Gina Bianchini walks through a spreadsheet model for building a million-dollar paid community. Enter your starting members, pricing, and growth rate to see projected revenue and profit. A fitness instructor scaled from 20 to 1,590 members in three years using invitations, accountability groups, and price increases.
Hey, I'm Gina Bianchini and I am really excited to show you a resource that we built for people Magic Profit, how to build a $1 million community. And this is our free masterclass. It is on Mightynetworks.com PeopleMagic and it's really popular right now. So in our first week we have gone to number one on the entrepreneurship chart, on the business chart, and even number nine on the overall podcast chart. This is a podcast that is both a masterclass and a companion podcast. And I want to show you a resource that I'm really proud of that we built that I think will be super helpful as you consider what your digital business could look like if you actually put a paid membership online. Courses, challenges and events at the center of it. So this is the website for people Magic Profit. And if you go ahead and sign up, you will get dropped into all of our modules. Go to the intro module. So this is the introduction. And when you come down here after you watch my intro video, you can get the guide to. You are going to want to get the guide. And the reason you're going to want to get the guide is because we link out to a spreadsheet that shows you the math behind a million dollar community. And better than that, you download and make your own copy. And let me just show you what the copy looks like. All right, so this is an example. You would make a copy of this, just a simple Google sheet and you're, you can see here that you can put in whatever number of followers or email list you have or you just come up with the number of members that you think you would want to get or could get in your first month. So in this example, this is just the default. This would be 18 people paying you $48 a month or $576 a year for annual revenue of 10, 000, just to give you a sense of how it works. So then you have a monthly compounding growth rate. So this can be very low, can be very high. But when you think about it, you know, 18 people, if you just invite and just get your 18 people to invite two members the next month, that is a compounding growth rate. If that two members and then four members and then eight members, that's how you get to 58 members in year two, that's the monthly compounding growth rate. So that would then have an annual revenue of 33,000. Now, now started this low for a reason, because this is absolutely doable tomorrow. This is super easy to do, especially on a mighty Network. But it wouldn't be an example of how to build a million dollar community without some actual examples. So I'm going to go ahead and hide this so I can actually see my examples. So there are four different examples of actual creators, what we call hosts on mighty networks who have achieved a million dollar community. Four examples, four different ways, four different starting points. But let me just show you one example in this video, which is a fitness instructor who started their first month with 20 members paying them $52 a month or $624 a year for revenue of $12,000. And then they were on our courses plan. Still are on our courses plan at eighteen hundred dollars a month. I'm sorry, eighteen hundred dollars a year. Who would say a month? And then the take rate of $250. So that's 2% of that 12,000 profitability. 88% ROI of 7.7 times. Now here's where things started to get interesting. So in year two, they were at 178 members. How did they get here? Well, they compounded the growth from 20 members to 178 members, meaning that 20% of 20 is four people. So those 20 people invited just four people in in month two and they started to compound the growth to get to 178 members. Then they raised their price to $63 for revenue of $134,000 a year. Pretty awesome. And the cost didn't change except for that take rate. That's the one cost that goes up a little bit. So the margin revenue minus cost jumped to 97%. Because this is all about how they are able to bring value to their members by introducing members to each other. In this case it was for a fitness program plus accountability groups. And the accountability groups became what was so popular. And then they realized that with 178 members, not only could they build an ambassador culture, meaning members inviting other members in not because they were paid a referral fee, that certainly happens in some networks, was not the case here, but because the results people were getting were so amazingly good. And that led them to continue to grow through members inviting in other members. And then only once the business was really off the ground did they layer on being able to do sponsorships, being able to do a paid ad funnel, all the things that that essentially added gasoline after they knew that they had something special with members inviting other. And that got them to 1590 members at the start of year three. $756 a year delivering a $1.2 million business where the profit margin was 98%. So this just gives you in a, in a nutshell, the way these businesses are being built and that you get your own spreadsheet where you can look at this and you with the numbers and change things around. It's up to you. So hopefully you enjoyed this overview of some very sexy math and you'll join us for people magic profit.
