In this week’s episode of Profit Made Simple, I welcomed back Connor from Code 5 for his 2nd appearance on the show. Every time he joins us, he brings practical strategies that are battle tested in real fitness businesses.

Today’s conversation centred around vertical integration, which is the process of stacking additional products, services, and revenue streams inside your gym.

Not only does this grow your bottom line, but it is also one of the most effective ways of improving gym retention. Members who use more services stay longer, spend more, and feel more connected to your community.

This episode is packed with actionable insights, real numbers, mistakes to avoid, and examples of layered services that are currently working inside Code 5.

Here is everything we covered:

There are two major reasons you should be thinking about adding layers to your fitness business.

1. Members who use more products stay longer.
   Just like banks who keep customers longer when they hold multiple products, gyms experience improved retention when members use secondary services. The more they engage, the longer they stick around.
2. It improves profit during an expensive era to run gyms.
   Rent is rising. Staffing costs are rising. Members expect more than ever. Additional revenue layers help you stabilise profit without needing hundreds of new members.

But layering services is not without risk. The biggest danger is diluted focus. Multiple products require multiple champions. They need oversight, marketing, and consistency. This is why you must approach new services carefully.

Connor’s simple rule is to look at what your clients are already paying for outside your gym. If your members pay someone else for it and you could deliver it in house at the same or higher standard, that is a sign of opportunity.

However, he also stressed that this is not an invitation to rush in blindly. You must build the foundations first, grow a solid membership base, and ensure that your core product is working before you stack new layers on top.

Connor intentionally designs retreats to push people out of their comfort zones and bond quickly. These experiences include team-based challenges, unusual activities like beer miles, Amazing Race style competitions, strength and yoga sessions, and shared meals to encourage social mixing.

This engineered connection is why members return year after year. It strengthens community and improves long term retention.

Another highly successful layer is endurance coaching. Code 5 noticed members were training for half marathons and marathons, but they were outsourcing coaching to outside providers. Many even left the gym entirely to join endurance communities.

To solve this, they brought endurance coaching in house. Members now receive:

• Running programming
• Strength sessions
• Progress reviews
• Access to an expert coach
• Community events like Noosa Marathon and Queenstown Marathon

This added layer keeps members inside the ecosystem and gives them a long-term pathway after they lose weight or reach initial goals. It is an additional subscription, and it is rapidly growing.

One of Code 5’s newest layers is hot yoga and Pilates. This decision was driven by member polling, trend analysis, and competitive mapping. There were no infrared studios in the immediate area, which presented a gap in the market.

The result has been strong demand, improved retention, and powerful cross pollination. Members trial Code Hot, then upgrade to access the main gym. Others join the gym and add Code Hot for recovery and mobility.

It also creates new marketing angles, new audiences, and new lead generation funnels.

Vertical integration is no longer optional. It is essential. With rising costs, competitive markets, and shifting member expectations, revenue layers help you stay profitable and improve retention.

Start simple. Add one layer. Make it exceptional. Listen to your members. Make decisions with data. And ensure every new layer improves both member outcomes and member stickiness.