Spin doctors.

MAD DOGG ATHLETICS CREATED A FITNESS CRAZE FOUR YEARS AGO THAT'S FINALLY TURNING INTO A SUCCESSFUL BUSINESS

John Baudhuin is tired of being called crazy. First his friends and family were concerned after he left a comfortable career track at an L.A. accounting firm to start his own business. Then he and his panner tried to market a decidedly unflashy stationary bike designed to replicate the outdoor cycling experience.

Despite any initial doubts, the two persevered in launching Venice-based Mad Dogg Athletics and creating what has become a popular fitness craze known as "spinning," in which demanding instructors lead stationary bike riders through grueling routines that simulate different outdoor terrains.

The workouts incorporate yoga principles of visualization and breath control, but the real attraction is the intense cardiovascular workout that bums calories at a pace few other aerobic activities can match.

The popular classes are now offered at major fitness chains nationwide. Nike Inc. has even developed a specialized spinning sneaker.

"Gym-goers are always looking for an enjoyable way to do heavy-duty exercise, and this is one of those," said Jackie Thomas, a director of marketing at Nike. "This is one (heck) of a workout."

Mad Dogg has come a long way since Baudhuin and partner Johnny Goldberg (who goes by the moniker Johnny G) began building stationary cycles in their garage six years ago. Its revenues are expected to hit $6 million this year, almost double that of two years ago.

Goldberg, a competitive cyclist (now retired), conceived of the exercise while trying to find a way to train by tiding more than 100 miles a day - rain or shine - and still have time for his young family. He modified an outdoor bike to be stationary, brought in fellow cycling enthusiasts and was soon running spinning classes out of his garage.

Baudhuin met Goldberg at one of those classes, and they decided to turn spinning into a franchise. The workouts. established a cult following at The Sports Club L.A., and in New York at the upscale gym Crunch Fitness International.

Still, Mad Dogg had a rocky start.

"When we first approached companies about strategic partnerships so we could expand, they all thought we were idiots," said Baudhuin, Mad Dogg's president and chief executive. "No one understood why we had a cycle without display screens, and no one thought most gyms would ante up the money to install the classes. Needless to say, we're really glad they were wrong."

Their break came in 1994, when Rolling Stone magazine named spinning the hottest exercise craze. After the article appeared, Schwinn Cycling & Fitness Inc. agreed to mass produce a brand-name spinning bike, for which Mad Dogg holds several design patents. Meanwhile, the company packaged its product so that all gyms offering the trademark-protected spinning classes had to buy the Schwinn bikes and use certified instructors.

Mad Dogg now has 75 instructor training centers around the country and trains about 1,000 people a month, with each paying $275 to be certified. That number is up from 1,000 instructors trained for all of 1994. The training program generates about 40 percent of Mad Dogg's annual revenues (another 30 percent comes from royalties on its patented bike design and 30 percent more from its line of spinning apparel and accessories).

Of course, the fitness industry can be fickle. In some circles, spinning has been eclipsed by "tae bo," an aerobic fusion of tae kwon do and boxing that came along this year.

But Baudhuin notes that "there is a lot of market development available. Besides, you can't look stupid on a bike. The idiot factor is a major impediment for programs like tae bo."

Indeed, Mad Dogg has agreements with major chains like Bally's Total Fitness, Gold's Gym and World Gym, which suggests that spinning has emerged as an integral gym feature.

"Spinning is a great example of the type of innovative program that Bally's wants to offer," said Dave Southern, a spokesman for the chain, which has installed more than 1,000 spinning bikes in its clubs. "It attracts new members and earns their loyalty."

While spinning has picked up in popularity, the inevitable imitators have cropped up. The biggest competitor is Reebok International Ltd., which touts a similar indoor cycling program. Baudhuin says he is not too concerned, saying overall interest in the workouts will benefit as a result of the competition. He estimates that Mad Dogg currently has an 80 percent market share of products and services involved in spinning.

Mad Dogg's next big push will be overseas. The company has contracts in 45 foreign countries, including South Africa, Israel and Brazil - and spinning is remarkably popular throughout Europe, which has strong ties to the cycling culture. The firm also will work to tap the home market, selling spinning bikes, videotapes and CDs to non-gym members.

Spotlight

Mad Dogg Athletics

Year Founded: 1992 Core Business: Indoor cycling fitness program and accessories Revenue in 1997: $3.2 million Revenue in 1998: $4.4 million Revenue in 1999: (projected) $6 million Employees in 1997: 12 Employees in 1999: 25 Goal: To continue expanding as a health and fitness leader Driving Force: Strong demand for low-impact, high-intensity workouts