Investing in Yourself: What’s the ROI?

Return On Investment (ROI) is a measurement of the profitability of something. We try to predict it before making an investment and then we measure afterward to see if it was profitable.

In the fitness realm, businesses invest in equipment, programs, people, etc. in the hopes that the investment more than pays for itself in the end. Members and clients invest in their health and wellness by joining clubs, programs, and hiring personal trainers with the intent that it will pay off with added health and a better quality of life.

Pretty much everything we do has an ROI. Even donating or volunteering for a charity has the ROI of making us feel better about ourselves for having done so. Our ROI decisions aren’t always a conscious thing, but maybe we should start to make these decisions more consciously.

For fitness professionals, I’ve seen too many underinvest in themselves and their careers because “they can’t afford it”. “I can’t afford to go to that conference, take the course, hire that coach, or pay for that system.” But what if you actually looked at the return on those investments?

I had a personal trainer that used to work for me who would complain about doing paperwork(reporting client sessions and payroll) when she could be training and making more money. My suggestion was to hire someone to do it for her. If she paid the individual $15 an hour and the trainer could fill that hour with a client then if the trainer makes $45/hour (just picking a number) she still comes out $30 ahead and saves herself from a task she didn’t like doing. She never did hire the help.

What about conferences, certifications, a programs? What’s the total cost? Would what you learn help you get more clients? How many client sessions would it take to make it profitable? Let’s just say that the personal trainer makes $45/client session and the event or program could yield 2 additional client sessions/week. What kind of income are we talking?

  • 1 wk = $90
  • 2 wks = $180
  • 3 wks = $270
  • 4 wks = $360
  • 8 wks = $720
  • 52 wks = $4,680

How much was that conference, certification, or program again? What’s the ROI on it? Was the return higher than the investment? Rather than just looking at the investment number and letting your gut reaction stop you from making the investment, figure out the potential ROI and let that guide your decision.

Don’t be afraid to invest in yourself and your career if it’s going to give you the return you want.

What’s Getting One More Client Worth?

I’ve known many personal trainers through the years who “couldn’t afford” to pay for further education, mentorships, networking groups, and/or services that could help them build their business. It’s interesting that the inability for those trainers to see the value is not so different from how some individuals looking for health and fitness results balk at paying for personal training. It’s about finding the value.

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Now, not all programs or products are worth it and that’s why you want to rate each offering individually for its value.

As personal trainers, one of the basic questions is, “Will this get me more clients, and, if so, how many?” When you look at the value of a new client, you are also not simply looking at one session, or a week’s worth of sessions, but what the lifetime value of gaining this client.

To figure out the lifetime value of a client, look at how much you receive for the average personal training session (your income, not the fee they pay), multiply by the average number of times per week that you meet with clients, times the number of weeks you train clients each year (hint: it’s never 52), and finally multiply that by the average number of years that clients stay with you.

In example:

  • Average income/client session = $35
  • Average sessions/week = 2
  • Typical weeks/year = 46
  • Lifetime of client = 7 years

$35 x 2 = $70, x 46 = $3220, x 7 years = $22,540

Yeah… that’s right. The lifetime value of one new client could easily be $22,540!

So, back to the question. Is spending $500 (or more or less) on a program, conference, or… whatever, worth it? If it will get you one or more clients that you wouldn’t get otherwise, the answer really is easy. Yes. How can you afford not to?

Invest in the future of your business.