Last year, fees for club lessons and instruction increased by 1.49% over 2009. This accords closely with the increase in fees for “all items,” which rose by 1.64% between 2009 and 2010. However, fees for club dues fell by 1.75% last
year, reflecting intensified competition in terms of dues pricing among competing club businesses.

A month-to-month comparison reveals that, in December ’10, club dues were comparable to those in December ’09,reflecting a negligible increase of just 0.33%. In the previous one-year period, from December ’08 to December ’09,dues had dropped by 1.68%.

Pricing consistency from December ’09 to December ’10 suggests that, by year’s end, club operators had identified the right price point for consumers.

Reflecting the yearly trend, prices for nondues services recorded modest increases in December for the second consecutive month: fees for lessons and instruction were up by 1.07%. Steady-to-increased pricing for nondues items
continues to demonstrate that operators can capitalize on ancillary services while consumers remain sensitive about membership dues.

Last year, fees for club lessons and instruction increased by 1.49% over 2009. This accords closely with the increase in fees for “all items,” which rose by 1.64% between 2009 and 2010. However, fees for club dues fell by 1.75% last
year, reflecting intensified competition in terms of dues pricing among competing club businesses.

A month-to-month comparison reveals that, in December ’10, club dues were comparable to those in December ’09,reflecting a negligible increase of just 0.33%. In the previous one-year period, from December ’08 to December ’09,dues had dropped by 1.68%.

Pricing consistency from December ’09 to December ’10 suggests that, by year’s end, club operators had identified the right price point for consumers.

Reflecting the yearly trend, prices for nondues services recorded modest increases in December for the second consecutive month: fees for lessons and instruction were up by 1.07%. Steady-to-increased pricing for nondues items
continues to demonstrate that operators can capitalize on ancillary services while consumers remain sensitive about membership dues.

THERE ARE three basic stages when selling memberships.

This three-stage process incorporates planning, teamwork and determination.

Stage 1:
Identifying leads “Leads” are individuals whose demographics (personal characteristics and behaviors) align with the demographics of your members,
and have given an indication that they might be interested in a membership. Examples of leads include individuals who complete a lead card, responded
to an advertisement or called because of a direct-mail piece they received. Leads are individuals who, when exposed to the features and benefits of
your facility, may become more interested and eventually decide to join. The process of generating leads should be the top priority of your
membership sales team and marketing department. The lead-generation process involves two distinct phases. The first is marketing, which is designed
to generate consumer interest and awareness of your fitness center. The second is lead tracking, or database mining, which enables you to place a
name with a lead. You should make every attempt to get the mailing address, phone number and email address for each person who calls your facility,
responds to a lead card or marketing piece, attends a health fair or visits using a guest pass. Generating leads is a full-scale effort that ties
marketing to information collection.

Stage 2:
Qualifying prospects A prospect is a lead who has expressed a need for or an interest in your fitness
center. Accordingly, a prospect is more likely to become a member than someone who is a lead. Turning leads into prospects occurs in many ways. The
most critical factor is talking with the lead and identifying his or her desires and needs, and then having the salesperson offer solutions through a
facility membership. Core marketing strategies that are likely to be successful at generating prospects include member referrals, guest visits from
distributed guest passes and referrals from corporate accounts. Leads turn into prospects when they indicate, verbally or non-verbally, that your
fitness center offers them an opportunity to fulfill a specific need, when they have previously been members of another fitness facility, have a
history of exercising and want to resume the activity, are looking for a way to achieve a fitness or weight-loss goal, have contacted the facility
based on the recommendation of a current member, have taken a tour of the fitness center or have used a guest pass. When your sales members determine
that a lead has become a prospect, it is their responsibility to move forward with the final process of closing the sale.

Stage 3: Closing the sale
The process of moving a prospect to membership usually takes place in one of two ways. The first is referred to as “relationship selling,” where
prospects choose to become members because the facility has demonstrated that it can fulfill an expressed need. The second method is often referred
to as “high-pressure sales,” wherein the salesperson applies pressure for the prospect to join using certain “closing” techniques. The relationship
approach is likely to generate the highest closing percentage (i.e., the percentage of prospects who become members) and the highest quality member,
while “high-pressure” closing techniques usually produce high closing percentages, but low-quality members. Relationship selling usually brings in
members who will remain members. This method involves an indepth process of uncovering a prospect’s needs and then connecting your services to those
needs.

This process does not intimidate the prospect, and it does not employ discounting or other rehearsed processes to move the prospect to
membership. As easy as 1–2–3 Membership sales — like most things of value — do not occur by accident. Rather, they are a byproduct of a wellthought-
out plan. Each stage involves a number of key steps that are an essential part of selling memberships.

The three stages of membership sales take
individuals from leads to prospects to members.Generating leads should be the top priority of your membership sales team and marketing department.

THERE ARE three basic stages when selling memberships.

This three-stage process incorporates planning, teamwork and determination.

Stage 1:
Identifying leads “Leads” are individuals whose demographics (personal characteristics and behaviors) align with the demographics of your members,
and have given an indication that they might be interested in a membership. Examples of leads include individuals who complete a lead card, responded
to an advertisement or called because of a direct-mail piece they received. Leads are individuals who, when exposed to the features and benefits of
your facility, may become more interested and eventually decide to join. The process of generating leads should be the top priority of your
membership sales team and marketing department. The lead-generation process involves two distinct phases. The first is marketing, which is designed
to generate consumer interest and awareness of your fitness center. The second is lead tracking, or database mining, which enables you to place a
name with a lead. You should make every attempt to get the mailing address, phone number and email address for each person who calls your facility,
responds to a lead card or marketing piece, attends a health fair or visits using a guest pass. Generating leads is a full-scale effort that ties
marketing to information collection.

Stage 2:
Qualifying prospects A prospect is a lead who has expressed a need for or an interest in your fitness
center. Accordingly, a prospect is more likely to become a member than someone who is a lead. Turning leads into prospects occurs in many ways. The
most critical factor is talking with the lead and identifying his or her desires and needs, and then having the salesperson offer solutions through a
facility membership. Core marketing strategies that are likely to be successful at generating prospects include member referrals, guest visits from
distributed guest passes and referrals from corporate accounts. Leads turn into prospects when they indicate, verbally or non-verbally, that your
fitness center offers them an opportunity to fulfill a specific need, when they have previously been members of another fitness facility, have a
history of exercising and want to resume the activity, are looking for a way to achieve a fitness or weight-loss goal, have contacted the facility
based on the recommendation of a current member, have taken a tour of the fitness center or have used a guest pass. When your sales members determine
that a lead has become a prospect, it is their responsibility to move forward with the final process of closing the sale.

Stage 3: Closing the sale
The process of moving a prospect to membership usually takes place in one of two ways. The first is referred to as “relationship selling,” where
prospects choose to become members because the facility has demonstrated that it can fulfill an expressed need. The second method is often referred
to as “high-pressure sales,” wherein the salesperson applies pressure for the prospect to join using certain “closing” techniques. The relationship
approach is likely to generate the highest closing percentage (i.e., the percentage of prospects who become members) and the highest quality member,
while “high-pressure” closing techniques usually produce high closing percentages, but low-quality members. Relationship selling usually brings in
members who will remain members. This method involves an indepth process of uncovering a prospect’s needs and then connecting your services to those
needs.

This process does not intimidate the prospect, and it does not employ discounting or other rehearsed processes to move the prospect to
membership. As easy as 1–2–3 Membership sales — like most things of value — do not occur by accident. Rather, they are a byproduct of a wellthought-
out plan. Each stage involves a number of key steps that are an essential part of selling memberships.

The three stages of membership sales take
individuals from leads to prospects to members.Generating leads should be the top priority of your membership sales team and marketing department.

Gold’s Gym International (GGI) announced the launch of Gold’s Gym Express ™. Drawing inspiration from the company’s storied history of delivering the ultimate fitness experience, the Gold’s Gym Express is designed to help people of all fitness levels achieve their goals at a great price.

More than 20 corporate-owned and franchised Express locations around the country are already in the planning stages. With excitement for the new concept generating demand in the investment community and with GGI’s current franchise base, the company expects to have more than 100 new Gold’s Gym Express locations in the pipeline by the end of 2011. That number is expected to grow significantly in 2012 and beyond.

“The new Gold’s Gym Express will allow us to expand the Gold’s Gym brand in ways not possible before,” said Jim Snow, the president of Gold’s Gym International. “It will provide Gold’s Gym International and our new and existing franchisees with another option to grow. From city centers to small towns, this concept is nimble enough to thrive in any setting, and the incredible value combined with Gold’s Gym expertise will help us attract more members than ever.”

Gold’s Gym International (GGI) announced the launch of Gold’s Gym Express ™. Drawing inspiration from the company’s storied history of delivering the ultimate fitness experience, the Gold’s Gym Express is designed to help people of all fitness levels achieve their goals at a great price.

More than 20 corporate-owned and franchised Express locations around the country are already in the planning stages. With excitement for the new concept generating demand in the investment community and with GGI’s current franchise base, the company expects to have more than 100 new Gold’s Gym Express locations in the pipeline by the end of 2011. That number is expected to grow significantly in 2012 and beyond.

“The new Gold’s Gym Express will allow us to expand the Gold’s Gym brand in ways not possible before,” said Jim Snow, the president of Gold’s Gym International. “It will provide Gold’s Gym International and our new and existing franchisees with another option to grow. From city centers to small towns, this concept is nimble enough to thrive in any setting, and the incredible value combined with Gold’s Gym expertise will help us attract more members than ever.”