CEO Question of the Week: How was IHRSA 2018
Wow! is how I can sum up our week in San Diego at #IHRSA2018 . San Diego is a stunningly beautiful city and the #IHRSA team put on a clinic on how to host a phenomenal event. Since attending our first IHRSA show 3 years ago this was by far the (seemingly) biggest and best event yet. Actual figures I can't speak to but the show floor was massive, attendance seemed strong and the innovation being displayed on the trade show floor was impressive, to say the least. I was blown away by companies such as #PowerPlate, #Precor, #Technogym, #MyZone and many others that had incredible trade show booths and plenty of cool new products to back them up!
So let's talk about how the show went for #FitCloudConnect. #Amaaaaaaazing! is the best way to describe it. The sheer volume of fitness clubs and fitness equipment manufacturers that came to see us and talk about #live streaming, #fitness streaming, and #virtual fitness was astonishing. There is not a single doubt in my mind about the importance and staying power of fitness streaming after this years event.
Several of North America's largest fitness clubs (along with hundreds of small and mid-sized clubs) visited us during the show and were amazed to see the progress we've made with the product and market education. Perhaps the biggest "AHA" moment when speaking to club owners was when they learned that "FitCloudConnect is NOT OVERHEAD" and "has NO downside". "What does this mean?" they said... Quite simply we explained, the FitCloudConnect system (1) only costs you money IF you are making (more) money and (2) we don't want to tax your success by charging a revenue share price. Let me explain starting with # 1.... The FitCloudConnect is a revenue-generating tool for which we charge you for "active users" only. This means that you only pay us IF you have members paying you. I can tell you that after almost 20 years of being in the software industry there aren't too many offerings that have no upfront cost, that can generate revenue from day 1 without changing how your business operates. And by that I mean, you already do group fitness and small group training, why not live stream that class and charge more people from remote locations to participate. Instructors or clubs do nothing different that you do today (except collect more member dues). Okay on to # 2.... Presumably you may charge anywhere from $10 a month to $200 a month for your fitness streaming to members and we charge you anywhere from $1 to $5 a month for that same user. If we charged you 10% or 15% revenue share instead of the flat fee, then we would have to range from $1 or $1.50 up to $20 per user. Why should we make more money if you successfully monetize your offering and make big revenues? Easy answer.... we don't. One flat (and very reasonable) fee. This is a license to print money folks :)
Anyhow, I digress... this article was supposed to be about #IHRSA2018 so I'm going to summarize by saying that IHRSA2018 was AWESOME, 2018 is going to be a phenomenal growth year for fitness streaming and FitCloudConnect and we thank everyone for their interest and support. We developed this technology platform because as a fitness club member, I personally really wanted this functionality (and so did hundreds of people that we surveyed before starting the company). We strategically decided to support and work WITH fitness clubs to help them bring this technology to support the business that they have spent years (or even decades) building and we are excited to be welcomed and thanked by our customers. Thanks to #IHRSA2018 and everyone who came to see us!