The Climbing Gym Business Model: A Practical Guide
- gheverly
- 2 hours ago
- 4 min read
The model for a climbing gym is not nearly as simple as one may think. It is a sophisticated business and operating model that combines fitness, recreation, and hospitality all in an environment where carefully managing risk is critical. This is to say nothing of the financial model which has an enormous amount of moving parts.
This blog explores how climbing gyms operate, how they make money, and the key metrics that guide their success.
Climbing Gym Business Model Overview
At its core, the business model of an indoor climbing gym blends membership-based fitness with pay-per-use recreational access, supplemented by various programs, retail, and sometimes food/beverage offerings. It’s a hybrid model that thrives on recurring revenue while also hosting a diversified revenue portfolio that de-risk over-reliance on membership. The business model also requires creating meaningful community engagement, events, and skill development.
Primary revenue streams include:
Membership: monthly autopay, prepaid, etc (often 50% or more of revenue)
Day use: Day passes and punch cards, rental gear, etc (typically 20-25% of revenue)
Secondary revenue streams include:
Youth programs: after school, summer camps, birthday parties, structured climbing programs and teams, etc. (when done well, can be a strong contender for outpacing day use)
Adult programming: technical skills classes, technique and strength training, personal training, group exercise, climbing leagues and more. (rarely a meaningful portion of the revenue pie but can be a serious contributor to both attracting new customers and retaining members, IE: the top 2 revenue streams)
Retail gear, food & beverage: an even smaller slice of the pie, difficult and expensive to execute on. Not great margins, etc. Retail is a tough one but if done with a good strategy can be a a great way to increase customer lifetime value.
Events and private bookings: Teambuilding, event rental, etc.
I have seen lots of other revenue streams in gyms as well: leasing out space to third parties, contracts with corporations/local businesses/schools, outdoor guiding and programs, mobile climbing walls, etc. Most of these are immaterial and require a lot of effort. Do your homework, know your customers and your limits before sailing off after these small revenue opportunities.
Don't chase every possible revenue category. For the same time, money & effort you could probably easily improve your core offerings like membership and day use.
Key Business Activities for a Climbing Gym
Operating a successful climbing gym involves an innumerable amount of activities and considerations. However, almost all climbing gyms have some of the same core operational activities. Here are the pillars of day-to-day operations:
Customer Service & Engagement
Training staff on service standards and expectations
Building and implementing a plan to create an atmosphere and culture of engagement for your customers and members
Developing and documenting your service standards so you can scale, train, and drive accountability.
Marketing & Sales
Targeted social media campaigns, online promotional strategies and other digital activities to drive your top-of-funnel
Developing, implementing and iterating a measurable sales process and associated tactics
SEO and content strategy for local discovery
Partnerships with schools, clubs, and companies
Risk Management
Maintaining facility access points
Conducting belay or other checks
Ensuring staff are properly trained on risk management protocols
Documenting and maintaining risk management protocols
Inspecting gear, walls, and other assets
Facility Management
Maintaining all mechanical, electrical and plumbing systems
Keeping your gym clean and operable
Managing inventory, IT systems and other assets
People Management, Leadership and Business Operations
Staff training, staff engagement and performance management
Recruiting, compensation planning, benefits administration and payroll
Goal setting, accountability, driving alignment
Financial planning and cashflow management
Culture setting
Whatever you do, don't overlook the people management and leadership aspects. This seems to always be an afterthought yet it is probably the #1 driver of success
Key Performance Indicators for a Climbing Gym
Tracking KPIs is crucial to optimizing operations and long-term profitability. Below are some of the most important metrics for climbing gym operators:
KPI | What It Measures | Industry Benchmark / Target |
Active Membership Growth (month over month) | The growth of your member base accounting for new sales and cancelled members | MoM improvement, ideally >5% avg annually (will likely be lower during seasonal fluctuations) |
Member Retention Rate | Loyalty and churn | 85–90% monthly is strong |
Customer Acquisition Cost (CAC) | Efficiency of marketing spend | The dollar amount here matters less than the % of LTV (See below). For example, if your member LTV is $1500, paying $200 to get a member is fine. |
Member Lifetime Value (LTV) | Value of a customer over time | $900–$1,500+ |
In early 2025, Rise Above Consulting launched the Rise Above Dashboard, and the CoVer™ Score to help gym operators get the access they need to the right KPIs, along with the insights to help them take action. Learn more here
Cost Structures, Margins & Other Financial Aspects of a Climbing Gym Business Model
The cost of running a climbing gym is significant, especially at launch. Here’s a breakdown:
Start-Up Costs: These costs vary wildly but will very likely be $1m or more
Staffing: I always recommend aiming for 35% of total revenue
Rent/Mortgage: 15–25% of expenses (location-dependent)
Marketing: 5–10% of revenue during growth phases
Insurance & Compliance: Insurance will be based off of your revenue projections. Budgeting for 2-3% of gross revenue is a good starting place
Net profit margins for established gyms range between 10–20%, with breakeven often achieved within 2–3 years if membership growth is on track.
Know what drives your revenue (hint: it's your ability to grow your membership). Know what drives your profitability (hint: it's your ability to manage your people and your personnel costs)
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