Hello ,

The next component of setting up your recurring revenue program is to do your Metrics Calculation.

This is where you crunch a few numbers in order to figure out how much you’ll charge in order to make your

desired income.

First, we’ll start by looking at different pricing models to see what sort of content your clients might expect at each price point.

Then we’ll do a few calculations to help you arrive at the most suitable price point for your particular program.

.

Let’s jump in…

Pricing Options and Expectations

There are a number of monthly pricing models from which you can choose.

Some of the most common include:

• N3000 per month
• N5000 per month
• N15000 per month
• N30000 per month

Now don't get me wrong...

There are programs out there that cost less than these and some that cost more...

I mean even my powerifdeas audio series is priced at 6000 a year or N600 a month.

All I'm doing here is is offering price options that help you hit your goals faster.

Before you pick a price..

You need to consider what type of content and value you’ll be offering.

Obviously, someone who’s paying N30000 per month is going to have a much higher expectation regarding the quality (and possibly quantity too) of content versus someone who’s paying N5000 per month.

Let me give you a general idea of what your people may expect at these different price points:

1. The N3000 Per Month Price Point.

This is a relatively low amount for a recurring revenue program, so your customers might expect something as simple as one new report per month.

2. The N5000 Per Month Price Point.

This is another common price. Your customers might expect one of the following:

• A new ebook.
• A set of four (weekly) lessons.
• Access to a support group.

Or something else that’s easily worth N5000 per month.

3. The N15000 Per Month Price Point.

At this price point, your customers are going to expect a little more. For example, they might expect one of the following:

• An in-depth guide or course.
• A combination of training and access to a group.
• Access to software.

4. The N30000 Per Month Price Point.

Your customer’s expectations are going to be even higher at this price point. You may offer one of the

following:

• Access to a high-end piece of software (the type a business might use).
• Coaching.
• Advanced, in-depth training.
• A done-for-you service.
• A combination of high-end content, coaching, and/or access to a support group.

…or something similar.

Figure out what you intend to offer, and then do your pricing research to determine how much people charge for something similar in your niche.

Your goal is to give people a lot of value to keep them satisfied.

For example...

If you see others charge N10000 per month or so for about the same value as your site....

You could overdeliver and charge N5000/N7500 per month. (Which is my recommended price point for a good number of low cost recurring revenue programs)

Profit Calculations

The next thing you need to do is run the numbers in order to figure out how many members you need at NX per month in order to hit a goal of N36million per year.

Now, in order to calculate this correctly, you need to figure out your expenses.

These expenses include:

• The cost to create content (if you’re outsourcing).
• Web hosting.
• Autoresponder.
• Marketing expenses.
• Customer support.
• Any other expenses,

Generally, your webhosting and autoresponder costs are pretty minimal, ranging from about N10000 to N40000 per month on average (more if you build a really large list).

Your customer support depends on if you’ve hired any staff or virtual assistant.

If you’re just getting started, you may be able to handle inquiries yourself or hire someone on a very limited basis.

Marketing expenses depend on whether you’re using paid advertising, such as Facebook Ads, pay per click (Google) or other ads.

This varies widely depending on the platform, your niche and how many ads you place.

You could spend anywhere from thousands per month to as little as $25.

As such, you’ll need to fill in this number yourself based on your needs.

Note: If you already have an existing customer base from other existing products and services, then you may not need an advertising budget to begin with as you will seek to convince your subscribers and customers to join your membership site.

That leaves content creation, which is likely to be your biggest expense if you don’t create it yourself.

This too will vary, depending on how much content you need and how much your freelance writer charges.

You could also consider using private label program but you've got to be careful with these.

Another option would be to tap into the wealth of content found in public domain content.

Public domain here refers to content with expired copyrights or content that you are free to use for commercial purposes with or without attribution.

Now you need to do your calculations to determine how many members you need to clear N36million based on how much you’re charging per month.

My recommendation?

Charge N7200 - N7500 per month and aim for 500 members, which will give you the income you’re looking for.

Now it’s time for you to crunch your own numbers.

For this exercise, we’ll assume you want to make N36,000,000 per year (net) on the frontend of your business (for now, we’re not going to calculate backend revenue).

Answer these questions:

• How much are your autoresponder and webhosting fees?
• How much do you expect to pay for content creation?
• How much do you expect to pay for customer support?
• How much do you expect to pay for marketing expenses?
• How much do you expect to pay for all other expenses?
• What is the grand total of these expenses per year?
• How much will you charge per month?
• How many members do you need to get in order to arrive at the income that you want.

Go ahead and crunch those numbers, and then I’ll be back tomorrow!

Till then

Play a bigger game

CTM

PS:

I have spots open for the 97day challenge in January 2022 right now. 

The goal is to help you create, sell and deliver a high ticket transformational program at the $3k, $5k and $10k+ levels and ultimately lay the foundation for bringing $10k a month in revenue.

Think you might like to join us? 

If you'd like to lock in your spot at an early bird rate of N650,000.

Hit reply and let me know. If you reached out yesterday...I'll be in touch today.

NOTE: This early bird offer ends October 31, 2021.

PPS:

The Brand Acceleration Workshop comes up in November.

Specifically November 1st to 5th 2021.

For $100 or N50,000...It's pretty much the best marketing/sales training experience for coaches, consultants and trainers this side of the world.

CLICK HERE TO BOOK YOUR SEAT

If you'd like to be an affiliate and get rewarded with a 50% commision for helping someone improve their business...

Hit reply and let me know so I can get you all set with an affiliate link.

If you've already reached out to me...be on the lookout for notification from Selar today.