When it comes to getting new members, there’s no substitute for referrals. When someone refers your business to a friend, they turn into a salesperson for you! I don’t care how good you are at selling gym memberships – somebody’s friend will always sell better, faster and more efficiently than you can.
We have a new referral plan that we want to share with you. WARNING: THIS IS HOT! If you fully implement this new referral idea, attack it with excitement, and don’t give up we guarantee you will see memberships increase!
The entire goal with referrals is to set up SYSTEMS that will generate referrals for you even while you’re sleeping. There are simply not enough hours in the day for you to work, work and work for each new membership. So…..you need to set up referral systems that run on auto-pilot.
In a nutshell, pay $ for referrals. Here are some specifics:
Approach hair stylists and nail techs and ask them to put your brochure and referral cards on their stations. These referral cards say "50% Off Registration at [your gym], Compliments Of __________". When somebody joins your gym with that card, you will pay the stylist (whose name is on the card) a $10 referral fee. That's hot! Think about it.....a hair stylist and nail tech have a captive audience for at least 20 minutes. What you’re doing is motivating them to actively talk about and promote your business while they’re doing their regular job!
Consider if you were a stylist, and I approached you with this sentence: "Would you be interested in earning an extra $10 per customer?" Think you'd listen to my plan? This referral strategy will really take off, and who wouldn't pay $10 per member? The beauty is that you pay only for performance. You do not pay any referral fee for all the times that stylist 'gives your sales pitch' and doesn't close the deal.
By the way, you should also give the stylist or nail tech a 1-month free pass so they know what they're selling.
Now, I know that some of you are concerned about the thought of giving away 1-month free passes to stylists. Perhaps you’re also thinking that a $10 referral fee is far too much money for your advertising budget. If you’re thinking along these lines, then let me ask you a question…..
If I hand you $80 cash, and all I require in return is that you give me $10 back, is that a good deal? How about if I gave you $800, and all you had to do was give me $100 back. Is that still a good deal? OF COURSE! If I made you that offer, you’d be the first one in line! Well, that’s exactly the same offer you’ll get with this referral strategy! A new member pays you probably about $80 when they first join your club (this is a low estimate), and with this referral strategy all you need to do in return is pay the referrer (hair stylist or nail tech) a $10 fee! I’ll do that all day long!
If you’re worried about giving out so many 1-month free passes, then you can also put that short-term thinking to bed. Why? Because you need an educated sales staff out there, and the best way to educate this ‘referral sales staff’ is to have them experience your gym first-hand. Besides, a certain percentage of those hair stylists and nail techs will convert to regular, paying members at the end of their free month, bringing you even more revenue!
Still think a 1-month free pass is too much to give away? Think again! Bally’s Total Fitness recently did a nationwide promotion where they gave away literally MILLIONS of 1-month free passes. Bally’s isn’t stupid. They know that a certain percentage of those freebies will convert to paying memberships.
If you appreciate the information you're receiving for FREE from www.cuecd.com, then wouldn't this be a great time to refer us to other gym owners?
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