Module 1 Knowledge Check

1.**What is the PRIMARY purpose of completing a business audit in the first week of the curriculum?** A. To impress investors with detailed financial records B. To understand exactly where revenue leaks exist and which lever to pull first C. To create tax documentation for the accountant D. To compare your gym to national chains

2.**Which psychological principle makes the three-tier pricing structure effective?** A. Reciprocity — members feel obligated to choose the middle tier B. Anchoring — the highest tier makes the middle tier feel reasonable C. Scarcity — limited spots drive urgency D. Social proof — most members choose the middle tier

3.**What is the optimal response time for a new lead inquiry during business hours?** A. Within 24 hours B. Within 4 hours C. Within 5 minutes D. Within 1 hour

4.**Which metric should you track FIRST when evaluating a marketing channel?** A. Number of likes on social media posts B. Cost per lead C. Brand awareness score D. Website traffic

5.**What is the primary reason members cancel in the first 60 days?** A. Price is too high B. They found a better gym C. They never formed a habit or felt belonging D. The location is inconvenient

6.**When should you ask a member for a referral?** A. At sign-up, before they've experienced the gym B. After they've achieved a visible win or milestone C. During the sales presentation D. Never — referrals should happen organically

7.**What is the most effective objection handler for 'I need to think about it'?** A. Pressure them with a limited-time discount B. Isolate the specific concern and address it directly C. Tell them the price goes up tomorrow D. Give them a brochure and wait for them to call back

8.**Which revenue lever typically produces the fastest increase in monthly revenue for a gym with 80+ members and a 5%+ monthly churn rate?** A. Lead generation B. Conversion rate improvement C. Average transaction value increase D. Retention improvement

9.**What should you do FIRST when a member says they want to cancel?** A. Process the cancellation immediately — respect their decision B. Offer a discount to keep them C. Schedule an exit interview to understand the real reason D. Tell them about your no-refund policy

10.**What is the PRIMARY purpose of a 30-day transformation challenge?** A. Generate immediate profit from challenge fees B. Create a pipeline of members who experience results and convert to long-term memberships C. Get media coverage for the gym D. Clear out slow-moving inventory