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Nov 4, 2016 · 19m · top-founders

EP 468: $6M in 2015 Revenue With Health and Wellness Infoproduct with CEO Craig Ballantyne

Nathan Latka · 11m spoken Craig Ballantyne · 6m spoken
0:00 / 0:00

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In this episode of 'The Top,' host Nathan Latka interviews entrepreneur Craig Ballantyne on how he generated $6 million in 2015 revenue by scaling health, wellness, and personal development infoproducts through evergreen funnels and recurring memberships.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 65.8% of the talking time here. How this is scored →

Nathan as informed peer 4.3 Guest teaching 1.5 Guest disagreement 1.5 Nathan pushing back 3.2
05100:0010:000:28–2:31 · Nathan as informed peer 0/10 Weekly Giveaway Winner Announcement and Entry Details Solo host intro announcing giveaway winner, promoting podcast sponsor tools, and introducing the guest.2:31–7:15 · Nathan as informed peer 6/10 Business Overview and Revenue Breakdown Nathan drills down into Craig's revenue breakdown, margins, and physical product economics. Craig transparently answers questions about his pricing and split between business coaching and fitness products.7:16–10:56 · Nathan as informed peer 7/10 Breaking the Info-Product Launch Cycle Nathan challenges the infoproduct subscription model, questioning why Craig doesn't charge a one-time fee given a 3-month average retention rate. Craig acknowledges the retention issue and explains their focus on front-end volume.10:57–13:44 · Nathan as informed peer 6/10 Comparing SaaS Paywalls to Mindset Transformation Nathan compares SaaS usage paywalls with coaching content and pushes Craig on how he convinces customers that basic advice is worth buying. Craig counters by highlighting video walkthroughs and strong social proof.13:44–16:07 · Nathan as informed peer 4/10 2016 Revenue Projections and Operations Nathan inquires about 2016 revenue goals and operational tech stack, reacting with amusement when Craig reveals he uses a Blackberry and no mobile apps.16:08–18:18 · Nathan as informed peer 3/10 Sponsor Spotlight: HostGator Web Hosting Host delivers sponsor ad reads followed by rapid-fire Famous Five questions and episode closing.0:28–2:31 · Guest teaching 0/10 Weekly Giveaway Winner Announcement and Entry Details Solo host intro announcing giveaway winner, promoting podcast sponsor tools, and introducing the guest.2:31–7:15 · Guest teaching 2/10 Business Overview and Revenue Breakdown Nathan drills down into Craig's revenue breakdown, margins, and physical product economics. Craig transparently answers questions about his pricing and split between business coaching and fitness products.7:16–10:56 · Guest teaching 3/10 Breaking the Info-Product Launch Cycle Nathan challenges the infoproduct subscription model, questioning why Craig doesn't charge a one-time fee given a 3-month average retention rate. Craig acknowledges the retention issue and explains their focus on front-end volume.10:57–13:44 · Guest teaching 2/10 Comparing SaaS Paywalls to Mindset Transformation Nathan compares SaaS usage paywalls with coaching content and pushes Craig on how he convinces customers that basic advice is worth buying. Craig counters by highlighting video walkthroughs and strong social proof.13:44–16:07 · Guest teaching 1/10 2016 Revenue Projections and Operations Nathan inquires about 2016 revenue goals and operational tech stack, reacting with amusement when Craig reveals he uses a Blackberry and no mobile apps.16:08–18:18 · Guest teaching 1/10 Sponsor Spotlight: HostGator Web Hosting Host delivers sponsor ad reads followed by rapid-fire Famous Five questions and episode closing.0:28–2:31 · Guest disagreement 0/10 Weekly Giveaway Winner Announcement and Entry Details Solo host intro announcing giveaway winner, promoting podcast sponsor tools, and introducing the guest.2:31–7:15 · Guest disagreement 2/10 Business Overview and Revenue Breakdown Nathan drills down into Craig's revenue breakdown, margins, and physical product economics. Craig transparently answers questions about his pricing and split between business coaching and fitness products.7:16–10:56 · Guest disagreement 2/10 Breaking the Info-Product Launch Cycle Nathan challenges the infoproduct subscription model, questioning why Craig doesn't charge a one-time fee given a 3-month average retention rate. Craig acknowledges the retention issue and explains their focus on front-end volume.10:57–13:44 · Guest disagreement 3/10 Comparing SaaS Paywalls to Mindset Transformation Nathan compares SaaS usage paywalls with coaching content and pushes Craig on how he convinces customers that basic advice is worth buying. Craig counters by highlighting video walkthroughs and strong social proof.13:44–16:07 · Guest disagreement 1/10 2016 Revenue Projections and Operations Nathan inquires about 2016 revenue goals and operational tech stack, reacting with amusement when Craig reveals he uses a Blackberry and no mobile apps.16:08–18:18 · Guest disagreement 1/10 Sponsor Spotlight: HostGator Web Hosting Host delivers sponsor ad reads followed by rapid-fire Famous Five questions and episode closing.0:28–2:31 · Nathan pushing back 0/10 Weekly Giveaway Winner Announcement and Entry Details Solo host intro announcing giveaway winner, promoting podcast sponsor tools, and introducing the guest.2:31–7:15 · Nathan pushing back 4/10 Business Overview and Revenue Breakdown Nathan drills down into Craig's revenue breakdown, margins, and physical product economics. Craig transparently answers questions about his pricing and split between business coaching and fitness products.7:16–10:56 · Nathan pushing back 6/10 Breaking the Info-Product Launch Cycle Nathan challenges the infoproduct subscription model, questioning why Craig doesn't charge a one-time fee given a 3-month average retention rate. Craig acknowledges the retention issue and explains their focus on front-end volume.10:57–13:44 · Nathan pushing back 5/10 Comparing SaaS Paywalls to Mindset Transformation Nathan compares SaaS usage paywalls with coaching content and pushes Craig on how he convinces customers that basic advice is worth buying. Craig counters by highlighting video walkthroughs and strong social proof.13:44–16:07 · Nathan pushing back 3/10 2016 Revenue Projections and Operations Nathan inquires about 2016 revenue goals and operational tech stack, reacting with amusement when Craig reveals he uses a Blackberry and no mobile apps.16:08–18:18 · Nathan pushing back 1/10 Sponsor Spotlight: HostGator Web Hosting Host delivers sponsor ad reads followed by rapid-fire Famous Five questions and episode closing.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 87.7% · guest 12.3%0:00 · Nathan 87.7% · guest 12.3%3:00 · Nathan 40.7% · guest 59.3%3:00 · Nathan 40.7% · guest 59.3%6:00 · Nathan 54% · guest 46%6:00 · Nathan 54% · guest 46%9:00 · Nathan 60.6% · guest 39.4%9:00 · Nathan 60.6% · guest 39.4%12:00 · Nathan 46.6% · guest 53.4%12:00 · Nathan 46.6% · guest 53.4%15:00 · Nathan 88.3% · guest 11.7%15:00 · Nathan 88.3% · guest 11.7%18:00 · Nathan 99.1% · guest 0.9%18:00 · Nathan 99.1% · guest 0.9%
Sharpest disagreement ▶ 2:41 Defending non-fitness transformation value

Craig firmly pushes back against Nathan's facetious opening premise that he might be a generic supplement schemer.

 Hardest push from Nathan ▶ 9:40 Challenging monthly subscription viability

Nathan directly presses Craig on why he bills monthly for a low-retention product rather than charging an equivalent one-time fee upfront.

 Biggest teaching moment ▶ 3:55 Explaining corporate ownership and revenue split

Craig clarifies the business structure and corrects Nathan's assumption about separate business entities under Early to Rise.

 Nathan holds their own ▶ 11:16 SaaS usage paywalls vs infoproduct consumption

Nathan demonstrates software metrics expertise by explaining how usage-based paywalls suppress churn below 1% compared to infoproduct consumption challenges.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Weekly Giveaway Winner Announcement and Entry Details 0000 Solo host intro announcing giveaway winner, promoting podcast sponsor tools, and introducing the guest.
Business Overview and Revenue Breakdown 6224 Nathan drills down into Craig's revenue breakdown, margins, and physical product economics. Craig transparently answers questions about his pricing and split between business coaching and fitness products.
Breaking the Info-Product Launch Cycle 7326 Nathan challenges the infoproduct subscription model, questioning why Craig doesn't charge a one-time fee given a 3-month average retention rate. Craig acknowledges the retention issue and explains their focus on front-end volume.
Comparing SaaS Paywalls to Mindset Transformation 6235 Nathan compares SaaS usage paywalls with coaching content and pushes Craig on how he convinces customers that basic advice is worth buying. Craig counters by highlighting video walkthroughs and strong social proof.
2016 Revenue Projections and Operations 4113 Nathan inquires about 2016 revenue goals and operational tech stack, reacting with amusement when Craig reveals he uses a Blackberry and no mobile apps.
Sponsor Spotlight: HostGator Web Hosting 3111 Host delivers sponsor ad reads followed by rapid-fire Famous Five questions and episode closing.

Statements from this episode (12)

Assertion Not checkable as stated
Craig Ballantyne's fitness list has 120K subscribers; Early to Rise has 100K
“About a 100,000. For early to rise and a 120,000 for the fitness.”
Craig Ballantyne Nov 4, 2016 ▶ 3:35
Assertion Not checkable as stated
Craig Ballantyne's businesses generated $6M total revenue in 2015
“Well, we have the fitness business is owned by early to rise. Yeah. So 3,000,003 million, well, probably four million fitness and then two million early to rise last year.”
Craig Ballantyne Nov 4, 2016 ▶ 3:58
Assertion Not checkable as stated
Craig Ballantyne's Perfect Day Formula sold 3,500 units by late 2016
“3500.”
Craig Ballantyne Nov 4, 2016 ▶ 5:18
Assertion Not checkable as stated
Affiliates drove just 500 of the 3,500 Perfect Day Formula sales
“Very small. So I would say 500 to 303, 3500.”
Craig Ballantyne Nov 4, 2016 ▶ 5:44
Assertion Not checkable as stated
The Perfect Day Formula physical kit costs $21 to produce and ship
“It costs and produce to ship in the United States, 21 dollars.”
Craig Ballantyne Nov 4, 2016 ▶ 6:30
Disclosure
Craig Ballantyne pays a massive 75% commission rate to his affiliates
“So we pay 75%.”
Craig Ballantyne Nov 4, 2016 ▶ 6:38
Disclosure
Craig Ballantyne directs most paid traffic to a free-plus-shipping book offer
“And so we do have the free plus shipping offer that we send more of our traffic to for just the book that belongs in the kit.”
Craig Ballantyne Nov 4, 2016 ▶ 7:47
Insight
Evergreen paid traffic is replacing volatile affiliate launches in info-product businesses
“So there you get new customers without having to go to affiliates and do launches. So it really comes down to Driving your own traffic to your site on a regular basis, having something going perpetually.”
Craig Ballantyne Nov 4, 2016 ▶ 7:56
Assertion Not checkable as stated
Craig Ballantyne's fitness membership business generates approximately $100,000 in MRR
“It is about a 100,000 dollars and it's mostly from the fitness stuff.”
Craig Ballantyne Nov 4, 2016 ▶ 8:29
Assertion Not checkable as stated
Craig Ballantyne's fitness membership subscribers retain for an average of three months
“They stick with us about three months and there just isn't a very good stick rate with what we have.”
Craig Ballantyne Nov 4, 2016 ▶ 9:12
Insight
Info-product companies compete for users' consumption time, not just content quality
“You can have the most amazing content, but you're really in the business of convincing people to consume your content. And that is a tough freaking business because you're competing, trying to take time from them to get them to go through your courses.”
Nathan Latka Nov 4, 2016 ▶ 11:38
Disclosure
Early To Rise missed its $8 million annual revenue goal for 2016
“We are not, but we do have a couple of things. We do have product launches, which you know, we are going to hopefully kick it up.”
Craig Ballantyne Nov 4, 2016 ▶ 13:59
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