Don't Forget The Math
One of the problems I immediately correct when someone joins our teaching business amplifier is...
The Math...
Sometimes the original business model...
Or the marketing model...
Just doesn't make financial sense.
So even if the marketing were fully optimized...
It wouldn't be very profitable.
And there are three main reasons for this that I see over and over again...
So I'm going to share them with you here:
- Level 1: Prices are too low
- Level 2: The backend isn't big enough
- Level 3: They don't know which business they are in
If your business is relatively new, then you've most likely only got a frontend offer...
Which means that offer has to do the heavy-lifting of all your marketing jobs: acquisition, liquidation, monetization, retention.
It's really hard for that model to work long-term.
The quick fix is to raise your prices...
But at the next level you face a different problem.
If you're driving in leads or low-ticket customers through the frontend offer...
Then probably you've got some sort of backend...
Which means your frontend does the acquisition and liquidation, while your backend does the monetization and retention.
This is more sustainable, but as expenses increase you'll be less and less profitable...
The quick fix is to build a bigger backend, so that you have multiple backend offers and more chances to sell to customers...
But at the next level you face a different problem.
If you're monetizing customers and retaining them, while also building out your backend...
Then you're probably trying to get more money out of the same customers...
Which means your frontend and backend still work the same, and you repeatedly re-monetize your customer list.
But you'll soon reach a point where those customers don't want to buy more of the same from the same person or company...
The fix is to re-monetize the list even more times, but not out of the pockets of the customers, instead out of the pockets of other companies and individuals who want access to your list.
Then you restructure your operations with this end point in mind.
Which will force you to ask yourself which business you are really in...
Because now your position in the market isn't that of someone selling a high-ticket product, or a low-ticket frontend with a high-ticket or recurring backend, but instead your position is that of a collaborator with other businesses, and who has valuable resources.
To your success,
P.S. If you feel like you need guidance... and you want someone to personally work with you (not just follow a course)... then book a call with me here: https://www.teaching-revolution.com/schedule1 or get my personal help in the teaching business amplifier: https://www.teaching-revolution.com/amplifier-or-accelerator