266 - Profit Report & Year in Review with Guest Host Claire Pelletreau
On today's episode of the podcast I'm recapping my 2022 with the help of my friend, and guest host for the day, Claire Pelletreau.
I recently interviewed Claire in episode 264 about her year in review which was especially interesting because it also served as a one-year follow-up to see how her business had grown from when I had previously interviewed her in episode 204 about her multi-six figure P&L back in December of 2021. Now, Claire's flipping the script and interviewing me as I look back on my year.
Looking back over the years, in 2019 we did $70k, in 2020 we doubled to $140k, I thought 2021 was going to be my $200k year but it was not, instead I ended with $90k in revenue. I spent the summer of 2021 creating Profit Rx and launched that at the end of the 2021 with one tier of the membership at a price point of $75 so my monthly recurring revenue was trending upward come January 2022.
My plan for 2022 was to grow the membership and get as many people in the program as we could. In January, I invented the Contract Vault which was huge and I ended the month with $14,500 in revenue. which was $4.5k over my goal for the month. The Contract Vault became an acquisition product, modelled after The Boss Project who shared in their profit reports that buyers of their $40 product were more likely to buy their $2,000 program. I ran ads on the Contract Vault that never really took off but also never put in much testing. Instead, I relied on it being a no-brainer offer that people would share. I set a goal of 100 sales, hit 75 sales in the first two days, then increased the goal to 200 for January.
February was the lowest revenue month and we did not have any special promotions or offers this month.
In March, we soft launched the $30 content-only tier of the Profit Rx membership. We will not be offering this tier anymore in 2023 on its own, but only as a down-sell option when members are not utilizing all the offers of the VIP model. We had 36 people sign up in March for the content-only tier and by the end of June we had 121 members in the content-only tier after we launched in April. While it was successful, we don't plan to offer it moving forward because it was an confusing offer and people were often unsure what was and wasn't included in this tier. It was also part guilt seeing recurring payments come in from people who weren't using the program. In my current tier, we offer such a high level of support and tracking your progress.
Profit Rx stayed on evergreen until the end of December and I would get sign-ups throughout the year but no promotional tests that we did throughout the year worked well enough to keep implementing them. I continue to think through ideas of ways to repackage the membership.
Looking at the year as a whole, we got close to $170k so not the $200k goal I had hoped for, but still my biggest year to date. My biggest goal this year was income consistency and looking at my month to month revenue, it stayed pretty consistent.
My salary had minor peaks and valleys but I do take my owner's profit out of the business instead of leaving it all in my account for savings. What causes my payroll fluctuations is if I run payroll a day late and the money hits after the start of the next month but it all averages out.
This year I did my launch in December because I had new people on my email list after Wedding MBA in November so I wanted to give them time to breathe and get to know me before inundating them with sales emails alongside all their other post-conference sales emails.
December was my A launch, my big launch of the year. All of my A launches are two webinars (I used to do four) that we start promoting one week in advance. The cart is open for seven days from the start of the webinars. We started the eight week prelaunch in October where we transition from how to content to mindset shift content.
The webinar sign-ups were okay, attendance rates were a lot lower than normal, but the conversion rates were really good. The launch summary came to 42 total new students, six on annual pay and 36 in monthly payments. Our monthly recurring revenue will come to right around $10k now when combining them with current members. Based on sales page views, we had about a 10% conversion from the sales page.
Right now on my list we have about 7,000 email subscribers which comes with lower open rates because I have spoken at large events that give you the full email list from the event. I tracked how the new students in Profit Rx first found meso I could track what was giving results. Moving forward, Claire suggests I also track how many people come from my podcast. During the onboarding to Profit Rx I ask where people follow us which gives better insight.
In July, I launched Drag Tax. The thought behind it was instead of launching a new business, expand to a different niche. What I did was clone and rebrand one of my courses. A lot of expenses went into going all in to this launch. I wouldn't recommend it to everyone, but I was excited to work on the branding and working on the branding shoot with drag queens and having them on my podcast helps build a trust factor with drag queens.
Looking at my income for 1-on-1 services for the year, Claire commented that it was lower than she expected, which is intentional since I do not heavily offer or promote it throughout the year. Profit Rx covers so much that you don't really need to spend $1,000 for a 1-on-1 unless you just really do not want to do it yourself.
In 2023, I may be ramping up the 1-on-1 services in the form of restarting my law firm. I referred clients out this year to other law firms and had people refer services back. Also this year I am looking at restructuring the price of Profit Rx because right now for $100 a month you get a two hour call with our bookkeeper, a 30 minute intro call with me, multiple check-in touch points you can use throughout the week and access to all the resources of the membership, all of which Claire points out is wildly underpriced. Claire challenges my low prices and while we discuss the pros and cons of raising prices and the mindset around it, I also note that this year I lowered prices and it was my highest revenue year to date.
My goals for 2023 are to hit $250k in revenue, with better and best goals being $275k and $300k and lower my expense percentage this year.
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