"What Do I Sell After the $29 Course?"

0:00So, let's see if you're like, "My wife, I just found out her >> [laughter] >> No, she's okay. Um my name is Brent Barstra. I sell uh online courses and a membership to musicians that want to learn how to play jazz. >> Mhm. >> We do 1.36 in revenue. Um I like to be at 5 million. And what's stopping me is a couple of things. So, one would be just founder bottleneck. >> Yeah.

0:25>> I'm like the marketer, so I run our >> the ads >> 30,000 a month and creative and managing them and I do email marketing and um yeah, all that stuff. And so, I can't really scale any one of those. Um so, that's the founder bottleneck side. And then the second is I either have a lifetime value problem where it's too low. Um our yearly revenue retention is 38%. Um or I just don't have enough marketing power to drive in enough new customers.

0:55>> What's the price? >> Um it's the There's a member So, we sell courses a la carte. Which can go anywhere from like 29 to 197. Or we sell our membership, which is 39 a month or 390 a year. >> Hold on. >> A lot of people come in like average order >> You've got a bunch of courses, right? Or a bunch of programs, whatever. You got all this stuff. Um or what's the other thing? >> Uh our membership.

1:18>> And what's that? >> Uh that's 39 a month or 390 a year. Um we do like it lots of discounts on that. So, the average member is probably paying $24 a month. >> Okay. And all these programs are what was it 27 to what was it? >> We were in like some low ticket meta ads to like $29 products. Um those are pretty successful. And then we sell like two like per monthly promotions through our mailing list like 197, 297 courses. >> I'll just say that 197.

1:45>> Okay. >> That work? Is our range here? >> Yeah, that's good. >> Okay. You're just missing a back end, dude. >> Yeah. >> You've got all these front ends. >> Yeah. >> You just don't have a back end. So, you're you've been trying to make money off of what most people would consider a loss leader. >> Yeah. >> That's the issue. >> Yeah. >> It's like if I'm a grocery store and be like, "Dude, I'm selling out of diapers left and right, but I'm not making a profit." It's like, "Yeah, cuz you're not selling the others. You're not selling the other stuff."

2:12We got to sell fruit and Fruity Pebbles and very different, but you know, both have fruit in them. Anyways, um >> [panting] [laughter] >> But But basically, all you have to do is you have all of these sales that are coming in every day. >> Yeah. >> What do you include with that? >> Uh those courses. It's just like an online course. >> Okay. >> I log into it. >> So, I'll give you a hint. Add in an onboarding call for every person.

2:39Now, it's a more valuable thing anyways. You're going to get a one-on-one onboarding call. And so, when people come in Oh. Throw all this. >> [laughter] >> Um they'll have a call with someone on your team. And between the time they buy and the time they watch, they should watch a little VSL >> Okay. >> that pre-frames that call. And if you want to get Super Saiyan have a 7-day delay give them homework between that first call and second call, and on the second call, you close.

3:11>> Okay. >> And here is where you can sell probably something in the neighborhood of like three to like $8,000. >> Okay. So, I just got to figure out what that's going to be then. >> Yeah. That's the model. Whatever you fill in like you can fill in the blanks with whatever. But that's the that's the model that's missing right now. >> Okay. >> And so, all your metrics you've been trying to make money on is is here. It's just very tough. Like you're razor thin.

3:38>> Yeah. >> Right? But if all of a sudden, if you know that 20% or 30% of people buy a 4K average ticket on the back, it adds 800 >> Yeah. >> conservatively to your average sale. All of a sudden, your economics get pretty pretty juicy. >> Yeah. >> And so, to put that in perspective, how many transactions are you doing a day? >> Uh I I don't know the answer to that. >> A month? >> A month? Um maybe 300 or so.

4:04>> Right, so it's 10 a day. That means two guys it would take to handle that volume. If each of those guys, let's say we'll close at our 30% with a $4,000 average ticket, it's 12,000 a day times 10. So, you've got whatever, 300 300 plus thousand a month that's coming in on top of your existing revenue. That takes you straight to five. >> So, is that how we So, so do they do they become a member and then we upsell them on the back end of that? Is that how that

4:33>> They buy anything. >> Anything, doesn't matter. >> Right. And then we just have to bridge. We just have to have language that bridges between product one and product two. >> Okay. >> Yeah. Are you staying on with us after this? >> Uh what was that? >> Are you working with us after this? >> No. >> Okay. Um >> [laughter] >> building sales motions like this is like literally what we do. But yeah, um uh we can >> [laughter] >> That's what you do.

4:58I said beyond that is probably beyond the scope right now, but like that's that's how it works. >> Okay. Thank you, Alex. >> Yeah, you bet. I just don't want you I just don't want you to like beat yourself about like trying to do more traffic stuff. It's an LTV issue. >> Okay. >> If you're a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 million scaling roadmap, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly, where they got stuck and how they got past it. And so, we broke it into these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources, and finance. And so, no matter what you're struggling with, someone else has already struggled with it and solved it. And so I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information, and if you want us to actually help you deconstruct the business and you're trying to scale, we'd love to help you out. On the thank you page, you can just book a call with my team and we will look at the business, see if we can help, and if we can, we'll invite you out to Vegas and we'll do this in person live.