Die echte Rechnung hinter einer 27 Dollar Mitgliedschaft

0:00Unternehmer/Gast I can tell you that. And then I teach crafters and mostly women 45 plus how to craft for themselves. >> Crafters make stickers. Stickers. Okay, love it. I love this. This is great. [laughter] Okay. >> They're making stickers for themselves or for their family or for their spouse. Right. So my business has made it did over seven figures last year and it's all low ticket.

0:24>> Good for you. Okay, so you made a million plus? Okay. Yes. Amazing. between $7 and $270. Okay. And the main continuity I have is the is a membership. It's my main $27 a month or $270 per year membership. Okay. >> want to be at 3 million USD per year, but my constraint I think is 30-day cash.

0:50So on the main membership funnel that I have for ads, I collect about $60 in the first 30 days per new member. Okay. But when I base the numbers on my past recent launches, it's probably costing me about $90 to acquire them with meta ads. So I just feel like I can't scale profitably. What's churn and what's LTV? What's churn and what's LTV?

1:14So churn is 93% and LTV bounces a little bit depending on launches, but it's around $300. Hold on. So $27 divided by 7%, right? Okay, so 385 is So 385 is true LTV. Okay, that's fine. Um and you're So big picture, just so we're clear, you're spending 90 and you're making 385.

1:41Right? Well, 385 is across the entire like my all of my members. So I haven't worked out the LTV specifically for the ad funnel. Okay. Um Are you on school? This membership is not on school, but I do have a smaller membership that is on school. >> Okay, cuz on school you could it does by cohorts, so you can actually see cohorts by month, so you can see when you have your launch months and you could follow that cohort to see its turn.

2:09Yeah, I need to start tracking this. I can do it myself, I just haven't. Yeah, it's a pay I mean, we spent a zillion to to do that on school. Anyways, not a school ad. Um, okay. So, you're at you're at $60 is what you're collecting in cash, it's costing you 90, you're not sure on LTV, but you feel comfortable saying $300. Yeah. >> That's fair? Okay, got it. Um, and the problem is that it takes you two months to break even rather than one.

2:38I The way that I thought it out and then I may not have all of my numbers here, but that it takes longer than two months. Okay. Yeah, I trust you. I trust you. It feels like it cuz I'm all good with with paying up front and advance and taking a hit on ads to get like the recoup the cash, but it feels to me from what worked out that it's probably more like six months. Okay, got it. So, when you're making the offer and you do and when you're running the ads funnels are running to a webinar or running to a five-day event, what is it running to?

3:04Yeah, five-day or three, four, five-day events. I'm running one right now. And so it's paid is it paid event? Yeah. Okay. What's the What's the offer that you sell at the event? Price point? The paid event is $10 and then the offer is the 27 a month or 270 a year and then I kind of switched in and out different kinds of upsells to try and increase the car value.

3:31Alex Okay, and so what percentage are taking the prepayment versus the 27? About 10% take annual. Yeah, it's cuz you're I mean, if you some if somebody has the offer between the two and you're giving them 16% off, it's not a What bonuses do you add to the 270? Or is it literally the same offer with a discount? >> yeah, I found joining bonuses every day of the event, but I I haven't restricted it to annual members only and I feel that I'm missing a trick there and I've considered cuz I'm in the middle of a launch right now. I could implement an annual members bonus right now even for existing members to upgrade. So, otherwise, apart from the 2 months free, they're getting nothing else extra. I honestly think you you could you can very easily solve this with two steps. All right, so here they are. Mhm. Number one is that when you're doing a 5-day selling event, you need to sell the expensive thing.

4:21Alex Yeah. So, your fear is I'm going to I want to sell this recurring thing cuz I don't want to lose anybody, but the reality is that if you have 5 days with people, you to a consumer audience is what you're selling to. 300 to 600 is the impulse purchase window for a consumer. Yeah. >> 300 is the low end, 600 is the high end. That's your range. You could probably go up a little bit and you'd still probably You'll make more money at 5 or 600. I'm just telling you right now. Um if you wanted to go crazy, I'm just telling you you would. But, you need to sell the annual up front. All right, that's number one. And what I want you to do is come up with one to two big bonuses that are going to be annual exclusive, okay?

4:58Yeah. Now, after the event is over, what you're going to do is you're going to do a scoop up campaign. So, it's 5 days and you're going to retarget everybody who saw the ads directly to your $27 purchase page. That's $27 per month. And you're just going to remove the bonuses. Yeah. That's it. Mhm. That'll fix your cash flow.

5:24You want to You can do it? >> I like that plan. It's something that I haven't focused on enough before. Um I have tried increasing the price a few times to a bit higher, not even in the 300 to 600 [laughter] range. Yeah. Um but, I feel that because I haven't offered a big enough bonus package, that's definitely It hasn't helped. So, I can absolutely do this. I love this for you. Now, let me give you a little a little something else. There's probably some sort of what I'll call physical product premium that you can add to this. So, are there any Is there like a kit It You can't do it for this one, but for next one. Is there any kind of like physical thing that you can give them? Like the the paper, the printer, the you know, that kind of stuff?

6:05Alex There are so many things physically that I could put together. There are so many things. I have no clue about doing this. Maybe Vantage is a good place for me to ask. >> Yeah. It's something that I know it's worked well otherwise in the creative space with friends. So, I'm sure that's something I could do. I just wouldn't know where to start. >> Yeah. So, I would say this. If if I were you, what I would end up doing is I would sell them the printer with the paper You can't do it by this time because you're like 2 days away from pitching. So, do what I said first, you know, add the annual with the bonus.

6:33But, you will dramatically increase your conversions if you add a physical product that makes the makes this pitch tangible. Because the thing is is people need People Have you ever heard like people need a reason, but have an excuse? All right? The idea is that like these ladies, I'm assuming they're ladies, 45 plus, want to They want to buy it, right? They have a reason, but they need an excuse. The excuse to legitimize the purchase so they can go to their husband um or their spouse, whatever, is they say, "Hey, but I got this thing which I'm going to use to generate money or like they get something, not just like a login." So, the a consumer's willingness to purchase goes up dramatically if it's physical. And so, I think you'd actually be able to push a $1,000 price point if you included the physical thing.

7:16Yeah. Oh, my head is swirling now. There's so many different physical things that I can I can put together. Even if it's only a one thing to test first, like that Yeah, I've never even considered doing that. >> So, step one, step two, cuz I don't want to overwhelm. Step one, add the annual, make that the only offer available. I want to be clear. The only offer available is the annual with the bonuses. You cart close. After the cart closes, then you do a mop-up campaign.

7:41That's the $27 a month thing, but it doesn't have these two key bonuses. Okay, so annual only at the next launch. >> Yes. >> And then after the launch completes, then I offer monthly as well, but with none of the bonuses. >> So basically you do two car closes. Car close one and then you do car close two. >> Yeah. Yeah. Okay? Yeah. >> And you can say like let's say there's three bonuses, you remove two, you keep one at the 27, so that allows you to car close the second one, and then you have your normal everyday activities that don't include those three bonuses.

8:11Alex Yeah. Cool. >> Okay. And if people ask for monthly, cuz they would, do I do I just say no? Well, just say like um I I would say like that we have options for monthly, but you're not going to get these bonuses that I just spent you all this time talking about, and they're going to be like >> that. That's so fun. Yeah. I really want to be open and honest, yeah. No, of course. No, do not lie, but you can make it less convenient to purchase the thing you don't want them to purchase. If you're a business owner and you're 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 dollar scaling road map, 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.

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