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top 3 KPI’s in your business health
quick one today as I’m on the train taking my family to the senso-ji temple in asakusa. these are the top 3 kpi’s you should be watching like a hawk in your business: 1. ltv:cac ratio • ltv (lifetime value) is how much money a customer brings you over time. you figure it out by dividing the average money a customer gives you each month by how many customers leave each month. • cac (customer acquisition cost) is how much it costs to get a new customer. you get this by dividing your total marketing spend by the number of new customers. • the ratio: you want your ltv to be 8 times higher than your cac. if it’s lower, you’re paying too much to get customers. • takeaway: aim for at least an 8:1 ltv:cac ratio. if it’s lower, you might need to rethink your marketing or prices. 2. fecc (front-end cash collected) • this is the money you collect right away when you get a new customer. • you calculate it by dividing the front-end money by the cac. • the ratio: aim for a 4:1 ratio, meaning for every dollar you spend to get a customer, you should get 4 dollars upfront. • takeaway: with a 4:1 fecc:cac ratio, you’re not only covering costs but also making solid upfront money. 3. 30-40-30 rule • this is a simple way to manage your business money: • 30% of your revenue goes to paying your team. • 40% covers other expenses like rent, marketing, and bills. • 30% should be your profit. • takeaway: this rule helps keep your business running smoothly and profitable. you should be able to look in your current numbers and calculate these to identify any problems you have in your lead generation/client acquisition strategy. love ya, luis
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how to double your trials conversions by having one conversation.
if you run free (or paid) trials, you’re leaving money on the table by not doing this one simple thing. it’s something you’re doing anyway, you’re just messing up the timing. by asking trial members halfway through or at about 75% of their completion of the trial, you are able to convert them better by having a simple conversation with them. ask them how they’re enjoying your service… if you have a high quality service, they will be a raving fan at this point in their journey. which in turn makes it MUCH easier to convert into a long-term membership. try having the end-of-trial conversation at 3-4 weeks, rather than the 6 week (or end) mark of the trial. it will pay off! love ya, luis | two days media
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how to double your trials conversions by having one conversation.
this is how ANY academy can make money with PAID advertising.
this is an excerpt from my foundational sales letter which talks about our MAIN way of making our clients more money than before they started working with us. DISCLAIMER: I did NOT come up with this technique. just like every BJJ technique, I learned it from those before me who proved it in the real world. @Alex Hormozi created this framework for offers in big box gyms, and it has been proven to work within the jiu-jitsu space as well, simply because it employs a value-driven, market-agnostic offer. "how to grow your academy without upfront marketing costs one of the most powerful strategies we employ is the self-funded growth plan. this innovative approach allows you to grow your BJJ academy by using revenue from a special, high-value offer to fund your advertising. instead of relying on low-cost trial classes that barely cover ad expenses, we help you create compelling offers that attract committed students and self-fund your marketing efforts. how it works: 1. create a high-value offer we assist you in crafting irresistible offers that provide exceptional value to new students. here are some ideas that we have proven to work: - beginner's boost program ($500-$800): a 4-week introductory course for newcomers. small class sizes for personalized attention. includes a free gi (uniform) and belt. and one private lesson each week. access to exclusive online training videos. (we help you set this up within matmatch 2.0) - private lesson package ($600-$1,000): a series of one-on-one sessions with a top instructor. personalized training plans to achieve specific goals. nutritional and fitness guidance. 2. targeted advertising we design and deploy engaging ads that highlight your special offers: - precise audience targeting: reach individuals interested in martial arts, self-defense, fitness, or personal development. focus on those living near your academy. - compelling value proposition: emphasize the exclusivity and limited availability of your offer. showcase why it's a superior deal compared to standard memberships.
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New comment 14d ago
what’s your average revenue per member? (ARM)
I’d like to gather some data for an upcoming video on how to increase the monthly average revenue per member without feeling scummy. Thank ya, luis
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what’s your average revenue per member? (ARM)
check out the CLASSROOM section!
in the classroom section, we have compiled a TON of free and paid resources for you to check out and start building better systems to get more students in your school. love ya! luis
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check out the CLASSROOM section!
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