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Chapter 01: Basics

Lesson 05 of 07

Eight Reasons to Generate Predictable Recurring Revenue

Why recurring revenue changes how a practice is run, valued and sold.

The lesson

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1. Cash flow you can forecast. 2. Loyalty — members return at far higher rates. 3. Higher case acceptance. 4. Less dependence on PPO reimbursement.

5. A hedge against slow months. 6. A reason for uninsured patients to say yes. 7. Recurring revenue raises practice valuation. 8. It compounds — every member you add stays on the books.

Key takeaways

  • Recurring revenue is forecastable, compounding and valued by buyers.
  • Members visit more, accept more and stay longer.
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