The market has changed.

People are becoming more resistant to buying high-ticket offers.

Inflation and the recession have tightened people’s wallets.

So to continue to thrive...

Here’s the new paradigm I’m seeing the smart 7 & 8 figure brands focus on that have been in the game for 5+ years (so they know how to stick around through life cycles of the economy):

Got a business problem? Get it solved!

I’m connected with hundreds of qualified, proven, and vetted vendors. Get a personal introduction (completely free) to the exact person you need to remove your bottleneck.

• Media buyers

• Copywriters

• Setters & closers placement agencies

• Agencies

• Systems & operations consultants

• Client fulfillment & retention specialists

• And so much more

Here’s next steps:

1. DM me on Facebook with details about your situation

2. I’ll do a micro-assessment to determine your needs (no call needed!)

3. You’ll get introduced to the best specialist for your specific situation

4. You grow, bottleneck-free

1. Retention > Acquisition

Back in 2017, Facebook ads were cheap.

Money was flowing from banks and institutions and people had plenty of extra income to spend.

There were very little concerns about FTC compliance.

And ad network compliance was pretty much not a thing either.

It was the wild, wild, west!

You could say whatever you want, and get it in front of whoever you want for cheap, and have them buy because they weren’t jaded.

And they’d focus on “getting as much money as you can upfront because you never know when they’re going to drop off from your program” ← poor mindset btw...

Big mistake.

Back then, people focused on GETTING clients.

They didn’t really care about KEEPING them.

Because it was cheap and easy to just get another one.

Nowadays?

That’s not the case.

With rising ad costs and an ever-increasing skeptical market...

There’s a higher barrier than ever to get clients with paid ads.

The smart online coaching businesses are the ones that focus on creating an incredible customer experience and build such a good product that their clients never want to leave.

So now the goal isn’t about GETTING clients.

It’s about KEEPING clients.

So you want to do everything you can to get your clients a great experience and keep your clients happy so they stay with you forever.

2. Recurring Cash Flow > Up Front Paydays

Another thing I’ve seen a lot lately is a focus on recurring revenue.

It’s cool to get paid once.

But to get paid monthly (or weekly as I’ve seen in a lot of cases starting recently) is a whole other ball park.

Imagine not waking up at the start of the month going...

“Fuck, we’re starting at zero again”

Then you have to crack the whip on your setters and sales reps to go out and make sales.

Stressing about making payroll.

Stressing about collecting payment plans from clients that didn’t pay in full.

Stressing about all the taxes that you’re supposed to be saving up to pay for.

What if you could wake up on the first of the month each month and know you already have $20K, $50K, $100K or more in monthly recurring high-ticket revenue?

How much more peace of mind would you feel?

So it’s crucial to have a way to get recurring revenue from your business model.

Whether you swap the front-end to a recurring model.

Or make your back-end recurring.

For stability and consistency in income it’s crucial to get some type of monthly recurring revenue.

3. Profit On The Back-End > Profit On The Front-End

WARNING: You need to have heavy cash reserves and dialed in tracking to make this work - or you may be burning money you don’t have. Execute on this strategy at your own discretion

When advertising as an online business, the business that wins is the business that can spend the most to acquire a customer.

But most people focus on their Day 0 ROAS.

So they can only spend so much to acquire each client.

I’m going to run you through 3 examples.

Example A - Front-End Only:

Let’s say you have a $5K program as your flagship front-end but no back-end.

You technically have up to $5K to acquire the customer to break even.

Most people would only go up to $3K MAX to acquire each client.

You’re gonna have a bad time trying to scale that offer since you can only spend $3K to acquire each sale.

And you’re probably not even making any money after:

• Defaults on payment

• Chargebacks

• Refunds

• Cost of running the team

• Tax

Good luck having enough profit leftover to pay the founder.

Now let’s look at another example.

Example B - Back-End Added:

Again, the business has a front-end offer for $5K.

Then their back-end let’s say is $1K/mo.

And their upsell rate from their front end to their back end is 20%.

Since the clients don’t get that great of a result and the upsell process isn’t dialed in with customer success (typical of most coaching businesses whether you wanna admit it or not lol).

Then let’s say the average stick rate on that $1K/mo is 3 months.

Again, because this business person heard that it’s good to have a back-end but hasn’t really dialed in their client fulfillment.

Now this business owner can spend $5K on the front end to break even.

And since 20% of clients upsell to the $1K/mo, and they have an average stick rate of 5 months...

That means they add an extra $1000 in lifetime value.

So the lifetime value of the average client becomes $6K.

So you comfortably spend $4K to acquire each client instead of $3K.

Not great.

But it’s better than not having a back-end at all.

Now let’s look at a third option where your systems for fulfillment and upsell processes are dialed in.

Example C - Back-End Added + Dialed In Fulfillment + Upsell Process:

$5K front-end offer again.

But now the fulfillment on that front-end offer is dialed in.

Clients get a great experience, get great results, and your upsell process is dialed in too.

There’s a 50% upsell rate to your $1K/mo back-end offer (this is very doable btw when you have the right systems in place).

And instead of having a 5 month stick-rate, you have a 12 month stick rate.

So the average lifetime value of EACH client becomes $11,000.

So maybe you’ll feel comfortable breaking even on the front end and spending $5K to acquire a client.

And if you want to be REALLY aggressive and scale quickly...

You can go in the red on the front end and spend $6K to acquire each client.

Since you know you still have on average will earn about $5K in revenue anyway from each client.

Not to mention all the referrals you get from those clients who get such great results they tell all their friends.

And because people get such great results, maybe you’re able to raise your prices which adds even MOAR lifetime value.

But like I said, you need to have...

1. An incredible product that gets people great results

2. A system for upselling those people into your back-end offers

And if you’re looking for some extra info on how to do both those things...

My friend Ben McLellan is the GOAT at that.

He helps coaches, consultants, and agencies create incredible client experiences so clients get such great results they stick around forever and pay you month after month and refer all their friends.

» Check out his new book to learn more.

Ed “Recurring Revenue” Reay

P.S. Yes, that’s an affiliate link. #FTC-Compliant

P.P.S. I recommend you also get the audio book order bump, Ben really does have a sexy voice.

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