{"id":12505,"date":"2026-11-14T10:00:00","date_gmt":"2026-11-14T10:00:00","guid":{"rendered":"https:\/\/martialartswealth.com\/go\/?p=12505"},"modified":"2026-11-14T10:00:00","modified_gmt":"2026-11-14T10:00:00","slug":"martial-arts-school-kpis","status":"publish","type":"post","link":"https:\/\/martialartswealth.com\/go\/martial-arts-school-kpis\/","title":{"rendered":"Martial Arts School KPIs: The Three Numbers on the Wall"},"content":{"rendered":"<p><strong>The key KPIs for a martial arts school fall into three groups: sales, retention and revenue.<\/strong> The most useful ones are simple enough for every staff member to read at a glance. They are the number of people in your intro pipeline, your three-week inactive count, new monthly billing compared with your current billing, and the share of your gross that comes from autopay.<\/p>\n<p><strong>Watch the lessons:<\/strong> <a href=\"https:\/\/www.youtube.com\/watch?v=m7xdDVwr6b8\">The KPIs Every Martial Arts School Owner Should Track<\/a> and <a href=\"https:\/\/www.youtube.com\/watch?v=28dBhjk_L9A\">The Intro Pipeline Number and the 3-Week Inactive Rule<\/a> (videos)<\/p>\n<h2>Key takeaways<\/h2>\n<ul>\n<li>Group your KPIs into three areas: <strong>sales and marketing<\/strong>, <strong>student retention<\/strong> and <strong>revenue<\/strong>.<\/li>\n<li>Post your intro pipeline number on the wall for staff. One well-known school owner treated anything under 20 as an emergency.<\/li>\n<li>Three-week inactives \u00d7 4.2 gives you a rough monthly dropout forecast. Keep it under 1% of the student body.<\/li>\n<li>Rule of thumb: you need new monthly billing of about 10% of current billing just to stay level.<\/li>\n<li>Billing should be around 50\u201360% of gross. At 80\u201390%, you&#8217;re doing too little in-house business.<\/li>\n<\/ul>\n<h2>Why track martial arts school KPIs at all?<\/h2>\n<p>Some members get tired of hearing Grand Master Jeff Smith and me talk about stats. Without numbers, though, you&#8217;re guessing at your problems.<\/p>\n<p>Owners tend to work on the things they&#8217;re already good at. A strong teacher assumes the problem is the class plans, when actually the school had 35 leads this month instead of 150. A strong marketer fills the pipeline and doesn&#8217;t notice that leads aren&#8217;t turning into appointments, appointments aren&#8217;t showing up, or nobody is asking intros to enroll. The numbers show you the <em>biggest<\/em> gap, and that&#8217;s the one to fix first.<\/p>\n<p>You also can&#8217;t judge things like instructor quality by feel. If you ask me how an instructor is doing and the answer is &#8220;great, the students love him,&#8221; I&#8217;ll ask what his graduation, dropout and renewal rates are. Low dropout, high renewal and high graduation make a great instructor. An entertaining class with poor numbers doesn&#8217;t.<\/p>\n<p>We&#8217;ve covered the full scoreboard before in <a href=\"https:\/\/martialartswealth.com\/go\/scorecard-method-know-your-numbers\/\">The Scorecard Method<\/a> and <a href=\"https:\/\/martialartswealth.com\/go\/what-gets-measured-gets-done-the-million-dollar-scoreboard-for-martial-arts-schools\/\">The Million-Dollar Scoreboard<\/a>. This post is about choosing the few numbers that go on the wall and what each one tells you to do.<\/p>\n<h2>What are the three categories of martial arts school KPIs?<\/h2>\n<table>\n<thead>\n<tr>\n<th>Category<\/th>\n<th>What it measures<\/th>\n<th>Example KPIs<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Sales and marketing<\/td>\n<td>Getting new students in<\/td>\n<td>Ad spend, clicks, opt-ins, appointments, show rate, first and second intros, enrollment conferences, enrollments<\/td>\n<\/tr>\n<tr>\n<td>Student retention<\/td>\n<td>Keeping and renewing them<\/td>\n<td>1-, 2- and 3-week inactives, monthly dropout %, renewal conferences, renewals, testing %<\/td>\n<\/tr>\n<tr>\n<td>Revenue<\/td>\n<td>What each student is worth<\/td>\n<td>Average monthly revenue per student, lifetime value, new monthly billing, billing as % of gross<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Sales and marketing benchmarks<\/h3>\n<p>Track each step of your funnel. We started breaking intros into first intro, second intro and enrollment conference after we found schools where intros came in, took a class and left without anyone asking them to enroll.<\/p>\n<p>For school programs, these are the benchmarks I work to. Aim for permission slips from 80% or more of the students at a PE day. Aim for about 20% of the school to register for the after-school enrichment program. About a third of those enrichment students should end up enrolling. That typically comes from getting 75\u201380% of them into the school and enrolling about half. A rough guide for many schools is 100 leads a month. Learn your own conversion rates, because some schools get 20 enrollments from 80 leads and others can&#8217;t get 20 from 200.<\/p>\n<h3>Retention benchmarks<\/h3>\n<p>Our target is to renew 75% or more of the students you enroll. If you enroll 20 a month, you should end up with about 15 renewals. Aim for half of them to renew within the first two months or before their first belt test. Track what share of eligible students actually test. If 100 should test and only 50 do, the 50 who looked sharp don&#8217;t make up for the 50 who didn&#8217;t turn up.<\/p>\n<h3>Revenue benchmarks<\/h3>\n<p>For average monthly revenue per student, divide your monthly gross by your active students. $80,000 across 200 students is $400. The million-dollar schools we work with tend to sit around $350\u2013$500 a month, with a lifetime value of $8,000 to $10,000.<\/p>\n<h2>What is the intro pipeline number?<\/h2>\n<p>The simplest KPI I&#8217;ve ever come across was at my friend Keith Hafner&#8217;s school in Ann Arbor, Michigan. Behind the reception desk was a sheet of paper with one number on it. No label and no explanation. Say it read 19.<\/p>\n<p>I finally asked him what it was. He said it was the number of people in the intro pipeline at that moment: everyone with an appointment, coming back for a second lesson or due for an enrollment conference who hadn&#8217;t enrolled yet. Why have no label? So students wouldn&#8217;t wonder about it. They hardly ever noticed. Why track it at all? &#8220;Any time it&#8217;s below 20, we panic.&#8221;<\/p>\n<p>Every night the sheet came down and a new one went up. Everyone on staff knew what it meant:<\/p>\n<ul>\n<li>If the number was low, the receptionist knew to spend the evening calling no-shows and old leads.<\/li>\n<li>The owner knew to arrange more school programs, get more direct mail out or increase advertising.<\/li>\n<li>Instructors knew to work on referrals, buddy days and getting parents into the pipeline.<\/li>\n<\/ul>\n<p>Everyone pulled in the same direction from one number. Grand Master Smith liked it straight away for that reason. It&#8217;s your pipeline reduced to one figure. Choose your own threshold based on your size and conversion rates, and put it up where staff can see it.<\/p>\n<h2>How do you use three-week inactives to predict dropouts?<\/h2>\n<p>When I ran a school myself, I kept a hand-drawn graph on the wall. Every week I recorded enrollments and the number of students who hadn&#8217;t attended in three weeks.<\/p>\n<p>The rule I used: <strong>three-week inactives \u00d7 4.2 is roughly your monthly dropout rate.<\/strong> So I wanted the three-week group under 1% of the student body, and ideally under half a percent. At 1%, you&#8217;re on course to lose about 4% of your students that month. At half a percent, about 2%. I also watched the two-week group, and wanted it under 2%. If 3% are already two weeks inactive and they slide into the three-week group, you could lose 12% in a month.<\/p>\n<p>Here&#8217;s what that means in practice. Three students in the three-week group means about 12 students lost this month. Your first 12 enrollments only replace them. We wrote up the response plan in <a href=\"https:\/\/martialartswealth.com\/go\/one-percent-line-absentee-escalation-ladder\/\">The 1% Line: The Absentee Escalation Ladder<\/a>.<\/p>\n<h2>How much new monthly billing do you need to grow?<\/h2>\n<p>This is the third number I always tracked, and many owners never look at it. Their reaction tends to be: &#8220;We did 10 enrollments this month and billing didn&#8217;t move.&#8221;<\/p>\n<p>My rough rule: <strong>you need new monthly billing equal to about 10% of current billing just to stay level.<\/strong> On $40,000 of billing, the first $4,000 of new monthly payments covers what you lose to dropouts, expired agreements that weren&#8217;t renewed, and declined cards. Add $8,000 and you&#8217;ve grown about $4,000. Add $10,000 and you&#8217;ve grown about $6,000.<\/p>\n<p>If you know the first 10 enrollments only keep you level, 15 means you&#8217;re growing and 20 means you&#8217;re growing well, the monthly target becomes obvious. It&#8217;s the same reasoning as net enrollment: are you gaining, losing or standing still? <a href=\"https:\/\/martialartswealth.com\/go\/replacement-rate-audit-enrolling-but-not-growing\/\">The Replacement Rate Audit<\/a> covers the student-count side of this.<\/p>\n<h2>What share of gross should come from billing?<\/h2>\n<p>Grand Master Smith&#8217;s target and mine for years has been <strong>autopay billing at about 50\u201360% of gross<\/strong>. The rest should come from in-house cash: down payments on enrollments and renewals, and paid-in-full agreements on both.<\/p>\n<p>If billing is 80\u201390% of your gross, you&#8217;re leaving money on the table. Grand Master Smith puts it this way. Billing is what you did last month, and you&#8217;ve already been praised for that. What did you do this month? If you&#8217;re only collecting payments, the business is running you rather than the other way round.<\/p>\n<p>This also turns your break-even into a weekly plan. If your nut is $60,000 and billing is $30,000, you need $30,000 in-house, or $7,500 a week. Set targets from all four in-house sources. Then you can miss half of each target and still reach the number. See <a href=\"https:\/\/martialartswealth.com\/go\/martial-arts-school-break-even-point\/\">Martial Arts School Break-Even: Know Your Nut<\/a>.<\/p>\n<h2>How often should you review the numbers?<\/h2>\n<ol>\n<li><strong>Daily.<\/strong> Count the business days in the month and set daily targets for cash, enrollments and renewals. Each night, take off what you did and divide what&#8217;s left by the remaining days. At the Jhoon Rhee Institute, every school phoned in its numbers every night.<\/li>\n<li><strong>Weekly.<\/strong> Grand Master Smith started every weekly staff meeting with the numbers: what we did this week, the month to date, and what we still need. If week one is off target, do something different now. More of last week&#8217;s plan won&#8217;t fix it.<\/li>\n<li><strong>Monthly.<\/strong> Look at trends across all three categories and choose the single biggest gap to work on next month.<\/li>\n<\/ol>\n<p>I still plan each month in a paper planner. When this is routine, running the school feels manageable rather than like a constant struggle to hit the numbers. Being great rather than average comes down to how quickly you notice you&#8217;re missing a number.<\/p>\n<h2>Frequently asked questions<\/h2>\n<h3>What KPIs should a martial arts school track?<\/h3>\n<p>Track three groups. Sales: leads, appointments, show rate, intros and enrollments. Retention: weekly inactives, monthly dropouts, renewals and testing percentage. Revenue: average revenue per student, lifetime value, new monthly billing and billing as a share of gross.<\/p>\n<h3>What is a good monthly dropout rate for a martial arts school?<\/h3>\n<p>Under about 4% a month, and ideally around 2%. A practical way to forecast it is to keep three-week inactives under 1% of your active students, preferably under 0.5%, and multiply that count by about 4.2.<\/p>\n<h3>How many students should be in my intro pipeline?<\/h3>\n<p>It depends on your size and conversion rates. One well-known school owner treated anything under 20 people in the intro pipeline as an emergency. Set your own minimum and post it daily so staff respond when it drops.<\/p>\n<h3>How much new billing does a school need to grow?<\/h3>\n<p>As a rough rule, new monthly billing of about 10% of current billing just keeps you level. On $40,000 of billing, $4,000 in new monthly payments keeps you even. Anything above that is growth.<\/p>\n<h3>What percentage of gross should be autopay billing?<\/h3>\n<p>About 50\u201360%. If billing is 80\u201390% of gross, you&#8217;re probably doing too few paid-in-full agreements and collecting too little at enrollment and renewal.<\/p>\n<h2>Put your numbers on the wall<\/h2>\n<p>Start with three numbers this week: intro pipeline, three-week inactives and new monthly billing. If the pipeline number is low, my free book <a href=\"https:\/\/martialartswealth.com\/go\/simplesteps\/\">Six Simple Steps to Add 100 Students<\/a> shows how to fill it. If you&#8217;d like help setting benchmarks for your school, book a <a href=\"https:\/\/martialartswealth.com\/go\/most-valuable-hour\/\">Most Valuable Hour<\/a> call. I also go through numbers regularly on my <a href=\"https:\/\/www.youtube.com\/@StephenOliver-MartialArts\">YouTube channel<\/a>.<\/p>\n<p><em>Grand Master Stephen Oliver, 10th Degree Black Belt, has owned martial arts schools since 1975 and coached school owners since 1985.<\/em><\/p>\n<p><script type=\"application\/ld+json\">\n{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What KPIs should a martial arts school track?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Track three groups. Sales: leads, appointments, show rate, intros and enrollments. Retention: weekly inactives, monthly dropouts, renewals and testing percentage. 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If billing is 80\u201390% of gross, you're probably doing too few paid-in-full agreements and collecting too little at enrollment and renewal.\"}}]}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Group your KPIs into sales, retention and revenue, then put three simple numbers on the wall so every staff member knows when to act.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"{title}\n\n{excerpt}\n\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":10557,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[355],"tags":[],"class_list":["post-12505","post","type-post","status-publish","format-standard","hentry","category-school-operations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - 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A martial arts school owner since 1975 and business coach since 1985, Oliver has spent more than five decades building, operating, and advising successful martial arts schools. He also serves as CEO and Chairman of NAPMA (the National Association of Professional Martial Artists) and Publisher of Martial Arts Professional magazine. A Georgetown University cum laude graduate, he earned his Executive MBA through the Executive Program at the Daniels College of Business at the University of Denver. He was promoted to 10th Degree Black Belt in April 2026 and inducted into the Official Taekwondo Hall of Fame in August 2026. 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