I forgot Merchandise. But I have no idea how much they make on that. $60 for a Zip-up hoodie, $14 for a 50% off tshirt, $46 for a normal shirt, $11 for socks, $26 for baby one-piece, $58 for shorts, $140 for Jacket, $32-34 for tank top. Does anyone work in the garment/textile industry, and be willing to help discover the mark-up?
So $13 million is the number. What year was that, do you know? Here is what Hoover's has to say:
Estimated annual sales: 5.5 million.
Based in Prescott, AZ
That's quite a discrepancy.
I don't think anyone can argue against the fact that CF has honed the skill of identifying and exploiting human weakness, which is primarily what jumped out at me. This works on many levels. First, physical weakness. It is a fitness program. Second, psychological weakness. Body insecurities, etc., make ripe targets. Also, GG has stated on video that Cf has tremendous psychological benefits, and even went as far as to say he thought CF would be used to treat mental illness in some capacity.
The yes man culture is at CF too.
What about regulation and the RRG/insurance/safety issues?
The CEO has shown that he is willing to override some internal and external controls, evidenced by his unwillingness to have a third party investigate the black box seminar fiasco and Castro's workplace violence.
The question is, is it a Ponzi, or can it become one if things turn down? The Cultfit article mentioned it was similar to a Multi-level marketing scheme. It's worth it to look at.