All right, so now we're gonna talk about some different types of revenue,
and these will be relevant as we move throughout some of the upcoming units in
this course. So the three primary ones we're gonna look at are products,
physical or digital. For our cases, mostly that's going to be digital,
like eBooks, workout programs, et cetera. Services like online coaching,
and then subscriptions, uh, like a membership website.
So when we're looking at comparing these things, uh,
the kind of primary benefits to a product is gonna be highly scalable.
They're easy to kind of mass produce, send out to a lot of people. Uh,
you really don't in incur any expenses per product as you send them out,
which means there is a very high profit margin for them and there's really
minimal ongoing time investment to service those products.
Maybe a couple customer service emails, but really very minimal.
The limitations for those though is the risk of theft or piracy,
people copying them, sending them, making their own versions of them,
sending 'em out to friends, et cetera. There's usually a low, uh,
lifetime value with those type of customers,
unless you have some good things in place,
getting them to come back and buy other products,
which we will cover later on in the course.
And they're possibly less consistent when you're looking at planning out, uh,
revenue or having a less consistent revenue unless you have a really solid, um,
kind of marketing plan.
Going to keep those going consistently and understanding, um,
our revenue streams and, you know,
volatility is gonna come into play when we start talking about budgeting,
when we look at services, potentially a higher lifetime value. Um,
cause obviously if you're giving a good quality service to that person,
they're gonna keep coming back. These also tend to be higher ticket items,
right? You're usually charging, uh, you know,
probably a hundred dollars plus per month, at least for, you know,
the majority of your services,
which is probably gonna cost a lot more than just an e-book. Um,
and you've got that recurring revenue coming back.
Depending on your tax laws in your areas.
Services may be sales tax exempt,
so you could save some money or at least keep more of your money really, um,
in those cases. And then because they are a recurring service,
obviously they're typically a little bit more predictable. Um,
when you're kind of looking at your long-term revenue plan limitations for
services, they are time limited because you are interacting with those customers
one-on-one,
especially if you're doing a very customized approach to online coaching. Uh,
you have your check-ins and your writing programs and exercise reviews or
whatever else you may be doing.
And it requires that you're very efficient with your time so that you can
maximize, you know, your dollar per hour. Earnings
subscriptions, again, very predictable revenue, obviously. Um, and a big, uh,
benefit to those is that small improvements to your service website,
uh, customer experience can have a large impact on your lifetime value, uh,
customers. So for example,
if you increase your average retention on a membership by
One month, and previously your average was three months,
well that's like a 33% increase in the lifetime value.
Your average lifetime value of a customer, that's a big jump over the course of,
you know, months or the year.
And there's typically very little time investment on a per customer basis
because this, in this approach,
robs going for a ma a massive number of people that we can help,
uh, and work with at once or that are using our products at once.
The limitations for this one are just ongoing content production, uh,
and maybe some customer service. You typically have more customer service, uh,
replies and responses than just a one-off product. You know,
whether someone has a trouble logging in or a billing issue or they forgot to
cancel on time or whatever the case may be,
there's a little bit more ongoing work there. Tech maintenance, of course,
you're probably gonna want to have some cool features on your site,
so we gotta make sure those are up to date. You know,
you have enough server space, bandwidth, uh, internet security, privacy,
compliance,
all of those type of things on the backend that have a little bit higher, um,
ongoing, uh, overhead costs. And then customer service, like I mentioned, which,
you know, it may become time consuming doing yourself.
So perhaps you may need to look at, you know,
maybe hiring someone else to do that or teaching someone else to do that.
So those are the kind of considerations we wanna look at when we're kind of,
you know, if we're initially figuring out where we want to focus, you know,
do our first focus of, uh, revenue generation for our business,
or if you're looking at adding one of these aspects to your current business,
we wanna make sure we have all of these things considered.