Lead Generation Powers Studio Profitability

High-Profit Studios Generate More Leads and Visits

According to our BFS 2024 State of the Industry Report, studios with high-profit margins (20%+) consistently generate higher lead and visit volume. In fact, 45% of high-profit studios (20+% profit margin) generate 50+ new leads per month compared to just 14% of low-profit studios (1–9% profit margin). The report also shows that a majority (44%) of all profitable studios cite referrals as the most effective lead source, while paid ads rank second, reported by over 20% of mid to high-profit studios (10%+ profit margins).

Turning Clients into Advocates

Strong referral systems begin with recognizing that your best clients are already your strongest advocates. Emily Montgomery, Marketing Strategist and Founder of Be Mindful Marketing, emphasized:

    “Your best customers and members are generally the source of referrals.”

Consistency across every marketing channel (email, in-studio signage, and social media) keeps referral offers visible and top of mind for members. Regularly reinforcing the message across platforms helps members remember to share your studio with friends.

Hensley Ellefritz, Fitness Business Strategist and Founder of Reboot Fitness Consulting, explained:

    “From what I’ve seen, the profitable locations I work with are doing a blend of all three. There’s an always-on member referral offer, plus at least one campaign a month, with digital marketing acting as the constant impression creator.”

Paid Ads as a Growth Lever

Paid ads were the second most effective lead generation tactic among profitable studios, which demonstrates that growth-oriented studio owners should include paid ads in their marketing plan as soon as they can afford to do so.

Anastasiya Goers, CEO and Founder of S&V Marketing noted that while referrals bring built-in trust, paid ads can complement that growth if used strategically.

“Referrals are always powerful because the trust factor is huge. Paid ads can work too, but it really depends on the business model. Class-based studios usually see strong results, while private training often struggles because the cost of ads gets really expensive.” 

Respond Fast and Reach Leads on Every Channel

The moment a lead shows interest, whether through a form, DM, or phone call, the clock starts ticking. Emily Montgomery, Marketing Strategist and Founder of Be Mindful Marketing highlights that:

    “You are 21 times more likely to make contact within the first 5 minutes of the lead submitting their name and information” 

For most studio owners, it’s unrealistic to manage this timely follow-up manually. That’s where processes and automation become essential. With the right systems in place, you can respond within minutes, even while teaching or managing your team.

Top-performing studios take that further by making contact through multiple touchpoints. Chris Appiah, Founder of The Sales Arms, explained that top-performing studios reach out through all three key communication channels (email, text, and phone) at the first point of contact. As he advises:

    “You don’t know where someone wants to be reached, so you have to give yourself the best chance of success.”

Combining quick response with multichannel outreach gives studios the best opportunity to turn inquiries into paying clients.

The Path Forward

From his conversations with operators, Julian Barnes, CEO and Co-founder of The BFS Network, emphasizes that the most profitable studios don’t outspend their competition, they outconnect them. Referrals, personal follow-up, and consistent marketing impressions create the momentum needed to reach higher profitability. The opportunity to grow your margins is already within your community: referrals and relationships are the engine.

Steps Studio Owners Can Take Now

Operators can apply this by:

• Creating an always-on referral program that gives members easy tools to invite friends.
• Running monthly activations such as bring-a-friend classes or referral challenges.
• Following up with every lead through phone, text, and email to maximize conversions.

Testing paid ads once budget allows to create impressions that reinforce referral conversations.

Explore More Resources

• Use THIS MARKETING PREP  WORKSHEET to build a strong foundation and understanding of your target client, brand, and the USP that you are offering.
• Use THIS MARKETING CHECKLIST  to set up a clear plan for how to position your offerings, gain interest from your clients, and convert them.
• Listen to Kelvin Gary, CEO and Head Coach of Body Space Fitness, to learn the secrets for creating effective referral programs. HERE>
• Watch the full Fireside Chat with Emily Montgomery, Fractional CMO and marketing strategist, HERE
• Watch the full Fireside Chat with Anastasiya Goers, CEO of SV Marketing HERE
• Watch the full Fireside Chat with Chris Appiah, Founder of The Sales Arms, HERE
  
  

About the Experts

Emily Montgomery – Marketing strategist and founder of Be Mindful Marketing, where she supports studios in growing membership with personalized campaigns and retention-focused systems.

▶️ Watch the full Fireside Chat with Emily, HERE

Hensley Ellefritz – Fitness business strategist and founder of Reboot Fitness Consulting, with expertise in membership growth, client retention, and operational systems for studios.

▶️ Watch the full Fireside Chat with Hensley HERE

Chris Appiah -  Founder, The Sales Arms. Over a decade of sales experience; previously VP of Sales for a major Xponential Fitness franchisee.

▶️ Watch the full Fireside Chat with Chris HERE

Julian Barnes – CEO and Co-Founder of The BFS Network, where he equips fitness entrepreneurs with insights, tools, and resources to achieve lasting success in an evolving industry.

Access the full State of the Industry Report