Are Paid Ads Worth the Investment for Your Gym?

Welcome to the Gym Marketing Made Simple podcast, your go-to resource for exploring the strategies that boutique fitness gyms need to thrive.

In today’s episode, we’re diving into the real impact of paid advertising on gym growth and whether it's worth the investment. Tommy Allen joins us to show how a gym using Lasso went from $19k to $47k in revenue over two years by leveraging paid ads. While paid ads target colder traffic, they provide more predictable revenue than relying solely on referrals.

We’ll explore how rising lead costs—from $5 to $27 to $37—require better systems and processes for managing leads. With a $750 ad budget, generating 50 leads at a 20% conversion rate, gyms are seeing a return of 380%, thanks to each client's $ 3,600-lifetime value.

Tune in to this episode to learn how consistent lead generation through paid advertising can support long-term success and growth for your gym.

Tommy offers valuable insights on building sustainable systems that ensure every dollar spent is worth it.

00:00 Intro

00:10 Paid Advertising vs. Referral-Based Marketing

01:49 Success Story: FIT Mamas

03:29 Challenges in Paid Advertising

06:53 Cost Per Lead and Self-Funded Client Acquisition

14:07 Realistic Expectations for ROI

14:34 Volume vs. Quality in Lead Generation

14:50 The Role of Paid Advertising in Business Growth

15:09 The Importance of Long-Term View in Marketing

19:18 The Impact of Paid Advertising on Business Revenue

24:42 The Role of Referrals and Organic Traffic

29:03 The Opportunity Cost of Not Working with Lasso

What lesson can you take away from this episode? Paid ads aren’t just about quick wins; they’re about creating a steady flow of new clients and building a long-term strategy for gym success.