A $10,000 Offer Sells Better Than a $4,500 One

0:00Okay, equibody fitness, Jack Latori. So, we sell online personal training to equestrians. Okay, cool. We have a 3-month 3K front end and a 9-month back end at 4,500. Okay. What will be the best way to maximize retention and LTV? Margins are beginning to shrink. Okay, so Good news and bad news, right? So, if you're online long-term, you have to build a brand. It's going to be the long-term strategy, otherwise CAC is always going to go up. So, you either have to do you have to you have to counter that by building a better brand, getting more inbound for free, option one. Option two, extending the LTV of the customer, so that you can afford the increased price. Ideally, you do both.

0:41Right? I'm just saying like thinking long-term here. Now, cuz if you have the brand, then you can charge more and you'll have a bigger reputation. Um and then you'll also have less CAC, so you'll get a double-double. Like you'll increase how much you charge and it'll cost you less to make the money. Now, the 3K to 4,500, those prices seem hm I don't know. I'm not I'm not sold on those yet. Um but if I wanted to maximize LTV, I would probably use one of the money models that I talked about, which is a rollover. So, I would say, "Hey, how can I make the you know, I I I can make this a 10K back end?"

1:14Cuz if you're doing 3-month 3K, that means $1,000 a month for 3 months. And then $4,500 over 9 months is $500 a month. So, it's half the price on the back end. So, it's like, "Okay, how can I take this $3,000 thing and then credit it towards let's say a $7,000?" So, it's like 10K on the back end, but I'll take your three, credit towards 10, drop it to seven. So, now you're at um basically a a a a higher effective rate, so instead of 4,500, you're getting you're getting paid seven. But they see a price drop from 10 uh to seven. So, you'll make more on the back end. You also get a higher take rate because you'll use one of the money model mechanisms.

1:52Um and that's what I would do like to immediately increase LTV, but I would still long-term like you got to start making more content um so that you can come out more established as a brand. Otherwise, CAC is going to continue to rise. If you like this video and you're a business owner who wants to break through your current revenue ceiling, I just spilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into 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.

2:20Again, absolutely free. And since you're a business owner, appreciate you and enjoy.