Let’s talk about something most dentists don’t track…
ARR.
Annual Recurring Revenue.
If you don’t know your ARR, you don’t truly know the stability of your practice. 😬
Because production is temporary.
Collections fluctuate.
Insurance changes policies.
But ARR?
ARR is predictable.
If you’re serious about learning how to build ARR in a dental practice, you’re thinking like an owner — not just a clinician.
And that’s how real growth happens. 🚀
What Is ARR (And Why Should Dentists Care)?
ARR stands for Annual Recurring Revenue.
It’s the predictable revenue your practice generates every year from subscriptions or recurring payment models.
In dentistry, ARR typically comes from:
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Membership programs
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Subscription-based dental savings plans
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Recurring preventive care billing
Example:
1,200 members × $45/month = $54,000 MRR
$54,000 × 12 = $648,000 ARR
That’s $648,000 of predictable revenue before you drill a single tooth.
That’s stability.
That’s leverage.
That’s valuation growth.
How to Build ARR in a Dental Practice (Step-by-Step)
Let’s break this down into a practical strategy.
1️⃣ Launch a Subscription-Based Membership Program
The fastest way to build ARR in a dental practice is through memberships.
Create simple tiers:
🦷 Adult Plan
👶 Child Plan
🪥 Perio Plan
Example Adult Plan includes:
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2 cleanings
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2 exams
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X-rays
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1 emergency visit
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10–15% off treatment
Price range:
$35–$49 per month.
Keep it simple.
Simple converts.
Membership patients typically spend 2X–4X more annually than non-members because they:
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Show up consistently
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Accept treatment earlier
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Feel invested
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Don’t delay care due to insurance
This increases revenue per patient — the core growth lever.
For a step-by-step scaling strategy:
👉 https://boomcloudapps.com/dental-clinic-marketing-goals-how-to-scale-a-membership-program-to-365-members/
2️⃣ Focus on MRR (Monthly Recurring Revenue)
ARR is built from MRR.
So track MRR weekly.
Example:
800 members × $42/month = $33,600 MRR
$33,600 × 12 = $403,200 ARR
That’s predictable revenue stabilizing your practice.
MRR smooths out:
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Seasonal slowdowns
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PPO reimbursement changes
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Cash flow swings
To automate recurring billing and track MRR and ARR, use BoomCloud™:
👉 https://boomcloudapps.com/demo-schedule/
Automation is essential.
3️⃣ Reduce PPO Dependency to Increase ARR Stability
Insurance reimbursement is not recurring revenue.
It’s variable revenue.
When you build ARR through memberships:
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You eliminate write-offs
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You increase transparency
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You improve retention
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You gain leverage
Instead of insurance controlling your fees…
You control your pricing.
That’s how you build real ARR.
4️⃣ Increase Retention (Retention Multiplies ARR)
According to Harvard Business Review, increasing retention by 5% can increase profits 25–95%.
ARR depends on retention.
If members churn quickly, ARR collapses.
So focus on:
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Hygiene reappointment rate
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Membership renewal rate
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Follow-up systems
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Automated billing updates
BoomCloud™ helps reduce churn and manage renewals:
👉 https://boomcloudapps.com/
Retention = ARR protection.
Case Study: Building $912,000 ARR in 30 Months
Dr. Lewis owned a 5-operatory PPO-heavy practice.
Problems:
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37% write-offs
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Revenue volatility
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Hygiene gaps
They launched a membership program using BoomCloud™ and focused on ARR tracking.
After 30 months:
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1,800 active members
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$42 average monthly fee
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$75,600 MRR
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$907,200 ARR
Impact:
✅ 35% increase in case acceptance
✅ 5-month hygiene backlog
✅ Revenue per patient increased 2.9X
✅ Dropped two low-paying PPOs
ARR became their financial foundation.
Not production spikes.
5️⃣ Track the Right Metrics
If you want to build ARR in a dental practice, monitor:
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Total MRR
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Total ARR
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Membership growth rate
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Churn rate
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Revenue per member
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Treatment acceptance %
Without tracking, ARR is just a guess.
With tracking, it’s predictable.
For structured implementation training:
👉 https://www.boomcloudapp.com/six-figure-membership-course
6️⃣ Market the Membership Engine Everywhere
You can’t build ARR quietly.
Promote your membership:
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🌐 Homepage banner
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📧 Email campaigns
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📱 Social media
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📍 In-office signage
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💬 Text reminders
Millions of adults remain uninsured annually (ADA Health Policy Institute).
That’s an opportunity for recurring revenue.
Capture it.
Common Mistakes That Kill ARR Growth
Let’s avoid them. 🚫
❌ Underpricing plans
❌ Too many complex tiers
❌ Manual billing
❌ Ignoring churn
❌ Treating membership as optional
ARR requires intentional design.
The Epiphany Moment
Most dentists chase production.
Smart dentists build predictable revenue.
Production is temporary.
ARR is stable.
Production fluctuates.
ARR compounds.
When you build ARR in a dental practice:
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You reduce stress
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You increase valuation
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You improve retention
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You increase revenue per patient
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You gain leverage over insurance
Insurance creates volatility.
Membership creates ownership.
That’s the shift.
FAQs About Building ARR in a Dental Practice
How much ARR should a practice aim for?
Even $300,000–$500,000 ARR dramatically stabilizes cash flow. Larger practices often exceed $750,000+ ARR.
How long does it take to build ARR?
Most practices see measurable ARR growth within 6–12 months after launching memberships.
Is membership legal?
Yes. Properly structured savings plans are discount programs, not insurance. Always verify state regulations.
Does ARR replace production?
No — it stabilizes production and makes growth predictable.
Ready to Build Predictable ARR?
If you’re serious about learning how to build ARR in a dental practice, take the next step:
📘 Download the Million-Dollar Membership Plan Ebook
https://boomcloud.myclickfunnels.com/million-dollar-book
🎓 Take The Six-Figure Patient Membership Plan Course
https://www.boomcloudapp.com/six-figure-membership-course
📅 Schedule a Demo of BoomCloud™
https://boomcloudapps.com/demo-schedule/
🚀 Create Your BoomCloud™ Account
https://boomcloudapps.com/
