Our Thoughts On Selling Courses In Today's World

Summary

In this video, Neil Patel and Eric Siu discuss the shift in their perspective on selling courses in the digital marketing space. They argue that while courses can generate significant revenue, with Patel's peak at $600,000 a month, the real profit lies in alternative offerings like consulting services. They suggest that giving away courses for free can build goodwill and lead to more lucrative opportunities, emphasizing the importance of focusing on higher-margin businesses rather than direct course sales.

Takeaways

• 😀 Courses used to be a lucrative source of income, but the speakers now believe there are better ways to monetize expertise.
• 📈 High-earning courses can generate millions annually, but the speakers suggest this is not the most effective business model.
• 💡 Neil Patel and his co-host have shifted their focus from selling courses to other revenue streams, finding them more profitable.
• 🔄 They used to make significant profits from courses, with profit margins sometimes exceeding 50%, but now see different opportunities.
• 🚀 Patel mentions that instead of selling courses, offering consulting services can lead to much higher annual revenues, like $10 million a year.
• 🤔 The speakers argue that if someone is willing to spend money on a course, there's likely a more profitable product or service you could sell them instead.
• 💼 They compare the course business model to other successful companies like Google and HubSpot, which found more lucrative business models.
• 📊 Patel shares his own experience, noting that removing a free consultation offer from his course did not affect conversion rates.
• 🎓 The script suggests giving away courses for free to build goodwill and brand recognition, rather than trying to profit directly from them.
• 💡 The emphasis is on creating long-term value and trust with an audience, which can lead to more substantial business opportunities.
• 📝 The speakers encourage viewers to ask questions and engage with the content, positioning themselves as available resources for further assistance.

Q & A

Why does Neil Patel believe that selling courses might not be the best business model today?

Neil Patel suggests that while courses can be profitable, there might be more lucrative alternatives depending on the industry. He implies that selling something else, like consulting services, could potentially generate more revenue than selling courses.

What was the peak revenue Neil Patel achieved from selling courses?

Neil Patel mentioned that the peak revenue from his courses was around $600,000 a month.

What is the main issue Neil Patel sees with relying on course sales as a business model?

The main issue Neil Patel sees is that if you're making a lot of money from a course, you could potentially be making even more by selling something else, like consulting services or ad spots, depending on the industry.

Why did Neil Patel and his co-founder consider giving away free phone calls with course purchases a bad idea?

Neil Patel found that offering free phone calls with course purchases had a low take-up rate and did not significantly impact conversions, making it an inefficient use of resources.

How did Neil Patel's approach to selling courses change over time?

Neil Patel transitioned from selling courses to focusing on other revenue streams, such as consulting services, which he found to be more profitable.

What is the alternative revenue stream that Neil Patel suggests is more profitable than selling courses?

Neil Patel suggests that selling consulting services can be more profitable than selling courses, as clients can spend millions on such services annually.

What is the profit margin Neil Patel mentions for his course sales?

Neil Patel mentions profit margins well above 50%, sometimes reaching 60%, 70%, or even 80% for his course sales.

Why does Neil Patel compare the business of selling courses to Google selling ad spots?

Neil Patel compares it to illustrate that selling ad spots is a more profitable business model for Google than selling services, similarly suggesting that there might be more profitable models than selling courses.

What is the role of goodwill in the content creation strategy according to the script?

According to the script, goodwill is crucial in content creation as it compounds over time and helps build a positive reputation and customer relationships.

What is the recommendation for course creators based on the discussion in the script?

The recommendation is to give away courses for free to build goodwill and instead make money from other sources that can generate higher revenue.

What is the significance of the retention graph mentioned in the script?

The retention graph is significant as it represents the audience's engagement with the content. The speakers want to ensure that the audience remains engaged throughout the video.