Why Fitness App Companies Get Stuck Below $100M/year

We regularly speak with fitness app companies that are stuck below $100M/year.

At the same time, we've helped our client V Shred, originally purely a fitness app company, scale to over $200M/year.

How did they scale so much further? Your DTC spidey senses may conclude:

"They must just have better creatives."
"They must have split tested and found the perfect quiz funnel."
"They must be really good at retention."

Nope, nope, nope.

Whilst these things are of course true (they have hyper optimized their front end marketing and product), it's not what's helped them profitably scale so much further than all their competitors.

I assure you, all the fitness app companies stuck between $30M-$100M do these things. Their CMO's and Head of Growth's often read our articles. Right now I'm certain they're thinking: "This is true, we implement every single growth play we can think of."

So I think I've made my point clear. They didn't just do more of the same thing.

Instead, here's the big change they made:

We help them upsell 3.2% of their low ticket buyers into a $2,500 (AOV) weight loss coaching program, resulting in an additional $60M/year in revenue.

And since their LTV is now much higher, they've been able to significantly scale their ad spend whilst maintaining healthy net margins.

All the way to $200M/year in revenue.

Some fitness app companies have considered implementing a high ticket coaching upsell. But they unfortunately never get around to it because they run the math and have an internal conversation that goes something like…

"We would have to build a 300 person sales team and 150 person coaching team, which we've never done before and don't know how to do, let's set this idea aside for now."

Their lack of operational resources and relevant experience causes them to miss out on $10M's or even $100M's of additional revenue.

If you run a fitness app company and you're feeling the pain of this missed revenue, don't worry, we have a perfectly engineered painkiller that will alleviate this:

We can run your entire coaching operation, including the high ticket call funnel, sales team, and coaching team, and upsell around 2-3% of your users into a $2,500 (AOV) program.

Feel free to run the math to figure out how much additional revenue that'd be for your company.

And if that number sounds exciting, send me an email at hector.johnsson@1callclosers.com and we'll set up a meeting to discuss this opportunity further!

Hope this article was valuable!

Hector, Head of Partnerships