Allow members to pay annually (with a discount)

I keep thinking of ideas to make Skool work better and better for community owners.

As a growth marketing consultant, my tool of choice to grow any business is paid ads to get traffic and a video to convert the traffic into paid members.

To this mechanism work for low ticket offers (let's take $99 p/m as an example), one must ensure that most members stay in the community for longer than a single month.

This is to increase the value of a lifetime customer.

So if on average, a single member stays in your community for 10 months, the lifetime value of your customer is $99*10 months = $990 for a $99 p/m offer.

Now, to grow a community with paid ads, it's not ideal if you have to wait 10 months to make that amount of money because to get a paid member via ads... you have to pay the ad platforms instantly.

aka pay to play.

However, here comes the idea:

If you have the option to give your members the choice to pay annually instead of monthly, with a 10% discount... You can make paid ads work very profitably.

Example:

You spend $1000 on ads, and it costs you $100 to get a paid member, so now you have 10 members.

If 9 out of those 10 chose to pay you monthly, you made $99*9 members = $891 in cash collected.

In that case, you lost money (-$109 to be exact).

Now, of course, if all of these 9 members decide to stay with you for 10 months, you will be making $8,910 in total for the 10 months.

But for now, you spent $1,000 and only made $891 so you're at a loss (for now 😆).

Now, what about that 1/10 member that we didn't include?

Let's say that he or she decided to pay annually instead of monthly because of that 10% discount, we will be making a lot more than the $99 monthly fee.

In that case, you made:

$99*12 months = $1,188

- minus the 10% discount $118

= $1,070 from that single client alone.

So if we calculate our total now:

You spent $1,000 on paid ads

and $891 (9 members paying monthly)

and $1,070 (1 member paying annually with a 10% discount)

Total cash collected = $891 + $1,070 = $1,961

And because you only spent $1,000 but made $1,961 — you made a profit in month 1!

Just getting a single member to pay annually can make a big difference in your numbers.

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