The Game with Alex Hormozi One Time Fees | Ep 188
Mar 17, 2020
Explore the intriguing world of one-time fees and their surprising impact on customer retention. Learn how a well-structured initiation fee can make follow-up billing more appealing. Discover clever strategies for offering discounts that not only attract new customers but also enhance loyalty. With practical insights and real-world examples, you'll find out how to ethically monetize offers and boost your business growth like never before.
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One-Time Fees
- Consider using one-time fees like activation, initiation, or enrollment fees, especially in established businesses.
- These fees can increase customer stickiness and provide higher margins.
Stickier Billings
- One-time fees can make subsequent billings stickier, especially when there's a large difference between the initial fee and recurring charges.
- This is because customers feel more committed after a larger upfront investment.
Tanning Salon Example
- A tanning salon owner found that his stickiest membership was $100 down and $10 a month.
- This large initial fee made customers more likely to continue their memberships.