E649 | How To Pick The Right Continuity Offer

In this episode, we look into the significance of continuity programs and recurring revenue for businesses. We uncover the essence of continuity programs as ongoing initiatives that contribute to the development of recurring revenue. Unlike new business revenue which constantly necessitates the acquisition of new clients, recurring revenue involves clients who pay consistently each month. This type of revenue offers a higher level of stability and sustainability.

Doc Danny emphasizes the importance of initiating continuity programs early on, as they have the potential to snowball over time. As more clients enroll in recurring programs on a monthly basis, the revenue gradually accumulates. While client churn is inevitable, Danny argues that with the right strategies, new clients can balance out those who depart.

When establishing continuity programs, it is crucial for businesses to consider the goals of their specific niche and what yields the best outcomes for their clients. Offering an ideal approach is important, but it is equally essential to provide more affordable minimum options. Understanding the current payment capabilities and affordability of clients is key. Consequently, it is advisable to create two ongoing offers: one high-touch ideal approach and one more affordable basic approach.

Throughout the episode, we explore various recurring revenue ideas. These include ongoing visits, remote programming, small group training, and private training. The podcast highlights that even obtaining 20-30% of revenue from recurring programs significantly enhances the stability of a business, in comparison to relying solely on new clients. Continuity programs offer immense potential for increased revenue and security, as opposed to solely acquiring new business each month. Danny strongly emphasizes the importance of incorporating ongoing offers and continuity programs early on in a business venture.

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Podcast Transcript

 Danny: What's going to get them the outcome that they want, but also is going to be cost effective enough that they're going to actually do it. Cause there's probably going to be people that are like, yep, I'm going to come in every single month. You're going to follow your program and do everything. And like, that's probably like 5 percent of the people that you work with.

But the other, you know, 95%, 20 percent of the people, no matter what you offer, like, is it's just not going to happen, right? They're, they're just not, they're going to do their thing. They're going to, they're going to leave. And that's kind of what they're looking for. That's totally fine. Hey, are you a physical therapist looking to leverage your skill set in a way that helps you create time and financial freedom for yourself and your family?

If so, you're in the right spot. My name is Danny Matei, and over the last 15 years, I've done pretty much everything you can in the profession. I've been a staff PT. I've been an active duty military officer physical therapist. I've started my own cash practice. I've sold that cash practice. And to date, my company, Physical Therapy Biz, has helped over a thousand clinicians start, grow, and scale their own cash practices.

So, if this sounds like something you want to do, listen up, because I'm here to help you.

What's going on? I got Danny here with the PT entrepreneur podcast. And today we're talking about continuity programs or ongoing programs that you can have in your business that can help develop recurring revenue or reoccurring revenue in your practices. Now, I feel like this is. An area that is, uh, one of the more important areas to really start to work on early, uh, because it snowballs.

So recurring revenue, if you know, this is a new term for you, it's just the revenue that comes in each month that you have to go out and find that new business, right? So for instance, you going out and finding a new patient that, you know, you can help and that person decides, I want to, I want to buy a 10 visit package with this, with this practice like that, that would be new business, right?

So you've generated new business. Now recurring revenue would be, let's say that person, uh, decides like after their first package, they're done, but they want to work on ongoing health, wellness, things, whatever it is, performance stuff with you. And they decide, all right, cool. I want to come in, you know, twice a week, uh, I'm sorry, twice a month, uh, to, you know, keep working towards the goals that I have.

Right. So instead of you then having to go out and find another person, you just added two visits a month to your business. That's going to come in for as long as that person. Sees value in it, right? So there's always going to be some level of what we call churn, where people drop off. Uh, they probably won't just work with you forever.

Uh, and never leave. Like that's, you know, that's probably unlikely. You probably have some people that are kind of like that, but you know, the average is you're going to have people that are going to drop off. Um, so you'll have to add. People each month, and then you'll kind of snowball that until you get to a point where your churn and the new people that you're adding eventually starts to even itself out and it levels off.

Right. So when we look at your recurring revenue, uh, and, and continuity setups, what you have to keep in mind, and it's probably the most important thing to keep in mind is we really, at this point have helped a lot of people build out like what they should be doing. It, there is quite a bit of variance depending on your niche, depending on how you like to work with people.

The biggest question to ask yourself is if I'm working with somebody ongoing, what, what is, what is the goal of the niche that I work with and what gets them that outcome with the most amount of certainty, right? We'll start there. Now, let's say that you work with runners and you want to help a runner, uh, run their first marathon, right?

So you could say, okay, for me to get the best outcome possible, they need to come in and work with me every single week. I need to do their program for them. They need to follow this, uh, you know, whatever sleep and recovery regimen, they need to take these supplements. They need to do X, Y, and Z, whatever on top of that, and that's going to get them the best.

Outcome possible, right? Now that might be cost prohibitive to the vast majority of people that you work with. Uh, but that is still the, the ideal way in which you would work with somebody, right? If money was, was not a concern, then you can ask yourself, okay, well. If, if that is a, there's a huge budget constraint.

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What can I do that would get this person a good outcome with the least amount of resources? And then think about what's the minimum amount that you would need to work with somebody. What's the minimum you could do to really help them get that outcome. And you might find yourself like, wow, like I really need them to do these things in order for this to happen, but maybe I don't need to see them as much, or maybe I do need to see them that much, but they don't need to do these other things and really think through what's going to get that person the most ideal outcome.

Uh, for whatever it is that they're trying to do. And then from there, what you have to do is look at your product market fit. What do your clients currently pay? What could they afford? And then start to build out like two different options that are going to help them get there, right? So for instance, here's a good example.

Some people. They just, they like to come in once a month. They like to get some hands on work done. They like to get eyes on what they're doing in terms of movement patterns, making sure that they're doing corrective exercises correctly or progressing things. Very simple. They come in once a month. Are they going to get the greatest outcome ever?

No, but they're probably self motivated and it's very time efficient, right? So that's a very easy ongoing offer that isn't going to snowball tremendously because you're talking about one visit per person per month, but enough of those people really, it will start to add up over a long period of time. On the flip side of that, you might say, well, I need this person to come in once a month, but I also need them to follow a very specific.

Program that I need to put together for them based on the goals that they have. And I'm going to need to build that out because maybe you have the skillset for it. Uh, but it takes, you know, X amount of time for me to build that and manage it. But the two together are really a great combo where you say, okay, you come and see me once a month.

We can make sure you're doing things correctly. We can. Work on whatever little things pop up along the way. And then I can manage what you're doing from a training standpoint remotely. You can message me, have any questions. We can adjust things based on travel or whatever else is going on. And all of a sudden, like maybe that's a really good middle ground for the goals that this person has.

So for you, as you're looking at what you're going to offer, you have to kind of come to this middle ground of. What is, what's going to get them the outcome that they want, but also is going to be cost effective enough that they're going to actually do it. Cause there's probably going to be people that are like, yep, I'm going to come in every single month.

You're going to follow your program and do everything. And like, that's probably like 5 percent of the people that you work with. But the other, you know, 95%, 20 percent of the people, no matter what you offer, like, this is just not going to happen, right? They're, they're just not, they're going to do their thing.

They're going to, they're going to leave. And that's kind of what they're looking for. That's totally fine. But then you have this sort of big chunk of people in the middle and that's where you can really capitalize on these ongoing continuity offers. So the most important thing to do is keep in mind, who am I working with?

What, what are their goals? What resources do I have? What's what unique skills do I have that can match up with that and then create an offer for them that is. You know, ongoing that helps them achieve that result, uh, in a, in a manner that is going to be cost effective enough that most people are going to be able to say yes to that.

And this is where the cost thing can always be. It's funny. It's it, it, we can undervalue ourself a ton because of just sort of like money mindset issues and what we think people are willing to pay or not pay. And that's why I think it's important to look at. The exercise of what would you do if there was no budget, right?

And then, all right, well, what are the things that get you 80 percent of that benefit? Uh, but you could take away that, the decrease, the, what you have to charge somebody for that by significant amounts. So that is more feasible for people to do right. And then that's probably what you need to settle on is somewhere, somewhere in the middle that you can help them get that result.

So you've got to have something with this, the things we see that work well, definitely ongoing visits are, are an easy one. Um, you gotta, you know, be able to look at things like remote programming, small group training or some of private training. If you have the space for it in your, uh, you know, in your area, uh, these are this three pretty proven, uh, options for a practice to really start to develop ongoing recurring revenue.

And even if you can get your practice to where you're at 20, 30 percent of your revenue being recurring, that's a great place to be for most practices are not there at all. Like they're just kind of doing eat what you kill model, which is stressful. You know, it's like, well, now we've got to find 20 more new patients this month because we discharged everybody, you know, and it's, and it, that's the model that most insurance practices, uh, that they follow, but in a cash based world, especially performance based one, there's so many more things you can do on the back end that are just as valuable, if not more valuable than getting them out of a pain state, uh, that is very worth.

Pursuing that and adding it in as an option, uh, for them where they can do ongoing work, uh, with you and your team, whoever, whatever that looks like. So something to think about, make sure you're, you're really building in ongoing offers within your business. Um, cause if you're missing that, you're just, you're missing so much potential revenue and so much security in your revenue that your business will feel so much less stressful when you know, okay, a third of my.

Revenue is coming in every single month because we have these ongoing, uh, client, you know, uh, sessions that are, that are coming in or whatever the, the mixture of revenue is coming from that allows you to say, I pretty much have all my overhead covered. Um, so I don't have as much pressure in order to get to the revenue that I need to still be a functional business.

So. Keep that in mind, make sure you're working towards continuity and ongoing work. And as always, thanks so much for listening. We'll catch you next week. Hey, peach entrepreneurs. We have big, exciting news. A new program that we just came out with. It 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 ultra clear on how much you're actually spending. We get you crystal clear on the number of people you're going 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.

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