How Siddharth Rajsekar Makes Money

My analysis of Siddharth Rajsekars's Business: Internet Lifestyle Hub.

In this post, I am going to give you an analysis of Siddharth’s business model. I will not reveal anything that he has shared with me personally in confidence as a friend. He is a good friend of mine and I know him from 2017. I will only analyze what I can see from the outside, which anyone can see. I will post more such articles analyzing other businesses.

Siddharth has chosen his niche as coaching. Many competitors in this industry help other coaches build a coaching business. There are many profitable niches within coaching but coaching other coaches is one of the most profitable and most competitive industries.

It’s a tricky business to become a coach of coaches because it’s easy to get labeled as a scammer or fake guru. Many people in the industry do not have a genuine desire to help people. They are just here to make revenue from a profitable niche.

What sets Siddharth apart from other “gurus” is the following:

• A genuine desire to help people (I know that because he has shared what works for him with me and I owe a part of my success to his teachings). 2019 I started doing webinar sales because I learned that from Sid. Before that, I was only selling on sales pages and it was not that effective.

• Impeccable dedication to customer happiness and satisfaction. He doesn’t fight much if someone asks for a refund. This has helped him gain 5-star reviews on Trust Pilot. It’s very difficult to get 5 stars when you have 1000s of customers. It’s unbelievable how he has managed to not have detractors. His NPS score might be 75+.

• Consistency and dedication. He keeps showing up for his audience tirelessly and I have not seen any coach that works so hard. He is on a webinar or meeting almost 4 days a week. He can become free anytime he wants. But he keeps working.

• He doesn’t boast about his success through flaunting (though he has plenty of things to flaunt). He has an amazing car but he hasn’t posted a single picture of it online. I know about it, but most people don’t. Other gurus will flaunt it on social media thinking that posting a car pic will make people think that they are successful.

That’s pretty much about the non-mathematical part of it. Now let’s break down his business model and funnel.

Understanding His Model and Predicting Numbers

Most online coaches try to sell a 2-day workshop to people on Facebook through Facebook Ads. These coaches sell the workshop for around Rs.500, sometimes Rs.299. They spend more than that on acquisition costs because they want serious people to attend their webinar who will pay attention.

In the webinar, they upsell a product that’s Rs.10,000 or above. That’s how they make a profit or sometimes just break even. Then they sell something for Rs.50,000 or above to start making profits from their funnel.

Siddharth understands that this model is overused. Based on my experience as well, the workshop model has its flaws. Even if people pay Rs.500 to attend a workshop, they will not show up and the money invested in converting that customer goes down the drain.

So instead of doing a 1-time workshop, he has created membership levels. Every membership is a community access. Siddharth has 5 main membership levels (comes down to 3 main levels explained later in this article).

• Level 1: Bronze Membership (Rs.500+GST)

• Level 2: Silver Membership (Rs.14,999 including GST)

• Level 3: Gold Membership (Rs.49,999)

• Level 4: Diamond Membership (Rs. 3 Lakhs)

• Level 5 Quantum Membership (Rs. 10 Lakhs)

Let’s first analyze his Quantum Club.

Quantum Club (10 Lakhs per year)

He makes most of the profit from his ultra-high ticket program Quantum Club. He has a limit of 100 members in this.

According to his website, the price is Rs. 10 lakhs per year for Quantum Club membership. He limits membership to Quantum at 100 members.

Now if this is the only thing he wants to do, he can very well do it. But no one will pay 10 lakhs right away. Only people in the funnel will pay that much. So all the membership levels above this level are to drive people to Quantum. That’s how good sales funnels are built in most of the businesses.

Quantum Club is a mastermind program that is taken by his most loyal fans who have got results from his previous programs already. A mastermind program like this can be only done by a strong personal brand that has a large following and raving fans who are also transacting customers.

I have been a part of a lot of masterminds including Sam Oven’s $30,000 mastermind (back in 2021). UAbility’s X Mastermind at Rs.10 Lakhs. The value that you get from these mastermind programs is not just learning from the Mentor-in-Chief, but also from other members.

As far as I know, there are members in Quantum who make more revenue than Siddharth himself. The connections, business partnerships, and inspiration that you get from a mastermind usually pay off in multiples.

After I joined Sam Oven’s Consulting Mastermind for $30,000 I was able to launch my own mastermind program AlphaClub and we have made more than 2 crores in revenue in the past 3 years with AlphaClub. So I got my ROI.

What people get in Quantum:

• Be part of a community where every member clocks multiple crores in a year as revenue.

• Attend offline events (Siddharth conducts a mega event once a year that is completely paid for except for flight tickets).

• Weekly or Monthly mastermind calls.

• 1-on-1 consulting calls with Siddharth for strategy

When I advise people to build their startups, I usually recommend combining done-for-you (DFY), done-with-you (DWY), and do-it-yourself (DIY) products.

If you look at Sid’s funnel, it’s not all DIY. The mastermind calls, events, and 1-on-1 calls he does is more of a service than a product. No one can get away with just DIY products.

You can only have books and recorded video courses at the pure DIY level. The expected pricing for such products is usually around Rs.500 to Rs.5000. Think Kindle book store and Udemy courses.

Coaches, experts, and mentors can’t make money unless they mix some services into it, profits cannot be made. Siddharth has no agency model so he is not in the DFY stage.

However, he has partnered with a few folks who help his customers build landing pages, run ads, etc. I know some members who have joined Quantum just to network and get clients for their agencies (pure DFY services).

The Mechanics of Sid’s Funnel

His funnel is designed in such a way that people at different stages of their coaching journey can derive value from his products. Quantum Club is his highest membership level and he will eventually get his Quantum Club filled, but the point of the sales funnel is not to just enroll people into Quantum. In fact, if one is not qualified, he will reject you even if you are ready to pay him 10 Lakhs per year. That’s the best part about his approach. He genuinely wants to help people and unlike other coaches, he is not here to try to charge you as much as possible.

The above flow chart shows how his funnel is designed. Let’s analyze each part one by one. Each stage of the funnel is designed for customers at a specific level in their coaching journey.

You Can Coach Book

Writing a book gives a lot of authority to an expert. The word author itself is derived from the word authority. Sid has completed his massive book “You Can Coach” after taking a retreat.

It has 5 star ratings and most of the sales have come from his existing customers and followers. New buyers will enter his funnel through the book. A book is a great top-of-the-funnel.

A lot of people criticize him for “using his book as a trap” to get customers into his funnel. But if you think about it, Baskin Robbins gives you samples of their flavors as a courtesy not as a trap to get you to buy more ice cream scoops. An intelligent and rational person can build a 1 crore per year coaching business just with the content in this book. They need not, honestly buy other products from him.

I Can Coach Book Series

He has also published success stories of his customers in the I Can Coach series of books. If you know about Chicken Soup for the Soul series, most of the books in the series are just user stories. I am also planning to publish such a series. This series also acts as proof that his students are successful.

YouTube Channel

His YouTube channel has 1.4 lakh subscribers. He sends an email to his audience when he publishes a new video from time to time. Because he already has an email following and a community, his videos get an initial boost and further views are driven by YouTube organic.

Silver Membership

He launched a Bronze Membership for Rs.500 but as far as I can see, he is not promoting it that much. On his website, the Silver membership is priced at 14,999 but in his webinars, he sells the Silver membership for 5000 to 10,000 rupees. I am not sure what’s the pricing right now, but I remember it started at 5,000.

Once people become part of his silver membership they get courses and weekly Inner Circle calls. The Inner Circle calls happen every Thursday forever. This is the inspiring part.

He keeps nurturing the audience until they are ready to move to the next level. Jeff Walker of product launch formula originally called this method the “Sideways Sales Letter” where you nurture the audience for a while before they are ready for an upsell instead of trying to convert them into a single webinar. I will be copying this tactic for my own funnel.

Diamond Membership

The Diamond membership is priced at 3 Lakhs on his website but on his webinars, he sells it anywhere from 1-2 lakhs. The Diamond membership sales pitch is only done to Silver members because he doesn’t expect a cold audience to buy a high-ticket product directly.

He offers an EMI option of something like 20k per month for 5-6 months for people to buy a Diamond membership. As far as I know, if they only pay the first month’s EMI and do not pay the rest of the payments, they retain access to the Gold membership which is a level between Diamond and Silver. I am not sure if he does that anymore right now.

In Diamond Membership people get:

• Access to more courses such as High Ticket Mastery and Community Events Mastery. I enrolled for his Diamond membership to get access to the Events Mastery which helped me do my own events.

• Polestar - an app for community and gamification.

• Diamond Club membership

• Weekly “Leadership Council Call” that happens every Monday. He also does something called Hot Seat where people can ask him questions and he will answer them. Not everyone gets to talk to him because there might be 100s of people in Diamond attending a webinar format call. (In Quantum, it’s a meeting and everyone gets to talk to Sid).

Rarely, people can get tickets to his event along with a Diamond membership.

I believe his Diamond Sales will be able to make his business break-even along with his own salary, team salaries, ad spend, cost of digital tools, and so on. Quantum membership fees will be mostly profits.

The Freedom Business Retreat Community Event

A lot of people do events for profit. He just breaks even with his bi-annual event. I have attended 3 such events and I am sure he loses some money in these events. But he creates an amazing 2-day experience for his community.

Most of the coaches try to push an upsell at such events. He doesn’t pitch the Quantum Club product directly to anyone. Instead, he lets Quantum Members speak about their success at FBR events. There are at least 10 speaking slots by Quantum members at FBR. This motivated Diamond and Silver members to upgrade to Quantum. That’s one of the best marketing strategies. To pull people rather than push a product to them.

(Image Source: DNA)

I estimate that 70% of the people who attend the events are already Diamond members and they are inspired by the members who are in Quantum club. So they are motivated to apply for Quantum membership. Sid carefully curates people into his highest-level mastermind and one has to qualify for it.

Anyone who has achieved this level of success and fame is bound to get some hate online. You will see that even Tony Robbins has negative comments. Some people hate him but that’s not because they didn’t get value but more because they are probably jealous of him. I don’t know of a single customer who has been frustrated with his products.

Do you want me to do more such analysis of other businesses? Let me know in the comments (or reply to this email).