to stay ahead of the curve. 

Tiered membership business model

The tiered membership is a very popular and premium business model that most gyms use these days. In this gym business model, you can offer several membership tiers charging different prices. These tiers may differ from each other on the basis of access to services, facilities, classes, and more.

Using this gym business model, you can categorize your members according to their interests. In addition, it helps you understand the different personas of your members, helping you to cater to them accordingly. So, by comprehending the pain points of your members, you can provide viable solutions.

The prime purpose behind the tiered membership model is how it offers flexibility to your members. With strict membership plans, members feel restricted, resulting in a declined member base. This way, you can enhance options for members, and they can choose what suits them.

However, there are a few drawbacks to the tiered membership business model. Managing tiered-based memberships is time-consuming and complicated. In addition to that, there is a high chance that the value of the proposition can be misguided, resulting in an increasing churn rate.

Key factors of the gym business model

Key factors of the gym business model

No matter which gym business model you find the best for you, there are a few key components you must consider. These are known to be the contributing factors to make your gym business successful. So, let’s take a look at the following:

Identify your target audience

First and foremost, identify your target audience. You must know who you are catering to so that you can tailor your services accordingly. In addition, it helps you choose the best gym business model according to the preferences and interests of your target audience. So, conduct thorough research in order to gain a better understanding of your potential consumers.

Understand your unique selling proposition

Find out what makes you unique among your competitors. For that purpose, it is vital to understand your unique selling proposition (USP). So, your USP can be anything that makes you better than your competition. This can be specialized classes, excellent customer service, or the latest pieces of equipment. So, create a tempting USP in order to acquire and retain customers.

Determine your pricing structure

Choosing the right pricing structure is paramount. So, make sure the pricing structure you choose for your gym business aligns with your business goals perfectly. In addition to that, your pricing plans must be according to your target audience and the services. Moreover, if you want to ensure a good customer experience, offer a flexible pricing structure. You can do so by offering packages, membership options, and add-ons.

Find the right location

Finding the right location is of utmost importance since it ensures easier accessibility. In addition, the right location helps you boost visibility, engagement, and a loyal customer base. So, look for a location that is near to residential areas. Another significant factor to consider while choosing your location is the availability of parking. Lastly, consider the competition in the area before finalizing your location.

Create an effective promotional strategy

Last but not least; an effective promotional strategy must be created. This is to boost your brand’s awareness and build a strong brand image. To create a viable marketing strategy, you can employ both online and offline marketing channels in order to engage with your audience in the best way possible. What’s more, it will help you boost customer acquisition and retention rates. 

How to choose the perfect gym business model

If you are on the hunt to choose the perfect business model for your gym business, there are a few factors you must consider. Wondering what are those? Let’s have a look below:


The right gym business model is the one that helps you scale your business. Well, who wouldn’t want a booming business? For that purpose, choose a business model that pushes you to meet the expectations of your target audience. In addition, it must have the potential to streamline revenue streams, cost management, operational efficiency, customer retention, marketing strategies, and more.


Know that the right gym business model is not set in stone. Instead, it gives you the power of flexibility and adaptability. For that reason, it is important that you stay aware of your audience’s interests and ongoing trends in the fitness industry. Moreover, the best business model enables you to make quick adjustments to ensure you stay ahead of the competition.


The right gym business model is the blueprint for your ultimate goals. For that purpose, implement your promotional strategies and assess the performance regularly. You must be certain that you are moving towards your objectives. So, make sure the business model you choose for your gym helps you streamline your milestones and pushes you to achieve them.

In a nutshell

We understand that finding the perfect gym business model can be hectic. However, the significance of the right business model for your gym can not be exaggerated. So, look into the multiple types of business models and figure out which one aligns with your business goals. In addition to that, you need to make sure that the business model you choose offers flexibility, adaptability, and scalability. Once you figure this out, do not hesitate to implement your chosen business model into your gym.