The Game with Alex Hormozi Why Your Education Business Isn’t Sellable | Ep 877
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May 1, 2025 Discover the secrets behind the struggles of education businesses in retaining customers and enhancing sellability. Learn how to distinguish one-time value from ongoing value to avoid common pricing pitfalls. Explore the essential factors for a lucrative education venture, emphasizing customer needs and long-term engagement. Dive into the impact of customer churn on business value and uncover strategies to improve retention and create sustainable recurring revenue.
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One-time vs Ongoing Value
- Education businesses often fail to retain customers because they conflate one-time educational value with ongoing value.
- True continuity comes from services or consumables that customers repeatedly use, not just from the educational content itself.
Price Education and Continuity Separately
- Price one-time educational value high relative to what customers will pay and price consumables lower to ensure stickiness.
- Separate upfront payment and monthly continuity pricing to reflect their different values and reduce churn.
GymLaunch's Hidden Value Secret
- GymLaunch's enterprise value mainly came from its ongoing service aspects, not just education.
- They ran ads and re-sold proven ad creatives as consumables with high margins, which created recurring value.