"I Do $1M a Year. Why Is My Profit Only 7%?"

0:00My name is Eva. >> Hey, what's up? >> I appreciate this uh opportunity. I run a Hungarian online membership and digital products business. Last year we did $1 million in revenue. Goal revenue is $3 million. What's stopping me? Low net profit, low lifetime value, lack of focus, and not enough launches. And I provide you some data.

0:2484% gross margin, 7% net profit, rest and best LTV to CAC is 5 to 1 or we can do 80 to 1 as well. LTV is uh $320. In my membership the churn is 7% uh average, but in the first months 14%.

0:51>> Mhm. >> We have 80,000 people uh email opt-ins. They are active on my list. And uh 1,500 members in my membership. How to improve LTV and triple net profit? What to focus on in your opinion? Thank you. >> So, you said you had a focus issue and you're not doing enough launches. Um my >> Yes.

1:15>> my initial thought would be remove the things that are distracting you and do more launches. So, what's stopping you from doing that? >> I I removed it. Yeah, thank you. I I I I removed it already. So, now I start to focus on >> Yeah. If you have a digital products membership, the churn on those types of products are typically higher. And so, I think that you will probably waste a lot of time trying to get it lower. Um if you're at 7%, you're you're doing you're doing okay for digital. Like the incremental return that you're going to get, I mean, you can make sure that you have good onboarding. Make sure that it's consumable value, meaning that the value that you give to them up on a monthly basis is something that they can consume rather than they learn once. Um and so, if you have a one-time learning thing, then you need to deliver it every month. Uh, or it's something that is consumable in nature. So, like if we did market signals for trading or uh, hot niches if we doing buying real estate. If like if we said uh, trending t-shirt designs if we you know, showed people how to like make t-shirts. Like whatever is trending, anything that's news for that uh, you know, for the audience that you have. Uh, you know, like sticker templates. Like there's there's always something that's consumable. It's typically lower value than the upfront education they're going to receive. So, all that to say, I don't think the churn that you have is the issue. I'm going to bet that it is the distraction problem and doing more of the what works issue. Because when you're at one to three where you're at right now, it's usually a very limited resources and you need to very much focus those on the one things that are making the most money, which is probably running ads and doing launches.

2:44>> Yeah, you're right. >> Yeah, and so like everything that's not that is probably taking away. And just streamline the delivery so that you can like one of the things that's a big misconception or mis like I think that happens especially with digital products and memberships is that people try to put too much in them, right? And they think oh, I'm going to solve this by more, but you don't solve it by making more, you solve it by making better and fewer. Because you have to think about value for a second. If you make 10 things and people only consume one, even if it's good, they think they're only consuming a tenth of the value. And so you want to make it as easy as possible for them to consume all of the digital assets that you give them and just make sure that when they consume it, it's as good as possible.

3:19Does that make sense? >> Yes, thank you. >> So, on the delivery side, think better not more. And on the front end side, think more ads, more launches. And anything that is not both of those two things, I would ignore. >> Okay, thank you. I will do that. >> All right. You have appreciate you. >> I appreciate you. Thank you. >> You bet. If you like this video and you're a business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling roadmap that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so you can click here and you can check it out. Again, absolutely free. And since you're a business owner, appreciate you and enjoy.