On forever customers...

This one minute of money wisdom could change everything.

A little game of "would you rather":

• Have "forever customers" that never stop buying or
• Have to keep selling new customers forever?

The boring word is retention, but it's actually 6x easier and cheaper to sell more to your existing customers than chase new ones.

Read on for more from one of my fave legendary business brains Alex Hormozi.

If you want help creating forever customers, hit me up at /contact.

– Daniel

Words: You can only create a compounding business two ways: you sell stuff people never stop buying or you have people who never stop selling. 

Mozi Money Minute: Retention Incentives

Give people two subscription incentives. First, give them the incentive to subscribe (duh). Then, give them a second incentive to stay.

When: just before your churn point. Ex: Your avg subscription lasts 6 months. Put your incentive at month 4 or 5. Remind them at 2 and 1 month before the incentive that it’s coming (it’ll get even more to stick). 

What to give: Permanent incentives (lifetime upgrades, status, or savings) get more long term stick but cost you more. One time incentives will get people to stay to that point, then churn immediately after. But, they cost less. But, if you get every customer to go from 6 months to 8 months…that’s a 33% increase in revenue (and likely a 2x+ increase in profit). Still worth it.