I’ve spent the last few days with my business partners planning out what we want to accomplish in 2022.
Part of this is what we want to accomplish on the business/personal level.
The majority of our time has been spent going over what we want our clients to accomplish.
We strongly believe that the better our clients do, the better PT Biz will do.
One of the areas that came up is how to help increase recurring revenue in our client’s businesses.
This is a huge area that most people completely overlook…me included for years.
If I could go back in time to my shitty little office I had in a CrossFit gym when I started, I would say “Hey dummy, things are going to work out but try to sleep a little bit more, take your wife on more dates and start offering people something that keeps them working with you long term.”
Now we don’t want to just offer people products/services they don’t need. That is a violation of your integrity and you should never do that.
If you have something of value that helps them achieve their goal or helps them continue to participate in something they love, that’s valuable.
We see recurring revenue mixed into cash and hybrid practices in 3 ways.
The first option is an ongoing in person session. This could be once a month, twice a month or once every other month. The volume really is dependent on how often you need to see that person to achieve their long term goal.
This is typically for the people that love manual therapy. They value that hands on part of the visits and will continue to come back for that exclusively in many cases long term.
These types of visits are usually between $150 and $250 per visit depending on the provider and location.
The next option is remote coaching. This is where you can manage someone’s plan of care or exercise program remotely. This could be a hybrid of in person and digital touch points as well.
This is a great option if you love building programs for people. If you fall into more of an exercise based approach, this is usually a great fit for you.
The other element you can throw in here is nutrition coaching if you have that skill and enjoy it.
The best part about this type of service is it can be done anywhere. This gives you location independence for the hours you are working on this service. You can also easily hire a coach to fulfill the programming and coaching. This would allow you to just sell it and have someone else fulfill.
The average cost for a service like this is between $200 and $500 a month depending on the provider and complexity of the programming.
The last option is in person fitness training.
This can be done in a one on one approach either by the provider or a coach. The approach we prefer over one on one fitness is actually small group fitness.
This is where you get 4-6 people that train together at the same time. The group is still small enough to coach people and make individual modifications but big enough where they start to create a culture with each other.
The main restriction for this is space and equipment. If you’re in a subleased office, this will be tough to pull off.
If you have a stand alone space, this can be a game changer.
We are seeing an average per person, per class between $40 and $85. This depends on the size of the class and location.
Real numbers for our practice in Atlanta are $65 a class and we cap it at 5 people. That’s a solid $325 hour in revenue to run s small group class.
The first step to gaining some recurring revenue is figuring out which option or options make the most sense for you.
Let’s say it’s remote coaching as an example.
Let’s say you have a subleased office that costs $1000 a month and a virtual assistant that costs $2000 a month. Throw in $500 a month of supplies and other costs and that brings us to about $3500 in overhead a month.
The first milestone with recurring revenue is to meet your overhead. Once you do this, you know you start the month off with all of your overhead met. That’s a pretty great spot to be.
Let’s assume you’re charging $350 to coach someone remotely. You build them a workout program, message with them weekly to provide accountability and make modifications.
You would need to get 10 clients to hit your $3500 overhead.
Now you can start setting some goals. Let’s say your goal is to get your 10 clients in the next 3 months. That means you need to add a little over 3 people per month to your remote coaching service.
When you break it down, it doesn’t look as daunting.
The other cool thing we have seen is a stick rate of about 12 months for remote coaching with our coach.
It’s $350 a month but that person is actual worth $3800 in value over the course of that year.
These services start to snowball and can make up a large percentage of your revenue over time.
Make 2022 the year of adding some much needed recurring revenue to your business.
It will make running a business much more predictable and less stressful.
If you’d like to get some help figuring out how to add recurring revenue services to your cash or hybrid practice, we should chat.
I recommend jumping on a totally free, quick 20 minute call with our team.
You’ll talk to a real person and they will give you customized guidance on your next skills or steps to take to gain momentum in your business.
We don’t sell anything on this call and you literally couldn’t buy something from us if you wanted to in this call.
We just know we can help and we want to prove it to you for free.
It’s time to start making some serious progress in your business/life.
P.S. If you have a practice, check out our friends at PtEverywhere. We switched to their software to run our cash practice and it’s been a game changer!