Navigating Dental Insurance Podcast (
Navigating Dental Insurance Podcast (
This teaches the best practices for cash flow, recurring revenue, Membership plans, PPO Fee negotiation, insurance best practices, marketing, reducing your dependence on dental insurance and building a fee for service practice.
Jordon Comstock

BoomCloud University Chapter 5 : Eight Reasons to Generate Predictable Recurring Revenue.

6/3/2019 10:24:16 AM   |   Comments: 0   |   Views: 59

Generating predictable recurring revenue for your practice is a new business model that every practice should consider implementing into your business no matter the size. When designing your dental membership program, it is essential that you use this revenue model. imagine if you had the following:

500 Membership patients X 35/mo = $17,500 ($210,000/yr)

1000 membership patients X $35/mo = 35,000/mo ($420,000/yr)

1500 membership patients X $35/mo = 52,000/mo ($630,000/yr)

3000 membership patients X $35/mo = 105,000/mo ($1,260,000/yr)

The more patients you get to sign up for your program the more freedom you create as revenue will flow in like clock work each month or year, whether you do dentistry or not. 

Have you ever wondered why some companies get sold for millions of dollars or even billions of dollars? I can guarantee you that their business model had a lot of predictable recurring revenue. Now your practice can have this holy grail of a revenue stream by creating a membership program.

If you have not read the Automatic customer, then start reading it now. Today we are going to be talking about the reasons why your practice needs to generate predictable recurring revenue. Let’s get started!

  1. Increase the Value of Your Largest Asset

When your practice can generate a healthy amount of predictable recurring revenue the value of your practice will increase! According to John Warrilow the author of the automatic customer, recurring revenue streams can be valued at 24X – 72X MRR or monthly recurring revenue. That means if you have 1,000 patients paying 35/mo (35,000/mo). This revenue stream would be worth between 840,000 – 2,520,000.

Lower Barrier To Entry

29/mo is much easier than trying to sell than $360 or thousands of dollars. Low monthly payments are considered under the radar payments and make it easier to say yes to and to budget.

Smooth Out Demand

Feast and famine months are the worst, by creating and growing a healthy dental membership program your office can expect revenue to automatically be deposited into the practices bank account. This will allow you to stabilize your cash flow through the year.

Free Market Research

When you have members, you build trust. When people trust your practice they will be honest with you. You should be asking questions and learning about your members so that you get gain free market research.


Get Paid Automatically

Who doesn’t like to get paid automatically? A successful membership automatically enrolls patients into the program each year and automatically charges their cards. When patients pay your practice automatically, they are more committed and are less likely to miss appointments.


Make your Customers Sticky

Members are more loyal because they get benefits and rewarded for being loyal. This trains your patients that they will be rewarded for staying with your practice.


Our data tells us that patients who are members spend between 104% to 240% more than non members. If you are a FFS practice a starting a membership program is one of the best ways to increase revenue and stability for your practice.

Recession-Proof Your Business 

Recessions suck! When I managed the dental lab, we went through the recession and had an increase of feast and famine months. If we would have had predictable recurring revenue we would have been in a better situation. Recessions come and go, start preparing your practice by growing your dental membership program.

So these are the 8 reasons your practice needs recurring revenue. Ask your self if you want these qualities in your practice and let me know your goals for your membership program. Email me at

Action Steps:

1. Listen to this podcast about valuations:

2. Set membership  enrollment goals with your team.

3. Set revenue goals with your team.

4. Read this book –

5. Email and give me an update.

Check out the whole course today for free, at

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