Case Study – FREE Webinar Profitability

by | Jun 2, 2020 | eLearning | 3 comments


In this blog post I dissect a free webinar model’s profitability and also share my numbers.

Assume that you are doing a free webinar at 11AM Sunday. 

Also assume that your landing page is ready and your Facebook ad has started on Monday. Throughout the week, people are coming on your landing page, people are signing up on your landing page, you are collecting their email addresses (Registrations). 

Imagine you are spending Rs. 1000 per day on Facebook ads and you got 67 Registrations. That means your Cost Per Registration (CPR) is Rs. 15. 

CPR = Budget / No. of Registrations = 1000/67 = approx Rs. 15

Since you are running the ad 6 days in the week, you will get total 67 * 6 = 402 Registrations. On the 7th day (Sunday), you are conducting your webinar. 

So you have 400 people who have registered for your live workshop. Now because you are running the Facebook ad for 6 days, you would have spent a total of Rs. 1000 * 6 = Rs. 6000

Total attendees who will attend webinars, is a maximum of 25%. The biggest problem is that you are spending for 400 registrants but only 25% people will show up for the webinar. 25% of 400 = 100 people will show up for your webinar. 

“Total attendees available at selling” means total attendees who stayed when you started to sell your product at the 60th min. If you don’t know the 60-90 min webinar split, read my blog [How To Conduct Quality ‘Live Webinars’]

So only 50% attendees will be available at the start of selling. 50% of 100 attendees of the webinar are 50 attendees. 

Usually the conversion rate of any webinar is 8%. So only 4 people out of 50 will end up buying your product. 

If the price of your product is Rs. 8950, so your revenue from the webinar will be Rs. 35800 

Now, some people will say that Rs. 8950 is too much for your product and people will not buy. 

The truth is that your offer should be like that. If you stack up your offer and get people convinced that they will get the bang for the buck, then they will buy. I have tried and tested many prices. And I know it works if you do it right. 

So your total revenue from the webinar is Rs. 35800 

You spent Rs. 6000 on ads. 

Your profit is Rs. 29800 

ROI = Profit / Investment = 29800/6000 * 100 = 500%

After every Sunday I would call my mother and I would tell her, Mother I made 8 Lakhs today, 9 lakhs today, out of which 40-50% was Facebook budget. 

So every sunday I would earn 4-5 lakhs, every sunday. !! 

If you invest just Rs. 5000 per day ,your attendance is 20%, your conversion rate is 10% and your CPR is 15,  this is how your game will look like. Your profit on Sunday 2 hours of time investment would be 1.5 Lakhs

3 Comments

  1. Utpal Datta

    Well written. But how one can believe that one establishedbissinessman will reavel his secrets?

    Reply
    • Maru

      True. No successful businessman has 100% revealed his or her secret. Also ,coming back to webinar, there is no one size that fits all Currently people have become webinar sick.

      Reply
  2. Rajesh B

    I’m already joined your live webinar on 13th june
    And wish to learn more from you

    Regards
    Rajesh B

    Reply

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