What does it cost to outsource your programming? At Two-Brain Business, we talk to our clients daily about removing themselves from low-value roles. For most gym owners, some roles are easy to hand off to someone else: bookkeeping, cleaning, etc.
Other roles can be more difficult because we either love doing them (coaching, programming, etc.) or don’t have the right person to fill that role.
Defining a low-value role:
Low-value doesn’t mean that the role we are looking to unload isn’t an essential function of our business. It means that we can replace ourselves and free up time without breaking the bank, and we will get a return on our investment.
One of the lowest value roles we can replace ourselves in is the programmer.
Let’s take a look.
Role: Programmer (generally falls under the Owner or Head Coach)
Task: Design a program to get clients their desired results.
Time to Complete Task: Five hours per week.
Before we go into how much it would cost to remove you or your Head Coach from the programmer role, let’s see how much revenue we can create with the time you would free up. Let’s say that you decided to hand off programming to someone else, and you’ve dedicated that time to only three tasks:
- Goal setting and coffee with current clients
- Nurturing leads and creating content to attract new clients
- Reaching out to past clients
Your goal each week is to have five conversations. That means one hour to initiate contact and have a meaningful dialogue with them.
For easy math, let’s assume that you could successfully contact 3 out of the five people you reach out to, and out of those three, one will buy something from you.
If you do this every week for a month, you will add four new clients. If each of those clients is worth $150/month, you have successfully generated $600/month in new cashflow.
That $600 you’ve generated puts your EHR (effective hourly rate) for those 20 hours you spent programming at $30/hour for that month.
BUT . . . we need to take it a step further.
Let’s say that, on average, you can keep a client for 12-months. And you repeat the process of using five hours each week only to have conversations with current, potential, or past clients; your ROI from outsourcing that time over 12 months if you add four members each month is $43,200.
Effective hourly rate of the time you reclaimed by outsourcing programming: $180/hour.
Now that we know what you can earn, let’s talk about what it would cost to replace you or your Heach Coach as the programmer.
Well, if you’re a Growth client with Two-Brain, you can replace yourself for free. It’s why we created Two-Brain Programming. Each month we give our Growth members programming proven to boost adherence and retention without having to pay someone else.
If you’re not a Growth client, outsourcing programming to a 3rd party company generally ranges from $100-$200/month. If you consider the 20 hours a month it takes to write a good program, outsourcing is like paying someone $5-10/hour. That’s pretty good.
Taking the average of $150/month for 3rd party programming over the year, you are adding an expense of $1,800 to generate $43,200 in gross revenue.
That’s a 24x ROI.
Programming is just one example, and you could perform the same exercise with similar results by calculating what it would cost to replace yourself in other areas of your business.
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