Tournaments I believe are run for profit.
However, gyms don't run for serious profit at all. If you own a BJJ school, and you are trying to make serious money off of it, you are a retard. That is all.
I'll do a real fast pro forma of a hypothetical BJJ school in Pittsburgh to show this.
Let's say the average rate around here is $70/month (cost of living is low).
A highly successful BJJ school might have 50 paying students (this is actually pretty generous).
So the monthly revenue is $3500. Sounds like a lot, right?
You have to subtract out costs. Rent for a place big enough to train is probably going to be $500/month around here even in a cheaper area.
There are utility costs. Think around the bill of a large house per month. So $300/month there.
You have to pay insurance. I'll say it's close to car insurance rates and costs $100/month.
And don't forget the association fee. That's probably $200/month right there.
So after costs, your NOI is like $2400/month That's $28,800/year.
But you don't get to keep that. A good school is a corporation (running it as a sole proprietorship is retarded because if someone would die or something else catastrophic, you would be personally liable with all of your assets like your house, car, etc). You could even get hit with corporate tax, but I'll just assume for this it's a pass through entity (pay a lawyer to set this up) and the corporation pays no tax on that $28.800/year.
So now you get $28.800/year of income that you have to pay taxes on. I'll assume a 25% tax bracket since you probably need another job to live on such a meager income. So you really only keep $21,600.
Sounds like a lot of money, but keep in mind you taught BJJ all year. To charge $70/month, you better be offering at least 4 classes per week with 50 students total. At 2 hours per class, that's around 400 hours a year. Also, don't underestimate the time that it takes to pay the bills, keep all the records, talk to students, manage the bills, etc. That's probably another 200 hours a year.
So you make $21,600 for 600 hours of work. That comes out to $36/hour. That's not horrible, but is comparable to being a plumber or electrician or mechanic or something.
So in other words, being skilled in BJJ compensates you about as much as any other trade.
It's not a super lucrative business. You make just about as much money as a plumber, and wouldn't it sound crazy to tell people that you were going to hit it rich by becoming a regular hourly wage plumber?