10 ways to make $100k

At the end of the day, every business comes down to the microeconomics of its pricing structure. Contrary to popular belief, there’s no “right” or “wrong” way to set this structure up, but there are significant benefits and limitations to different models within our industry. 

Let’s outline a few ways to make $100K ($8,333/month) and allow you to choose your adventure:

1. Fully online: High Volume, Low Price - “I want to create a $20 subscription option” - No problem, here’s what you’ll need to do: 

• Find 417 paying customers
• Understand that churn (# clients that leave) is going to be HIGH - meaning you will need to constantly acquire new clients to maintain your volume. 
• Be ready to deal with a lot of customer service headaches
• This is what most people perceive as passive income, but it’s anything but that. 

2. Fully online: Low Volume, High Price - $500/month subscription fitness or Prescriptive Exercise offer

• All you need is 17 paying customers
• Churn will be relatively lower at this price point, but you will lose a higher percentage of revenue with each client that leaves
• 17 potential headaches vs 417 with the low-volume model
• Potential to manage entire roster in 17 hours per MONTH

3. Fully online: Low Volume, High Price - Sold as a package, let's say 6 months for $3,000 using the same price point as above

• Need to acquire 3 clients (2.77 to be exact) - that’s only 3 new sales per month
• Churn will be protected for at least 6 months - can structure longer variations if desired
• Only need 34 total sales throughout the year
• Need a management process to account for a 6-month duration

4. Fully in-person: High Volume, Low Price - Let’s use $100/hour rate here and assume no package sales

• You’ll need 83 visits per month (or around 20 per week) - not bad when you consider that most PTs make less than this in the insurance model -  it’s likely why many land on this price point.
• Each session will become another purchasing decision for the client
• Clients will likely leave when the pain stops, not when the problem is solved. 

5. Fully in-person: Low Volume, Mid Price - $200/hour

• 42 visits per month (10 visits per week)
• Similar issues to above, but in reality, selling a $200 session is not much different than selling a $100 session, so you might as well halve your work and find higher quality clients.

6. Fully in-person: Low Volume, High Price - $300/hour

• 28 visits per month needed (7 visits - well 6.5, needed PER WEEK!)
• If you can nail this price point, you get the best of both worlds, highly invested clientele and minimal volume needed on a weekly basis.
• However, you have no recurring revenue and constantly need to acquire new in-person clients

7. Fully in-person: Low Volume, Mid Price - Packages - let’s say 10 visits sold at a $200/hour rate = $2000/package

• 5 new clients needed per month (closer to 4, at 4.15)
• 1 purchasing decision needed to get through a full plan of care
• Higher ability to solve problems vs just getting out of pain

8. Blended approach: High volume, low price - let’s assume $100 in-person visits and $150 remote programs with 10 people on them. 

• This would split your revenue $6,833 (in-person) / $1,500 (remote and recurring)
• That leaves you needing to see 69 visits in the month (16/week) - this doesn’t move the needle much compared to above

9. Blended approach: Low volume, Medium price - $200/visit and $200/remote program with 15 people on them. 

• This would split your revenue $5,833 (in-person) / $3,000 (remote and recurring)
• This leaves around 29 visits per month (7 per week) - not bad to have to work a total of 44 service hours per month (we estimate about 1 hour per month of management for a remote client)

10. Blended approach: Low volume, Medium price - With in-person Packages (our favorite and most recommended offer - let’s assume the same $200 visit sold as a 10-visit package with a $300 remote programming offer and 15 clients on it

• This option splits your revenue into $3,833 in-person and $4,500 remote and recurring
• This means you only need to acquire and sell 2 new clients per month and get them to commit to a plan of care. 
• You would be servicing around 19 visits per month (4.5 visits per week!)

There you have it… 10 different ways to structure offers in your business. 

Each of them has pros and cons. Each of them has unique challenges - some require acquiring the skills to attract a high volume of clients, others require acquiring a skill to convert a low volume of clients… if you ask me which is easier, it's getting the skill to acquire low volume all day. And before you say… “but Ray, I’m a Physical Therapist,”… Yeah, and there was a point you didn’t know how to do that either. 

The biggest difference, learning this skill will make you a revenue generator rather than a revenue servicer… and that will unlock your potential for life.