James Sinclair's Business Broadcast This is why Subscription Business are SO DIFFICULT to grow!
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Sep 23, 2024 In this talk, an entrepreneur behind a subscription business generating £2000 a month shares insights into the struggles of scaling in a competitive market. They discuss user retention strategies like offering free months and the challenges of relying on ads for stability. Personal growth and overcoming convenience-induced laziness are emphasized as keys to success. The conversation also touches on transforming a wellness brand from Instagram fame into real impact, along with the critical role of community in building trust and driving engagement.
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Subscription Business Difficulty
- Subscription businesses are hard to scale if they don't become habitual.
- Tangible products or services and habit-forming content, like Netflix, are easier to retain customers.
NutraSeed's Ad Spend
- NutraSeed, a multi-million dollar nut and seed business, spends 40% of turnover on ads.
- Customers only stay for 3-4 months on average, highlighting the challenge of retention in subscription models.
Day Nursery's Free Month
- James Sinclair's day nursery offers the second month free to incentivize long-term subscriptions.
- This strategy capitalizes on the long lifetime value of childcare customers, who often stay for years.