"What Makes Something Worth $5,000 a Year?"

0:00You're Old Spice. >> Yes. >> Um So, I'm going from a $2,500 8-week course to a $5,000 annual >> With all three of them bundled together. >> do. So, we're doing it. Uh annual subscription. >> Yeah. >> Comes with the same course, but now it has community. >> Yeah. >> Should I just launch with that offer or should I have a downsell and an upsell? >> I would just launch with that.

0:27Keep it simple. >> And then just test that out and see if I want to add something later. >> Yeah. Cool. Yeah, just keep it simple. Just jam as many people into that as you can. And then just work on the retention piece. So, if you're Are you familiar with YPO? Like Young Professionals Organization. >> Yeah. >> So, um there only a handful of networks that I think have done it really well. Um I think Chief for a minute was and then they kind of like lowered the bar.

0:52And so, one of the really hard parts about building a network is it's all about the quality of the of the of the network, unsurprisingly. And so, like Harvard maintains its reputation not because it can collect $60,000 a year from people, but because they turn down 91%. And so, what If you want to build into a really enduring business, it's about making it into the best networking community for advertisers. So, that it's like a long over the long term you build the brand into something that people aspire to get that gold star next to.

1:22So, that way they can put it on their resume and they're like, "I'm part of this association." And then people who hire, again, long term, that this is This is something that has gravitas. Short term, you can just sell [ __ ] and make money. Don't get me wrong. I'm just saying that if you wanted to build this into like a big thing, that's that's the the path. >> Is there anything you would do to make it feel more exclusive and more hard >> Turn people down.

1:45Just being real. Like everything of exclusivity comes down to who you choose to not take money from. Like you can't be exclusive and also accept all all forms of payment. And that's the hardest part. It's that's that's why that's why most people can't do it. It's cuz it takes it takes a way longer time horizon. And I don't know if I don't know if that's if you want to do that. Like cuz the thing is is like you can not have that horizon, just know how to market and sell and make 10 million bucks a year.

2:12And so for a lot of people it's like, I'm good with that. And so you can do that. But if you want to build a household brand and like re basically the thing is is you have the track record that it's actually in the cards for you. Most people can't because they didn't run the most successful ad campaign of all time. And so like that's something that you know, if I were if I were you, I'd be like do I have the patience to build something over a decade? And if I do, that would be something that I would consider. But if I was like, "Hey, if you're like, 'Hey Alex, how do I make more money?'" I'd say, "Fuck all that. Just run ads to that thing. Hop on the phone.

2:46Sell people the $5,000 a year membership." >> It isn't another way to do that, just keep jacking up the price? >> Yeah, you can. I mean, the thing is the the the increase in price theoretically quote raises the bar, but it doesn't. Cuz think of it like Harvard's expensive, but it's it's like there's a price that gets a certain type of person there, but you still have to be able to turn people away. It's both. That's the tough part.

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