Sevan Matossian (00:01):
Bam. We’re live. No CrossFit games update show this week. There was not one last week either. We will resume the regular scheduled Friday shows CrossFit games, update shows, I believe next week. Susan. What’s up dude? Hey,
Mattew Souza (00:17):
How you doing?
Sevan Matossian (00:17):
Just getting home from work.
Mattew Souza (00:19):
Yep. Actually, yeah, I will. Just because we’re set up for our holiday party. It feels like we just had a party and we’re going to have another party.
Sevan Matossian (00:26):
You did just have a party, so you’re staying affiliated?
Mattew Souza (00:30):
Yeah, yeah, yeah. I don’t have to make the decision until December 16th and I got another year before my increase.
Sevan Matossian (00:36):
Oh. Oh, so this, so you’ll pay for sure. And then you got a year.
Mattew Souza (00:41):
Yeah, exactly. The only people that really got that super short notice is if your dues were up in January.
Sevan Matossian (00:46):
So January has one month to decide. February has two months. March has three months, and I’m in
Mattew Souza (00:51):
December, so I got 12.
Sevan Matossian (00:54):
Oh yeah, that’s awesome. Asymmetric ears. $25 for 25,000 subscribers. Milestone. Oh no shit. Thank you. Congratulations on 20 5K seven. I now also hereby pledge in front of all the seven East is $50 and a hundred dollars when we reach 50 K and a hundred K respectively. Who else is in with me? Dang you man. Good to see you guys. Vitor. What’s up Eric Weiss. What’s up Sabir? What’s up Er and Kelly, Isaac. Ms. Croom, you’re always a pleasant one to see. Bring your humor tonight. Rambler. Good to see you buddy. And Streamy yard. Hi. No.
(01:37):
Okay, Ryan. Hello, fourth. Okay, fine. So yesterday, the day before there were the fee hikes. There were basically some changes in the structure of how you can become a CrossFit affiliate, a place where you can create the fittest human beings who’ve ever walked the planet. And where you can also cure the world’s most vaccine problem. Places that I think that we all agree are, I was going to say so important, but lemme say if I can say it differently. They all have profound impacts on the communities that they’re in. Just like a nuclear reactor might have a real negative effect if it collapses in your community, a CrossFit gym pops up and you have this kind of center of health, the center of wellness, the center of positivity, all the stuff you want to attribute to what happens inside those doors. And it’s always been a crazy low barrier to entry. It’s a very, very unique community. Who the fuck knows if anyone really understands how this bean moves around and exists. But at the helm of this ship is the leader Don fall, and then his bosses, what people call venture capitalists or private equity or a board of people who bought this thing from Greg.
Mattew Souza (02:51):
Owners.
Sevan Matossian (02:51):
Owners. This thing does need to make money just like you guys need to make money. And I personally like to see as many people make money as possible. The moss, greenbacks moss bueno.
(03:07):
And so the increase has gone from, these are the general spirit of it has gone from $3,000 a year to fly the CrossFit flag to $4,500 a year depending on where you live on planet earth. And then with a requirement, an additional requirement in order to open the gym, which we discussed about yesterday. And Susa dropped some pretty important tidbits on us of why he thinks the L two is important and why he supports that. And maybe Susie, you can just give us a recap of that. I wanted to fight with them yesterday because I just want to fight because I just like the super low barrier entry, but it has sat with me now for the more and more it sat with me. I was just on the phone with someone and we were talking and they were pushing back against it too. And I realized, oh, I think my position has shifted. I didn’t realize it had shifted because it sounded more like Susa than myself. Susa, let’s start there. Just why do you think it’s important that you get your L one, you open a gym and then you have a year to get your L two. Why do you think that’s important? The highlights?
Mattew Souza (04:06):
I think it is just important because the L one gives you the methodology. The L two gets you to really understand the flow of the classroom and actually coaching the class, the hands-on work you’re going to be doing every single day in the gym. And so as the owner, I think that you should at least have exposure to what that professionalism and standard looks like in the ideal setting. And then you’re still free to go do your own thing obviously. But to have those tools. And I like the fact that you want the people that are going to own and represent CrossFit to be able to always want to take that next step and elevate their education.
Sevan Matossian (04:35):
And if I go, well, it’s just a fucking money grab from hq, you can be like, well, that’s irrelevant. You’re not arguing my point money grab or not. It doesn’t diminish your points.
Mattew Souza (04:45):
Correct. Yeah.
Sevan Matossian (04:46):
And what I liked, one of the things that really stuck with me that you said was is that if everyone has their, in the L two, you learn how to teach classes, you learn how to turn learning the push press into an entire class. And if we can get, and that will add to continuity between all the gyms, which has always been not a nagging problem, but it’s been a little bit of a, it’s a steady buzz that there’s not continuity between the gyms. So you get everyone into the level two and you might build some continuity between all the gyms, which though does feel like a franchise. But the thing is, it’s not enforced. You can still take, if you want to teach it back the way you used to do it better or worse, you still can.
Mattew Souza (05:27):
Yeah. And here’s the thing too. I have a process that everybody that comes into the gym goes through whether you’re already been coaching and already have your L one or whether you’re brand new to you don’t have your L one or anything yet, and it’s all based off of the standard that the L two was taught because I just thought that it was so well in the way it lays out the class and understanding the logistics and how to lesson plan and the deep understanding of running the day-to-day operation, that it was good enough to teach to everybody before they got in front of our class.
Sevan Matossian (05:55):
And I’m going to read a bunch of dms today. We got hundreds, I apologize, I’m not going to get through all of ’em, but hundreds of the affiliates popped in and one of the most compelling dms you get falls into the spirit of this. I have a gym, it has 80 people, I charge $120 a month. It’s in my back 40 of my ranch. I’ve built a shed back there and I’m not going to be able to afford this. And I’m really sad because I really want to fly the CrossFit flag, but I’m not going to anymore. This really hurts me. And I said that to you yesterday and with your business cap on, you kind of don’t give a fuck. You put on your venture capitalist hat and you’re like, bye.
Mattew Souza (06:36):
Yeah. I mean, we talked about a story where I got hit with a much more massive charge that I had to have retroactive pay for the building that it got sold. And then there was a CAM increase, which is the common maintenance area, and I got hit with not only 120 to $5 a month bill, but a $2,200 a month bill
Sevan Matossian (06:56):
That with one month notice your rent at your gym was increased by over $2,000 a month.
Mattew Souza (07:01):
A month. And by the way, that wasn’t one month notice that was retroactive pay is due on your next rent.
Sevan Matossian (07:08):
So due now
Mattew Souza (07:09):
Back pay to the first of the year, which resulted in me having to cut a check for $15,800 right there. That
Sevan Matossian (07:16):
Month, seven months, they retro made you pay seven months. No,
Mattew Souza (07:20):
It was three months worth of cam. Yeah, plus my rent. That was due that month.
Sevan Matossian (07:25):
But in all fairness, I knew you at the time and you were like, fuck, I might shut the doors.
Mattew Souza (07:29):
Yeah. I mean that was a dark time because also too, my lease was renting out. It got sold to, it used to be owned by one guy, very similar to CrossFit. Then it got sold to a corporation after he passed, his kids sold it, and then they started squeezing all the renters, and that’s what happened with me. I had to pay retroactive pay, cut a large check, and then from that month, immediately going forward, I owed another $2,200 a month on top of that. So it increased my overall yearly by over $24,000.
Sevan Matossian (08:00):
Joel, Kelly. Joel. So just so you know, in a nutshell, the spirit of what SUS is saying is the government charged his landlord more and his landlord look in the lease. It says, if the government charges me more, I’m going to charge you more. So when Greg sold the company, these guys are in charge and now they want more money. So you could kind of think of them as the government in a way. So Joe Kelly, I agree with vindicate. This is solace corporate greed. It’s what set Greg apart. He believed in something more than business. He believed in humanity and pushing life for all people forward. Here’s the thing.
(08:37):
Let’s say that is true what you’re saying, I don’t know what you want these people to do. If they bought the company and now they want money. Let’s say you’re worth $400 million and you gave your buddy Eric Rose $30 million to buy 15% of CrossFit. You didn’t do that because you believe in CrossFits because you want 42 million back, right? A hundred percent. Yeah. Yeah. I think we have to accept that at some point. Well, you don’t have to fuck it. I don’t give a fuck. You can be like, fuck you. I’m starting my own shit. It’s just the reality now. Yeah, yeah, yeah. I was talking to a friend today who’s about to expand into 27 new gyms and he’s like, fuck it, doing my own thing. Well, at least we’ll see. Okay, so I’m going to start reading some of these to you and then we can discuss them.
(09:32):
Feel free to I’ll, even if anyone has the to call in, you could even call in and bitch, what’s crazy is there’s not really anyone who’s, it’s very tempered. It really is somber. It’s like lot of, I feel like it’s a lot of emotional somberness. None of the dms I got were like, Hey, fuck HQ, or fuck, this is amazing. Or it was just kind of this somberness like, oh, okay. I think we all knew it was coming too. Oh, here we go. Just right off the bat. Okay. Oh, it’s a regular call. Travis, what’s up? No, no, no. Standby. And the point of this show is just to process. The point of this show is to process. I think we’re too early to, that’s why I was fucking with Susan in the beginning. I think the point of the show is to process. Hello? Oh, maybe you can’t call in. You can always. Maybe you’re not allowed to call in. Hello?
Speaker 3 (10:36):
There’s no call in.
Sevan Matossian (10:37):
There you go. Now there’s a call in. Go ahead, Travis.
Speaker 3 (10:40):
Hey, can you guys hear me?
Sevan Matossian (10:41):
Yeah. Are you an affiliate owner?
Speaker 3 (10:44):
I’m not an affiliate owner. My brother is 10 years.
Sevan Matossian (10:47):
Okay. Okay.
Speaker 3 (10:48):
Fair. Yeah. Let’s get this party started. No, I just wanted to clarify that comment. To me, the hard part right now is not knowing where the money’s going and not knowing that the people who are in charge actually care about CrossFit. To me, if Greg was in charge and, and I think Greg would probably raise prices at some point, if it was Greg in charge and the prices went up, there would be less of an uproar because we know Greg gave a shit.
Sevan Matossian (11:21):
Well, he always told you, Hey, he told you where the money was going. Right? He would say, Hey, I litigate, legislate, educate, litigate, legislate, educate. There’s one more, not masturbate, but something like that.
(11:36):
There were four and you knew, here’s the thing, dude, to be frank with you to respond to that, Travis, I don’t care where the money goes, I just wish you would be honest. I listened to the meeting they had today and they said that they gave a lot of talk of how they were going to drive more people into the gyms. I basically didn’t understand so much what Don said, what Koon said or what Dave said. I did understand what Nicole said because she was pointing at some tangible things that I could get my head wrapped around. The other stuff was just like, Hey, we’re going to make things better, and that wasn’t enough for me. I needed to hear we were going to start producing media every day. I needed some tangibles. We’re going to give everyone a sticker they can put on their car.
(12:17):
I need that. Me personally, I don’t like the 200,000 foot view, but I’m also okay if Don goes, I’m really okay. If Don goes, Hey motherfuckers, it’s three grand. We’re only raising it to 45. It’s been 11 years. Shut the fuck up. We’re giving all the employees here a raise. I’m also very cool with that. Very cool, very cool. I don’t need them to tell me I don’t need them, and then you can decide whether it’s worth it for you or not. But this whole, what’s going to happen in one year? It’s going to be very, yeah. Anyway, go ahead, Travis. Sorry, go ahead.
Speaker 3 (12:48):
I think there’s just a lot of, the timing of it is a huge thing too. With all these hires. We don’t know what the fuck they’re doing. We don’t know who these people are, why they were hired and now, Hey, we’re going to throw another 1500 a year on top of everything. I don’t know what they’re doing. Did
Sevan Matossian (13:09):
You feel bad for Koons today at all, by the way? Like, oh dude, you
Speaker 3 (13:13):
Just got, I didn’t hear any of it.
Sevan Matossian (13:15):
He did. Okay. The problem is we’re the hell’s Angels. We’ve all delivered meth. We’ve all killed people. We’ve all fucking rode in motorcycles. We’ve all been to jail, and so we got this new guy and he’s really put into a really tough situation. He’s addressing the fucking hell’s angels and the rest of us are like, dude, we don’t even know his Fran time yet. You know what I mean? We haven’t seen him do a, you know what I mean? Yeah. It’s weird. Has he done Catholic church? Has he done communion? If this was Greenpeace, has he stopped a Japanese whaling boat? What are his creds? It’s hard. We’re a tough group. It was weird seeing him try to address all of us who got our stripes. Yeah. Like Olivia said, we got to jump ’em in, but I don’t think he did bad. It was tough. It was awkward. It was tough.
Speaker 3 (14:09):
Yeah, I didn’t hear any of that. I just wanted to call in to clarify that comment about
Sevan Matossian (14:13):
Knowing
Speaker 3 (14:15):
That it just feels soulless and corporate because there’s just long-winded emails with, like you said, nothing tangible. We don’t know what’s, where the money’s going, what it’s going to benefit.
Sevan Matossian (14:28):
Nicole crushed it. She basically said whether you agree with or not, she said, these are the problems. This is what we’re going to address. This is how we’re going to do it. And when, I mean she laid it out, she went at it. That’s what they need.
Speaker 3 (14:40):
Yeah,
Sevan Matossian (14:41):
So I like that part.
Speaker 3 (14:45):
Good.
Sevan Matossian (14:46):
Alright. Thank you for calling. Makes it seem like a real, okay, here we go. I’m going to read these and here we go. Good afternoon, Sev. In regards to raising affiliate costs, we have been an affiliate for over eight years. In eight years, we have increased our rates for members three times in response to rising costs of goods and to add value to our product. There has always been a tangible value added. That’s interesting line over that last few years, HQ has added the affiliate playbook, affiliate starter kit, affiliate round tables, affiliate summits, free cap programming. The only extras that you consume is the affiliate summits and cap programming. In my opinion, it is value added cap. As long as it stays included in a affiliation, the timing of notification could have been better. We have one month notice and owners learned about the cost increase at the same time as everyone else, which now puts owners in a reactionary stance, reassuring members as opposed to an offensive posture for reassurance we could have been in if we were notified sooner. The price increase is understandable. So this is from an eight year affiliate saying, Hey, I’m good, and that there’s value added timing, not so much. The timing’s never going to be perfect. I’m just going to say they’re never going to win that battle,
Mattew Souza (15:55):
Especially how everybody’s spread out. Someone’s going to give short stay.
Sevan Matossian (15:58):
That’s a wash. I’m going to give HQ a hundred percent passing that. Giving $500 credit for L one and L two is beneficial. Another good point offset’s a little of the extra cost as well as waiving the extra $600 a year to be in the payment program. Yeah, that’s probably a pretty smart move that they did too, right?
Mattew Souza (16:14):
The extra 600 for the payment program,
Sevan Matossian (16:17):
They used to have a payment program, but it increased your affiliate dues by 20% over the year. Now you can still be on the payment program, but you don’t have to pay the 20%,
Mattew Souza (16:24):
And I imagine that that will probably shift in a year. I think they’ll probably go back to charging you for spreading it over the month time. Oh
Sevan Matossian (16:31):
Really?
Mattew Souza (16:32):
Yeah. Back and forth and it’s not going to take, so I would take advantage of that this year. Guys, if you’re one of those ones who’s on the fence, take advantage of that this year.
Sevan Matossian (16:40):
Good. Well, that’ll give us another show to do to be mean to them. If they bring,
Mattew Souza (16:44):
I pull the rug out in another year.
Sevan Matossian (16:46):
If the goal is consistency in the delivery of CrossFit methodology to improve the health, fitness, and experience for this within and who may come into our community, L two requirements for ownership is a good start. Okay, so she’s saying, yeah, that she likes the L two. It’s going to help all these things, the method, teach the methodology, improve health, fitness, and the experience for now, trust the process. I dunno why I think this is a woman. Maybe because it’s just a sane letter for now. Trust the process, patience to see what value will be added to change lives and stay the course to positivity changes people’s lives through CrossFit eight year affiliate,
Mattew Souza (17:22):
Been around a while
Sevan Matossian (17:23):
Sober.
Mattew Souza (17:27):
Yeah. Do you want kind of thoughts on that or want to do this order?
Sevan Matossian (17:31):
Thoughts? It’s up to you.
Mattew Souza (17:34):
No thoughts. Next question, please. I mean,
Sevan Matossian (17:35):
There’s so many, dude. I can,
Mattew Souza (17:37):
I know. I know. And everybody’s kind of processing it the same way. I just think that a couple of the things that we already talked about is that the sequencing was already off with these new hires, with the lack of communication around that, with the lack of trust that’s already happening at hq, and then you kind of drop this bomb. That sequencing was jacked from the get-go.
Sevan Matossian (17:54):
They couldn’t foresee that. I mean,
Mattew Souza (17:57):
Well, they knew they were hiring those people. They knew they did or didn’t tell. They knew what was coming down their own pipeline.
Sevan Matossian (18:04):
They walked out of the house with their pants down and they didn’t know their pants were down. I’m not saying that they should be absolved to walking outside with their pants down. They walked outside with their pants down and their message, and now they’re telling us they’re delivering a message and we’re all staring at their naked, their hindquarters. Right? The hires are the metaphor for their pants down.
Mattew Souza (18:21):
Right. Okay, so we’ll give it that. And then I think the other big mistake was what was said around the town hall or with the lack of what was said around town hall. I missed Nicole’s portion of it. I really wish I could have heard that because I heard that it was great, but the little bit that I did catch at the end of it where it was Dawn and Koons and stuff like that, again, it was a lot of just kind of fluff. There just wasn’t anything tangible. Yeah.
Sevan Matossian (18:46):
I want them to say, we’re going to take the money and we’re going to buy ads. We’re going to take the money and we’re going to hire a person who’s just going to work on our Instagram and it’s going to be better. I want to say they’re going to use the money to do a film contest, but there wasn’t like that in defense of Dave too. Dave was not on there long. He was the shortest. I think Dave was just kind of paraded out to be like, look, there’s Dave. You know what I mean? You’re a movie man. If you don’t see Mickey Mouse, you’re kind of pissed.
Mattew Souza (19:12):
Yeah, exactly. Yeah, I completely agree with that. But here’s the deal. As the owner as a CEO and those executives coming out of the company, it is their job to walk around and just talk about the vision of the company all the time. You have to keep the excitement. You have to keep the mission. We have to understand the bigger picture of where we’re going. And I think some of the best owners do that. Literally, I was just talking with the coaches yesterday and we were getting fired up about the future of the gym, what it can be, the different things we could evolve to, how we can make a bigger impact on our community and things around us, and that everybody leaves fired up about that. And there’s of course a couple tangible things. This is what we’ll start with first and this is how we’ll do this. And so when you don’t really have the meat and potatoes of the vision of where we’re going out into the long shot, and then you couple that with the fact that there’s nothing really tangible that they’re pointing at where it’s going, that’s where it gets lost
Sevan Matossian (20:08):
Without someone banging. We’re the cure for the world’s most vaccine problem. We are sliding back into the meathead universe, Eric Wise, a dollar 99, bring Justin Berg back. Easy, easy, easy. Don’t get
Mattew Souza (20:23):
Crazy. Let me ask you this. Every time you were around, Greg, when you guys were working specifically in CrossFit, and let’s take it back to a throwback, a golden year if you will, like 20 14, 20 13, right? Just unstoppable force that’s coming through. How often was Greg talking about the vision?
Sevan Matossian (20:39):
2017 and 18? Those were huge years. Those were our biggest years after probably 13 and 14. I don’t know why people don’t point that out more. 17.
Mattew Souza (20:49):
Affiliate growth with new net affiliates was like 26
Sevan Matossian (20:53):
Was so strong and stable in 18. The games were massive. The open was massive and all metrics were up except retention. So we did have a pretty big turn rate, but all metrics were up. People signing up. We had the journal. The journal was making $2 million a year paid for the media
Mattew Souza (21:11):
Team and more importantly, what was inside that journal that was making CrossFit affiliates multiple millions dollars a year across the
Sevan Matossian (21:17):
World, 95% free, and it’s probably 99% free, so you didn’t have to even sign up. Greg always just considered paying. The stuff he told us to put in the journal was just make the game stuff cost money. Everything else is free. All core content is free.
Mattew Souza (21:33):
Yeah. He taxed with him,
Sevan Matossian (21:35):
Laura, and it was nonstop vision to the point where you would be kind of scared to engage him. If you saw him come down, you’re like, oh, shit, here we five in the morning. I’d see him fucking it’s on.
Mattew Souza (21:43):
Yep, exactly.
Sevan Matossian (21:45):
Whiteboard the chasm, the business, the methodology. Does this add years to your life? What’s he think about? Always? It was nonsense. Yeah.
Mattew Souza (21:53):
I mean before my relationship that I have with Greg now, I remember when I would see him out on stuff and all you’d have to do is ask one or two questions about what was going on and what’s cost and like boom, he’s off. And then you left the conversation fired up. You’re like, yeah, that’s what this is about.
Sevan Matossian (22:08):
Patrick Clark, Heidi, I’d rather have lifelong executives that grow with the company than a revolving door we’ve had. Dude, I couldn’t agree with you more. I’m so ready to give anyone a chance who just wants to stay there and just like the rest of us take our ass poundings and grow around us. But I don’t think we’re going to get that. Dude. I think it’s like a two or three year cycle. Continuity is crucial in growth and change. Unfortunately, CrossFit hasn’t had that yet. We need continuity so bad. We need it to, yeah, we need continuity so bad. Okay, here we go. Number two of 6,000 dms.
(22:49):
I’ve ran a gym since 2010 and took over ownership of that gym at the end of 2018. I could barely make payments on the current affiliation requirements along with rent, housing, and life. And this year also had to renew my credentials. I actually had my facility poached from me and were forced out last year by my landlord. A bunch of CBD companies came into our town and did this to businesses giving more than asking prices for the warehouses. People with deep pocket and government funding in New Mexico. This changed the market forever. We weren’t able to relocate into another facility because things got out of reach, inexpensive and no warehouse space was available since those companies took them all. I had to go to my parents and my entire family is now in an endeavor to build my future gym. These changes along with everything for the past couple of years. I listen to you regularly, makes future affiliation questionable and worrisome. That’s my story and opinion. Anyway, big picture. I wonder what percentage of gyms are in this situation. Just big picture. Spirit of what he’s saying just in some method or another between the, so-called pandemic between the shakiness of CrossFit and the economy that they’re just like, oh fuck, this is the straw that broke the camel’s backstory, right?
Mattew Souza (24:00):
Yeah,
Sevan Matossian (24:01):
But still sober, right? He’s not even mad at hq. He’s not like, fuck these bitches. He’s just like, dude, this is it.
Mattew Souza (24:06):
Well, I think the reason why you keep using the word these things are coming in sober is because they’re actual affiliate owners. And if you’re a business owner that’s been around for any length of time, you have to realize that you can’t be super emotionally reactive to decisions because it’ll put you out of business faster than the actual problem will. So you have to learn to kind of take it with a grain of salt and take a step back and try to logically work through the steps and start working to solve the problem. And by the way, just to cap that last story that we said about the rent increase for my building, those were the options at the time. It was either like, fuck, I’m just going to hang it up. This is the straw that broke the camel’s back. Or I started problem solving, did the necessary things that we had to do, and we were able to survive and grow and become stronger because of it.
Sevan Matossian (24:49):
We just need a new sexy name to rebrand. Alright, interesting. Heidi crew, Patrick, there’s nowhere to grow when the execs are probably started at 300 KA year, way better people to raise up with in the company. So I made way more than that. Way, way more than that. And I fucking murdered. I killed, and I deserved twice as much as I got. And I don’t think it’s how much that they’re paying those people. So I don’t think you can be like, Hey, they make 300,000, first of all, $300,000 a year if these dudes are living in, I think one guy was living in downtown Seattle or something. That’s that.
Mattew Souza (25:35):
Yeah, barely.
Sevan Matossian (25:37):
He’s got a two bedroom condo that cost ’em $1.8 million. They need people who, lemme tell you, hiller’s worth $400,000 a year. All they have to do is pay Hiller $400,000 a year and be like, Hey, don’t attack people inside the mothership. And they got ’em. And the content will start flowing. It’s worth it. It’s worth it. It’s worth it. It’s worth it, but you got to find the right people. I don’t think that’s, that’s an issue. Ryan seven, have you talked to Greg about this in depth, his thoughts? I haven’t talked to Greg in two days. I think he’s just laying around by the pool and boning working on kid number 10. That’s a good ass life. That’s how all of you were made, by the way. I don’t know if you know that. Anyone have any questions? dmm me on the side. Unsu sporty Beth, if Don is serious about having God look at those arms on that
Mattew Souza (26:42):
Dude. It looks
Sevan Matossian (26:43):
If honest, serious about having 30 million members by 2030 charge affiliates on how many members they have, $10 a member generates 300 million. Dude, I think that’s a horrible idea. You’re punishing people for having successful gyms. I think Greg would hate that idea. And lemme tell you, you’re also encouraging people to lie. Jay Hartle. I pay more to hire Hiller. Yeah. If I was running CrossFit, I’d pay him 500,000. I’d bring him on board, I’d get a team of two or three other people. He’d be a slave driver. No one would’ve to do blackface, but he’d be a slave driver.
(27:26):
Okay, here we go. You guys ready? Number three of 6,000. I understand making affiliate owners require the level two to be an affiliate owner. By the way, these are all affiliate owners. I’m not reading anyone who’s not an affiliate owner. I understand making affiliate owners require the level two to be an affiliate owner. I think it’s a bit of a joke that they don’t need any experience. Do a two day course and then open your own affiliate. The level two goes into more depth of the coaching aspect and also by doing it, it shows you’re committed to CrossFit as you’ve had to have had your level one for at least a year in coaching experience. I agree with 89% of that. It’s kind of cool. Get your level one, open a gym, and then a year later get your level two. It’s kind of cool, right? Yeah.
Mattew Souza (28:07):
Mean, so therefore, did it even really increase the barrier to entry that much? You could still get started. You could still start to make a little bit of revenue and make it
Sevan Matossian (28:16):
Yeah, I like it. And you got your $500 towards it. Yeah, the 1.5 times price increase is a faring joke. I understand that they haven’t had a price increase in 11 years, but to bump it up by 150% in one go, come on. They could have done it slowly over the next three to five years. That’s my 2 cents. Oh, it says my two Bob. Is that English money? Maybe this is English affiliate. Imagine if I increase my, oh, that’s why they said faring too. Imagine if I increase my membership rate for my members by 150%. I’d lose half of them. I reckon. Jeff Baker, why is Susa so nasally? No, he’s always like that. Whatcha talking about I’m
Mattew Souza (28:56):
Breathing?
Sevan Matossian (28:57):
Because since you’ve been in the geriatric ward for the last six months and came back, you forgot what he sounded like. What do you think about the increase this guy agrees with you on the level two?
Mattew Souza (29:09):
I mean, nobody wants to pay more than they already do, but again, I just think it’s just part of business. If you’re in business, as long as most of these affiliates have five, eight years, these guys are saying you’re just kind used to it. Right? I just got hit with the pg e increase in Bill. We just got hit. And so you’re kind of just used to it. I think they also did steps for people that were grandfathered. Right.
Sevan Matossian (29:35):
Actually, I did hear that in the meeting today that it’s one year, there’s going to be a step for a year and then full price later on. I did actually hear that today. That was the first time I’d heard that.
Mattew Souza (29:46):
Yeah. And so some of the arguments that were coming back were those really early gyms that paid next to nothing and they’re saying, well, what about them? That’s such a huge increase. Some of them are $400,000 more now. And it was basically just like, well now you’re going to pay half that for one year than the other half.
The above transcript is generated using AI technology and therefore may contain errors.
Check out our other posts.
