How did CrossFit gyms fare in 2024? The new State of the Industry report sheds light on the business.
Three Key Takeaways
1. Client Retention Has Improved
In 2023, the average length of client engagements was 7.8 months worldwide. This year, this number jumped to 18.6 months in the United States and 23.7 months in Europe. This is particularly notable because, according to the report, the average gym owner can earn an extra $45,000 a year simply by increasing their length of client engagement by two months.
2. Coach Pay Needs Improvement
In 2023, coaches earned an average of $27.36 an hour to lead a group class at a CrossFit gym. This year’s report saw this number jump to $32.50 an hour, up by 15%. However, overall coach income has not increased. In 2023, the average annual wage of the highest-paid coach at a CrossFit gym was $30,408, which actually decreased slightly this year to $29,338.
3. Membership Rates Are Still Too Low
Membership rates have largely remained stagnant at CrossFit gyms in the last year. In 2023, the average cost for a group class membership was $165. This year, the average revenue per member at a CrossFit gym (where 88% of their revenue comes from group class membership fees) is $167.76.
One Big Thing: The Top Gyms Are Doing Well
When it comes to owner benefit — meaning owner take-home pay plus business profit — the top gyms are doing well and making most of the money. The mean owner benefit in 2024 was $7,291 a month, while the median was just $4,000 a month.
The Big Picture
According to the State of the Industry report, there are some hopeful trends in the industry right now: Clients are staying longer, and the top gyms are earning a good living. However, there’s still a lot of work to be done. There still aren’t enough full-time coaches earning a professional wage, and many gyms still aren’t charging enough for long-term success.
Conclusion
The State of the Industry report provides valuable insights into the CrossFit gym business. While there are some positive trends, there are also areas that need improvement, such as coach pay and membership rates. To succeed, gym owners must focus on increasing their owner benefit and making their businesses more profitable.
FAQs
- What is the average length of client engagement in the CrossFit gym industry?
- In 2023, the average length of client engagement was 7.8 months worldwide. This year, this number jumped to 18.6 months in the United States and 23.7 months in Europe.
- What is the average coach pay in the CrossFit gym industry?
- In 2023, coaches earned an average of $27.36 an hour to lead a group class at a CrossFit gym. This year’s report saw this number jump to $32.50 an hour, up by 15%.
- What is the average revenue per member at a CrossFit gym?
- This year, the average revenue per member at a CrossFit gym (where 88% of their revenue comes from group class membership fees) is $167.76.
