E456 | 3 Recurring Revenue Ideas That Are Working Right Now

Today, I get into what proven recurring revenue services or channels you can have within your business. I am not just making these things up, these ideas come from clinicians and businesses that we are actively working with. I go over three main areas that can help bolster your recurring revenue to your business. Enjoy!

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Podcast Transcript

Danny: Hey, I've got a question for you. Do you know if you're tracking the right data, the right metrics to the right key performance indicators in your practice? This is something that's huge for us and really helps us make solid decisions within our business, but the prior software that we're using to run our practice made it really challenging.

To actually get that data out and use it in reports. Since we've switched to PPG everywhere, this has actually become way, way easier for us to be able to have the right data. We have a dashboard of all the things that we actually want to see, the metrics that we want to pull, and it makes our life a lot easier to pull the information that we need to make the right decisions within our business.

So if you're running blind and you're not tracking the right things, or you're. Hard time actually pulling everything together. I highly recommend you check out our friends at PT Everywhere and see what they've got going on with their software platform. It's what we use for our practice. It's been a game changer for us.

You can check 'em [email protected]. I think you really like it. So here's the question. How do physical therapists like us who don't wanna see 30 patients a day, who don't want to work home health and have real student loans create a career and life for ourselves that we've always dreamed about?

This is the question, and this podcast is the answer. My name's Danny Mate, and welcome to the PT Entrepreneur Podcast.

What's up guys? Dr. Danny here with the PT Entrepreneur Podcast, and today we're talking about proven recurring revenue. Profit centers or services or channels that you can have within your business? So to date, or I guess currently, and put it that way, we're actively working in our coaching programs in our mastermind with roughly 200 cash practices, around the, mainly the US, but some internationally as well.

I'm telling you this because I want to tee this up in terms of where I'm getting this information. I didn't just come with this shit. This is data that we pull from our community, from the people that we're working with in real time, of what's working, what's not working, what people are testing, what we're testing, what we're sharing.

And I wanna share with you three things. Are three areas that can help add or bolster recurring revenue to your business, which I think is the most important dollar that you can generate. O obviously a dollar is a dollar, but a passive or recurring revenue dollar, say passive recurring revenue, meaning it is predictable.

It's gonna be their next month, the month after that. That dollar is much more valuable to me as a business owner because of predictability and making decisions than a what we call a eat what you kill dollar, which is get a new patient, sell a package, which is fine. That's great. There's a really good way to improve cash flow and there's a lot of positive benefits of that model, but you also need to have recurring revenue elements in the business.

Where you have predictable revenue on a monthly basis to help smooth out the ups and downs of the E, which you kill side of the business as well. So I'm gonna talk to you about three that we see that you can look at within your business that hopefully can start to add some predictability to the business model because running your business with at.

A, a decent percentage at least like 10, 20% recurring revenue makes your business so much less stressful. Okay, so the three that we're seeing right now that are working, the first one is one that we've done for a long time. It is giving people the option to come back in on a. Recurring basis on some sort of like monthly membership which could be literally as simple as a single visit a month.

It could be, pro it could be a couple visits a month, it could be whatever you wanna do. In different niches like baseball for instance, they may have a arm care recurring. Package where maybe they're coming in for two 30 minute sessions a month or something like that, and they're getting some soft tissue work done on their throwing shoulder.

But these recurring sessions are a really good way to have people come back in a predictable manner. And the stick rate on this is really good once you get past about three months. The stick rate is really high because it starts to become part of somebody's basically like monthly habit, right?

They start to develop the habit of coming in to see you for whatever it is that you're doing with that. Whether you're a manual therapist, maybe you're more like corrective exercise base, whatever, but you're developed the relationship and you're providing value on an ongoing monthly basis. That is the first thing, probably the easiest thing to implement within the business.

The second thing is bolting on remote coaching. If you enjoy programming for people building out their training sessions, or you want to hire a strength coach, that's going to do it bolting on digital coaching, remote coaching to the business in hybridizing that you're in-person and remote is a really solid strategy.

Now this has also been so somewhat accelerated in terms of people's adoption of being okay with this because of 2020 and things being shut down and not being able to be in. So in a lot of ways that has made this sort of profit center a easier sell sell than it ever was before because people are used to training at home, or maybe they have a little bit of a home gym now because they couldn't go to a gym for a while, so they got some equipment.

So this is great because this is a. Location, independent, potentially hands off, sort of staff position if you're not doing it yourself to where you can have a coach that does this, you pay them, they fulfill on it and you know that's a part of your business that is essentially passive. You're not fulfilling it, which is great.

If you like to program and you enjoy doing that, then you can do it yourself, and we're seeing anywhere between 150 and $500 a month in terms of what people are charging based on what they're doing and the duration of time that they're working with people. But our clinic does this as well. So this is something that we do.

We take the path of coach, we have a digital employee who is a remote coach. Great programmer, awesome coach. Does a great job with people when we have people that are exiting, working with us from solving a problem. And we'll get a better idea of what they're trying to do and what's the best fit for them.

Maybe it's a gym, maybe it's training with our remote coach. Whatever that is. We try to move them towards that. But if it's with the remote coach, it's a very easy X sell for us to be able to move people over to him. He fulfills on it, does an awesome job.

And we get to help people stay healthy and get stronger and move better. While having a profit center built into that, that is recurring revenue. It's a monthly charge that gets charged with this type of coaching. The last thing, and in order to do this, I think you really need a standalone space or you need to have access to a gym and a time when there's not a bunch of people in there.

So if you're in a CrossFit gym, you're like, you can't do this during a big, busy class. And ideally this works best in a standalone space, but that would be small group training. So training people. Together in a small group anywhere between on the low end two, which would be a really small group, a pair up to about six people.

And what's nice about This is actually a really nice size group of people to be able to train that need heavy modifications typically. So if any of you ever coached group classes, like I coached CrossFit for years and the challenge was you may have 15, 20 people in there, but there was always like, one to three people in that group that were working training around something.

They needed like heavy modifications, they needed to change a lot. So it's almost like they had their own dang workout by the end. And that I think, is frustrating for a coach. Very hard to do. And it's somewhat frustrating for that for that person training, especially if it's somewhat of a competitive because it's weird.

Like people will give you a hard time if you're not doing the workout as prescribed. They're like, oh, you. You're gonna go lighter or you're gonna do this instead of this, and you're modifying things and then you're really not even doing the same work at that point. You're just like independently working out while other people are.

And I think those people get really frustrated. And what we found is that's the people that we crush it with how we we program with small group training and with our clinicians coaching that. So small group training. Is another area. And you can do personal training as well, but the leverage of small group, I think ha has a significant advantage.

To give you an example, let's say you have five people that are coming in at, 50 bucks per session, then you're gonna make a two, $250 that hour. The people that are doing training, personal training with us that are clinicians, oftentimes they're gonna be somewhere around the like 150 to $200 range.

And there's really. A very small percentage of the population that is going to actually pay that amount for a trainer. Not to say that they won't, there's definitely people that will and see a lot of value in that. But I think it's a lot easier to get someone to pay 50 bucks than, $200.

For a training session, so you actually can have a higher net hour with more people that are gonna stick longer that are paying a little bit less. But the effect of them training together is actually awesome because you get this small little community that they get to know each other.

They're like misery loves company, and yet it's still not so many people that you can't make modifications effectively to where the training. Coaching element of it gets watered down. So this is actually something that we're very excited about. We've been testing in our practice now for a couple months and and it's been a very easy thing to sell.

So we have these three variables. And some of them, some people actually do multiple, they may come in on a monthly basis to work one of our docs, but then they wanna do small group work or maybe they're coming in once a month and then they want to do remote coaching with one of our with our digital coach.

Or just they pick one. But to have these three options I think is really helpful. It's almost just like this trident of recurring revenue options as far as discharge strategies go, and being able to move them into something that's actually gonna help them achieve the long-term health and wellness goal they have That's the most important part.

So we don't wanna just sell them something for the purpose of just trying to make money and selling them something. It's like we're selling you something that's gonna help you get to the next step of where you're trying to go. And if there's alignment there, it's a very easy thing to sell.

It's a very easy thing to fulfill because you're still actively helping them and there's a lot of personal reward associated with that. And it's great for the business it's great for adding recurring stability to the business. So in summary, the three that we're seeing that are working really right now, and granted business evolves and changes and I'm not saying this is the only way to do things forever.

This is just the. The way that we are seeing success across a couple hundred businesses is coming back in on a regular basis, on a regular basis and recurring visit moving people over to remote coaching, whether you fulfill it or somebody else does, or moving people into small group training.

If you. The space if you have the facility and knowledge to be able to coach. Like that, those are the three that we're seeing a lot of success with as far as development of profit, centers of recurring revenue in your business. I hope this helps. I hope that you start to look at recurring revenue as a really important element of the business.

Like obviously again, a dollar is a dollar, but recurring revenue equals stability. Remember that is going to be really important for you, especially as you look to scale to. Bigger spaces or bring on more staff or more overhead. If you know that every month you start out with a certain amount of money, and especially if that can meet your overhead that's a great place to be.

A lot of the pressure is off. You don't have to hustle quite so hard or feel like sketched out if you're not getting the volume or package sales volume that, that you're looking for, cuz you have a base of revenue that you know you can have that's predictable. And then from there, everything on top of that.

Is just, it is just great. All right. It's just additional revenue as you've already met your overhead with recurring revenue. If you get to that point, it's a great place to be. So those are the three. I hope this helps and good luck applying those to your business. If you want help doing that, reach out to us, hit us up.

We'd love to have a conversation. It's very easy. Go to physical therapy biz.com. You can request to chat with our team there and we can see if what you're doing is right fit for us to help you with that and really expedite that and help grow your business either way. Thank you so much for listening, and I'll catch you next.

Hey, Pete, entrepreneurs. We have big, exciting news, a new program that we just came out with that is our PT Biz part-time to full-time, five day challenge. Over the course of five days, we get you crystal clear on exactly how much money you need to replace by getting you a. Ultra clear on how much you're actually spending.

We get you crystal clear on the number of people you're getting to see, and the average visit rate you're going to need to have in order to replace your income to be able to go full-time. We go through three different strategies that you can take to go from part-time to full-time, and you can pick the one that's the best for you based on your current situation.

Then we share with you the sales and marketing systems that we use within our mastermind that you need to have as well. If you wanna go full-time in your own practice. And then finally we help you create a. Page business plan. That's right. Not these 15 day business plans. You wanna take the Small Business Association, a one day business plan that's gonna help you get very clear on exactly what you need to do and when you're gonna do it.

To take action if you're interested and sign up for this challenge is totally free. Head to physical therapy biz.com/challenge. Get signed up there. Please enjoy. We put a lot of energy into this. It's totally free. It's something I think is gonna help you tremendously, as long as you're willing to do the work.

If you're doing the work and you're. Information put down and getting yourself ready to take action in a very organized way, you will have success, which is what we want. So head to physical therapy biz.com/challenge and get signed up today. Hey, real quick before you go, I just wanna say thank you so much for listening to this podcast, and I would love it if you got involved in the conversation.

So this is a one way channel. I'd love to hear back from you. I'd love to get you. Into the group that we have formed on Facebook. Our PT Entrepreneurs Facebook group has about 4,000 clinicians in there that are literally changing the face of our profession. I'd love for you to join the conversation, get connected with other clinicians all over the country.

I do live trainings in there with Eve Gigi every single week, and we share resources that we don't share anywhere else outside that group.

So if you're serious about being a PT entrepreneur, a clinical rainmaker, head to that group. Get signed up. Go to facebook.com/groups/ptentrepreneur, or go to Facebook and just search for PT Entrepreneur. And we're gonna be the only group that pops up under that.