TRANSCRIPT: GROUP FITNESS TRIPLE THREAT SERIES

 Welcome to part three of the group fitness triple threat. We've covered how formats are changing and who we're teaching. Now it's time to talk money. The next three episodes are all about the business of being an instructor in 2025.

we're kicking off with the topic every instructor cares about. PAY.  Instructor pay has been stagnant for two decades, but that might finally be changing. So why?  

It's because gyms are dropping expensive licences and redirecting budgets elsewhere. If you've been teaching for years, you've probably noticed that your paycheck hasn't moved much since the 90s.

And here's the kicker: adjusted for inflation, many instructors today are earning far less than they did 20 years ago. Let's break this down. In 1995, the average instructor pay per class for a mid market gym was around 15 to 35 US dollars. In today's money, Inflation adjusted, that is 30 to 70 dollars per class.

But look around, unless you're in boutique fitness, you are probably making 25 to 40 per class at best. So what has happened? Who's been eating up the budget? That's what we're getting into today. I'm Will Brereton, and we're talking about how license formats  have actually helped drive instructor pay down, and how the trend might just be reversing.

Let's go.

First up, the industry data.  Gym budgets are stretched. In the good old days, when a gym was made up of a studio and a weights floor, money for a group exercise was a slightly easier sell. But big box gyms, even if they genuinely value group exercise, are being pulled in a lot of directions.  They also have to funnel money into tech, equipment, digital memberships, functional spaces, recovery rooms, and even Ozempic, as we talked about in previous episodes.

Let's make one thing clear. This is not a case of gyms not wanting to pay instructors more. I've worked with hundreds, probably thousands of gym operators, and they always do value instructors. 

And budgets are being pulled in a lot of different directions. The reality is that license formats are great, but they come at a really high cost. 

If you're someone that doesn't know that much about group fitness but you're managing the profit and loss of a gym, this is how you're going to look at it.

If the gym fitness budget for group fitness classes is a thousand dollars per week, and that's supposed to cover everything that happens in the group fitness studio. And Les Mills or Mossa takes the first 500 for licensing fees, that only leaves 500 for instructor wages. 

That means that half the budget that could have gone towards paying instructors more has already gone out the door to a third party brand. No one is setting out with a goal of instructors being paid less, but it's just the logical result.

But, boutique and community gyms are leading the charge in pay increases.

Because they aren't paying for expensive format licenses, they can afford to pay their instructors more. In the UK, Workout Bristol, for example, dropped their licensing fees and reallocated funds directly to instructor salaries. Let's hear about how they did it.

The takeaway, instructors are worth more than they've been paid, and some gyms are starting to recognize that. 

Before we get into the analysis of the why, I want to make something very clear. As instructors, we can love what we do, know our purpose, and still think that instructor pay is broken.

I saw a social media post just this week making the note about low pay, and someone responded with this comment. "I feel like you've lost your why. It's not about the rate of pay, and whether you like the music. It's about inspiring others to get fit." My view, honestly, this is not helpful.

Wanting to be compensated fairly for the work you do does not mean you have lost your why. And this condescending tone doesn't help anybody, instructors or gyms alike. 

So let's look at why instructor pay has been stuck for 20 years. We think there's three major reasons. 

First up is the domination of licensed formats.

So back in the day Freestyle classes were once the norm. In the 90s, most classes were created by the instructor. That meant that instructors were valued for their unique skills. Today, many gyms  have spent their money on branded formats like Les Mills, which is cut into instructor pay directly. These brands have justified their high fees by saying the hard part- the music, the moves, the programming -was already done for instructors. This unfortunately has devalued the instructor's role. 

This is why licensed formats have contributed directly to the instructor pay problem. Even though the programming is really good, the message to gyms is that the expensive programming is what gets people into class. If the instructor leading it is really just following a set playbook that the gym has already paid a high fee for, why would they need to pay the instructor more money?

Next up, it's the rise of low cost gyms. Budget gyms blew up after the financial crisis. Their model? High volume, low overhead. No frills, affordable workout experiences that appeal to a broad demographic. Their low membership fees and streamlined facilities attract cost conscious consumers, making fitness accessible to many who might have previously been priced out of traditional gyms.

The biggest chains on either side of the Atlantic, Planet Fitness in the USA and Basic Fit in Europe, both chose to save costs by removing live classes from their offering. 

And then the third point is that digital fitness disrupted Everything. The last decade saw the rise of on demand workouts. 

Fitness brands that were previously business to business started competing with their own instructors for clients.  

If you're teaching a licensed format that's also part of an on demand offering, and the brand that creates it is saying that if you sign up for a digital membership, you can do classes with, quote, the best instructors in the world, then you're inevitably going to struggle.

But the great news for instructors is that digital has gradually lost its grip. More on that in another episode.  And most gyms are seeing a resurgence in in-person classes. Which is helping them to realize that they need great instructors to keep members engaged. 

As always, we're all about the actionable tip within 10 minutes, so here it is.

If you want to earn more as an instructor, here's what you can do:

First up is to push for freestyle or non licensed formats. Gyms save money by dropping expensive licensing fees, particularly when these aren't as popular or sought after as they used to be. So help them see that paying instructors who create community and bring in clients is the better investment.

Next up, understand your value. The best instructors don't just lead a workout, they build communities, they retain members, and they create experiences. Make sure that your gym knows that. Bottom line, the decline of license formats is an opportunity for instructors. 

The last thing I'll say is that if you're listening to this and you're teaching a license format and you feel you're getting paid fairly and you're enjoying your classes, keep doing it.

This podcast series is designed to give you a different perspective, Which you don't necessarily have to agree with. If you're happy, then I'm happy.  But if you do feel like some of the things in this podcast make sense for your position and you're not happy, then now's the perfect time to make a change.

So, that's the pay evolution breakdown for you. Next up, we're talking AI. Why it's not your competition, and how to make it your secret weapon. If you want the complete business strategy guide, download our free triple threat guide using the link in the show notes. 

Until next time, this is the group fitness, triple threat.