How 7 Mile Strength and Fitness Became a Three Seal Madlab Facility
In 2014, 7 Mile Strength and Fitness owner Carl Brenton sat down with one of his full-time coaches, Chris Spigner, to chat about the direction the gym was going.
Spigner, who was being paid a salary at the time, was coming off his best year so far, but not because of his salary. This was because he had started doing some additional personal training sessions, where he was compensated on a percentage of revenue basis.
Though Spigner had had a good year, 7 Mile in Grand Cayman wasn’t doing so well. Brenton, a full-time accountant of 25 years, knew he needed to make a change in order for gym ownership to be worth his time.
Through their conversation, they realized something was amiss when it came to their business model: It wasn’t designed for all parties to win.
“When I was on salary, if the gym made more money, I’d still make the same amount, but if the gym suffered, they still had to pay me. It made no sense,” Spigner said. “If we gained members, the gym would benefit, but if the gym lost members, the business suffered and I’d still get paid.”
In 2015, Brenton came across the Madlab Group and was sold on the idea that all business decisions must be made in order for the coach, the client and the business to win. He joined the group and began rolling out the Madlab business model at the start of 2016.
Five years later, 7 Mile Strength and Fitness is a Three Seal Madlab facility. Read more about our Three Seal Accreditation process here.
Effectively, this means:
- Brenton has built a sellable asset,
- he has four full-time coaches who work together in a coach co-op and earn a professional wage,
- his client retention is above 85 percent,
- and the gym is financially profitable year-after-year.
7 Mile’s gross revenue between 2015 (pre-Madlab) and 2019 (four years into Madlab):
2015 gross revenue: USD$368,000
2019 gross revenue: USD$875,000
Not only has Madlab helped Brenton develop a profitable business with professional coaches and loyal clients, he also credits Madlab with saving his business, not just once, but twice. The first time was in 2016, and the second time most recently amidst the coronavirus pandemic.
“The first time was when we had to move locations on five weeks notice, and we had $80,000 in the bank (thanks to the changes Madlab helped us make). We would’ve had to shut down if it weren’t for their help,” Brenton said.
“And the second time, through the pandemic. We have maintained 85 to 90 percent of our members. Madlab’s focus on building relationships is what saved us during the lockdown,” he said.
As a result, revenue remained constant through COVID-19, clients continued to remain fit and his coaches continued to earn a professional wage through the closure.
Spigner has been earning a professional wage for five years, and each year he has been able to increase his earnings.
He has 70-plus clients on hybrid memberships, meaning they do a combination of group classes and personal training. He earns a percentage of revenue off each of these clients’ monthly dues.
The percentage of revenue model has been key to him being able to earn a professional wage, and hybrid membership model has been a key to high client retention, he said.
“For me, being compensated a percentage of revenue has made the relationships I have with my clients much closer. I am in control of my own business, and work harder than I ever have before. If the client is happy, the coach is happy, then the gym is happy. Everything is set up correctly for the success of everybody,” Spigner said
He added: “Keeping your tribe and building real relationships with clients changes everything because you really have to become a professional coach or you won’t make it…The Madlab system has been invaluable to me. I can’t imagine doing it any other way.”