The Exchanges

Q What will they sell that for though, Joe? So if you're giving them your 200 dollar a month plan for 160 a month, so there's 40 dollars a month of margin built in, but they, do they mark that up even more higher than 200 a month?

A Yeah, folks can mark it up if they want to. Um, a lot of it's going to depend right on their relationship with their customers. Uh, some people have great relationships and some people sell that for a perform plan, you know, for let's say 300 dollars a month. We usually recommend people start selling the, uh, care plans At our direct customer base rate. So if someone gets 20% off our 197 dollars a month, it's about 100 and 57 dollars a month they're paying us for that white label care plan. We recommend they start, uh, by selling that care plan for 197 dollars. So it's about 500 dollars a year in profit for that care plan if you sell it at that rate. But we also say once you've done that for a little while, you can always adjust pricing moving forward. If you feel like you have good relationships, you can always increase pricing a little bit if you want to. That's fine too.

AI assessment note: “Yeah, folks can mark it up if they want to.”

Q just sell them your tool to get a relationship, I can make all my profits selling my content And writing services. So I'd love to sell your plan at my, at cost for me, 160 bucks a month. You obviously can't have that Joe as a business because then they're undercutting your own pricing on your own site. How do you prevent that from happening? Is it in the contract?

A Um, I don't, well, we give all of our white label partners a 20% discount. So all of our white label partners are paying us 160 dollars a month for those care plans. If they want to sell it at cost, it just means that they're not making a profit on those Care plans that they're reselling, um, which we have no problem with. Um, we prefer for a while partners to make a profit on each care plan that they sell, but if they're, we actually have a few very successful while partners who work with us on 20, 30 websites, they sell the, uh, plans at cost for them. They don't make profit on that, but it allows them to make profits on some of the other things they do for clients. So like a marketing, uh, agency, they work with us on 30 sites, don't make profit on those, but it allows them to get in the door and sell great SEO services.

AI assessment note: “If they want to sell it at cost... which we have no problem with.”

Q And you mentioned revenue source. Sometimes it's up, sometimes it's down. When you look at monthly revenue churn on average, what would you put that at?

A Yeah. Dean is head of, uh, customer success, and he has done a great job with churn. Um, churn is, earlier this year was probably at about five, six, seven percent. Um, now it's four to five percent pretty consistently over the past two or three months. Um, so yeah, under five is a big number to hit and stay consistent. So if we can, uh, continue to do better there, that's great. Dean's big Uh, aim this quarter is net negative churn. So we want all of our upgrades, um, from white label partners adding new sites or current direct customers adding new sites or upgrading from a maintained plan to protect or protect to perform. Uh, we want that revenue to eclipse the revenue that is churned out of the business called net negative churn. Uh, and that's like, yeah, holy grail for, for, uh, Subscription businesses. So we're trying to hit that this quarter. We'll see.

AI assessment note: “now it's four to five percent pretty consistently over the past two or three months.”

Q So this white label model is an interesting one. I want to dive deeper on it for a second. So if someone was going to sign up direct to you on your website, what would they pay you per month to help like for you to manage two of their sites? Let's say they have two websites.

A Yeah, we have different tiered plans so folks can pick and choose what plan they go under. We have certain requirements like, um, Websites with advanced functionality like e-commerce on the site or like membership sites. That's kind of advanced functionality. Put that under our perform plan. It's a 197 dollars a month for that care plan for that description. Uh, if someone has a custom built website, uh, and like custom plugins, they're going on, you know, custom plan pro, which is like 500 dollars a month. So. To have a custom website is going to be more expensive because our team is relied on to manage all that code. We don't have a theme developer or plugin developers to help update the plugins. We manage all of the, all the pure code, uh, on those websites. Um, but people can pick and choose what they want on different sites. If someone just needs, they just like don't want to deal with like pressing the update button on a like simple site for the most complex things, you know, contact form, then that can go under our maintain plan at 67 dollars a month. Um, so. Two perform plans, two websites under perform plans, about 400 dollars a month. Uh, but if someone say one website, they really want to optimize speed of the site, but one website's a little less. Uh, important. And maybe they just need a maintain plan. You can mix and match and go, you know, anywhere from, I don't …

AI assessment note: “Two perform plans, two websites under perform plans, about 400 dollars a month.”

Q What can you be specific? So I have a WordPress blog. What's something I would pay you to do with that WordPress blog?

A Yeah, cool. Uh, a lot of people, people need all sorts of help with WordPress. People use WordPress, they build a site, they install everything, they get the theme set up, they get all the content on the images, and then they realize, oh, goodness, there's so much ongoing stuff I have to do. I gotta manage all the updates for the plugins. I gotta manage backups. Uh, How do, what happens if the website goes out on a, on a Friday night? Uh, and I'm like out for the weekend. What happens to the website then? Um, there's the speed of the website, which also, of course, like influences, like you're doing like SEO and other marketing stuff. You want to use experience to be good security for the website, uh, making adjustments on WordPress. All these things are, They're easy for someone who really knows WordPress, but if you're a business owner and you, you know, Nathan, want to run your blog instead of worrying about, oh, where do I edit this WordPress thing? Then that would be something you could grab a subscription for, and our team would just help you out with our, you know, website edits, speed and security optimization, all that stuff.

AI assessment note: “updates for the plugins. I gotta manage backups... speed and security optimization”

Q What prevents a white label partner coming in and undercutting your own website's pricing? This is the biggest issue that I talk to when people have this kind of value added reseller go to market strategy.

A Yeah, we vet all of our white label partners very carefully. Anybody who wants to sign up for our white label program has to jump on a call with us. Um, part of that is, yes, to sell the white label program, and we want to educate people and make sure that, you know, what we're doing is going to fit well into their business model, but it's also really focused on making sure that those partners are people who want to really, uh, add care plan reselling to their business model. They're serious about that, um, that they know our price points, that they understand, The pricing that they need to sell that in order for our program to work for them and to benefit their business and to help them, you know, make care plans profit center for the business and to grow that piece of business.

AI assessment note: “we vet all of our white label partners very carefully. Anybody who wants to sign up”

Q So a couple questions there. What's the average customer paying you per month of the hundred grand a month?

A Yeah. Lifetime value also actually differs significantly based on if you're a direct customer or if you're a white label partner. Our direct customers, most have one site, but a good amount, probably 20 or 30% of those direct customers have two sites, three sites, five sites. Those can add to lifetime value, uh, of those customers anywhere from like 1500 to 2000 dollars, usually that lifetime value. Um, white label partners are a little bigger. They're coming on with more sites. They're making 24 seven support a core piece of their business. And so, They're really scaling reselling of our care plans. Um, so their lifetime value can go anywhere from 4005 1006 1007 thousand. I mean, I think probably our longest serving customers who have been with us for, you know, five, six years, they're, they're up there around five, 6000 dollars. Um, I think our average customer stays with us for about 29 months last time I checked lifetime value. Um, so yeah, people tend to stick around.

AI assessment note: “Lifetime value also actually differs significantly based on if you're a direct customer”

Q What does customer acquisition cost look like to get a new 200 dollar a month customer?

A Yeah, this is a hard metric for us to, uh, for, for us to nail down. I don't think we have an exact number for customer acquisition. Um, we try to look at it the way we think about it is more customer, or what's the lifetime value of a customer, of a specific customer, uh, and then What are our marketing activities, uh, in terms of, uh, trying to obviously, like, undercut that number pretty significantly. Um, so we don't have a specific number for what customer acquisition cost is, um, but we're always trying to, you know, for sponsoring an event, we'll say, well, one new white label partner has a lifetime value of, you know, 5000 dollars, so, you know, we can afford to spend, you know, Easily spend 5000 dollars on the sponsorship for this because, you know, we expect to get maybe two new white label partners from, you know, appearing in front of these 5000 people or whatever. So, um, yeah, that's how I think about it.

AI assessment note: “I don't think we have an exact number for customer acquisition.”

Q Any, any quota carrying reps, or is it, is it, is the price point sort of too low to give commission to a sales rep?

A Uh, yeah. We've got our sales, uh, structure is, Not, like we don't do any outbound sales. All of our sales is inbound. Um, most of our marketing strategy revolves around, uh, SEO content marketing. Um, we just started a YouTube channel, but all of it is to drive inbound leads to us. We have great systems in place so that people get booked. And then our sales team is Someone, we have, uh, someone who does sales, who works on our sales team and directs our sales team, but also our, one of our customer success folks also does sales team. He just happens to be really good at it, so we have him doing some sales as well, but he really just jumps on calls, just get booked into his calendar.

AI assessment note: “we don't do any outbound sales. All of our sales is inbound.”