Zahlungsplan und Mitgliedschaft nicht verwechseln

0:00I'm coming from Serbia. Uh, I sell actually scale small businesses in that area. Our offer is grand slam offer. We offer them 30% net profit increase or we give them money back. Uh, on the end of the mastermind period is 1 year. Right. On top of that mastermind we do other things for them. We do complete P&L for them. One-on-one we have experts for that. Okay. We do organization chart and we do lawyer support. Okay.

0:29So, our revenue right now is 2.4 million. The profit is 1.2. And now we want to scale to 5 million profit. Okay. And right now I'm debating between two two plus one thing. So, first is to raise the prices. As we separate the mastermind in the four groups, it's pretty specific. That's why I won't to tell you. >> So, we have four different groups of people in order to the questions which they have on the weekly calls are related to that area where they are right now. Okay. So, we have zero to five. I speak only profit last 12 months before they start to work with us. Okay. So, zero to 5K, 5K to 50K, 50 to 150, and 150 to 500K. Okay.

1:13And right now we don't have nothing to sell after that mastermind except for some people who renew and go in the group which they are not smarter anymore. However, in the end again we don't have what to sell them after that because the lessons are the same. Problems can change. So, the one model is to increase the prices. Another model is to create the second product after that first product which they can buy from us.

1:38And third option is something what similar like you are doing, some revenue share or profit share or something like that. Yeah. Um, well, you could probably create a network for the people on the back end um, and charge less than what your current rate is uh, because obviously there's some sort like Do you think of this this probably pretty helpful for a lot of people. So, if you think about continuity in general, you have things that are consumable and things that are one-time.

2:07And I think the big mistake that a lot of business owners make is that they will try and bill on a recurring basis for something that is a one-time deliverable, right? Which is fundamentally calling a payment plan a membership. Uh, and so um, I'm I'm not a fan of that overall because you're always like, "Why is my turn so high?" It's like, "Well, they finished paying for the thing and so they got the thing. That's it, right?" It's like a car payment person being like, "I have five-year LTV on my on my car buyers." It's like, "No, they bought a car and they financed it."

2:33Like, calm down. Um, and so and so within the context of of your business and everyone else's business, if you can be really clear about what are the things that are consumable that they're going to use on a monthly basis versus the thing they just learn once and then no longer need you for. So, like access to calls which is probably not that valuable, it's somewhat valuable, but less valuable than the information um, has a price that people would be willing to pay for it. Access to the community and probably some sort of in-person meetups because you are local um, probably would confer a decent amount of value because most people who are business owners beyond a certain size, at least there's a strong percentage of them would like to be around other business owners of that size so that they can learn from them.

3:12Um, and it just honestly it's just less lonely. And so I think that you could have that back end where it's very light touch for you. You organize two or three times a year for them to get together, share the things that are working well. They get access to the community and if you want some Q&A if you feel like it. I think you could probably do without the Q&A and just have the two or three meetups a year cuz that's where going to get the majority of the value and probably charge somewhere in the neighborhood of a third to maybe probably about a third of the price of your normal thing for them to stay in that continuity. And I think you probably really enjoy that. And you'll probably get more referrals and all that stuff. So, that's that's what I would probably look at from the back end perspective. Um, from the front end uh, I would increase prices if our close rate like what's your close rates right now?

3:53So, we are doing like this content lead to the webinar, webinar lead to the conference. We have big conferences every six months. And on the conference I sell one to many. From the room of 500 people we close uh, 20% so we collect like 1 million in sales on that presentation of two hours. And I do that every six months so closing rate is around 20%. I would rather you just do one a quarter.

4:18That's that's also option. Yeah, cuz if you're at 20 then you're I wouldn't say you're like you're doing you're kind of like at KPI. I wouldn't raise the price cuz you'll probably just you'll I think you'll probably break even. Now, you might just be like, "Okay, I'd rather serve fewer people." which is fine, but I don't get that immediate impression. And so I probably wouldn't go price raise. I'd probably increase frequency and then I'd have the back end thing.

4:43If we want to charge more in the back end some another product which is like four times like higher price to increase the LTV, what you will recommend? I wouldn't. Okay. I'll tell you why. It's just like based on your revenue level right now and the number of different cohorts you're serving, the like like do you do I think you could sell the four times higher revenue thing? Sure. Do you think you could deliver on it? Probably not.

5:10It's just like if you're going to charge four times as much money, you better have a really robust team that's going to deliver that value and if you don't, you're going to have people hate you. So, I'd rather you just basically downsell the upsell and try to try to shoot for revenue retention which is, "Hey, I want to get you into the alumni network which is a third of the price and you get to be only with the ballers." And then the thing is is that your gross profit on that will be super high cuz it's so light touch. So, it's like I'd rather like I told you guys yesterday I look at gross margins and I look at revenue retention. If I can find something that people will just continue to pay for and I doesn't cost me a lot and it makes me a good amount of money, I'm just like, "Cool, I'd rather like if I could charge if I could if I could sell something that cost $10,000 uh, to a customer that cost me $100 and uh, everyone keeps buying it, I don't necessarily want to build a $100,000 thing. I just want to sell more of that. So, even if I could do a $100,000 thing and it would cost me $30,000 so I'd make 70 on that, I'd just kind of like, "Why bother? Why don't we just sell like seven or six more of the 10Ks and not even bother with the other thing?"

6:14And I'd still make the extra 60K in in gross in gross margin. Does that make sense? Yeah, but on the front end just one more follow up on that one. On the front end if we sell like now we have 200 clients paying my key per month. It's pretty simple math. If we have like 500, I think the satisfaction rate will drop down because it will be too much people in the room not having ability to ask the question and satisfaction will drop. >> where is that where where is that a front end thing or the back end? >> Front front front. >> Well, sure. I mean, if you have supply issue you can raise the price. That's fine.

6:43That's why I say like if you want to serve fewer customers then yeah, raise the price. That's fine. Okay, thank you. Yeah. So, if you've hit a revenue ceiling or your entire business relies on you to grow, then I'd love to invite you out to our headquarters here in Vegas to learn how we scale. It's where my team spends two days with you to identify the thing that's holding your business back. And so if that sounds interesting, click, book a call, and if you're a fit, we'd love to potentially see you out here in Vegas.