Why We Ditched the #1 Lead Gen Tool In Fitness

ClassPass is a subscription-based platform that allows users to book fitness classes at various studios for a monthly fee. Users purchase “credits” to access a range of classes across different gyms, yoga studios, and boutique fitness providers. 

For studios, it acts as a lead generator, filling empty class spots and exposing their brand to new customers. It is perhaps the most utilized lead generation software in the entire industry, driving the majority of their traffic from this discount-based program.

So why did we ditch it across all our studios? Why were we willing to take a 30% revenue haircut on Houston to move past it? How are we generating those lost leads?

The past six months have been a tipping point with AI. It hasn’t just improved—it’s exploded. You’ve seen it: smarter tools, sharper insights, seamless integration. (Full disclosure: even this email got a final polish from my AI assistant!)

What’s driving this moment?

• Better Tech: AI is now faster, more intuitive, and capable of human-like reasoning.

• Affordable Access: Costs have plummeted, putting power in our hands.

• Open Ecosystems: Software APIs are unlocking, letting AI plug into our data and amplify it.

In our first update, we shared how we rebuilt our data infrastructure. It’s not just a vault—it’s a living system, designed to “talk” to other programs. Now, AI can step in and turn raw data into personalized magic.

There are three main reasons why equipment is critical for us:

• Effectiveness: The right machines are non-negotiable. They allow us to isolate movements with precision, optimize performance, and deliver the exceptional workout experience our clients expect. Without them, we’d be compromising our core promise. 

• Barrier to Entry: Unlike yoga studios that can flip on the lights and start teaching with minimal setup, our model demands specialized equipment. Competitors can’t just waltz in—this requires serious capital investment, creating a natural moat around our business.  

• Expansion: Access to top-tier equipment isn’t just about maintaining quality; it’s the backbone of scaling a studio. Without it, growth stalls, and we’re stuck spinning our wheels.

Major Factors to keep in mind:

1. The industry relies on two key suppliers: 1) Lagree (sourced in Vietnam) and 2) xFormer (sourced in China).

2. Suppliers typically pass on cost increases to studio owners (inflation).

3. From a timing standpoint, Tariffs are applied at the port, not in transit.

4. Tariffs are based on the value of physical goods, not services.

5. Product price increases are proportional to their margins, creating a margin multiplier effect that expands costs further to studio owners.

Training has long been the industry's Achilles' heel. For years, the fitness space leaned heavily on third-party providers to handle instructor training. But as brands fragmented and diluted their identities, the quality of training suffered.

These third parties often prioritized profit over purpose, treating training as a cash grab rather than a way to empower instructors. Master Trainers would cash their checks and leave, while studios were stuck with inconsistent results.

Data in fitness can spark debate. From calorie counting to tracking reps or fueling friendly competition, it lands differently for everyone.

The real question lingered: Do our clients even want data? Does it enhance their experience, or is it just noise? Our realization is that if we combine data with other elements (training, app, devices, etc.) then it starts to transform the experience that is digestible for just about everyone.

A brand new TLS internal training portal that will allow us to train and onboard thousands of instructors across multiple states. This is critical for developing a stellar product!