"Should I Raise My Price or Fix Why People Leave?"

0:00Hey Alex, I'm a one-man show group coaching guy. I help people with chronic physical pain. Uh my only lead is organic traffic. >> Okay. >> Posted daily video on YouTube and Facebook. >> Cool. >> Um no real marketing expense. So I'm challenged with do I up increase the price? I'm 100 bucks a month, but I get 200 members around the globe.

0:26So 20k a month. One-man show from my living room. >> Got it. >> No other expenses. >> Okay. >> Um I heard you say raise the price. >> Mhm. >> Which I'm sure would be one of your first suggestions. >> Maybe. >> My [snorts] My other question is do I diversify? Possibly tiered memberships. In the pain market, a lot [snorts] of people are broke from spending all their money on medical bills. So at 100 bucks a month, I feel I'm serving that market well.

0:52>> Right. >> But I'm also not maximizing profit. So could I do tiered memberships? Should I do one-off courses that are you know, things that I can add in addition to the membership. >> What's the What problem are you solving? >> Chronic pain. >> No, no, no. For your business. >> What do Uh >> What What goal do you have? What do you want to do? >> I want to help I want to help more people. >> Okay. So you need more customers. So pricing wouldn't solve that problem. That's why I asked That's why I asked that question.

1:20So if you want to help more people, then you need to advertise more. >> Okay. >> And so the other things that we just described do that. So what's LTV right now? >> Um about 350 bucks. >> So three and a half So they stay for three and a half months on average. >> Yes. >> Okay. >> And I know I can do a lot with retention. Keep them around longer. >> Mhm. >> Um and then enrollment more. So I think I'm going to hit retention first.

1:48>> Mhm. >> Take care of the existing clients. >> Mhm. >> Uh and then roll into trying to get more of them. >> Mhm. >> Uh Uh, I'm doing a book launch later in the fall, which should help. >> Mhm. >> Um so I wasn't sure if I should start productizing. Here's a a video course or stick with the one offer and just >> you stick with the one offer and you fix the delivery. Cuz 3 and 1/2 months is not super long for people to stick. And so with the little amount of operational complexity you have right now, you're still not doing as good of a job as you know you could do.

2:21>> Right. >> So then I'd say like do the best job you possibly can on that. Get LTV to 7 months, 8 months. Maybe then look at pricing. See if you can get it to $199, whatever. >> Right. >> That doesn't accomplish your initial objective of getting more people. But if you can raise LTV, then you can start advertising. And then you'll be able to to bring them in. The thing is is the paying customers are super valuable to a different business.

2:46Pharma will pay a lot for them. And they have really good margins. And so fundamentally you're competing for the same eyeballs. And so I think I'm I'm assuming you have some sort of messaging around like you can decrease your medical bill if you get out of pain in my super secret method. >> Sure. >> Right? So that will that will probably be the strong value prop that you make to them.

3:09But the TLDR of this conversation is you have to fix retention. Um easy things you can do right now. Do you have one-on-one onboarding? >> No. >> Add that in. Then you'll know everybody's name. They'll know you. They'll be really excited. You can add that to your offer. It'll convert higher on the front end, so that'll also get you more customers. Um you can also charge more for the first month and include the onboarding, so that'll offset acquisition cost and you also won't feel like you're giving your time away for free if you're, you know, worried about that. It'll also get you in the reps of like if I want to sell a higher tier, I'll have this conversation so I can make those calls.

3:42>> Mhm. >> Uh and sell a $5,000 thing if you want to. Um so that's one is I'd put the onboarding in place. Um second thing is I would this is going to sound crazy, but I would say give someone a lifetime access. Say like you can get everything here for free after month 12. You stick 12 months and it's free. >> I like that. >> Right? So now you're going to drag more people through it. So it's the second one. So think about this is checklists.

4:09So it's like what are all the things we can do to reduce churn? Okay, we add onboarding. We add a lifetime thing that's a little bit further further along on the on the on the scale, right? You can also add annual to the to the billing. So I did 12 months I pulled out of thin air. Could be 24 months, doesn't matter. Annual will reduce churn 5x by the way. So I have said this before, but I will say it again. Who's Where's Jesse?

4:40I signed your book and you had stats in there that I'm about to share with everybody. So monthly churn on average across 14,000 subscriptions is 10.7% per month. Quarterly, if you bill quarterly, is 5% per month. If you bill annually, it's 2%. And so if you can go from 10% churn monthly to 2% churn, you 5x LTV. And so if you can reduce price by 20%, but 5x how much someone pays you, worth doing.

5:07Now not everyone's going to be able to afford annual, but if you can get 10 to 15% to upgrade, that's a material difference and you'll double your upfront cash. So these things stack up. So you have Okay, I have my onboarding thing. I have my my my annual thing. I have a lifetime deal for people who go go monthly so that they can earn it as long as they do X, Y, and Z. They have to refer one customer over 24 months. You can throw that in if you want to, too. That way each person replaces themselves by the end. Like there's a lot of Just do those three.

5:36I'll I'll leave you there. >> [laughter] >> Cool? >> Thank you so much. >> bet. Yeah, happy to. Hopefully other people got a couple things from that today. 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, I appreciate you and uh enjoy.