When we speak with high-performing studio owner (those operating with 20%+ profit margins), we are always struck by one thing: it's not flashy marketing, secret pricing strategies, or the latest piece of equipment that drives their success. It's simplicity, executed with discipline.
We’ve analyzed hundreds of studios across markets and modalities. The most profitable among them follow a consistent framework I call F.E.R.: Find. Enroll. Retain.
Let’s break that down.
The studios earning the highest margins generate 50+ new leads per month. That number isn’t a coincidence; it's the result of building a consistent referral engine, investing in community partnerships, and optimizing their digital presence.
These studios aren’t spending recklessly on ads. Instead, they’ve refined the systems that bring in leads without constant reinvention. And when they do run paid campaigns, they know exactly what ROI to expect.
Key stat from our State of the Industry report: 45% of high-profit studios report generating 50+ leads per month. Among low-profit studios, that number drops to just 14%.
Finding leads is only step one. What you do next determines whether you’re running a profitable business or just an expensive hobby.
Top studios convert over 30% of leads into visitors, and just as importantly, they convert those visitors into paying members. This doesn’t happen by accident. It’s the result of:
The studios that do this well don’t let leads sit in the inbox. They have automation, follow-up, and accountability in place.
From the report: Studios with 20%+ margins maintain a lead-to-visit and visit-to-purchase conversion rate of 30% or more.
Retention is where profit lives. You can’t spend your way to growth if you're leaking clients out the back.
Studios with the strongest profitability:
This only happens when operations support the in-class experience, and when the post-enrollment journey (onboarding, engagement, upgrades) is treated as seriously as acquisition.
High-performing studios prioritize consistent check-ins, usage tracking, and long-term member pathways.
The studios achieving 20%+ profitability didn’t get there by being in the right zip code. They got there by building a business system, not just delivering a service.
The F.E.R. model gives you that system. It’s not a theory, it’s a proven operating rhythm.
So ask yourself:
If you can’t answer those questions, you’re not running your business... you’re reacting to it.
Let’s change that.