#71 with Nick Bare - Monthly vs Annual Subscription Billing, Fitness Events Post-COVID & Making Content To Build $10M+ Biz

Nick Bare, an entrepreneur and military veteran, successfully scaled his business and built a strong online presence through his YouTube channel. Despite initially knowing nothing about business, Nick started Bear Performance Nutrition while studying nutrition in college. He then joined the military and used social media to document his training and nutrition, becoming a pioneer of military YouTubers. While in the military, Nick faced challenges in balancing his content creation with his responsibilities, but his platoon members were supportive and enjoyed being part of his videos. The key takeaway is that with determination and leveraging social media platforms, individuals can effectively grow their businesses and personal brands, even within unique circumstances.

Nick Bare's journey demonstrates the power of consistency and finding your unique niche. Despite starting his YouTube channel and supplement company at different times, he was able to leverage his knowledge and passion for fitness to create a successful brand. By building a loyal following through providing valuable content and showcasing his personal experiences, he was able to create demand for his supplements. This highlights the importance of establishing expertise and authenticity within a competitive industry. Additionally, his story emphasizes the interconnectedness of various aspects of life - from fitness to entrepreneurship to personal connections. It serves as a reminder that success often arises from a combination of hard work, timing, and a genuine connection with others.

Starting a business and achieving growth can be a challenging and slow process. Nick Bare's journey with his supplement company highlights the initial struggles he faced. Despite his ambitious plan to make $1,000,000 in the first year, he only generated $20,000 in revenue for the first three years. This lack of immediate success did not deter him, as he continued to work on his business while serving in the military. It wasn't until five years later that he finally started paying himself. This story demonstrates the importance of perseverance and patience when building a business. Success doesn't always come quickly, but with determination and a willingness to learn, growth is possible.

Continuous learning, adaptability, and perseverance are crucial for business success. Nick Bare's journey from a struggling business to a thriving one highlights the importance of being open to learning new skills and concepts. He took advantage of his downtime in South Korea to educate himself on marketing strategies, video editing, website coding, and more. This dedication and willingness to learn allowed him to achieve significant growth and revenue increase within a short period. Additionally, his ability to adapt and evolve his brand played a crucial role in expanding his customer base. The story emphasizes that business owners should never stop learning and be willing to make necessary changes to stay competitive and meet customer demands.

Nick Bare has found ways to fund the growth of his brand, Bear Performance Nutrition, by creating systems and services that generate 100% profit margins. Instead of relying solely on product sales, he has developed subscription-based training programs, a virtual training platform, and an online nutrition course, which require minimal overhead costs. By leveraging these offerings, Nick is able to financially support the expansion of his business. Additionally, he emphasizes the importance of expertise and qualifications in the fitness industry, highlighting the need to hire professionals who possess the necessary certifications to create high-quality programs. Overall, Nick's approach demonstrates the potential for scalable and profitable ventures in the fitness app market if churn is effectively managed.

Nick Bare's fitness brand, Bayer Performance Nutrition, is focused on providing value and a comprehensive training experience to its customers. The company offers a home training program which has gained popularity with 9500 downloads in just one day. Nick's niche audience is a combination of manly men who are buff and nerds who want to get fit, as well as women who want to lose weight. The training program is geared towards intermediate to advanced individuals who are looking for a hybrid style of training. Nick also emphasizes the importance of vertical alignment, aiming to provide customers with proper training, supplements, and nutrition courses all in one place. Although there may be competition in the market, Nick's unique approach and dedication to his mission give his brand a strong chance of success. As for selling the company, Nick is open to the idea but would only do so for the right price and at the right time. Overall, Bayer Performance Nutrition has the potential to make a significant impact in the fitness industry.

VPN (Nick Bare's brand) has successfully attracted a massive military following without solely targeting the military market. Nick Bare wanted people in the military to align with his brand's values and mission, rather than just marketing to them. He achieved this by focusing on organic and natural content, setting his brand apart from others in the industry. This approach resonated with customers and resulted in significant growth, especially in the health industry where their green super food supplement became a best seller. The key here is recognizing the importance of building genuine connections with your audience, rather than simply following trends or targeting specific markets.

The health industry, particularly technology-based businesses in the fitness and wearable space, offer immense potential for growth and investment. Nick Bare highlights the stability and longevity of the health industry, as it remains a priority for people regardless of economic conditions. He believes that a service or tech-based company in this field would be profitable and successful. Mentioning companies like Whoop and Aura Ring as examples of success, the discussion also emphasizes the importance of convenience and real-time data in wearable technology. While there are differing opinions on the need for extensive technology in fitness, the use of AI and auto-regulation in workout apps demonstrates potential for optimizing workouts and achieving better results in the long run. Ultimately, investing in tech-based health solutions can be a promising venture.

Convenience and certainty are key factors that people are willing to pay for in fitness and subscription-based businesses. Whether it's an app that guides them through workouts or a subscription service that provides audio classes, the appeal lies in having their handheld and making the decision-making process easier. Paid ads have proven to be an effective growth strategy for these businesses, but the low cost of acquisition and lifetime value of customers must be carefully considered. Annual billing is also a powerful tool to increase revenue and customer retention, as seen in successful subscription companies like Aptiv and The Athletic. Ultimately, prioritizing convenience and offering annual billing options can drive success in the competitive landscape of fitness and subscription-based industries.

Offering both monthly and annual billing options can have its benefits. While some argue that customers may prefer monthly subscriptions, the ability to run tests and analyze data can provide valuable insight into conversion rates and churn rates for each option. Annual billing can offer more certainty and cash flow for businesses, which can be advantageous. However, it's important not to be religious about the decision and consider the unique dynamics of your industry. For example, in the fitness app industry, many successful apps primarily offer annual billing options. Additionally, it's worth noting that copying or imitating successful strategies can result in being late to the game and losing out on market advantages. Ultimately, finding the right billing strategy requires careful consideration and testing.

The concept of "living with 25 hours in a day" is about mentally slowing down time itself. Nick Bare, inspired by an observation in the military, learned the importance of taking a step back and looking at situations from a bigger perspective. Instead of reacting impulsively and rushing to failure, he learned to pull himself back and embrace a calmer, more measured approach. This mindset of slowing down the day allows him to navigate challenges with a clearer perspective, as if he's watching himself from a third person's view. By extending his day to 25 hours, he prioritizes tasks and embraces the sacrifices necessary to achieve his goals. Ultimately, it's about being deliberate and intentional in how one spends their time and approaching each day with a focused mindset.

Utilizing the services of a company like Scribe to write and publish a book can be a valuable way to consolidate and share one's story in a well-organized and credible manner. It may require a significant time investment, as seen in Nick Bare's experience of dedicating all of 2019 to the process. However, the impact can be substantial, with Nick's book reaching a wide audience and providing a centralized source of information that was previously scattered across numerous YouTube videos. This approach can also help establish credibility and expand one's professional identity beyond existing roles, as Nick aimed to be seen as an entrepreneur, business owner, and author rather than solely a YouTuber. Overall, if marketed effectively, videos and content generated by individuals with a large following like Nick can drive substantial traffic and potentially lead to significant sales for related products or services.

Nick Bare's success in scaling his business is due in part to his ability to delegate tasks and hire the right people. He recognized that he couldn't handle everything on his own and hired a director of business operations to take over administrative work. This allowed him to focus more on working on the business rather than in it. Additionally, he hired a full-time videographer and plans to hire another one to keep up with the company's growth. However, he is cautious about hiring too quickly to maintain the strong culture they have established. This takeaway emphasizes the importance of delegation and hiring the right team members to support business growth.

The COVID-19 pandemic has forced many events and activities, including races, to go virtual. This shift is likely to continue for the time being, as it provides a safer alternative. One example of this is the rise of virtual cycling platforms like Zwift, which allow competitive cyclists to connect and race each other using smart trainers and screens. This virtual trend extends to other areas as well, such as the endurance market, where companies like Roka are dominating by offering gear for triathlons and other endurance sports. By recognizing and adaptinng to these virtual opportunities, businesses can tap into a growing market and attract new customers.

There is an opportunity to capitalize on the growing endurance market during the COVID-19 pandemic by offering a virtual audio experience for runners. By creating a live audio event where participants can listen to celebrity coaches and DJs through their AirPods while running, businesses can engage and entertain people while they exercise in their own neighborhoods. This could be done by charging an entrance fee and providing a unique audio experience. Although there is uncertainty regarding the duration of the pandemic and the future of remote living, there is a six-month window of opportunity to gain free adoption of this new experience. While not all users may stick with it, a percentage of them may continue even after the situation normalizes. Therefore, businesses should consider leveraging this current climate to attract and retain users for the long term.

Tough Mudder, a company that experienced rapid growth and reached $100 million in sales within a few years, filed for bankruptcy due to a plateau in demand for their race events. This highlights the importance for businesses to adapt and innovate in order to sustain success in the market. Additionally, the founder of Tough Mudder, Will Dean, faced controversy and lawsuits which may have contributed to the company's downfall. The bankruptcy of Tough Mudder presents an opportunity for individuals like Nick Bare to acquire valuable information and potentially enter the race event industry. It also serves as a reminder of the challenges of managing cash flow and debt for businesses.