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.



Topics covered

[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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