Recurring Revenue Will Change Your Life

It was 2015, and I was starting my cash-pay PT clinic. 

Young and ambitious, I thought I was going to change the performance-based world…. 

Instead, I found myself in constant acquisition mode, always looking for the next client to sign up for the next plan of care. Stress, anxiety… you name it, those feelings were there.

Each month was a rollercoaster with no financial stability because that was the revenue model I chose, as it is the norm for the industry. 

I knew something had to change, but I didn’t know what yet.

In 2016 I started some contract work with a company that was programming for clients all over the world, and I quickly saw an opportunity to improve my in-person operations by adding a digital offer, what I now call Prescriptive Exercise Programming. 

At that time, I was deploying this concept with an Excel spreadsheet (you might even be doing this) until I achieved proof of concept that it was an offer my clients wanted. 

It was a major hit.

In the performance realm, many of my clients either didn’t need or had earned the right to not require much oversight for the exercise portion of my treatment model, they simply needed my guidance and management process to get them to their desired outcome. 

BOOM. A new offer was born. 

A strategically deployed Prescriptive Exercise Program sold as a separate revenue stream to offset some of the constraints of my business. 

This new vision changed my life. 

Over the course of the next year, I noticed a few trends:

1. My clients were getting more complete outcomes because the treatment process expanded beyond the clinic walls.
2. I had time to live my life in ways I never imagined as a Physical Therapist, where I was previously conditioned to think that making money equaled selling my time/service.
3. Over half of my revenue collected each month was recurring. Meaning I had a SOLID base of financial support to build from each month.

Number 3, probably caught your attention, so let’s break it down a bit.

In a given month, if you had four new patients per month and closed them to a plan of care (let’s assume you sell a 10-visit package for $2,000 and include your evaluation as one session to make the math simple), that’s $8k in “fee-for-service” revenue. 

To match that revenue the following month, you need to acquire four additional patients, add them to your treatment schedule, and close at 100%.

To beat that revenue number, you need to add five new patients… you get my point here..

The next month rolls around, same scenario, same game. 

A constant chase. 

But with a new model of client management, or what we call the Performance Provider Growth Model, you’d sell a Prescriptive Exercise Program as a recurring revenue stream. 

We will assume 80% of your clients enroll in this option, this was lower than my enrollment rate because of how I pitched it as a part of the client journey, at $300/month. 

So, each month you add $900 in recurring revenue to your operations. 

That’s almost half a new patient per month. 

After two months, you’re at $1,800 in recurring. three months, $2,700. four months $3,600. And so on - stacking, recurring, stress-relieving. 

Let’s assume you have a six-month lifespan on this revenue - this gives you a conservative base of $5,400/month in recurring revenue to your bottom line EVERY MONTH. 

Let me rephrase, instead of starting each month at $0 looking for new clients, you get to start at $5,400. 

The bottom line, if you do not have a recurring revenue model in your business, you’re just making your life and business more difficult! 

So don’t make the mistake of starting your practice without this or just scaling your existing business with MORE sessions which will only require MORE providers!

There’s a smarter way to do things.
And one that fits the business you want to build.

Let’s get to work.