CLV: What is & Why Is It Important?

In our Private Client Coaching, one thing we work on most commonly is changing what gyms charge for their training. Most gyms completely undercharge for three reasons.

A) They feel like they need to cut their prices to compete,

B) They feel like they’re doing a disservice to their client by taking their money,

C) They don’t feel confident enough in selling their products.

If you run a training facility and your rates are under $200 a month, this is for you.


The Same Can Be Said For Clients Who Pay More For Training.

Take my gym for example here – these are also numbers we see this pretty commonly with marketing for gyms – the clients paying $199 or less stay on average at 9.8 months, just under a year. The clients that pay $399 or more stay with us for 36 months. Why is this? Well, for starters, the level of service is different. They also value the service more because they’re paying more. Finally, they’re older on average at that price point, which means they’re more established and have a higher disposable income.

Because of this data, we made a shift to focus only on small group training. We charge less for Bootcamp, or large group training and they don’t stay as long, so we focus on the group that stays longer and spends more – or has a higher client lifetime value (CLV).

We can absolutely make the same amount of money with the lower-paying clients, but we’d have to work so much harder. The CLV at $199 is $1,950. The CLV at $399 is $14,364. Which would you rather have?

Money Keeps Your Clients Accountable.

If it was free, they wouldn’t show up. If it was free, they wouldn’t put the effort in. If they didn’t put the effort in, they wouldn’t get results. They’re not paying to learn how to do a deadlift, that’s free on google. They’re shopping accountability and results.


People do not value things that are free. Let’s consider the difference between a free trial client and a paid trial client. Person A puts their contact information for a free week, if they don’t show up, there’s no loss. Person B pays for $89 for a trial, they are much more likely to show up because they don’t want to waste that money. They value it.

How Many Clients Can You Really Handle?

Does it make more sense for you to get 200 members at $399 a month, or is it actually realistic for you to get 1,473 members at $199 to make the same amount of money? Most people would rather have the first once they look at the long term numbers.

Are you undercharging? Do you need help changing your pricing to retain your clients longer? To make more money? And really change lives? If so – book a breakthrough call with us today. Let me help you build your business to grow.