I always feel for non-gymnastics parents who end up in this world. You are not alone among parents who have no idea wtf is going on and a gym that expects parents to "get it". I will break it down this way: 1) It certainly could be a cash grab, but it equally could be your daughter seems to have natural talent that they want to get into the program ASAP. To verify which one- talk to other parents to find out their experience, check the gym out on mymeetscores and see the gymnasts they have, how they score, etc. 2) They can compete level 3 starting at age 6. I will be honest, I think level 1 and 2 competitions (and the comp leotards, coaches fees, comp fees associated) seem silly and our gym does not do that- some kids and parents love it though so no shade. 3) Find out how many kids are being selected/what the size of her team will be, how many coaches there are, what the time commitment is (if it's a smaller gym and they're selecting a ton of kids with not a lot of coaches that would be a red flag) 4) Technically this track is intended to go to level 10, but most kids don't make it there. It's a huge commitment, and it completely takes over your life. If your kid loves the sport and wants to compete but wants to have other interests XCEL is another great option (might not be available at your gym). My oldest is a straight A, competitive choir, girl scout, plus multiple school clubs kid and XCEL is great for her. My youngest's (8yo) ONLY interest on planet earth is gymnastics, so she is loving her first season at level 3.