Martial Arts Professional Magazine

When running a martial arts school, you do not want to depend solely on the revenue you earn from your entry-level core program, i.e. 75 students paying $99 per month. Instead, you want to create multiple streams of revenue and an ascension model for your students.

When you create multiple income streams, your school will be much stronger and more stable. You’ll be in a far better position to weather bad economic conditions, turndowns in the market, seasonal fluctuations or the sudden onset of competitors. If your only source of revenue comes from teaching tae kwon do for a flat rate, for example, then you’ll really feel the pinch if that program suddenly declines, for whatever reason. You’ll have no other legs on which to stand.

Let me share with you how NAPMA Maximum Impact members throughout the world tell me they’re developing multiple streams of revenue.

Core Service Tuition

The initial investments and monthly tuition dollars you receive from your core program is like your bread and butter. It’s the base-level continuity income that you create by enrolling new students in your programs. This is a given.

Upgrade Program Tuition

In the martial arts business, the real revenue potential is in upgrade programs. You’ve already incurred the marketing expense and done the work to attract prospective students to your school; so, “ascending” them into more expensive continuity programs doesn’t cost you anything more. It does increase your average student value dramatically, however, and that, of course, increases your profitability.

At the same time, upgrade programs also provide many additional benefits to your students - so it’s a win-win. That’s why I strongly encourage you to implement a variety of upgrade programs, such as Black Belt Club, Masters Club and Leadership Training.

By the way, upgrade programs such as these are a constant topic of discussion in NAPMA’s Inner Circle and Peak Performers Groups; and I can tell you that most of the thriving schools in the nation have implemented them in one form or another.

Product Sales

If your school doesn’t already have a pro shop, then I highly recommend you implement one right away. In addition, I suggest you use “built-in products sales” to fuel its growth. This is a brilliant method in which students, to participate in your school’s curriculums, as they progress through the ranks, must purchase various products. These products are essentially “built-into” the training. You can count on the sale of these products and know when to expect them, for as long as the student continues his or her training.

Special Events

If your school is not hosting at least one special event a month, then you’re overlooking another healthy income stream. Consider summer camps, buddy days, lock-ins, birthday parties, movie nights, special guest seminars, inter-school tournaments and other similar events that will attract more attention to your school. Decide which of these events best fits your customs, traditions, personality and situation. The key is to do them consistently and market them correctly. When done properly, special events are also fantastic lead generators.

Private Lessons

Many Maximum Impact members earn a substantial amount of additional income, teaching privates. Some are teaching high-dollar private lessons to clients who pay thousands of dollars per year to train with the main instructor or his key staff members. Much of the success in this area is due to marketing, creating perceived value and sales. The point is, however, that this is a no-brainer, additional income stream that you may want to pursue.

Multiple Schools, Satellite Locations and Franchise

These days, more and more school owners operate several schools or they run satellite programs in gyms, health clubs, YMCAs, churches, recreational facilities, academic schools, junior colleges, etc. Done correctly (and legally), these additional locations can add another pillar of revenue to support your school.

Also, becoming a Regional Developer for a franchise organization, such as Mile High Karate, can create one of the most robust additional income streams available in the industry today. For more information, please visit www.milehighfranchise.com

After-School Martial Arts

Transporting kids to your school for several hours a day for an after-school martial arts program is actually a business within your business. This is not for everyone. Since after-school students typically pay two to three times the tuition of a regular student, it has been a highly profitable venture for many school owners.

Additional Programs and Services

Additional programs will generate other streams of revenue for your school. I know of some Maximum Impact members, such as Oliver Drexler, who doubled their incomes simply by adding NAPMA’s Little Ninjas preschool program. Other examples of alternate profit centers include Tai Chi, fitness martial arts, massage therapy, weight training, NAPMA’s EZ Defense program, etc.

As you can see, it’s very clear that creating multiple sources of income can dramatically increase your revenues and help insulate your school from many adverse business or other conditions. Think of it in this way: you don’t spar using just one weapon. Why would you run your school that way?