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Andrew Wallis

Free tool

What can I afford to spend to win a member?

Before you spend on ads, know what a new member is worth to you and the most you should pay to win one. Then check what you're paying now.

Before you start: what you'll need
  • Your average monthly fee. Last month's membership income divided by your number of members.
  • How long members stay, on average. Your number of members divided by how many leave each month. The free member loss calculator works it out for you.
  • Last month's marketing spend and new members, if you want to check what you're paying now. Count everything: ads, software, printing, and any help you pay for.

1. What a member is worth

Your members

2. What you're paying now

Optional. Fill these in to see whether your marketing is paying its way.

Last month

3. Spend in the right order

Foundations, kindling, fuel

Knowing your numbers is the last box to tick before paid ads, not the first. Think of marketing like lighting a fire:

  1. Foundations: a website that speaks to the right people, a complete Google Business Profile and plenty of good reviews.
  2. Kindling: short articles and videos that each answer one question your prospects ask. Mostly time, not money.
  3. Fuel: paid ads, behind an offer and message you've already proved, with follow-up that books every enquiry.

There's more in How much should a gym spend on marketing?

How the sums work

A member's worth is your average monthly fee for every month they stay. It's the same sum the Two-Brain Business State of the Industry report (opens in a new tab) uses for lifetime value.

The most to spend to win a member is a third of what they're worth. That leaves two thirds to pay for coaching, rent and everything else, and still make a profit. It's a common rule of thumb, and a safe one.

  • Your cost to win a member is last month's marketing spend divided by the new members who joined.
  • Under a third of their worth is healthy. Between a third and a half has little room for error. Over half, your marketing costs more than it should.
  • The budget check uses the rule of thumb from my article: spend 5% to 10% of revenue on marketing, nearer 10% when you're growing.

One month can be misleading: a quiet month makes members look expensive. If you can, use the last three months.

Figures are estimates to help you plan, not financial or tax advice. Nothing you enter is saved or sent anywhere.

Members who stay longer are worth more, so you can afford to spend more to win them. See what members leaving costs you with the free member loss calculator.

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