Just three kids can make you rich…
It’s true, you can get rich enrolling just 3 kids… a month.
How? Let’s look at some numbers ( I got these after speaking with the best operators in the country)
If you have 150 paying students at $149 per account (some pif, some multi-families, some single student) thats $22,350 per month.
Not a huge school, not hard to run, but…you need to run a budget with a 50% profit.
And your net profit is closely tied to your monthly retention rate, here’s why:
Great schools are at 97-98% per month
Average schools are at 91-92%
If you have 150 students and your only keeping 92% a month you need 12 new students every month to maintain your enrollment. That 20-25 intro’s…50-60 inquiries…and with only 92% rate you won’t get many referrals.
It costs a lot of money and energy to enroll 12 students a month. That makes it hard to run a 50% profit margin
And…what if you double the enrollment to 300? 24 new students a month? 50 into’s?, that’s a hamster wheel I’m not interested in.
And you can’t improve the lives of students that quit.
Or, what if you keep 97% of’em, Then ya just need 5, and of those 5 two or three will come from referrals.
That means 3 new kids a month will maintain an income of $11,175 a month or $134,100 a year.
Live under your income, invest the rest and yer rich…
And as a bonus you get to improve the lives of the students that didn’t quit.