# Phase 5: Money -- Money Model Builder

> **Goal:** Design your complete revenue model -- not just core pricing, but the full offer ladder from attraction through continuity. Know exactly how many customers you need, at what price, to hit your income targets.
>
> **Key principle:** "Revenue is not a number -- it's a system." A single offer at a single price is fragile. A money model with attraction, core, upsell, and continuity offers is robust.
>
> **Source frameworks:** $100M Offers (pricing, commodity problem), $100M Money Model (attraction/upsell/downsell/continuity offers)

---

## 1. Core Pricing Math

> **Start with your core offer price (from Phase 3) and work backward to the customer numbers you need.**

### Your Numbers

| Metric | Value |
|--------|-------|
| **Core offer price** | $[placeholder] |
| **Fulfillment cost per client** | $[placeholder] |
| **Gross margin per client** | $[placeholder] (price - fulfillment cost) |
| **Gross margin %** | [placeholder]% |

### $100K/Year Calculation

| Metric | Value |
|--------|-------|
| Revenue needed per month | $8,334 |
| Clients needed per month | [100000 / price / 12] = [placeholder] |
| Clients needed per week | [monthly / 4.3] = [placeholder] |
| Discovery calls needed (at 25% close rate) | [monthly clients x 4] = [placeholder] /month |

### $1M/Year Calculation

| Metric | Value |
|--------|-------|
| Revenue needed per month | $83,334 |
| Clients needed per month | [1000000 / price / 12] = [placeholder] |
| Clients needed per week | [monthly / 4.3] = [placeholder] |
| Discovery calls needed (at 25% close rate) | [monthly clients x 4] = [placeholder] /month |

### Lifetime Value (LTV)

> LTV = Price x Retention Months x Gross Margin %

- **Average retention (months):** [placeholder]
- **LTV per customer:** $[placeholder]
- **Acceptable cost to acquire a customer (CAC):** $[placeholder] (rule of thumb: LTV / 3)

### Reality Check

- [ ] Monthly client number feels achievable with my current resources
- [ ] I have enough hours in the week to fulfill this many clients
- [ ] The close rate assumption (25%) is realistic for my frame
- [ ] If not, I need to: [raise price / improve close rate / reduce fulfillment time]

---

## 2. Attraction Offers Menu

> **Front-end offers that get customers in the door.** These are NOT your core offer -- they're designed to start the relationship, build trust, and create a natural path to your core offer. Pick 1-2 that fit your business.

### Option A: Win Your Money Back

> "Spend $X on [small offer], and get $X credit toward [core offer]."
> *The customer feels no risk because the money transfers. You get a qualified lead who has already paid.*

- **Small offer:** $[placeholder] for [placeholder]
- **Credit toward core:** $[placeholder]
- **Fit for my business?** [Y/N] -- Why: [placeholder]

### Option B: Giveaway / Lead Magnet

> "Free [valuable thing] to generate leads."
> *Works best when the free thing is genuinely useful and demonstrates your expertise.*

- **What to give away:** [placeholder]
- **Delivery method:** [PDF / Video / Tool / Template / Audit]
- **Fit for my business?** [Y/N] -- Why: [placeholder]

### Option C: Decoy Offer

> "A cheaper option that makes the main offer look like a steal."
> *Example: $500 DIY course vs. $3,000 done-with-you program. The $500 option makes $3K feel reasonable.*

- **Decoy offer:** $[placeholder] for [placeholder]
- **How it makes core offer look better:** [placeholder]
- **Fit for my business?** [Y/N] -- Why: [placeholder]

### Option D: Free Goodwill

> "Give genuine value first (content, tools, audit) with no strings attached."
> *Builds trust and reciprocity. Works especially well for service businesses.*

- **What to give:** [placeholder]
- **How to deliver:** [placeholder]
- **Fit for my business?** [Y/N] -- Why: [placeholder]

**Selected attraction offer(s):** [placeholder]

---

## 3. Upsell Offers Menu

> **Increase revenue per customer AFTER they buy the core offer.** The best upsells feel like a natural next step, not a cash grab.

### Option A: Classic Upsell

> "Want to add [enhancement] for $[amount] more?"
> *Offered immediately after core purchase. Should be a no-brainer add-on.*

- **What to upsell:** [placeholder]
- **Price:** $[placeholder]
- **When to offer:** [At purchase / After first milestone / At renewal]
- **Fit:** [Y/N]

### Option B: Menu Upsell (Tiered Packages)

> Silver / Gold / Platinum tiers. Most people pick the middle option. The top option makes the middle feel reasonable.

| Tier | What's Included | Price | Target % of Buyers |
|------|----------------|:-----:|:------------------:|
| Silver | [placeholder] | $[placeholder] | [placeholder]% |
| Gold | [placeholder] | $[placeholder] | [placeholder]% |
| Platinum | [placeholder] | $[placeholder] | [placeholder]% |

- **Fit:** [Y/N]

### Option C: Anchor Upsell

> Show the expensive option first to anchor expectations, then present the real offer.

- **Anchor price shown first:** $[placeholder] for [placeholder]
- **Actual offer:** $[placeholder] for [placeholder]
- **Fit:** [Y/N]

### Option D: Rollover Upsell

> Credits or value that compounds over time, incentivizing continued purchases.

- **What rolls over:** [placeholder]
- **How it compounds:** [placeholder]
- **Fit:** [Y/N]

**Selected upsell offer(s):** [placeholder]

---

## 4. Downsell Offers Menu

> **Capture customers who say no to the core offer.** A downsell is NOT a discount -- it's a different (smaller) version of value.

### Option A: Payment Plan

> Same total price, split over months. Lowers the barrier without lowering your revenue.

- **Payment plan:** [number] payments of $[placeholder]
- **Total collected:** $[placeholder]
- **Fit:** [Y/N]

### Option B: Trial With Penalty

> "Start for $[small amount]. If you love it, continue at $[full price]. If not, cancel anytime."
> *Gets them in the door. Most people who start will continue.*

- **Trial price:** $[placeholder] for [placeholder duration]
- **Full price after trial:** $[placeholder]
- **Fit:** [Y/N]

### Option C: Feature Downsell

> A stripped-down version at a lower price. Removes the most expensive-to-deliver components.

- **Stripped version:** [placeholder]
- **Price:** $[placeholder]
- **What's removed:** [placeholder]
- **Fit:** [Y/N]

**Selected downsell offer(s):** [placeholder]

---

## 5. Continuity Offers Menu

> **Recurring revenue -- the holy grail.** These keep customers paying month after month. Even a small continuity offer transforms your revenue predictability.

### Option A: Continuity Bonus

> "Stay subscribed and get [bonus] every month."
> *The bonus gives them a reason to stick around beyond the core value.*

- **Monthly bonus:** [placeholder]
- **Monthly price:** $[placeholder]
- **Fit:** [Y/N]

### Option B: Continuity Discount (Loyalty Pricing)

> "Month 1: $X. Month 6+: $Y (lower)."
> *Rewards long-term customers and reduces churn.*

- **Starting price:** $[placeholder]/month
- **Loyalty price (after [placeholder] months):** $[placeholder]/month
- **Fit:** [Y/N]

### Option C: Waived Fee

> "We'll waive the $[setup fee] if you commit to [X months]."
> *Increases commitment length in exchange for a perceived saving.*

- **Setup/onboarding fee:** $[placeholder]
- **Waived if they commit to:** [placeholder] months
- **Monthly continuity price:** $[placeholder]
- **Fit:** [Y/N]

### Option D: Membership / Community

> Ongoing access to a community, group calls, updated resources.

- **What's included:** [placeholder]
- **Monthly price:** $[placeholder]
- **Fit:** [Y/N]

**Selected continuity offer(s):** [placeholder]

---

## 6. Money Model Summary (Customer Journey)

> **Map the complete customer journey from first touch to long-term revenue.**

```
[Attraction Offer]  -->  [Core Offer]  -->  [Upsell]  -->  [Continuity]
   $[___]                  $[___]           $[___]          $[___]/mo
        \                                      |
         \--- [Downsell if No] --> $[___]     |
                                               |
                                    [Continuity Bonus] --> $[___]/mo
```

### Revenue Per Customer

| Timeframe | Revenue | Calculation |
|-----------|--------:|-------------|
| **Month 1** | $[placeholder] | Core offer + any immediate upsell |
| **Months 2-12** | $[placeholder] | Continuity x months retained |
| **Year 1 Total** | $[placeholder] | Month 1 + Months 2-12 |
| **Break-even on CAC** | Month [placeholder] | When cumulative revenue > acquisition cost |

---

## 7. Revenue Projections

> **Conservative, realistic, and optimistic scenarios.** Use these to sanity-check your model.

### Assumptions

| Variable | Conservative | Realistic | Optimistic |
|----------|:----------:|:---------:|:----------:|
| New clients per month | [placeholder] | [placeholder] | [placeholder] |
| Core offer close rate | [placeholder]% | [placeholder]% | [placeholder]% |
| Upsell take rate | [placeholder]% | [placeholder]% | [placeholder]% |
| Continuity retention (months) | [placeholder] | [placeholder] | [placeholder] |
| Monthly churn rate | [placeholder]% | [placeholder]% | [placeholder]% |

### Month-by-Month (First 6 Months)

| Month | New Clients | Core Revenue | Upsell Revenue | Continuity Revenue | Total Revenue |
|:-----:|:-----------:|:------------:|:--------------:|:------------------:|:-------------:|
| 1 | [placeholder] | $[placeholder] | $[placeholder] | $[placeholder] | $[placeholder] |
| 2 | [placeholder] | $[placeholder] | $[placeholder] | $[placeholder] | $[placeholder] |
| 3 | [placeholder] | $[placeholder] | $[placeholder] | $[placeholder] | $[placeholder] |
| 4 | [placeholder] | $[placeholder] | $[placeholder] | $[placeholder] | $[placeholder] |
| 5 | [placeholder] | $[placeholder] | $[placeholder] | $[placeholder] | $[placeholder] |
| 6 | [placeholder] | $[placeholder] | $[placeholder] | $[placeholder] | $[placeholder] |

### Annual Projections

| Scenario | Year 1 Revenue | Year 1 Clients | Monthly Recurring (Month 12) |
|----------|:--------------:|:--------------:|:----------------------------:|
| Conservative | $[placeholder] | [placeholder] | $[placeholder] |
| Realistic | $[placeholder] | [placeholder] | $[placeholder] |
| Optimistic | $[placeholder] | [placeholder] | $[placeholder] |