How to Build a Strong Gym Referral Program for Your Business
Even in the digital era of data mining, marketing analytics, and full-fledged AI-driven customer acquisition platforms – word-of-mouth marketing and advertising still matters. In fact, according to Nielsen, “83% of people trust the opinions of their friends, making recommendations the most credible form of advertising.”
For current and aspiring gym owners, this statistic presents a powerful opportunity and an unavoidable truth: turning satisfied members into advocates who can help grow your business can be your best marketing tool. A well-structured gym referral program can do many good things for you, from increasing memberships to building customer loyalty through fun and engaging programs that benefit everyone.
This article will be your roadmap to building an effective gym referral program that will last and cater to current and prospective members.
Trust us, it worked for Snap Fitness, where we believed in and acted upon the idea that your members are your best sales force. So stick with us for this blog. Let’s explore the importance of referral programs, outline actionable steps to design one that works, and show how Snap Fitness supports franchisees leveraging referral strategies to build successful fitness businesses.
Do I Need a Gym Referral Program?
Think about platforms like Yelp, Google My Business, and Facebook Marketplace. Why do those platforms hit so close to home? It’s because everyday, people like you and me offer honest and unabated feedback about their experience at any restaurant, amusement park, or smoothie shop.
They’re essentially large-scale referral programs and allude to a greater truth. Referral programs are a proven way to generate attention and interest in your gym and ultimately grow your member base and community.
But your gym isn’t Yelp or Facebook marketplace. It’s a burgeoning brick-and-mortar institution. That’s okay. Building a referral program can still work at the local level. Let’s dig in.
Generate & Increase Revenue with New Memberships
A gym referral program can directly contribute to your bottom line by bringing in qualified leads from your existing members. Since referrals typically come from trusted sources, these leads are more likely to convert into paying members. If you haven’t looked at a standard marketing funnel before, here is one below that can illustrate this point. With most paid advertising initiatives on Google, social media, or podcasts, the advertiser is trying to make you aware of the brand, as shown below at the top of the funnel.
That initial attraction is hard to earn amidst the saturated content and advertising space users constantly inhabit. It’s often assumed that a referred source skips down to the second tier of the conversion funnel, bringing them that much closer to conversion—and, eventually, loyalty.
Drive Retention and Advocacy
Working out is great. Working out with friends is even better.
When members refer friends or family, they often create accountability partnerships, making it more likely for both individuals to remain active members. Referral programs inevitably ignite a sense of belonging and advocacy, turning your members into brand ambassadors.
Enhance Club Community and Culture
Referrals strengthen the social fabric of your gym. Like family members, friends who work out together stay together, and this camaraderie creates a positive club culture that attracts and retains members. Snap Fitness is especially keen on emphasizing community-focused culture, giving members a sense of ownership in their fitness journey.
Remember that exercising is a natural release of endorphins, a positive feeling for the body and mind. When that naturally positive occurrence happens amongst friends, family, and other loved ones, it also becomes a much deeper spiritual experience for your members.
4 Steps to Designing an Effective Gym Referral Program
If you’re sold on your next big step as a fitness entrepreneur, which is to create a gym referral program, you’re ready for the careful planning it requires. Here are the essential steps:
Set Clear Objectives
Determine what you want to achieve with your gym referral program. Are you focused on increasing monthly sign-ups, boosting revenue, building your social following or newsletter subscribers, or enhancing member loyalty? Setting clear goals will guide your program’s structure and promotions. It will also help you land on a financial or incentive structure for this referral program.
Choose Attractive Incentives
Offer incentives that motivate both the referring member and the new member. For example:
Referrer Incentives: Free membership months, account credits, or personal training sessions.
New Member Perks: Discounts on the first month, a complimentary workout plan, or branded gym gear.
It’s probably obvious, but we highly recommend looking at your finances before implementing a gym referral program that offers financial incentives. In the long term, it will likely do your business a lot of good, but in the short term, you don’t want to strain your cash flow by implementing a “too good to be true” referral program.
A great advertiser once said, “It’s amazing what people will do for a $25 Starbucks gift card,” about people’s willingness to participate in surveys, contests, etc. The same idea can be applied here. We don’t need to break the bank incentivizing our members to refer to your gym or fitness program. Think about it: you’ve already earned their conversion and have a loyal member who pays to use your services and facilities. Giving them a nice little incentive like a gift card, one-time monthly discount, or something like that can build your relationship with that member, earn your desired referral, and not strain your cash flow.
Implement Clear Tracking and Guidelines
Tracking referrals is crucial for program success. Ensure your system is straightforward:
New members are required to mention the referring member at sign-up.
Use software tools like Glofox to track referrals and ensure accurate reward distribution.
Remember how we said earlier that word of mouth can be more potent than the most sophisticated automated software? While that’s still true, software can help manage and implement the best version of your gym referral program so you can track its effectiveness and ROI.
Promote your Gym Referral Program Effectively
Visibility is key. Make sure your gym referral program is accessible through:
Make referral cards and guest passes available at the front desk.
Social media promotions, newsletters, and direct emails to members.
Staff training will encourage conversations about referrals during member interactions.
How to Build an Effective Gym Referral Program with Snap Fitness
Snap Fitness franchisees have a unique advantage in building gym referral programs. Here’s how Snap Fitness supports and simplifies the process:
Keep It Simple
Every interaction with a member is an opportunity to discuss referrals. Use friendly, inviting language like, “Do you have a friend, neighbor, or coworker interested in trying Snap Fitness?” This casual approach makes members feel comfortable sharing.
Stay Consistent
Does your gym have a newsletter? Do you put flyers with updates around your gym? Do you announce events at your gym? Depending on your setup, you can use specific times or areas of your gym’s messaging to reinforce the referral program. In marketing and advertising, sometimes, that consistent but non-pushy repetitiveness eventually creates messaging retention in the audience.
Define Qualified Referrals
A qualified referral is someone who signs up as a paying member, whether through EFT or prepaid options. This qualified lead structure ensures your program directly impacts your membership growth.
Standard Referral Program Benefits
Snap Fitness offers a structured approach to referral incentives:
Guest Passes: Members receive 2-3 guest passes per month, with additional passes during referral-focused months.
Referrer Rewards: Referring members can earn 30 days of free membership or account credit.
New Member Perks: To help new members get started, we offer the first month free and a complimentary workout plan or personal training session.
Loyalty Rewards for Top Referrers
Recognize and reward members who consistently bring in referrals. For example, members who refer five qualified individuals within a year could receive a free 12-month membership. Only have one person to refer? No problem. Perhaps your loyalty rewards program can give them 10% off their membership for a few months.
There is no right or wrong way to structure a loyalty rewards program in conjunction with a referral program. It comes down to the mindset you have in your approach. A humble but strategic entrepreneur will recognize that when someone refers to your gym, they rely on you to deliver a positive experience. Otherwise, their name is associated with a negative experience – not good for you or them. Have gratitude and humility that someone has recommended your business, but embrace the fact that you must deliver on that promise and make it worthwhile to both the person who was referred and did the referral.
Run a Referral Contest to Boost Engagement
Referral contests are an excellent way to generate excitement and engagement around your gym membership referral program. Here’s how to set one up:
Create the Contest Structure
Entry System: Each referral counts as one entry in a raffle, increasing members’ chances of winning with multiple referrals.
Leaderboard: Use a visible in-club leaderboard, such as a poster or whiteboard, to track referrals and encourage friendly competition.
Offer Appealing Prizes
Motivate participation with prizes that appeal to your members. Examples include:
Grand Prize: Cash rewards, branded gym gear, or free personal training packages.
Smaller Prizes: Free class passes, workout accessories, or partner business discounts.
Partner with Local Businesses
Collaborate with local businesses to provide prizes, such as gift cards or merchandise. This not only reduces costs but also strengthens your community presence through cross-promotion. Think about your company and the customers it attracts. These fitness enthusiasts may also take their business to health-focused restaurants, supplement stores, smoothie shops, and athleisure retail chains.
These can be great inroads to promoting your business and developing a referral network with like-minded businesses.
Celebrate Winners
Host a wrap-up event to announce winners, thank participants, and highlight the program’s success. Share updates on social media to showcase your vibrant community and attract potential new members.
Common Mistakes to Avoid When Creating a Gym Referral Program
To ensure your referral program’s success, steer clear of these common mistakes:
Overcomplicating the Process
Keep the program simple. Avoid overly complex rules or tracking systems that confuse members and staff.
Offering Inconsistent Rewards
Stick to a standard incentive structure to maintain clarity and member trust. Avoid overlapping offers that dilute your program's appeal.
Not Promoting the Program Enough
Consistent promotion is vital. Use in-club signage, newsletters, and social media posts to keep the program at the forefront of your members' minds.
Ignoring Data Tracking
Use tools like Glofox to track referrals and measure your program’s success. Regularly analyze data to identify areas for improvement and refine your strategy.
Gym Referral Program Examples
Let’s take it out of the fitness world for a little bit and outline a few well-known international brands with effective referral programs that illuminate the power of a recommendation.
Dropbox
Dropbox offered the referrer and the new user additional free storage space for every successful referral. The program's simplicity, combined with the mutual benefit for both parties, made it a huge success.
Results:
Increased sign-ups by 60%.
At its peak, Dropbox reported that 35% of new users came from referrals.
Tesla
Tesla’s referral program has been a significant driver of sales. Referrers received unique rewards, such as credits toward a new Tesla vehicle, invitations to exclusive events, or limited-edition merchandise. The exclusivity of the incentives created a sense of prestige and urgency.
Results:
Helped Tesla build a passionate community of advocates.
The program contributed significantly to Tesla's early sales growth, mainly when advertising budgets were minimal.
Uber
Uber’s referral program offered new users a free or discounted ride and gave referrers credit toward future rides. This dual benefit incentivized current users to promote Uber to their friends, creating a viral growth loop.
Results:
Referrals drove early user acquisition in Uber’s new markets.
The program significantly accelerated the company’s growth globally.
These three examples demonstrate how referral programs can create ambassadors, advocates, new members, and more. Underscoring all this is a desire to build loyalty, trust, and a positive reputation for your brand.
Key Takeaways
A well-designed gym referral program can drive growth, foster loyalty, and strengthen your community. Here’s a recap of the key points to remember:
Member Referrals Drive Growth: 83% of people trust recommendations from friends, making referral programs a powerful tool for increasing gym memberships.
Increase Revenue and Retention: Referrals bring in new members and keep existing ones engaged through accountability partnerships.
Keep It Simple and Enticing: Make member referrals easy by offering guest passes and meaningful rewards.
Leverage Contests for Engagement: Referral contests with leaderboards and prizes motivate participation and create excitement.
Promote Widely: Ensure members know about your program through in-club signage, digital marketing, and personal conversations.
Track and Adapt: Use tracking tools to monitor success and refine your program for long-term impact.
Build Your Fitness Business with Snap Fitness
A strong gym referral program is just one of the many ways Snap Fitness helps franchisees succeed. Combining sustainable, member-driven marketing strategies with a proven business model, Snap Fitness enables gym owners to build thriving communities and achieve long-term growth.
See our franchise support in action! Learn about Snap Fitness’s franchise resources and strategies.