Episode 10 | Subscription/MRR for info products, churn, and price sensitive audiences

In episode 10, Adrian discusses subscription and monthly recurring revenue for info products, as well as churn and price sensitive audiences.

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[00:46] In this episode, a listener, Richard, has a question about how to set his prices based on his audience demographics. The listener already has a large audience, but the audience is price sensitive, mostly students, and unable to buy his products because of price. Richard wants to know if having a less expensive subscription would be an alternative. 

[01:19] Adrian reviews different types of payment options for info product businesses and what they mean.

[02:22] Churn is when one of our subscription customers leaves your service. 

[02:52] LTV (Lifetime Value) is a customer’s monthly subscription rate times how many months they stick around for.

[03:26] The cost of acquiring a customer when you have monthly recurring revenue is really important. Adrian gives a practical example of how you can use LTV to understand your business.

[04:20] “Balancing monthly recurring revenue, churn, LTV and acquisition costs is a super delicate process. But when it works, it works extremely well. This is why it’s considered the holy grail for SaaS apps.” – Adrian 

[04:57] Monthly recurring revenue in info products is significantly harder than SAS apps.

[05:28] Churn in info products is going to be higher than in SaaS apps. Adrian talks about why.

[06:33] If you are just starting with info products, monthly recurring revenue is not recommended. 

[07:01] Adrian breaks down the listener’s (Richard) question, and his info product business specifically.

[07:44] First advice for Richard is to check his email list. Are his followers largely students or working professionals?

[08:10] Richard stated in his question that a lot of his students are price sensitive and are therefore likely to not opt into a monthly subscription. Adrian discusses how Richard can break down his email list and market to his student followers specifically.

[09:03] If offering a steep discount to your price sensitive audience doesn’t work, stick with YouTube.  

[10:09] In the end, Adrian’s advice to Richards’ problem of price sensitivity and churn is to stick with YouTube. Being that he already has a large following on that platform, he can monetize his content and create monthly revenue that way, whereas creating a cheaper subscription probably won’t work with this particular audience. 

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