How Do I Turn a One-Time Sale Into a Member?

0:00Uh, I'm in the day spa space in Manhattan, New York. And we do monthly memberships, charge $99 a month. They come for one service. We also offer them the opportunity to pay the year up front. They only pay for 10. They get two free. That's a basic model all across the industry. Now, clearly you came up with the genius uh, way to sell 6 weeks, $600, lose 20 lb.

0:28>> Mhm. >> Any ideas that could be replicated in the spa space for something like this? >> Yeah, I actually had somebody when we had Alan, the software company before we sold it, they had a they did float tanks, so it's not the same, but somebody's going there to relax. So, like the the desired end state similar, not the vehicle. And so, they actually ran a a 6-week stress release challenge where they included one uh, float tank visit per week for 6 weeks, and they sold it for $600. And they followed the exact same gym launch model. They did very well.

0:59>> Thank you. >> Yeah, so I mean, they just flipped it. And the key the key that makes that whole model work is that you have to be able to flip it at week three or week four into the year. >> Right. Okay. >> That's the that's the whole mechanics behind making it work. >> So, you give them something for 6 weeks, flip them in the third or fourth >> Yeah, and you get the cash up front, and then usually 24 to 48 hours later, we upsell product. And so, you probably have like creams and lotions and serums and other things that you sell at the day spa, I would imagine. And so, it's like, "Cool, this is the this is the stuff that you're going to do while you're here. Come back, and we'll give you these things that you can do at home because it's not about what you do here.

1:31It's about the other 194 hours a week or whatever it is, right?" And so, um, that would be kind of like the two-part cuz all of that will offset uh, the initial cost to acquire customers. Cuz if you can get Cuz I think that What's your What's your CAC right now? >> Um, 9:1. >> 9:1, yeah. So, it's like if you get if you get $2 to $400 up front, and then you can sell half of them into the year, you're good. >> Oh, so sorry. Um, take that back. Um, our LTV is it's 9:1 for our experience based business, but it's literally 1-1 for our membership based business. So, we sell experiences. So, that's like average $600. It costs us about 60-70 bucks to uh

2:11>> And you want to grow the membership. >> Well, we want to grow the membership because that's how I that's how I can scale. >> Yeah, so here's how So, um there's a different model that's coming out in the next book, but uh the way that it works is we used to call this the green play out of after the gym owner who figured it out. Um but way it works is you got that really viable thing that people want, right? >> Yeah. >> And so, what you can do is you can advertise that thing for free. And so, when the person comes in, you then say, "Cool, here's this amazing package, this experience that everyone wants. It's six whatever it is, $600, $800. Okay, so you can have that or we can just give it to you as a gift for free when you become a member."

2:48And so, and so, then it becomes the onboarding offer essentially, and then you can flip like everybody into the continuity, especially with the price disparity between the really expensive thing. So, for us, we sold, you know, $600 versus $200 membership. So, $600 for 6 weeks versus 200 per month, it was still a uh a 40% premium to to do the $600 thing. And we'd get uh almost 2/3 take the $200 month offer.

3:15Thing is is that one out of three people are just going to give you the 600 bucks and say, "I don't want the membership." And you're like, "Cool, I'll just take the 600 bucks." And so, that helps offset uh the cash from the ones that do go into the membership, but all the whole point of it is that you you break you break even on the front end, and so, then you can just blow out traffic. >> Keep uh advertising. >> Yeah. That makes sense. >> Thank you. >> Yeah, you're back. If you like this video and you're 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 road map 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 business owner, I appreciate you and uh enjoy.