Education Is Not A Recurring Product
The speaker argues that education by itself cannot be treated as a recurring revenue product, unlike community access and services. They recommend restructuring pricing to charge more upfront for educational content while offering ongoing community access and services as lower-priced recurring elements.
Summary
The speaker makes a fundamental distinction between different types of products in the education space, arguing that education content itself is inherently a one-time consumable product rather than something that can generate recurring revenue. They contrast this with community access and services, which they identify as naturally recurring products that can sustain ongoing subscription models. To address this structural challenge, the speaker recommends a hybrid pricing strategy that involves separating the product offering into distinct components. Their proposed solution involves significantly raising the price for the educational content portion to properly reflect its one-time value, while maintaining a smaller recurring revenue stream through backend services such as community access, calls, and other ongoing services. This approach acknowledges the different value propositions and consumption patterns of educational content versus ongoing community engagement.
Key Insights
- The speaker asserts that education alone cannot function as a recurring product, distinguishing it from community and services which are naturally recurring
- The speaker recommends breaking apart product offerings into consumable versus one-time components to better align pricing with product nature
- The speaker suggests raising prices for educational content or implementing annual pricing to properly value the information being provided
- The speaker proposes having a smaller backend recurring revenue stream focused on community access rather than trying to make education itself recurring
- The speaker indicates that additional services like calls and other ongoing support can serve as legitimate recurring revenue components alongside community access
Topics
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