How can I confirm a yoga studio’s online class library actually earns anything?

Ask for the sales reports directly from the platform or payment processor, not just a spreadsheet. Check that the amounts match what shows in the bank deposits and the books. Then look at who is paying: are they local members who would attend anyway, or people outside the area who found the library by themselves? Ask how many subscribers are existing students who would have attended in person, since that income may simply move from one place to another.

Next, examine retention. Ask how many subscribers cancelled and how often new ones signed up, and whether growth came from promotions or word of mouth. A steady stream of new classes may be needed to keep subscribers, so ask who films and edits, and what that costs in time and money. Look at whether the library gets new viewers on its own, through search or social media, or only through the studio’s own mailing list.

Finally, check what you would receive. Confirm that the studio owns the videos, the teacher releases cover reuse, and the accounts and domain can be transferred. Ask your lawyer to put those points into the agreement, and ask your accountant whether the library should carry any weight in your plans. If the numbers are small, you can still see the library as a service for members, but you should not count on it for income.

Key takeaways

• Verify income with processor reports, not a summary spreadsheet.
• Study subscriber retention and the cost of making new classes.
• Confirm ownership of videos, teacher releases and accounts.