Dentists are increasingly frustrated with the insurance model of doing business. Insurance companies are paying out less than ever, racing each other to the bottom — just as inflation has hit a 40-year high.
There’s a hunger to break with tradition and try something new. One option being considered by more dentists than ever? Subscription dentistry.
Subscription dentistry is all about one thing: MRR. This stands for monthly recurring revenue or the amount of revenue that your process has locked in place each month.
To understand MRR, you need to think about consistency.
Netflix is a great example. Instead of renting individual movies, which would mean that their monthly revenue would go up or down depending on the number of hits coming out, the company operates entirely on a subscription basis.
Subscribers pay a flat monthly fee and rarely quit. As a result, Netflix enjoys consistent, predictable revenue and a smooth path to growth. (Most of the time.)
Why shouldn’t dentists do the same? In fact, many dental practices already offer in-house membership plans, but those plans are often an afterthought.
What if they were the main event?
By building around a subscription model, your practice revenue would likely become more stable month over month. You’d see more patient loyalty and higher recare rates. You would also be able to plan your growth more efficiently, making it easier to hire new associates or hygienists.
Our take: In 5 years, subscription dentistry will be the next big thing. You heard it here, folks.