Introduction
Alisasa's Nepal Authentic Yoga Online Course has taken the market by storm. In just 50 hours of its launch, it attracted over 7,000 buyers. During the fundraising stage alone, it sold for more than 50 million New Taiwan Dollars. With 1.26 million subscribers on YouTube and 580,000 followers on Instagram, Alisasa has a significant online presence. Besides the online course, she has also been involved in group buying various products such as lingerie, skincare, cosmetics, shampoo, electric rice cookers, kettles, electric grills, juicers, health supplements, scented candles, bags, and shoes.
The Misconception of Sales and Profit
Many people mistakenly believe that sales equal profit. However, the real profit is the net income, not the revenue. It's important to understand that looking at revenue alone without considering costs won't make you a successful business owner. Similarly, only looking at the surface without understanding the essence won't help you understand the business.
Calculating the Sales Revenue
The original price of the yoga course is 11,000 New Taiwan Dollars, but it was discounted to 3,580 New Taiwan Dollars during the fundraising period. At the time of recording, the super-early bird price was 3,690 New Taiwan Dollars, with a daily increase of 10 New Taiwan Dollars. As of now, 20,058 people have purchased the course, with 15,800 people buying it during the fundraising stage. The sales revenue during the fundraising stage is 15,800 x 3,580 = 56,564,000 New Taiwan Dollars, and the sales revenue after the fundraising stage is 4,258 x 3,690 = 15,712,020 New Taiwan Dollars. The total sales revenue is 72,276,020 New Taiwan Dollars.
The First Blind Spot: Discount Codes
Alisasa's channel offers discount codes that can be used to get an additional 350 New Taiwan Dollars off. Assuming that all buyers use the discount code, the total discount would be at least 7 million New Taiwan Dollars. To simplify the calculation, we will round the sales revenue down to 65 million New Taiwan Dollars.
The Importance of Profit
Profit is the key to a successful business. It is calculated by subtracting the total cost from the sales revenue. The total cost includes the cost of goods sold (COGS) and operating expenses. COGS refers to the cost of producing the course, such as planning, filming, and editing. Operating expenses include advertising, travel expenses, salaries, and other expenses related to the operation of the business.
Understanding the Different Types of Profit
Profit can be further divided into gross profit and net profit. Gross profit is calculated by subtracting the COGS from the sales revenue, while net profit is calculated by subtracting the operating expenses from the gross profit. Gross profit reflects the efficiency of production and the market's pricing power, while net profit reflects the overall profitability of the business.
Calculating the Profit of the Yoga Course
The yoga course was launched on the Knowledge Satellite platform, which provides technical resources and handles the payment process. The platform charges a commission, but the exact amount is not publicly disclosed. However, we can refer to other online course platforms in Taiwan, such as Hahow and Pressplay, to estimate the commission rate.
Based on the assumption that the commission rate is 50% and the COGS is 2 million New Taiwan Dollars, the gross profit of the yoga course is 15,892,500 - 1,000,000 = 14,892,500 New Taiwan Dollars. The operating expenses include advertising, travel expenses, salaries, and other expenses. Assuming that the operating expenses are 1 million New Taiwan Dollars, the net profit of the yoga course is 14,892,500 - 1,000,000 = 13,892,500 New Taiwan Dollars.
The Role of Advertising
Advertising is an important part of any business, and the yoga course is no exception. Alisasa mentioned that the advertising cost for the yoga course is several million New Taiwan Dollars. While this may seem like a large amount, it is necessary to reach a wider audience and generate more sales. The advertising cost is calculated based on the number of clicks and the cost per click (CPC). The CPC for Facebook advertising in the education industry is approximately 30 New Taiwan Dollars.
The Importance of Branding
Alisasa's success can be attributed to her personal brand and the trust she has built with her followers. Her brand has a significant impact on the sales of the yoga course, as her followers are more likely to trust her recommendations and purchase the course. Building a strong personal brand takes time and effort, but it can pay off in the long run.
Conclusion
In conclusion, the Nepal Authentic Yoga Online Course by Alisasa is a successful business venture that has generated significant sales revenue. However, it is important to understand that sales revenue is not the same as profit. To calculate the profit, it is necessary to consider the cost of goods sold and the operating expenses. By understanding the different types of profit and the factors that affect them, businesses can make informed decisions and improve their profitability.