THE PRICING MODEL
The Subscriber Share Model
What is the ‘Subscriber Share’ model?
“Subscriber Share” is the revenue methodology we use on Oyana to allocate 50% of net subscription revenue among individual instructors.
The main idea behind the Subscriber Share approach is that a subscriber’s money should go to the instructors they actually use and value. Traditionally, many companies have used a “big pool” methodology for dividing up subscription revenue and to learn the difference between the two you can view this great article by Envato Elements.
The key metric that we look at is Plays. As the subscriber has unlimited access to everyone, it is important to see which instructor(s) they are actually using. As all programs are video-based, Plays provides a transparent way to see where the User is spending their time and ultimately who should be allocated a proportion of their subscriber revenue.
How “Subscriber Share” works
With Subscriber Share, your earnings as an Instructor are directly linked to the money we collect from each individual Oyana subscriber. We look at each subscriber in turn and assign them a share of 50% of their net revenue based on how important your workouts were to them, (i.e., your share of all Plays they used in that period).
To help demonstrate how this works, we’ve included a few examples below:
Example 1: A single subscriber
For example, we’re going to have one subscriber and her name is Rachel. The revenue generated from Rachel is $20 for the month according to her chosen subscription level (excluding any transactional taxes). The monetary amount available for sharing with Instructors is 50% x $20 = $10.
Rachel has Played 50 videos that month. 5 of those Plays were used on your workouts. As your Plays make up 5 out of the total 50 Plays, you earn 5/50 x $10 = $1 from Rachel for that month.
Example 2: Multiple subscribers
Now we’re going to increase the number of subscribers to 5, each with their own Play patterns, however, all have opted for a $20/month membership plan (just to keep it simple):
Subscriber A is the person we used in the first example (Rachel)
Subscriber B is a heavier user overall and Played 40 workouts from your program.
Subscriber C only Played your workouts and none from any other instructor on the platform.
Subscriber D didn’t Play any of your workouts at all
The amount you would earn from each subscriber in this example is shown below:
Plays on YOUR Products
Your % Plays
This example helps highlight a few of the main points about the Subscriber Share model:
1. The more subscribers who Play your products, the more you could earn
Why this is important: Think of this in regard to your reach, the more people that know about you and your amazing products, the higher your potential to attract subscribers that want to purchase them. The old adage “the more the merrier” works well here.
2. The greater your share of a subscriber’s Plays, the more you could earn
Why this is important: When you become the predominant Instructor in a subscriber’s life, and they begin spending the majority of their time Playing your workouts, you have the potential to earn more money. These subscribers have the potential to turn into super-fans and become very valuable members to you.
3. When a subscriber solely Plays you workouts, you get *all* of their net revenue.
Why this is important: Think of this subscriber as a loyal fan. They love your content and want to spend all their time learning from you. This is great! Fostering this loyalty amongst an audience has the potential to yield you higher earnings so ensure that you cater to these fans by creating new and exciting content and they’ll keep coming back for more!
4. When a subscriber only Plays other Instructors products but not yours, you don’t share in their net revenue.
Why this is important: Subscribers will join Oyana numerous ways and they may not have come across you just yet. There is a range of ways to market your Oyana products and we will provide you with resources to assist you in reaching new audiences so you have the potential to share in the net revenue of more subscribers.
*Please note: The examples listed about are only for illustrative purposes, and your earning will, of course, vary depending on the number of subscribers, their level of subscription, how much net revenue they generate, and which instructor's content they Play within a given month.
Why we’re using the “Subscriber Share” model
We chose Subscriber Share for Oyana because we believe it's the fairest possible way to divide earnings. This model encourages Instructors to:
Create workout videos and meal plans that have a broader appeal to most consumers.
Create unique video workouts and meal plans that can serve niches, which are often overlooked and under-catered to making them uniquely valuable.
Avoid allocating time to making copycat videos and meal plans that targeted broader audiences.
Not bother trying to game the system.
There are numerous reasons beyond those listed above that have created the basis for our decision to use the Subscriber Share model for Oyana. Our vision is to create a platform where every single individual has access to a fitness, health and wellness solution that suits their exact needs and to achieve this, we want to incentivize out Instructor community to think outside the box, to create a unique range of solutions and offer content that is not only valuable to the masses, but the individuals that might need a little something extra to help them achieve their goals too because everyone deserves to live a fitter, healthier and happier life.
We're always happy to field any questions you may have about our Guidelines and Policies, so please reach out to us via email at firstname.lastname@example.org
Last Updated: 4th February 2019