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Mindbody Podcast

The BOLD Show | Episode 18 | Powering Rapid Growth


When Daniel Nyiri came to America, he had just $150 in his pocket. Now, he’s running a 5-location fitness business and generating a seven-figure income. In this episode of the BOLD Show, host Mike  Arce speaks with Daniel Nyiri, founder and CEO of 4U-Fitness about how he grew his business so quickly.


[00:00:00] In this episode, I'm here with Daniel Nyiri, founder and CEO of 4U-Fitness. Daniel moved from Hungary to the U.S. in 2011 with just $150 in his pocket. Now he has a seven-figure fitness business with five locations that has seen explosive growth in the past few years. Daniel is also a bestselling author and has been featured in places like Gym Owner Monthly, Men's Journal, the Doctors, and more. Today, we're going to talk about how he grew his business so quickly.

[00:00:30] Growing a small business isn't easy. To be successful, we know three things for sure: You have to work hard. You have to be bold. And you must constantly learn. We're gathering some of the best minds in the business world to share their ideas and strategies with you, so you can grow your business easier, be more profitable, and have a lot more fun being a business owner. We’re on a mission to connect a world of wellness. And this is the MINDBODY BOLD Show.

[00:01:06] [Mike Arce] What's up everybody. Welcome back to another episode of the MINDBODY BOLD Show. I'm Mike Arce and I'm here with Daniel Nyiri. Daniel, are you ready to get bold?

[Daniel Nyiri] Yes.

[Mike Arce] Daniel, welcome to the show.

[Daniel Nyiri] Thank you very much.

[Mike Arce] I can't wait for you guys to see what this guy has done. Daniel, you've gone from being an entrepreneur that was stuck in your business,a to opening up five locations in a matter of, like, a couple of years, which is pretty incredible. But what's even more incredible is that you've done that here in the U.S., but you just moved to the United States. How long ago?

[Daniel Nyiri] Seven years.

[Mike Arce] Seven years ago—or five years?

[Daniel Nyiri] Five years. Yes.

[Mike Arce] But you learned English seven years ago?  

[Daniel Nyiri] Yes.

[Mike Arce] OK. So really quick, we're going to talk about a couple of things, because I don't want you guys to think that Daniel has this huge successful background in business. Because Daniel, 10 years ago, what were you doing?

[Daniel Nyiri] Ten years ago, I used to play hockey semi-professionally.

[Mike Arce] You were an athlete.

[Daniel Nyiri] Yes.

[Mike Arce] OK. And then fast-forward to, let's say, when did you start your business?

[Daniel Nyiri] About five years ago-ish.

[Mike Arce] Five years ago, and it's a fitness franchise. So talk about, really quick, what it is. And then we'll dive into your history on it.

[00:02:18] [Daniel Nyiri] OK. So when I first started about five years ago, it was basically me as a personal trainer starting a personal training studio, which almost everybody's doing and making barely anything. Regular businesses, one-person employee or no employee. Which right now, today, what I learned, I basically call that not a business but a prison. Where you are the prisoner and the warden at the same time. But long story short. Yes.

[00:02:44] Fast-forward to today, we have now five locations.

[Mike Arce] Five Locations. And you're adding recurring revenue every single month with your model?

[Daniel Nyiri] Yes.

[Mike Arce] On average how much recurring revenue are you adding to your business?

[00:02:57] [Daniel Nyiri] On average, at least for the revenue that we have so far, it's been a minimum of 6%.

[00:03:04] And all the way up to sometimes 20%.

[Mike Arce] 20% added monthly recurring revenue. Every single month. OK, great. So now let's really quick dive into this. You're now in what, year four or five, into your business?

[Daniel Nyiri] Five.

[Mike Arce] You're in year five. But years one, two, and three—what did those look like?

[Daniel Nyiri] Pretty bad.

[00:03:25] It was me basically doing everything. No team. No leadership. I'm just myself doing every single thing, including AC breaks. Let's save some money. Spend eight hours on fixing it. And even though I make already more than whatever I would I pay to fix the AC. So basically, just telling myself that I'm so busy. I don't have free time. I must do everything because I'm the best. That was my first three years, which was obviously bad. 

[00:03:52] [Mike Arce] Wow. OK so now let’s talk about the last two years. Well, just in this last year, you have done such a great job of marketing the business and marketing yourself. You've not only written a book on the fitness business—and what's it called again?

[Daniel Nyiri] Secrets of a Seven Figure Gym.

[Mike Arce] Secrets of a Seven Figure Gym. Fitbiz. And you can get it Amazon, or anywhere they sell books.

[Daniel Nyiri] Yes, Audible?

[Mike Arce] And it was a bestselling book immediately?

[Daniel Nyiri] Yes.

[Mike Arce] Right. Again, you just learned English. But on top of that, you have also started working with NASA to see if you can come up with a plan to help them colonize Mars.

[00:04:35] Is that right?

[Daniel Nyiri] Yes. Because it's kind of funny story, too. So how I, actually, did that. It's a government company, right? So all the information is basically public. So I went online and I looked up their email addresses and basically, I sent out a couple of thousand emails a day—not kidding. Saying, trying to tell a NASA scientist, or whoever I was reaching—I try to reach anybody—and tell them that you are stupid the way you are doing business. Or not business, but what you are doing. And I didn’t stay stupid, of course, just to clarify. But basically, that's what it comes down to when I explain to them what I would like to do. And finally, someone got back to me and said, “Listen, if you do this and this and that with research, basically give me the details. Then we would actually consider your program in space.” So long-story-short, that's how it actually worked out. And it was about three months of emailing NASA basically every single day.  [00:05:27][52.1]

[00:05:28] [Mike Arce] So persistence. You didn't just send one email. Most people in the world would say: Why would NASA want to hear from me? And you not only didn't say that, but you emailed them every single day for three months until you finally got a break.

That's pretty amazing. OK. So not only have you, in the last year, written a bestselling book on the fitness business, you've not only opened up your fifth location, you've not only started working with NASA to help them colonize Mars, but you've also got in on Netflix in a very popular documentary. What’s it called?

[Daniel Nyiri] Generation Iron Two.

[Mike Arce] Generation Iron Two. When do you sleep?

[00:06:04][Daniel Nyiri] It’s actually all eight to six hours, but I think you're on the same schedule, too.

[00:06:10] [Mike Arce] So here's a couple of things, what we want to talk about today. How Daniel gets so much done, in such a short period of time, with what some people would call handicaps, not knowing the language as much as others, not coming in with the network and all that. So just how he's been able to do that. And then also what changes he's made in his business in order to be able to achieve this success. So let's really talk about the small business first, because the people that are watching, the people that are listening are like, alright. Well, before I start working with NASA and write books and get on Netflix, let's figure out how to get my business out of the red. So let's talk about some of the things that you knew you had to do, as a person, as the owner of this business, in order to get you from stuck and losing money and working all the time to where you're at today, which is making great money, having several locations, working less in the business, and working more on the brand and yourself. So what are the changes that you say, these have been the biggest changes I’ve made to get from here to there?

[Daniel Nyiri] And that's my best topic to talk about because I love that. So often I meet people, you know, who has the same issues and they just don't see it themselves. So the number one thing that I had to do is basically fire myself from so many things. What I did is, I read the Scaling Up, the book, and basically there was a page in it that actually made you write down everything that you were doing in the company. And I didn't realize that my name is on every single one of them, a long time ago. And so I started to fire myself from each one of them. But why I want to bring this up real quick is, because you know, I think you met so many people and you went through this too. But so often they say that you need to delegate. And I'm like, I'm agreeing with them that you do need to delegate. But if delegating itself won't get you anywhere with business. It's more like you need to leverage. And the difference between delegating and leveraging, is delegating is something that, “Hey Mike, can you please do me that and that and that? And then do the revenue report? And all these things for me and accounting?” But if I have no idea about how to look at the papers that you give me, then what's the point of delegating? I'm not going to get anything out of it. So the accountant could be stealing money, or the accountant gives me bad news, and I don't even know what to do with it because I just don't know what it is. So instead of that, I focused on leveraging. So I know, generally, information on it. And have, for example, the book, Profit First, which is an amazing book. But so many other books, just read it and have my general knowledge, and then leverage and then hold people accountable who actually helping me doing that work. 

[00:08:42] [Mike Arce] And, Profit First was written by Mike Michalowicz, who's been on the MINDBODY BOLD Show before. So if you guys who haven't watched an episode or read that book, definitely pick it up. As you can tell, Daniel has been using it.

[Daniel Nyiri] Yes.

[Mike Arce] OK, great. So now you just mentioned two books in like 45 seconds. And those two books, especially Scaling Up. That's a pretty intense book. Scaling Up isn't the first business book you've read, though. Because that's a complex book for anybody to start reading, nevermind somebody that was just learning a language. So when did you start reading? And what were the books you started with? And what were the ones that you felt were the most—and how much do you read? Let's talk about your reading. 

[00:09:17] [Daniel Nyiri] OK, so yeah. I created this, that people would say that you need to be disciplined to able to become successful or anything like it.

[Mike Arce] And like fitness, too. If you want to get in great shape, you've got to be disciplined.

[Daniel Nyiri] Yes. But what I usually respond to that, is literally, that's what you actually need to do, is create the right habits. And then, when you start working your habits daily, then all of a sudden you have everything working for you. Daily, as well, because you have been working on it. And then you will look like a disciplined person. Right. But the reading: I read every single morning, no matter what, including today. I usually get up two, three hours earlier. So I usually get up at 4:45 a.m. and then I read for the first two or three hours. 

[00:09:56] [Mike Arce] And for two to three hours, you just read.

[Daniel Nyiri] Yes.

[Mike Arce] That is more than a quarter of a shift of work.


[00:10:04]  [Daniel Nyiri] And I do that because, as soon as I started reading, just to give you an example, we skyrocketed with everything. It opened my mind to so many things. And I started to, it's almost like, get into a deep zone of concentration. That's what it allowed me to do. And then, I'll just be reading. But it allowed me to put everything aside, turn off my phone, on silence, even in the morning, and just focus on reading. And then I started doing that with everything throughout the day. So if I have some tasks that I need to get done and it needs my concentration, then I close my door, put a sticker. And it's a glass door like this. So they can see me—my employees. And then when they me laser-focused, or I have a sticker on the door, they know that they cannot bother me or look at me or anything because I would be pretty mean. And I'm not mean, not like that. But my face—I'm just in the zone.

[Mike Arce] It better be very urgent.

[Daniel Nyiri] Because I'm getting work done. So it's not like that. How many hours I'm actually putting in. it's the quality of the work that I'm putting in.

[00:10:56] [Mike Arce] So give me an idea of what kind of books are you reading that have played a big role in your success?

[00:11:01] [Daniel Nyiri] There's a lot. So now, I usually read four books a month. Now I'm up to eight.

[Mike Arce] Eight books every month. Wow.

[Daniel Nyiri] And I'm not doing a Tai Lopez read a book a day. But he's skimming through it, as I understand it. I mean, what he calls festering when you cut off the edges of the books. Because my English is not great, I cannot put together sentences like that. So I have to actually read everything through, so I make sure I understand it. And I still sometimes don't understand it. But my point is that the best books were—Scaling Up is one that I want to bring up, but yet do not start with that book. It's very, it's like a textbook.

A good starter would be—the way I did it is, who is very influential that I look up to in the industry, that I would like to become or accomplish what they have accomplished? So I picked the biography first, which also talks about lots and lots of work ethics. The work ethics that I want to have, which is Elon Musk's biography and Steve Jobs’ biography. Just two famous people, to name some. Those were good starters. And then just getting to, in my role, is focusing on leadership, and focus on management. But more of what leadership is. I picked up—my number one favorite book is very easy to read. It is Lincoln on Leadership.

[Mike Arce] Lincoln on Leadership.

[Daniel Nyiri] Yes. And this is not a famous book. But it's the best book that I have ever read on leadership. I learned so much from him that I use it every single day. And I became so much better at my job because of that single book.

[00:12:32]  [Mike Arce] Do you think there's a lot of business owners out there that think they're good leaders but they're not?

[Daniel Nyiri] Oh yeah.

[Mike Arce] What do you think makes a good leader a great leader?

[Daniel Nyiri] Well, first of all, the best talent that I see, is when a great leader’s team has done something truly amazing. Then the leader says, “Good job, team. I had nothing to do with this. You guys did an amazing job.” But when the team messes up horribly wrong, the leader doesn't blame the team. The leader says it was my fault. So he doesn't take credit but takes all the fault. That's one of the main things here.

[00:13:05] [Mike Arce] OK, awesome. So now, with the different books, you've read, and I remember we talked about this in the past. EMyth was a book that you really focused on. That's a pretty good starter book to read. Yep. But reading all these books, is that where your education ends? Or do you do more to learn how to be a better businessman? 

[00:13:23]  [Daniel Nyiri] I do more, but before we get to that, the number one book that I also recommend before is, I think, the ultimate first book, is Key Person Of Influence.

[Mike Arce] Key Person of Influence.

[Daniel Nyiri] I don’t know if you have read it. But that book is walking you through, from day one, of who you are, who you want to become, and start a business. And it's working through all that, every single process. What you need to do, from pitch—to have your own pitch, because you're always pitching, and you always get what you pitch for. So if you don't have one, nobody gonna—right. And from marketing to leadership to anything, you name it to—that book is in it and teach you how to become a key persons of influence like you are already. Right right.

[00:14:02] [Mike Arce] I remember, you gave me a book to read on the way home from Florida, when I met with you. It’s a CEO book. Habits of a CEO, or something like that.

[Daniel Nyiri] Yeah, Five Habits of a CEO.

[Mike Arce] Yeah, Five Habits of a CEO, which is an easy read. I read that on the way home. I finished it on the plane. So it was a great book. OK, but does the education end at the books? The reason I'm harping on this is because, what we want to accomplish in this episode is, not only showing you that it's hard being a business owner. It's more than just working hard. Right. We know we have to work harder as business owners, but it's also learning. What it really means to be a refining business owner and actually how simple it is to learn these things with all the resources out there. And something like Daniel, with no experience in the business world, no experience in the country, and the language barrier. You've been able to take these tools that we all have access to, to be able to get to a really great place in business and in life. So that's what I want to accomplish here. So, does the education stop at books? Or do you have more ways you learn things.

[00:15:02] [Daniel Nyiri] So no, it does not stop at books, but it's the most important for me. And then podcasts and shows, like this one, exactly. And all of your shows, basically. I watch every episode. Yep. And I have to catch up on some. Well, first of all, you interview amazing people. And then because you interviewed me, and lots of them—most of them, actually—wrote books, also bestseller books. So, I buy their books and I read it and then I get into Masterminds. I'm not in Masterminds right now, but I'm planning to join two, similar Masterminds from some of the people that you have on your show. Because the Mastermind is to surround myself with people who want to be, like you, for example, is boosting not just my abilities, but all my team’s ability, just because having that accessibility. 

[00:15:46] [Mike Arce] Well...I believe said, you're the average of the five people you hang out with the most. And so, when you look at the five people you spend the most time with, do you want to be that average? Or do you feel, like, maybe we can level up a little bit and find some people we could spend a lot of time with and learn from? People that will push us to be better. And also, just people that make it look to be possible. When you're part of Masterminds, they’re doing such great things, you know you can do it because you see regular people doing it too. Right. Ok, awesome. So now let's talk about the biggest change you've made in your business. So now that you've learned all this stuff—OK, we're going to help people here push the fast-forward button. OK. So you were stuck in your business, you weren't making money, you were working all the time. What are like two or three things you think—out of all the changes you’ve made, there were probably a lot—what were a couple of things you said, I'm so glad did that. That had to be the biggest thing. 

[00:16:41] [Daniel Nyiri] So, two people connect today and they don't say, “Oh, he already made it.” Or, they already have employees and are successful. And I'm just starting out, myself. Just to give you an example, as of January this year, 2017, we had one employee and two contractors basically. So it was like a four-man, and myself or less. And now today, as of today, we have 22. And that’s 11 months later. Yes. OK. And and we had two locations, and at that time I was still working at some of the locations as a trainer in January. So I fired myself in January, completely, by the way. But all the way through that year and January, we had two locations only and now we have five. And the reason we only have five is because the hurricane came through. So we had two months completely washed in our state. 

[00:17:27] So business was done for two months.

[Mike Arce] Now for people that are listening and watching, they say, “Man, that sounds like a lot of money in salary.” Are you making money with 22 employees? Or are you losing money?  [Daniel Nyiri] Making money.

[00:17:38]  So, the way we work is that we don't do loans or investments, basically. So what we are doing is from our profits. We actually re-invested and are basically using it to hire people. We use some of the laws and rules from Profit First and from Scaling Up when to hire. But one thing I want to say is that Packard’s Law—I don’t know if you know. Hewlett Packard? Yeah. So he had that law, that a company cannot hire people fast enough to keep their revenue up at the same time. What I'm trying to say is that we don't hire when we need to hire somebody. I always have my radar on and if I see somebody that we need, we hire them right away. Because the number one, to answer your question, thing that I learned—just literally in this one year that I need to focus on—is hiring the right people and putting them into the right seats. And then that made me realize that I need to hire people when I see them. And that's what I need. Because then it's already too late. Right. Right. So it's all about people. 

[00:18:38] Ok cool, so making sure that you're getting great people. So where do you find great people?

[00:18:44] So that's anywhere. And one more thing: So first is the who, and then what. So that's the mindset that I set up for myself. And we do advertisement on Facebook. We do Indeed, anything, Glassdoor, or whatever you name it. We are on there and we're always hiring. We have big signs everywhere. Not in the studio, but like online, everywhere you go and see, we are hiring. We're always hiring. So we are always like that because we want the good tenants to come in and we actually receive over—so, in Florida, it looks like our branding is coming up because we receive over 100 resumes per week. Lots of them are really bad. And then, if you're watching this and you want to be a trainer or employee who works with us, please just don't send your resume. You need something.

[Mike Arce] A story, what value can you deliver?

[Daniel Nyiri] I hate that. When they send, like, hey, I would like to refer you or something and send like a resume. And I'm like, OK, erase.

[00:19:37] [Mike Arce] Yeah there needs to be more. Okay great. So now, you focus on people, building up your team. Now and also the numbers, because if you’re reading Profit First, it means you're definitely looking at the numbers as well. Yes. Right. And then you said advertising, too. You said Facebook, and anywhere else?

[Daniel Nyiri] For jobs, right? Indeed. Facebook, Monster. I forget what it is and then basically all the jobs sites. 

[00:20:07] [Mike Arce] So you're using Facebook to actually advertise to get employees. Yes. OK. And so what are you running ads? To people that are personal trainers in the area?

[00:20:14] [Daniel Nyiri] Yes. So we do that, but we not just think of personal trainers. We need the Social Media, Content Marketing. I mean marketing—we have a great thing. So we don't advertise for that. But for social media experts, for example. We just have a new intern and all the kind of stuff for client happiness, and all these things. So we advertise for all those other things, too, create this amazing video of our clients and three interns. Why do they love to work here and putting all the fun stuff, behind the scenes, so they see it.

[00:20:40]  [Mike Arce] Awesome. And so when it comes to the advertising, how focused are you on making sure you're advertising all the time? To get clients.

[00:20:50] [Daniel Nyiri] So we're always on. Only on social media. Well, one thing is that the cell phone you have, like it or not it, has become the remote control of our life. And it's not that I say that or not, but it's what's happening. Like it or not. But so we have to be everywhere. And a website has to be mobile friendly, and all of our ads have to match up to that. And then it has to be very easy. So the only place we advertise—and we have so many calls to advertise in so many other places—is social media. Facebook, Snapchat, Instagram, YouTube, and that's it, actually. Those are all our platforms, and we are all over on each one of them, 100% every single day. Putting out content for the people that is informational. So not just, hey come in. If you use...Exactly. So that's what we do. And plus we always have our free trial promotion video going on on Facebook.

[00:21:50] [Mike Arce] OK, awesome. So you always have your free trial going. So you do free trials? A lot of companies don't like to do free trials because they think it devalues their service. What do you what are your thoughts on that?

[00:22:00] [Daniel Nyiri] Well here's the thing. So you know how many people told me that? It's crazy. Anybody that I talk to, they say that and I'm like, No. It's not. Here's the thing. Our clients should become our clients once they do our trial. So often, even if it's a referral, they come in and they're like, hey I would like to sign up. Here’s my credit card. And we're like oh no, no, no, no. That's not how it works. So what you're going to do is, you're going to go through a free trial.

[Mike Arce] So you make people go to a free trial, even if they're ready to buy.

[00:22:28] [Daniel Nyiri] Yes.

[Mike Arce] Now really quick, just so you guys know, you're not like a $9 a month membership. What does the average person pay you every month to use your place?

[Daniel Nyiri] $700.

[Mike Arce] $700 a month?

[Daniel Nyiri] Yes.

[Mike Arce] And it's not necessarily location-based, because you have five locations and they are all different spots. So the average person is paying you $700 every single month to work with you.

[Daniel Nyiri] Some $1,000.

[Mike Arce] Some $1,000?

[Daniel Nyiri] Yes.

[Mike Arce] OK. And you make them go through a free trial?

[Daniel Nyiri] Yes.

[Mike Arce] Whereas everyone else thinks that will devalue the service?

[Daniel Nyiri] Yes.

[Mike Arce] Just wanted to make sure, and you're adding clients every single month.

[Daniel Nyiri] Yes.

[Mike Arce] OK. So let's talk about your process. OK. So you get a person that comes in. They say, “Hey, I like it. I want to go out and give you my credit card.” And you say, “No, we have to finish the free trial.” Right? OK. So now what?

[00:23:11] [Daniel Nyiri] So, and the funny thing is, that so often these clients leave. Happily, of course. But they are going to leave and they say hey, are you getting a free fitness? And what is crazy about that I want to pay and they won’t let me pay. So I mean they're wasting money. They come up with all these crazy stories and then we have new clients that are for us, coming in. They always say, this is the chamber, I can't pay. Right. And that's a good thing to have around.

[00:23:34] [Mike Arce] Wow. That's crazy. OK, so now, when do you ask for the money and how do you ask for the money?

[00:23:38] [Daniel Nyiri] So we pushed them through three different sessions. So that's basically three times, about $75, that we could be collecting. And we give it out for free. Because here's the one thing that I learned, that is also amazing for business owners to know, and you definitely know it, too. You just mentioned it from your mouth a couple minutes ago. You said that you want amazing clients that are multiplying—multiple times—and you don't want basically bad clients. So we were the same way. Right. So the reason why we have this process because we analyze the clients and we make sure they really are our clients and we can actually help them. If we cannot help them, or if the client is a pain in a butt or whatever the reason is, we just say no. And we send them away, even if they are: Hey, take my card. Here's my money. I want to pay for a whole year. Unfortunately, as good as it sounds, I would love to take your money. It's not worth it. So we just pushed the person, unfortunately, away. 

[00:24:26] [Mike Arce] Because it takes away from the culture. The whole business feels different when you have the wrong people as customers and employees. You've got to fill up the entire business—that energy and entire rooms—they’ve gotta be the right people. So you know that. OK great. So now you go, hey, this guy is a great client. How do you transition to Let's start paying.

[Daniel Nyiri] So we have three options, basically. Well, four. And what do you call that? The popcorn effect?

[Mike Arce] The decoy effect.

[Daniel Nyiri] And we did lots of research on that, by the way. So we didn't just do the pricing, we did it for the colors, too. OK. So we are like, who is our clientele? What's their favorite color? We have hundreds and hundreds of clients, right. So we asked these questionnaires from them and from the feedback, we created their favorite color and color-coded our pricing sheet.

[00:25:17] [Mike Arce]  So you will change the pricing sheet color based on what you learned earlier about what their favorite color is?

[Daniel Nyiri] Yes.

[Mike Arce] That's awesome. OK. So you just asked for their favorite color in what? The assessment?

[00:25:31] [Daniel Nyiri] No, we ask our current clients that we have.

[00:25:36] [Mike Arce] Oh, I got it. So you've asked, as a general whole, what everyone's favorite color was.

[Daniel Nyiri] But it's a good idea.

[Mike Arce] I thought you changed it per person. OK great. Alright, so go ahead. Three different options, or four different options.

[Daniel Nyiri] Three, plus there is a fourth one, but the fourth one, we only bring out for the big gun. Basically, if we really see it fit.

[00:25:55] [Mike Arce] Oh, so they only see three in the beginning. So what do the three look like? Because the Decoy Effect is very powerful. I've gotten actually quite a few different businesses to use it and no one is unsuccessful with it. But everyone that doesn't understand business, or how buyers actually buy, they can't even think about using it. They think it's too weird or they think it's dumb. But it's genius. And it works on them as consumers every day. OK, so now let's talk about you. How do you use the Decoy Effect? I'm looking at the pricing. What does that look like?

[00:26:26] [Daniel Nyiri] So basically, there are three big numbers that show our three main pricing. And there is a fourth one that we bring out later, on the bottom, but it's small.

[Mike Arce] Now, do you bring it out regardless? Or is it as a just-in-case one of the three didn’t work?

[Daniel Nyiri] That's basically it. It comes in a Decoy Effect.

[Mike Arce] Oh that’s your decoy. OK, cool.

[Daniel Nyiri] So, but the way we actually do it is all about the clients. Which is true. Because here's the thing. We have two different options. The first option is basically our “you buy it and it never expires.” You can buy sessions like any other fitness studio. You can buy sessions or whatever. And then the second option—and that one has a different name that reflects their type. So, for example, a Go Getter means that they are going to go get this done and they want to get this done right. And then we have Busy Bee. And by the way, why we have these fruity names or you know these funny names, is because we only target for females. So, OK, so before you say that I don't know if I want to work out at a gym that will—

[00:27:21] [Mike Arce] OK great. So you have Go Getter, as an option. Busy Bee.  

[Daniel Nyiri] And then we have Long Term, which are actually changing the name to our 12-week program, which will come out as one of our newest book that Nina is writing. OK. And that will be an interactive book for our clients for 12 weeks. That each day, it’s not the journal. It's very complicated, but it's very easy at the same time. You just complicated it for me. I had to explain because we were on a roll. But anyways so we have that, and then.

[Mike Arce] So this is a 12-week program. Yes. What's the Busy Bee? How many weeks?

[Daniel Nyiri] It’s subscription. So autopay.

[Mike Arce] OK, so it’s autopay, month to month.

[Daniel Nyiri] Yeah, it draws out from her account.

[Mike Arce] And then the Go Getter?

[Daniel Nyiri] Is basically a session by session. But they have to buy 12, at least.

[Mike Arce] They have to buy at least 12. OK, Got it. Perfect

[00:27:58] [Daniel Nyiri] And then, at the bottom, right under the Busy Bee, there's a Busy Bee Option Two for when they come three times a week. So they come three times a week, they basically pay $800 a month. And the way we do it is first, we do our talk. They talk 20%, we talk 80%. So we ask the right questions. We find out as much as we can. Then and once we have that, we know exactly what they need.

[Mike Arce] What are two or three questions you know you're going to ask no matter what? Because they work really well.  [00:29:09][3.5]

[Daniel Nyiri] It's the number one question we ask is: why you are here. I mean, why. Sometimes I ask and I'm more than happy to give you an example, but sometimes I ask why like eight times.

[00:28:34] And then they are like, never say.

So I will tell you the best one, because that might make you cry. OK. So I had one client who came in and she said, “I just want to lose 10 pounds.” And everybody says that. And I'm, like, OK. Why would you like to lose 10 pounds? And she goes, well, because I feel tired all the time. OK. So why would you want to be, you know, energetic and all of these things. And then she goes, Well so I can come home and have time with my kids and I can play with them and I'm like OK. So why would you like to do that? Well because I just want to show them that I love them. And I was like OK, so why is it so important for you that your kids actually know that they love you? And then she starts crying and then she goes, well, because my mom never showed it to me. That she loves me. And so it's important to me to show it to my kids. And then she was literally tearing up and then she's been our client for five years now. So because we connect the emotions. So when we connect the emotion with sales—but in a good way.

[00:29:30] [Mike Arce] Here's the thing, guys. Most people move away from pain rather than going toward pleasure. But when the average salesperson sells, and the average salesperson is not educated in sales. They just learn how to sell from things that happened. And maybe some sales trainer that taught them and they didn't really know. But most people would rather do something to move away from pain, than go toward pleasure. But we're always selling the benefits. We do is, and we focus on results, and we have a great culture. We have classes for this, and that's really great. But unfortunately, that's not how people buy it. And to me, you know, I've seen some really great salespeople. But the best salesperson—do you ever watch the show The Profit? Marcus Lemonis is an incredible salesperson. A lot of people think that show is a business development show. But really, he only starts developing the business in the last five minutes of the show. That first like 40, 50 minutes of the show. He's actually selling them on a good partnership, right, a piece of equity that's worth his time. But every episode, every single one, he comes in, real nice. And then he somehow makes them cry by asking good questions. They cry. Everyone cries in every episode. And then he brings them up. And then he shows them a solution. So in sales, there are three different things, called the child, the adult, and the parents. You have to get everyone to the child's mode, which is where they're showing their vulnerability. Stuff they’re really upset about. And adult mode is where they can actually start problem-solving. And parent mode, where now they can make decisions. Yes. And a lot of people don't really get that. You've gotten that concept. So you have actually gotten people to cry in the sales process. But for good reason, because you want to find out what the core reason is, why they're really here. Now, why is that important? Once you find that out, now what do you do.

[00:31:20] [Daniel Nyiri] Because we hold them accountable. So once we know what the real reason is, we can reassure them and remind them that your real reason is still there. And we can actually get you there. But you need to do this and this so we can hold them accountable. [00:31:33] [Mike Arce] Got it. Alright, so then at that point, you have the three options. Now the fourth option.

[Daniel Nyiri] So the fourth option is basically coming three times a week. And basically our decoys are the price differences between all of them, right. So you can pay top dollar, which is what you have to pay if you buy lots of sessions, like basically $3,000 this year for a 12-week program. So it's lots of money when you pay for that. And that one below, the subscription all of a sudden looks so nice. Because it's basically $800 if it's three times a week, which we will talk about a while later. But the other one is—how much do we charge right now—is $550. So $550 per month for two times a week, and they start doing the math in their head. Oh, if I only pay $57 per session, I might as well do three times a week. Because then it becomes actually even—$62 and then it becomes $57. And that comes with a week and it's only $100 more. But in our case, the decoy effect is basically—it’s less, but they get more. But we also get more because it's a monthly fee, that if they show up or not. Like it's a gym membership. But it's not at the same time. They can cancel it. But that's why you push it that way with the price difference.  Oh, I'm already paying almost the same, but why don't I just get the one better.

[00:32:43] [Mike Arce] So if you guys want to learn, keep in mind that Daniel's business may be a different model than yours. So the way he uses the decoy effect may work really well for your business. But if it doesn't, I want you guys really learning. If you go to YouTube and type in: “decoy effect,” you'll actually see a two-minute video. And...has a great clip on it. I definitely recommend you watch it because it is a superpower in sales and you could also google “decoy effect” and you'll get some really good articles on it, too. Ok, cool. So use the decoy effect. You have your pricing, your presentation. All that's nailed down. You have great people. You constantly focus on learning. And you know your numbers. What it sounds like is you focus on being a well-rounded business owner, as opposed to a really great personal trainer. Because I've heard the talk. I've heard you talk about being a great personal trainer. Yet, you have not even mentioned that. Everything you've talked about is being a great business owner, and I think that's because you realize that once you start a business, you're no longer a fitness pro. You are now an entrepreneur, a business owner. That happens to provide the service of fitness.

[00:33:47] [Daniel Nyiri] Exactly. That’s the number one thing. When somebody opens a business, I said do you want to be a personal trainer? They no longer are a personal trainer. So if they are, they’re going to get nowhere and they're going to burn out. And they end up, basically, going out of business eventually, or they just closing down. And that's why, in my case, yes I do not do anything with fitness anymore. However, I do, at the same time. Because—and I forget to bring them with me. But we have the numbers. How many inches? How many body fat percentage? How much pounds? And how much are everything we lose per month, per year, per client. And all of this, all together, with all the studios to make a difference. And we also educate our clients. And this way, I focus strictly on my trainers. They are amazing employees. This way, they can actually change to the world even more and more, and create this—what do you call it?—where they’re just going around and around and creating bigger and bigger and bigger pieces to help people get fit.

[00:34:42] [Mike Arce] That's awesome. Now, not only do you focus on all that stuff, you also are really big in staying ahead of the curve. You have Snapchat glasses, because you came in wearing them. Do you have them on you? So you guys get to see this, and tell me what these things do, because this is ridiculous and it's awesome.

[00:35:01] [Daniel Nyiri] Yes, so basically right now we are recording.

So we're recording right now.

Yeah. It's actually, that's how you know it's recording. But what it is and it's pretty awesome. But what it does is, right now, what I just recorded is actually going onto my phone right away. And they can record 10 seconds to 30 seconds. And it also stores it on it, so it doesn’t fill up.

[Mike Arce] So I put these on. So you wear these in your office. They’re pretty professional. So you put these on, in your gym, in your fitness studio. And you'll just start recording things. And you know you already are recording what you know the audience will see.

[Daniel Nyiri] And you have to be careful because what you actually look at, this is what they are going to see in the camera. But the cool thing is: It’s almost like a 360. Because the camera, too. There's two cameras and they see wide. So when you look at it on your phone, if you turn your phone, you see a wider frame. Ah, so it is truly amazing. And you can turn it any way, because it records like this.

[00:35:56] [Mike Arce] Wow, that's really cool. That's awesome. Ok cool. So you got that. Now let's talk about one last thing before we close out. And guys, this is one of the more powerful things here. We talked about, off camera, keeping the end in mind. Tell me about that.

[00:36:10] [Daniel Nyiri] What I also learned, the difference between what a good and a great company is, that the great company is thinking with the end in mind first and not the other way around. And they have their purpose and vision, and they stick to it. But what they are doing really good is, and makes a big difference, is that they are sticking to their vision. But they are also not scared of the brutal truths, and the market changes, and everything out there. And they adjust to their plan. So Amazon won't pull them out of business because they are ahead of the market. So my thinking is, and so many people make this mistake that I said, from their books that I read, that they start hemorrhaging money on expenses and employees and all these crazy things. And just opening up, let's say, studios, instead of already thinking, like we have 100 studios.

[00:36:54] So in my case, when I opened my first studio, I hemorrhaged money. I was like, oh we need the best of that, and that. And money isn't an issue because we are going to make so much money. But that was with one studio, and I'm not thinking, OK, if we're going to have 100 studios, it’s a way different story. So, for example, with our watering station. So for equipment, we have to water down the suit that you wear to exercise. And when you try to use a watering pump, like a spray, that you use for watering flowers, for example, and like very cool looking glass. But the problem is, you have to go fill up the water, way at the sink, you have to warm it up, all that stuff. Then walk back and then have to pump it, all the time, water up and then empty the bucket. So that adds up a lots of times. Now, with our new watering station, I'm averaging this out with 100 studios, but with lots of people, it could be up to 10 minutes of saving time. But it's an average of three minutes that we are saving. And you might say, oh three minutes is not a big deal. However, 3 minutes times 800, because that's the amount per studio we have watering in a month. So 800 times 3 is—actually adds up to about 40-plus hours of training time. So that means—I mean sessions, because we have 40 minutes for sessions. So that adds up, to one year, at $41,000. And then, that's who wants to deal. With 10 studio in one year, it adds up to $411,000. And then with 100 studios, which is where our goal is in five years, that would cost us $41 million. Yes, it's going to be a crazy amount of a chunk of money that we would have to pay out of here.

[00:38:29]  [Mike Arce] Wow. So you look at business the way business should be looked at, as opposed to what it looks like today. Awesome. So I have to show, because this is a great book and pretty much everyone on the team has gotten this book from you. You sent it as a gift. We went through it. But it's called Fitbiz: The Secrets of a Seven Figure Gym. So this is a book that you wrote.  What was your purpose for writing this book?

[Daniel Nyiri] It was honestly to hold myself accountable. So I wanted to put things on paper and then I wanted to do research. So because there's lots of research on the market currently and it was the brutal truth that I was talking about the statistics. That 75 percent of businesses—not gyms, but gyms are basically in that 75 percent—are only making $40,000 a year in revenue. Not sales. Not profit. It's basically, it's ridiculous. And I was like, that's not a business. So it's just crazy to me that people would prefer that, than might as well just work for somebody else and work your way up. But anyway, so that was my purpose. To do the research. And what was my finding is, it's crazy. And then when I went to entrepreneur meetings and social clubs and expos, I meet so many gym owners. And the first thing they say is that they are so busy, personal trainers. I don't have time to do this, do that and that. So that's how I want to write this book. And I gave it to them anytime they say that. Or I send them a link. Even a free copy, when I see them. Hey, just read this, to wake them up. Because if we put our heads together, all of the gym owners, then we can truly put a stop on obesity. At least that's my big goal. Like my purpose of life. But the point is that, alone, I cannot do it. No matter how big I'm gonna get or whatever we are heading to. But with this book, it will help them and show them. Listen, it's a punch to the gut for the personal trainers, because they are going to read it and be like, that's me.

[00:40:21] [Mike Arce] That's it. So when you say you want to put an end to obesity, why is that so important to you?

[Daniel Nyiri] Well, you're sending me the “why” questions now. Just like I did. Why? It’s the emotion really. So, I lost my grandparents to obesity. Both of them. All of them, actually. Basically, and I just don't want to see another grandson to feel the loss that I did. So that's the main reason that I want to put a stop on it.

[00:40:45] [Mike Arce]  That’s awesome. Well, you're doing great work. The book is awesome. What you've done in one year is what people don't do in a lifetime. What you've done in one year is what three people don't do in a lifetime. And so, really proud of you and all the work that you've done, and always amazed. And I can't imagine what you’re going to be doing in the next five years. So we're going to have to have a lot more space on that camera in order to talk to you. Thanks so much for coming on the show today. For everyone watching, for everyone listening, we will see you next week.

[00:41:16] [Mike Arce] Thank you so much for joining us today. If you like this episode then subscribe to our podcast on iTunes, Google Play, or Stitcher, and to our YouTube channel to never miss an episode. You can get all the links by going to Thanks, and see you next time.

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