The Game with Alex Hormozi
Why Your Education Business Isn’t Sellable | Ep 877
May 1, 2025
Discover why many education businesses fail to retain customers and struggle to sell. The podcast delves into the crucial distinction between one-time and ongoing value, emphasizing the importance of strategic pricing and customer loyalty. It highlights the volatility of student bases, offering insights on churn rates and customer lifetime value. Learn how successful education models, contrasting with traditional institutions, can lead to a more sustainable and valuable business.
29:44
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Quick takeaways
- Understanding customer churn in education businesses often reflects successful progression rather than a flaw in service delivery.
- Implementing a pricing strategy that accurately reflects the perceived value of consumables is vital for enhancing customer retention.
Deep dives
The Nature of Education Businesses
Education businesses face challenges with customer retention and sellability, often confused with inherent flaws. Many business owners incorrectly assume that churn means something is wrong, while in reality, it may just be the nature of education where clients progress through a course and leave after achieving their goals. Unlike institutions like Harvard that maintain a selective admissions process and provide no guarantees of results, many businesses accept anyone willing to pay, leading to lower standards and less commitment. Understanding that churn is often a sign of successful progression rather than indicative of failure is crucial for education business owners.
