MWH case

C. Subscriptions 

What was Melissa Wood Health's primary source of revenue by fall 2020? 

A. Affiliate commissions 

B. Retail licensing 

C. Subscriptions 

D. Advertising revenue 

C. 70% 

Approximately what percentage of MWH's revenue came from subscriptions? 

A. 30% 

B. 50% 

C. 70% 

D. 90% 

B. $9.99 

What was the monthly price of an MWH subscription? 

A. $4.99 

B. $9.99 

C. $14.99 

D. $19.99 

C. 92,000 

Approximately how many subscribers did MWH have by fall 2020? 

A. 20,000 

B. 50,000 

C. 92,000 

D. 650,000 

D. 80%

What was MWH's approximate free-trial-to-paid conversion rate by Q3 2020? 

A. 20% 

B. 40% 

C. 60% 

D. 80%

A. Under $2 

What was MWH's customer acquisition cost? 

A. Under $2 

B. About $10 

C. About $25 

D. More than $50 

B. It served as a discovery, engagement, research, and conversion channel. 

Why was Instagram strategically important to MWH? 

A. It was primarily a source of subscription billing. 

B. It served as a discovery, engagement, research, and conversion channel. 

C. It replaced the need for an MWH subscription platform. 

D. It manufactured MWH products. 

B. Translate reach into ownership 

In the METHOD framework, what does the "T" stand for? 

A. Target profitable followers 

B. Translate reach into ownership 

C. Track advertising expenses 

D. Test influencer partnerships 

C. use free content for proof and discovery while paid content provides structure and continuity. 

In the METHOD framework, "Hold the free-paid boundary" means MWH should: 

A. eliminate free content entirely. 

B. offer identical content for free and paid users. 

C. use free content for proof and discovery while paid content provides structure and continuity. 

D. charge followers for Instagram content. 

B. Useful content → relevant reach → trust → owned membership → learning and reinvestment 

Which sequence best represents the MWH creator flywheel? 

A. Advertising → sales → advertising → sales 

B. Useful content → relevant reach → trust → owned membership → learning and reinvestment 

C. Followers → sponsorships → followers → sponsorships 

D. Retail → manufacturing → advertising → discounts 

B. The platform controls creators' access to the audience. 

Why does the companion describe Instagram followers as "rented reach"? 

A. Creators must pay followers to see posts. 

B. The platform controls creators' access to the audience. 

C. Followers must rent Instagram accounts. 

D. Instagram owns the MWH subscription service. 

C. MWH's direct relationship with its members/subscribers 

What does an "owned relationship" refer to in the MWH case? 

A. Followers of another fitness influencer 

B. Customers shopping at a retailer 

C. MWH's direct relationship with its members/subscribers 

D. Followers who like every Instagram post 

B. early customer activation. 

MWH's overall monthly churn of 6–10%, compared with below 3% among members with 3+ months tenure, most strongly suggests a problem with: 

A. international expansion. 

B. early customer activation. 

C. retailer distribution. 

D. affiliate commissions. 

C. Improve onboarding and help new members establish a workout habit. 

Which strategy would BEST address MWH's early churn problem according to the companion? 

A. Acquire as many new followers as possible. 

B. Increase sponsored posts. 

C. Improve onboarding and help new members establish a workout habit. 

D. Remove recommended workout schedules

B. A 20–30% share of revenue generated through codes 

How did MWH typically earn revenue from affiliate marketing? 

A. A fixed monthly salary from Instagram 

B. A 20–30% share of revenue generated through codes 

C. A $950,000 annual payment from each affiliate 

D. Advertising revenue from video views 

A. Affiliates gave her greater flexibility over when and how often she discussed products. 

What was one advantage of affiliate relationships compared with traditional brand partnerships for Melissa? 

A. Affiliates gave her greater flexibility over when and how often she discussed products. 

B. Affiliates eliminated the need for audience trust. 

C. Affiliates guaranteed fixed payments regardless of sales. 

D. Affiliates prevented her from recommending other products.

B. $950,000 guaranteed royalty plus 10% of net sales 

What did the national retailer initially offer MWH? 

A. $500,000 with no royalties 

B. $950,000 guaranteed royalty plus 10% of net sales 

C. 20% of gross sales with no guarantee 

D. $1 million per collection 

C. Three 

Approximately how many collections would MWH create under the proposed retailer agreement? 

A. One 

B. Two 

C. Three 

D. Five 

B. Product or service failures by the retailer could damage Melissa's reputation with her audience. 

Which was a major strategic risk of the retailer partnership? 

A. Melissa would immediately lose her Instagram account. 

B. Product or service failures by the retailer could damage Melissa's reputation with her audience. 

C. MWH would no longer be allowed to sell subscriptions. 

D. MWH would have to eliminate affiliate marketing completely. 

B. Which future categories, channels, and partnerships the agreement might restrict 

In the WOOD deal test, what does "Options preserved" examine? 

A. Which workout subscribers prefer 

B. Which future categories, channels, and partnerships the agreement might restrict 

C. How many Instagram stories Melissa posts 

D. How much the retailer spends on advertising 

C. what valuable assets or capabilities remain after the partnership ends. 

In the WOOD framework, "Durable value" asks: 

A. how many likes each retailer post receives. 

B. whether Melissa enjoys designing clothing. 

C. what valuable assets or capabilities remain after the partnership ends. 

D. whether the retailer can increase the number of styles per collection

B. Help partnership reach produce subscribers, learning, reusable assets, or future options 

What is the primary purpose of a "bridge clause" in a creator partnership? 

A. Determine Melissa's immediate compensation only 

B. Help partnership reach produce subscribers, learning, reusable assets, or future options 

C. Determine the physical location of retailer stores 

D. Prevent followers from seeing free content 

B. Subscribers and followers are accumulated populations from different periods, and not all subscribers necessarily originated from Instagram. 

Why is dividing 92,000 subscribers by 650,000 Instagram followers NOT a valid MWH social-to-paid conversion rate? 

A. MWH had fewer than 92,000 followers. 

B. Subscribers and followers are accumulated populations from different periods, and not all subscribers necessarily originated from Instagram. 

C. Conversion rates cannot be calculated for subscription businesses. 

D. Instagram does not allow creators to track followers. 

D. How many subscriptions would NOT have occurred without the retailer partnership? 

Which question best represents the concept of incrementality? 

A. How many people viewed the retailer campaign? 

B. Which link did a subscriber click before joining? 

C. How many followers does Melissa have? 

D. How many subscriptions would NOT have occurred without the retailer partnership? 

C. Creators should use content to build trust, convert rented reach into owned relationships, and choose monetization that strengthens the core business. 

Which statement BEST captures the central strategic lesson of the MWH companion? 

A. Creators should monetize every possible interaction with followers. 

B. Creators should focus primarily on maximizing follower count. 

C. Creators should use content to build trust, convert rented reach into owned relationships, and choose monetization that strengthens the core business. 

D. Creators should avoid partnerships and rely exclusively on subscription revenue. 

B. Who owns the relationship? 

In the WOOD deal test, what does the "W" stand for? 

A. What is the royalty? 

B. Who owns the relationship? 

C. Where will products be sold? 

D. What does the audience want? 

B. Retail attention can be converted into a permissioned relationship with MWH 

In the WOOD deal test, "Who owns the relationship?" examines whether: 

A. The retailer will own the MWH trademark 

B. Retail attention can be converted into a permissioned relationship with MWH 

C. Melissa should stop using Instagram 

D. MWH should own the retailer's customer database 

A. Operating promise 

In the WOOD deal test, what does the first "O" stand for? 

A. Operating promise 

B. Online engagement 

C. Organic reach 

D. Owned media 

B. Who controls quality, inventory, shipping, returns, and customer response 

In the WOOD deal test, "Operating promise" examines: 

A. How frequently Melissa posts on Instagram 

B. Who controls quality, inventory, shipping, returns, and customer response 

C. How much affiliate revenue MWH generates 

D. Which workouts are most popular 

B. Problems with product quality or service could damage Melissa's reputation even if the retailer caused them 

Why is the "Operating promise" especially important for MWH's retailer deal? 

A. MWH would be responsible for manufacturing every product itself 

B. Problems with product quality or service could damage Melissa's reputation even if the retailer caused them 

C. It determines how many Instagram followers Melissa has 

D. It eliminates the need for customer service 

C. Options preserved 

In the WOOD deal test, what does the second "O" stand for? 

A. Organic promotion 

B. Operating costs 

C. Options preserved 

D. Online ownership 

B. Which future categories, channels, and partnerships the agreement might restrict 

In the WOOD deal test, what does "Options preserved" examine? 

A. Which workout subscribers prefer 

B. Which future categories, channels, and partnerships the agreement might restrict 

C. How many Instagram stories Melissa posts 

D. How much the retailer spends on advertising 

B. The definition and length of the retailer's exclusivity restrictions 

Which contract term is MOST relevant to "Options preserved"? 

A. The number of likes on Melissa's posts 

B. The definition and length of the retailer's exclusivity restrictions 

C. MWH's monthly subscription price 

D. The number of workouts in the MWH app 

C. Durable value 

In the WOOD deal test, what does the "D" stand for? 

A. Direct revenue 

B. Digital engagement 

C. Durable value 

D. Distribution strategy 

B. What valuable assets, learning, or capabilities remain after the partnership ends 

In the WOOD deal test, "Durable value" asks: 

A. How many products sell during the first week 

B. What valuable assets, learning, or capabilities remain after the partnership ends 

C. How many followers Melissa gains during launch day 

D. Whether the retailer can lower production costs 

C. MWH gaining new members, audience insights, reusable content, and product-development capabilities 

Which outcome BEST represents "Durable value" from the retailer partnership? 

A. A temporary spike in Instagram likes 

B. Melissa receiving her guaranteed payment 

C. MWH gaining new members, audience insights, reusable content, and product-development capabilities 

D. The retailer selling out of one product on launch day 

mission, earn trust, translate reach, hold free-paid, orchestrate, design deals

METHOD

M_____ before media

E___ repeated ___

T____ ___into ownership

H___ ____ boundary

O_____ revenue

D___ ____ to compound 

who owns, operating promise, options preserved, durable

WOOD

W__ ___ the relationship?

O____ _____

O___ _____

D___ value