Someone posted this on here a year ago.
"I recently got sucked into the Hormozi marketing funnel and have started reading up on the guy. In researching Gym Launch, I’m only finding curated feel-good stories of successful gyms, but for a company that claims to have 5000+ customers, there is almost nothing out there about them. One google review. One? My humble brick and mortar stores have dozens of reviews. BBB reviews look fake."
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Until year ago, Gym Launch only had 1 review on Google. This is with over 5,000 gyms as customers each paying at least $16,000 each. The company made 27Million in its second year almost a decade ago and had tens of millions in annual revenue every year.
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You can't read the BBB reviews because the page has been "being updated" for like a year (a status in which if you undergo your reviews can't be read) but from what I hear they were almost all positive.
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The only negative reviews I can find on it are less than a hand full on reddit, all made with people with throwaway accounts who even after saying something negative were hesitant to go into detail and disappeared. Almost like gyms sign some sort of contract agreement not to say anything negative, but that's not legal.
This is very suspicious. From my understanding they basically charge gyms $16,000s, have the gyms run a "Free Gym Membership" ad where when people come in they find out it's actually a $600 deposit and you get your money back if you lose 20 pounds in 6 weeks. But there is almost nothing about them online, definitely nothing negative. Alex said that he took $40 million in profit from the business as dividends. The business was acquired by American Pacific group (a percentage of it) so I know it can't be the case that the numbers weren't real.
How can Alex Hormozi's Gym Launch have made so much money with so few (negative) reviews? Is it legit?
byu/ElChicoNoRico inEntrepreneur
Posted by ElChicoNoRico
7 Comments
A lot of business owners don’t want to admit that they’ve had help in their success. A lot of them also just don’t care, because in business, you’re not really getting anything out of leaving that review.
On average, on the back-end of dashboards I’ve been apart of in ecomm, fewer than 1% of people leave reviews on products.
I’m not vouching for Hormozi one way or another, I don’t know the guy, but number of reviews doesn’t equate to number of customers.
Business grifters gonna grift 🙂↔️
I was one of the original Gym Launch gyms. The program they took us through got us a shit ton of clients, they ran Facebook ads for us but never let us see the ad haha. It turns out the ad was a bit of a bait-and-switch, essentially people got a “free” 6 week challenge, but paid up front and got the money back if they completed all the steps (nobody ever did). We paid Gym Launch half of all the signups I think.
They had the Facebook ads game down and got a ton of people in the door. It was all women from what I remember, they must have been targeting a very specific group. I was uncomfortable with the offer and ended up just telling everyone who came in the door how much the price was.
Not exactly your point, but jeez, 20 pounds in six weeks is NOT a safe rate of weight loss unless you’re starting at like 400 pounds.
He has other tricks he don’t tell his followers like an ivy league education and probably a gifted IQ.
His business advice is a very good simplification of the consensus about corporate finance, marketing, etc. you may get at a good university and may be useful for some
except when dealing with counterparties who know the math, law, have the connections, etc.
What you describe is basically building a franchise and is a classic and orthodox business: the value is in the brand, procurement and processes so the capital requirements are quite low but the returns proportional to all the real state, work and previous investment of the franchisees. If executed correctly everyone wins.
There are 77 reviews on their GBP. Where are you getting 1 review from ?
Alex Hormozi is a massive grifter. One of the telltale signs of this is the fact that none of his businesses have any history. Curiously none of his investments also have any history. He is basically a Tai Lopez selling dreams to people only like the thousands of grifters before him.