Alberto Perlman on Zumba during COVID-19 with Guy Raz | How I Built This | NPR

TL;DR

Zumba responded to gym closures by giving instructors tools to livestream or upload classes, collect payments, list sessions, and keep all class revenue. The company also moved instructor education online, released frequent platform improvements, offered membership assistance, supported affected community members, and donated meals through a virtual-class campaign.

Transcript

hello and welcome to how i built this resilience edition from npr it is friday i'm ready for the weekend w-a-o-f-h time working out from home and i'm wearing this headband in honor of my guest today alberto perlman co-founder of zumba is in the window next to me uh zumba is a massive business it trains thousands of instructors every week it license... Read More

Key Insights

• Zumba is a branded fitness community built around independent instructors who teach at their own locations or work for other organizations. The company does not own the class locations, so its reach depends on enabling instructors to operate and earn income.
• Zumba’s core business model is based on instructor success. Prospective instructors pay for initial certification, while members receive ongoing resources and benefits that help them teach classes, build businesses, or earn income while working for another organization.
• Zin Studio is Zumba’s online platform for instructor-led virtual classes. It lets instructors livestream sessions, upload prerecorded classes with licensed music, charge participants, and list offerings through Zumba’s class finder so students can discover them.
• Virtual class revenue goes directly to the instructor. Zumba designed its pandemic response around preserving instructor income rather than taking revenue from online sessions, reflecting its stated mission of helping instructors remain successful during widespread fitness-location closures.
• Rapid development was driven by direct instructor feedback. Zumba’s teams worked intensively, released platform improvements frequently, and added social and commercial features such as chat, emojis, and payment controls as instructors and students began using virtual classes.
• Online education was essential because many instructors lacked experience with virtual teaching technology. Zumba created live and self-paced courses that covered online instruction, while regular company livestreams provided additional choreography, music, and practical teaching guidance.
• Community support extended beyond fitness technology. Zumba offered membership assistance, provided funds to instructors directly affected by COVID or family loss, and helped frontline workers within its instructor community obtain childcare services.
• The One Class One Meal program connected virtual participation with food assistance. During the campaign, Zumba donated a meal for each person who attended a virtual class, while the company itself received no revenue from those class payments.

Questions & Answers

Q: How did Zumba help instructors teach classes online during COVID?

Zumba first allowed instructors to teach through existing video tools while its team developed Zin Studio. The platform enabled instructors to livestream classes, upload prerecorded sessions using licensed music, charge participants, and list classes through Zumba’s website. Zumba also added chat and emojis, giving students ways to interact while exercising remotely.

Q: What is Zin Studio and how does it work?

Zin Studio is Zumba’s virtual-class platform for members of the Zumba Instructor Network. Instructors can use it to broadcast live classes or upload prerecorded sessions with licensed music. They can place classes behind a payment system and make them discoverable through Zumba’s class finder, allowing students to locate and join online sessions.

Q: How does Zumba make money from its fitness program?

Zumba earns money by training instructors through an initial certification and offering an ongoing membership program with resources and benefits needed to teach branded classes. It also operates a clothing line and offers Strong Nation, a high-intensity interval training program structured around instructor training. Independent instructors then teach at their own locations or for other businesses.

Q: Do Zumba instructors keep the money from virtual classes?

Yes. According to Alberto Perlman, all revenue paid for a virtual class goes to the instructor. Zumba does not receive revenue from those class payments. This arrangement supported the company’s central pandemic objective, which was to help instructors continue generating income while gyms and other in-person fitness locations were closed or severely disrupted.

Q: How did Zumba train instructors for virtual fitness classes?

Zumba created instructor education delivered through live video sessions and self-paced online courses. The training was intended to help instructors become virtual fitness professionals and learn the technology required for remote classes. The company also ran regular livestreams covering choreography, music, and practical guidance for teaching students effectively in an online environment.

Q: Why was Zumba able to move online so quickly?

The company treated the crisis with the urgency and collaboration of a new business launch. Employees worked intensively across technology, education, and membership teams, while instructors provided direct feedback about what the platform needed. Zumba then released frequent improvements, including interaction features and payment tools, instead of waiting to launch every capability at once.

Q: How did Zumba support instructors affected by COVID?

Zumba created a membership assistance program that provided substantial discounts and established a community fund for instructors directly affected by COVID, hospitalization, or the death of family members. The company also recognized that some instructors were nurses and other frontline workers, and it supported members of that group with childcare services during the crisis.

Q: What was Zumba’s One Class One Meal program?

One Class One Meal was a campaign designed to encourage participation in virtual Zumba classes while helping people experiencing food need. For every person who attended a virtual class during the campaign period, Zumba donated a meal to food banks around the world. Class revenue still went to instructors, and Zumba received no revenue from those payments.

Summary

In this interview, Alberto Perlman, co-founder of Zumba, discusses how the fitness industry has been affected by the pandemic and how Zumba has adapted to these changes. He talks about the virtual platform they have created for instructors to teach classes and how they have trained their instructors to adapt to teaching virtually. Alberto also discusses the importance of community and the entrepreneurial opportunities that have arisen from this crisis.

Questions & Answers

Q: Can you describe what Zumba is?

Zumba is the largest branded fitness community in the world, with over 15 million people taking Zumba classes every week in 186 countries. It is a fitness program that combines high-energy dance moves with great music. Zumba is a community that brings people together to have fun, get healthy, and be happy.

Q: How does Zumba's economic model work?

Zumba's mission is to make the world a happier and healthier place by making instructors successful. They train instructors through a certification process, which instructors pay for. Instructors then license the brand and program and generate income by teaching Zumba classes. Zumba also has a clothing line and a high-intensity interval training program called Strong Nation, which provide additional revenue streams.

Q: How has the pandemic affected Zumba?

Zumba responded to the pandemic by helping instructors transition to teaching classes online. They created a virtual platform called Zin Studios, which allows instructors to live stream or upload pre-recorded classes with licensed music. They also provided education and support for instructors to become virtual fitness pros. During the lockdown, Zumba saw a million people a week taking virtual classes, which was a new and successful venture for them. They also provided financial support to instructors through discount programs, community funds, and a one class, one meal program.

Q: How has Zumba managed its business and employees during this time?

Zumba did not have to lay off or furlough any employees. Their clothing business has done well during the pandemic, offsetting some of the financial challenges. They made investments to support their instructors and the community, prioritizing people over profits. Although it may not be a highly profitable year, their focus is on helping others and ensuring the success of their instructors and employees.

Q: How has Zumba adapted to virtual training and instruction?

Zumba initially used platforms like Zoom, Google Meet, and Microsoft Teams for instructors to teach online. They then developed their own platform, Zin Studios, which provides crystal clear HD video and audio. They trained instructors through Facebook groups, free courses, and live streams. They also incorporated music into virtual workouts through their Strong Nation program, creating a synchronized, music-based experience. Zumba encourages instructors to teach outdoors and experiment with hybrid models of in-person and virtual classes.

Q: How does Zumba market its program?

Zumba utilizes social media, with over 10 million followers, to advertise and promote their classes. They spend significant amounts on advertising "find a class" to attract new participants. They also rely on word-of-mouth marketing, encouraging instructors and gym partners to promote Zumba and bring friends to classes. Events, classes, and community engagement are other marketing strategies they employ.

Q: Are people still joining Zumba as instructors during the crisis?

While the number of new people joining as instructors is not as high as during the 2008 financial crisis, there is still a steady stream of registrations. People are motivated by the stress relief and connection Zumba offers. Zumba continues to encourage new instructors and provide training and resources for their success.

Q: Are Zumba instructors discouraged from teaching indoor classes?

Zumba does not discourage instructors from teaching indoor classes but emphasizes safety and following guidelines. They want gyms to reopen and support instructors in teaching indoor, outdoor, and virtual classes. Zumba sees the importance of community and the accountability that comes from in-person classes.

Q: Can the feeling of "fej" be achieved in virtual Zumba classes?

A survey of virtual Zumba participants found that 50% of them started taking virtual classes for stress relief. The experience of being completely engaged in the music, movement, and instructor in a virtual class can create the same sense of "fej" or freeing electrifying joy as in-person classes.

Q: What is something you have learned or adapted to as a leader during this crisis?

Alberto has learned the importance of focus in leading the organization during this time. Clear communication and alignment are crucial when working remotely. Having a crystal clear vision and ensuring everyone understands their goals and objectives is vital for success.

Takeaways

During the pandemic, Zumba has successfully adapted to the challenges faced by the fitness industry. They have created a virtual platform, trained instructors for virtual classes, and provided support to their community. Zumba continues to focus on the success of their instructors and the happiness and health of their participants. The crisis has highlighted the importance of clear communication and focus in leadership. Zumba's adaptation to virtual training and hybrid models of teaching may shape the future of the fitness industry.

Summary & Key Takeaways

• Zumba operates through independent instructors rather than company-owned fitness locations. Its business model combines instructor certification, an ongoing membership program, branded clothing, and Strong Nation, a high-intensity interval training program. The company’s mission is centered on helping instructors earn income by leading fitness experiences they genuinely enjoy.

• As COVID-related closures disrupted in-person fitness, Zumba allowed instructors to teach through existing video tools while rapidly developing Zin Studio. The platform supported livestreamed and prerecorded classes using licensed music, class listings, payments, chat, and emojis, giving instructors a practical way to continue serving students and generating income online.

• Zumba paired its technology shift with education and community support. It taught instructors how to become virtual fitness professionals, delivered regular livestreams featuring choreography, music, and online-teaching guidance, offered membership discounts, assisted instructors affected by illness or loss, supported frontline workers with childcare services, and donated meals through virtual participation.