Tag: Memberships

Why Are Subscribers Leaving Faster Than They’re Coming? 🏃💣

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What’s the deal with fickle subscribers anyway?

Transcription

Why are subscribers leaving faster than they’re coming?

Hi I’m Brian Pombo, welcome back to Brian J. Pombo Live.

When we’re talking subscribers, we’re talking about anybody doing any type of membership out there. And this idea, I just recently heard on an older podcast from Russell Brunson, where he had mentioned that Dan Kennedy had brought this up one time.

It’s a really, really good point, and that is that almost any business that runs off of a membership model, where you have something that you’re selling on a regular basis, oftentimes, it’s a monthly basis, but could be an annual basis, or what have you.

If people are paying for something on a predictable, ongoing basis, then you have a subscription model-style business.

In that case, you really have to look at, okay, who’s coming in and who’s going out. What you’ll end up finding is, you have to really speed up, the people coming in to make up for the people going out.

This is because of a disconnect in most business owners’ minds when it comes to these type of membership ideas. Because there’s a huge thing, that doesn’t make a whole lot of sense initially. But after you’ve been involved in the business a while and you’ve had a lot of interaction with customers, you start to see this over and over again.

That is that people initially subscribe or buy into something for one reason, but then they stay, if they actually stick you whatever your stick rate is, whoever is sticking, they’re sticking for a different reason, almost always, almost every single time, it’s going to be a different reason than why they came in.

Sometimes they don’t know why they’re staying. But it can be found out by really getting to know as many of your stick customers as possible, whoever sticking around for the longest, you have to constantly probe them and find out what do you like the best? What what do you really get out of this.

What you’ll see what I’ve seen most often with the clients that I’ve had, and the people that and the subscriptions that I’ve I’ve kept oftentimes you get involved for something flashy, something, something that’s that that’s exciting, you know, something that gets your blood flowing a little bit, that, you know, that maybe it’s it’s being around or in the presence, or having direct communication with a charismatic figure, you know, that’s a common thing.

Maybe it’s the fact that there’s a product, a consumable product that is tied to it that you, boy, you, you just want to have as much of that product as you can. And so that’s why you initially do it.

People don’t stick off of those things, because those are all impulse-based buying, very emotional-based buying, and that stuff eventually fizzle out, we fall out of love. We fall out of excitement, and we eventually come off of it is that whole concept of buyer’s remorse.

How does Why does buyer’s remorse happen?

Buyer’s remorse happens because people get high off of the purchase and then they eventually get a low off the high, they drop off of out of after skyrocketing, they drop.

That drop becomes something we call buyer’s remorse and it happens just as often, if not more often in a subscription model.

So really, you end up seeing over a very predictable period of time, most people or a good portion of people dropping off of your subscription, you’ll see it you’ll see very, very common time period that people stick on and then they fall away. So how do you get them to stick?

A big thing is a community, any sense of belonging, community, anything like that, that’s the thing that I’ve seen that’s worth the best across the board.

Also, if there’s a tangible result, that has a consistency to it, that they don’t want to give up, if there’s a very tangible result that they will lose.

Upon ending the subscription, then that’s, that’s really one of the things that they’ll they’re going to have a tough time. They’re going to have a tough time disconnecting. If you have that and you’re you have to remind them of it too because they’ll forget until after they unplug what life was like before they were plugged in.

So those are two of the most common ones. I discussed this a little bit, in my book, 9 Ways to Amazon-Proof Your Business. It’s really more of the psychology that I cover in there.

I’ve got a whole chapter on belonging and why it’s important. And really, if you don’t have a subscription-based business, this may sound like a little bit of a nightmare.

But I think that a whole lot of the benefits outweigh the issues that come along with having a subscription-based business, having that consistent, predictable income is, is really, really, really handy. It’s handy and growth.

It’s handy and knowing, knowing how you can build your business, what you can depend on what you can’t depend on. And you just have to tweak it a little bit as you go along and pay attention to some of these principles that aren’t necessarily initially something that would enter your mind but it’s common.

It’s so common across the board, that it’s something that anybody that is looking for passive income from their business needs to understand this psychological phenomenon that people buy for a different reason than why they continue buying, so to speak. So hopefully that makes sense to you.

Go check out my book, you can get a free copy on AmazonProofBook.com.

Or buy a hard copy over at Amazon.com or wherever books are sold. That’s all I got for you tonight. You have a good one. We’ll be back tomorrow.

Get out there and let the magic happen.

Qualities Business Investors Look For: No. 5 🕵️ (Clubhouse Climate)

Posted on by brianjpombo

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Part 5 in a series of videos on what what Brian looks for in companies.

Transcription

Qualities business owners look for number five.

Hi I’m Brian Pombo, welcome back to Brian J. Pombo Live.

I’m gonna point out a few things if you’ve been watching this series on qualities that business investors look for.

One, yes, I have had a haircut. Okay, so that’s one thing you’ll notice.

Another thing, for those of you who are watching versus listening, those of you who are listening, none of this matters. Another thing that the people watching will notice is I’ve got a bloodshot eye, which is really disgusting. You can’t feel it though. This is another injury, for those of you keeping track at home, that Lucas the destroyer hit me in the head this morning. Probably with his head, I don’t even remember exactly what happened cuz he’s such a rambunctious two year old.

I always come on here with new scratches and bumps and scars and everything from my two year old. So this is a new one, so just in case if that’s throwing interview off.

Let’s talk about the things that business investors look for when they’re looking for somebody to partner up with, or somebody to a business to purchase.

This is number five, if you want to watch the other ones, go back and watch the other ones we’ve is a series that will continue. I pretty sure we’re just going to hit the top seven, we’ll see how it goes.

But this is number five, and it is called, CLUBHOUSE CLIMATE.

Now, when I’m talking clubhouse, I’m not discussing the hot new app. So there’s a social app that’s really popular right now here in 2021. That has to do with audio chat rooms that you can get involved with. That’s not what I’m talking about.

But I’m talking about the type of thing that that app creates, which is a clubhouse type environment, you have a club situation fit into your business, this is fabulous, there’s very little that can go wrong. If you have this setup and your business, if you can make it to where it has both and possibly elite flair to it or or a section of it that does but at least a feeling of belonging.

I talk about this a lot in my book, 9 Ways to Amazon-Proof Your Business, specifically chapter five, which is number five here. But chapter five and chapter six, discuss this belonging concept and having the subscription membership concept plugged into your business.

This is a major deal, I have two whole chapters referring to it, you can get a free copy of my book, by the way, if you go to AmazonProofBook.com, or you could purchase a hard bound version over at Amazon, Barnes and Noble or wherever books are sold. So you check that out.

But think about how powerful this is think about all of the businesses that you’re aware of that have a club feeling to them. And some of them they just have kind of a subscription model tied to them your costcos your amazon.com.

Yes, they have somewhat of a club, you know, Amazon Prime, and so forth. But it’s not really any way you don’t go there to meet people you don’t hang out, you don’t feel that you’re part of anything special. So I wouldn’t specifically include them just because they have a membership option, even though it’s very valuable to have something like that tied in with your business because you’re creating consistent flow.

But really, if you can create a club like attitude, Apple had this in the very early days when it was still a very out of the ordinary company. Not everyone had an Apple Computer not everybody had Apple products before it went fully mainstream had very much a club vibe that allowed it to continue in the marketplace on a very high level and sell items like computers that did not that they did not necessarily do a whole lot more than your average PC.

But because they had this different mystique about them because they had basically evangelists as they called themselves out there promoting them from the Macintosh on.

It was very much a club like environment, even to the point that people refer to it as a cult. And if you can get to that level, where you have almost cult like following within your business that is very valuable and something something that can’t be bought it’s not easily put together and it is not.

It’s not also easily destroyed.

Once it’s created, it brings on kind of a life of its own.

Harley Davidson has this. There are many brands that you can see out there that have this cult like following to them and when they become mainstream, it’s even more powerful.

But if you can have that early on in the in your business, as you’re making, as you’re building your business and get larger and larger, it’s it’s invaluable to an investor to come in and be able to play along with that process or to help that process along.

If they have experience in such a thing. I’ve actually worked with a number of companies that have this aura about them. And in fact, some of my clients I’m still working with, that I’m helping them to develop it more and more and create something bigger and better than even what’s there.

If you realize this, you realize the power of it, you can help develop it yourself, and you can attract more partners to be able to make it bigger and better.

So hopefully that makes sense. Tomorrow, we’re going to go over number six. So that’s tomorrow, number six, in our list of qualities of business investors look for come back then, in the meantime, get out there and let the magic happen.