We speak to a ton of practice about membership programs and how a practice can be successful. One of the biggest issues I see as practices come and speak with us is that there are other companies out there that take a percentage of the practice’s membership revenue and initially have no costs/set up fees. This may sound like an awesome deal when first signing up. You may not think your membership program can grow to a large amount of patients. Over 55% of the USA doesn’t have dental insurance. There are more uninsured patients out there than insured. This trend will continue to grow as consumers realize that dental insurance is not a good deal for them.
Our Competitors Pricing Models
You can grow your membership program to hundreds or even thousands of members. I see it everyday as my team and I at BoomCloud help practices become successful with their program. In this article I will be helping to educate practices on why giving a revenue share to 3rd party software companies or membership management firms is a bad idea.
There are companies out there that take 10% – 25% of your practices recurring revenue from your membership program. For example if you have 1,000 members (or plan on getting to1,000 members) and you charge $35/mo per patient for your membership program you will end up paying $3,500/mo to $8,750/mo ($42,000/yr to 105,000/yr). I don’t agree with this model as they are acting like insurance companies to your practice for your membership program.
The other model I disagree with is that 3rd party software and management forms are charging $3 – $6 per month per member plus any additional merchant fees. In this model, using the same example above will give us the follow expenses for the practice: $3,000/mo to $6,000/mo (36,000/yr to 72,000/yr) plus any merchant fees.
I think the above models our crazy and if I were a dentist I would not opt into a service that takes a large percentage of revenue that I generate. BoomCloud believes that membership fees are the practice’s revenue because the practice earns this by marketing, educating and signing up patients. Our software helps your practice manage the program. If you run into a company that is trying to get you to share your recurring revenue with them I would run far away as this is not a great model for the practice. The company is trying to take revenue from your hard work. Does this make sense?
BoomCloud’s Pricing Model
BoomCloud’s model allows practice to create an in-house membership program at a fraction of the price. We charge a simple, flat license fee + merchant fees from the merchant company. We are currently negotiating merchant fees for all our users. Once we do this our users will enjoy less merchant fees and a flat license fee rate from BoomCloud, while our competitors are banking on your merchant fees and trying to nickel and dime their users, we try to be a true partner and help you run an efficient and more affordable management solution doe your in-house membership program.