Aug '21
"A strategic position is not sustainable unless there are trade-offs with other positions" -Michael Porter
Almost all existing fitness and wellness facilities earn revenue from the client, the end-user of the space. Setting the end client as the customer has led most gyms and facilities to lose focus on the individual who provides the most value to the clients, the wellness professional. This current model underpays wellness professionals (avg wage $40K/yr) and has gyms and fitness facilities relying on low prices to drive customer demand.
We believe this old model is no longer sustainable and that the business model of the future focuses on the wellness professional as the customer. This is the critical strategic trade-off we are making with Maverick Community… our customer is the wellness professional, NOT the client. We believe that if we provide the best experience for the wellness professional to run their business, they will give the best experience to the end-users of the space.
Any time you pioneer a new business model, there are always unknowns that won’t be solved until the business runs for a significant period. While the plan behind our revenue model isn’t fully baked, we believe that if we deliver an affordable and unique experience to the people who provide the most value (the wellness professional), we can quickly achieve growth and profitability.
The scarcity and high barriers to entry (wealth) of physical space (real estate) are drawing wellness and fitness entrepreneurs to our Playa Vista location. We are enticing them to book consistent sessions by offering affordable rental rates combined with equipment and services. We plan to drive wellness professionals in the door at a low rate and make a significant profit on additional services offered (social media management, content creation (filming, editing, photography), brand sponsorships/collaborations, sponsored content & product placement, digital content sales (live stream + on-demand), teacher training creation, custom merchandise/fitness equipment procurement, graphic design, fitness + wellness certifications, bookkeeping, legal assistance, insurance reselling, retreat planning, event planning, etc.).
On the expense side of things, our business model also allows us to employ fewer people as our wellness professional instructors are not employees (not W2 nor independent contractors). We are also taking this further with a goal to be staffless minus a cleaning crew and a production crew, the latter is only needed if the wellness professional is paying more to shoot 4K on-demand video (as opposed to live streaming, which we are automating).
Additionally, our unique business model enables us more opportunities to make more efficient use of our space. Traditionally, gyms and fitness studios have heavy use in the early morning and the evening. This results in ~6 hours of being busy and the rest of the day + night being quiet. Maverick Community solves this issue by providing diverse co-working space for our wellness professionals that is good for teaching in-person and allows for a beautiful and easy-to-use filming environment. As the business grows and we learn more, we will find our studios' perfect distribution and size.
Shout out to Chris Moreno for talking through this concept with me and giving me the Roam (in Atlanta) vs. WeWork example where Roam is cheaper than WeWork but makes a lot of money on additional services.