Clearing the Confusion | 25 Terms Made Simple

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Whether you’re new to the business or just unsure about certain terms, no one should feel left out of the conversation. I’ve put together a list of terms to help make things clearer.

CPL (Cost Per Lead): The cost to get someone interested in your product or community.

CPC (Cost Per Click): How much you pay for each click in a paid ad campaign.

CAC (Customer Acquisition Cost): The cost to gain a new paying customer.

LTV (Lifetime Value): The total revenue a customer generates over their time with you.

MRR (Monthly Recurring Revenue): Monthly subscription income.

ARR (Annual Recurring Revenue): Yearly subscription income.

ROI (Return on Investment): Earnings compared to what you spent.

Churn Rate: The percentage of members or customers who leave over time.

Retention Rate: The percentage of members who continue their membership and/or stay engaged over a specific period of time.

Conversion Rate: The percentage of people who take a desired action, such as buying, signing up, or joining a community after visiting the about page.

VSL (Video Sales Letter): A video designed to sell a product or service.

CTA (Call to Action): Direct instructions like "Join Now" or "Learn More."

SOP (Standard Operating Procedure): Step-by-step instructions for how tasks are done.

KPI (Key Performance Indicator): Metrics that track success, like sales, engagement, or profit.

COGS (Cost of Goods Sold): What it costs to make or deliver your product or service.

Scaling: Growing your business while maintaining profitability.

80/20 Rule: Focus on the 20% of efforts that deliver 80% of results.

Scarcity: Creating urgency by limiting time or quantity.

The Boolean Rule: A clear, specific promise beats a vague offer every time. See Andrew Kirby’s post: https://www.skool.com/community/the-boolean-rule

The Rule of 300: Spend 100 minutes each on outreach, comments, and content daily. Focus on quality interactions to build real connections, not just numbers. See Andrew Kirby’s post: https://www.skool.com/games/rule-of-300-update-grow-your-skool

Synthesizer: A person who solves complex problems, distills wisdom from overwhelming information, and shares simple, actionable solutions that create value for others. (It’s also Andrew Kirby’s community: https://www.skool.com/synthesizer)

The 100/Speedrunner Challenge: Hormozi and Kirby's 90-day program helping 100 selected members rapidly scale their Skool businesses. Find posts about it in Skool Games.

Free to Paid: A strategy where you start with a free community to provide value, build trust, and help members, then offer a paid community as an option for those who want more in-depth support or resources.

Community: A space for connection, support, and shared growth, focused on relationships and value. Not just transactions or funnels.

SHR Method: People want to feel Seen in a world that often overlooks them, Heard to know their voice matters, and Remembered to know they truly matter because it shows they were seen and heard. Prioritizing this helps your community thrive.

👇 If there’s a term being used in community spaces that I missed, please share the definition to help out your fellow community owners, especially those just starting out!

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