You’d think a health club’s best form of advertising would be thin, healthy members but they really don’t care about their members’ health. In reality if their whole member roster showed up, they wouldn’t be able to fit everyone inside the building. Their business model is betting that you don’t show up and utilize what you’re paying for.
My Dad’s friend owns an Outback steakhouse, in the months leading up to Christmas they make 10% of their annual gross revenue by selling gift cards. Even more surprising is that only 35% of these cards are ever used by the recipients. Obviously, the profit margin on gift card sales are huge.
Credit card companies sign you up for a $35.99 per year “credit/id fraud alert” plan and hope you forget about it. You might notice an odd charge on your statement, but you’ll probably forget to call and cancel, so they charge you for another year.
These type of businesses get you signed up and then try to keep their billings under your radar. But why? Why can’t a gym call if your attendance is lacking and invite you back? Maybe even offer a free trainer for a week. A restaurant should call the recipient of an unused gift card and offer them a free dessert if they use their gift. Why you ask? Showing your customers that they’re appreciated and loved is long tail. Keeping them locked in a few more months is a fleeting way to make money.
If you wanted it to build a product you’d find a way to get time to work on it. If you really wanted to start that new hobby you’d sacrifice something to find the time and money to do it.
I'll define a "Wannabe Entrepreneur" as someone who has never made money from their businesses. Here are the different types of wannabes.
In the past few years I've built go-carts, built a 200+ sq ft workshop, written several eBooks. How do I create a life where I have time to work on side projects?