Why graduates leave even when they are happy

The most common reason a satisfied client stops paying is that there is nothing left to buy. They finished. You said congratulations. The program ended and so did the relationship. The client did not churn. You did not offer.

38%
of online course cancellations are attributed to the course being completed with no new content to consumeSource: RetentionCheck churn benchmarks, third-party data

High-ticket coaching has the same shape. The client got the result the program promised. The next question is what they do with it, and that question is the continuity offer.

“Continuity Offers provide ongoing value for ongoing payments. These are 'snowball' models where you sell once and get paid month after month.”
Alex Hormozi, $100M Money Models · https://businessbookclub.substack.com/p/100m-money-models-by-alex-hormozi

What goes in a continuity offer

Continuity is the main program with the intensity turned down. It should cost less to deliver per client than the main program, or it will not scale. The table shows the split we usually make.

ComponentMain programContinuity
Live callsWeekly, small group or 1:1Weekly or fortnightly group call, open Q&A
CurriculumFull modules on a scheduleAccess to the library plus one new piece a month
AccountabilityClient success manager check-ins weeklyMonthly check-in, weekly community prompt
CommunityCohort channelAlumni channel with graduates from every cohort
Results trackingWeekly scorecardMonthly scorecard
BillingPaid in full or fixed termMonthly, quarterly or annual, cancel anytime after the minimum

Keep the coach's time out of it as far as possible. The main program is where the coach is paid for. Continuity runs on the client success manager, the community and one group call, with the coach appearing on that call and nowhere else. If continuity needs as much coach time as the main program, it is a discount, not a new offer.

Pricing and billing cadence

Price continuity as a fraction of the main program so the decision is easy, and bill it as far out as the client will accept. Billing cadence changes churn more than most people expect.

Billing cadenceMonthly cancellation rate
Monthly10.7%
Quarterly5%
Annual2%

Those are ProfitWell figures cited in Money Models, across subscription businesses in general rather than coaching specifically. The direction holds in our programs: a client on quarterly billing evaluates the membership four times a year instead of twelve. Offer monthly as the default, quarterly as the recommended option, and annual with a bonus that costs you little, such as a private call.

How to launch continuity in four weeks

  1. Week 1: list every client who finished in the last 12 months. That is the launch cohort. Write down what each one is working on now.
  2. Week 2: set the components from the table above, name the offer after the outcome graduates want next, and set three prices for monthly, quarterly and annual.
  3. Week 3: open the alumni channel and the first call. Invite the graduates personally, one message each, from the client success manager who knew them.
  4. Week 4: add continuity to the renewal timeline for current clients, so every client hears about it at the midpoint review and again at the renewal call.

What continuity does to retention

A client who goes from a 12-week program into continuity is still a client a year later. That is where multi-year retention comes from. At Video Business Academy, the back end we built includes continuity, and the average client relationship is now measured in years, not months.

2 to 3 years
average client retention at Video Business AcademySource: Scale With Fulfillment engagement, Video Business Academy

Results depend on program, price point and starting retention. Figures are from named engagements, not a guarantee. How we handle claims.

This week. Message the last ten clients who finished and ask what they are working on now. Their answers are the continuity offer.