CrossFit: From Mania to Movement

Core Business & Revenue Model: • Affiliate Licensing: Certification $1,000 per person per certification • Affiliate Support: Annual Dues: $3,000 per Box per year (View Highlight)

CEO Greg Glassman is clear that he is solving a problem for his Affiliates. Glassman is quoted as saying: > “Affiliates make people better. What you do becomes endearing — they love you for it. I can tell you what it is that makes you successful in business, more specifically as a CrossFit affiliate, it’s the blind and relentless constant pursuit of excellence.”” (> View Highlight> )

The end user of the CrossFit business are the Affiliates not the members of the CrossFit gyms. He defines the members of the actual CrossFit gyms as “the beneficiaries or recipients of the service”. So, for the entrepreneurs in the audience, CrossFit functions using a B2B2C business model essentially. (View Highlight)

This seems to be working pretty well for CrossFit Corp. as estimates by CNBC and other reputable sources put the number of CrossFit gyms worldwide at around 13,000 with locations in more than 120 countries. Speculation has it that there are over 4 million CrossFit gym members worldwide and I don’t expect to see the growth of this company or the growth of other similar group fitness niche concepts slowing any time soon. (View Highlight)