Passive Income for Dentistry

hey what's up my name is Jordan comto I'm the founder and CEO of a company called boomcloud and today in this course I'm excited to be teaching you passive in income for Dentistry uh this is one of my favorite topics to talk about because well I've been in dentistry for a long time and I know what it what it looks like running a practice without passive income and running a business with passive income um and I think it's a really important uh strategy that you as

a practice owner and even an office manager recognize is is probably the most important thing you can do for your business um especially in this time of of strange economic uncertainties so we'll be talking a lot about passive income and how you're going to generate it in your in your practice today and how to get started as quickly as possible I think this is like I said I learn passive income strategies you know years ago and I have never regretted learning this skill set and I

am excited to be teaching you uh this skill set today so with that said I'm going to move over to my presentation mode here so you guys can see passive income for Dentistry so H this is a new course I'm doing so I'm excited that you're here I'm excit excited that you've purchased this course um after downloading the book how to generate $50,000 a month from a membership plan a lot of this uh course we're going to be talking about how you can do this with

a membership program as well as other things in regards to hiring so cool let's get started I'm excited you're here agenda so we're going to talk about some of the economic challenges that we're seeing out there why we need passive income because of it the next thing is well we're going to talk about passive income from membership plans we're also going to talk about passive income not only is um automatic Revenue coming in but we should also be thinking with that same model of how we

can automate tasks you know that could help us spend more time getting more passive income or even income from treatment right um so we're going to talk about how to automate your accounts receivables we're going to look at all the revenue opportunities within the practice at least the ones that I look at as well as um optimizing some things like patient financing um where I think there's a huge problem in the industry today and nobody's talking about it and then we're going to talk about case

studies of practices that have created enough passive income where if they do go on vacation or they need to shut the practice down for some type of personal economic issue or an economic issue uh they can do that and still have Revenue pumping into the practice so this is my favorite topic to talk about hands down cool so a little bit about me if you don't know who I am my name again is Jordan comto I am the founder and CEO of a company called boomcloud

which helps your practice create passive income it's a software tool I'll show you some images of what we do within our software I I've been in the dental industry over 15 years um my dad owns a dental lab I managed a dental lab for about eight years Salt Lake Dental Lab my mom's an office manager so you could say that Dentistry is in my blood and I think a little acrylic is in my blood as well maybe some uh you know non-precious metal as well maybe

those are in my lungs hope not um I am the coast on the navigating dental insurance podcast sayot too.com um I don't like dental insurance and I think it's a enemy to creating passive income in the practice and just income in general uh and we've helped thousands of practices grow passive income via membership programs here at boomcloud love contributing to the industry um I I write for Dentistry today Dentistry IQ Dental economics um and have been a ton of podcasts uh on this this exact topic

so I'm excited to be your coach today to help you develop more passive income in your practice so let's stop though and and think here because this insurance companies attack you this is what I always like to talk about because they do attack your revenue and I think on the topic of passive income we should talk about why your revenue is being attacked insurance companies attack you because they delay your cash flow and deny your your uh your claims and your treatment they force you to

reduce your profit margins anywhere from 35% to 50% which is a big deal um imagine if you had that Revenue that you're writing off from from ppos what could you do with it well you can grow your practice more you can hire people you can do a lot more with it so they're attacking you because of that and the last thing is uh they are attacking the patient experience do you ever feel like or does your office managers ever feel like that they're basically tier one

support for the insurance companies and they're dealing with all the issues that the insurance is is is throwing at your practice and often the patients get upset or have issues with your practice because of insurance so those are three ways if I had a business partner that did this to my business I would fire them I would get rid of them as soon as possible and I think that's exactly what you should do especially as on your journey to create passive income so two things here

you got insurance companies pressing down on your your cash flow and your profit margins and your patient experience right they're really causing a lot of issues there that we need to eliminate and like as quickly as possible the second thing we're happening that we're seeing the industry is that we got these weird economic challenges recessions inflation all this stuff that's affecting our lives and our businesses um we've got wage inflation happening in consumer inflation is is through the roof continues to increase so we need to

do something about this now and this is why I like passive income because it allows us to combat these situations this was an ADA and AG D warning saying requesting practice owners to reach out to insurance companies and and ask them to be fair and discussing fee issues with dental offices the Ada knows that there's massive issues with insurance companies out there and that's the truth and it's going to get worse and worse because those are the the insurance company's patients they control what you can

and cannot charge which is ridiculous I want to help you make patients your patients and allow you to create passive income from for your practice with this so I think it's a huge topic that that definitely need to be addressing here inflation rate that ranges right it's it's going up let's just say that there's also threats of stagflation where the in economic stagflation is basically the worst type of re recession that we can have as a country and it's where the um the economy the growth

rate slows in the economy and then unemployment um so inflation increases and unemployment goes down so it's a really really challenge uh it's a big challenge for for us in the dental industry and just all Industries so we need to be aware and realize that one thing that could help us is passive income and owning more assets and I'll talk about that so what happens if you don't take action with insurance companies pressing down inflation pressing up there's a lot of pressure right now in the

dental market so if you don't take action on the stuff that I'm going to be talking about today your practice will suffer and continue being less profitable and that'll get worse year over-ear your employees may lose their jobs because of that costs will continue to rise drastically if you are like most dentist out there your strategy is to decrease pricing your prices with ppos and even on your own this causes far bigger issues than you can ever dream of I've been in a business that that's

all was their strategy is decreasing their prices and there's a reason why I'm not there anymore because we couldn't afford our people it's insane um your business could go out of business if you're not doing this if you're not constantly optimizing your revenue and creat passive income or recurring Revenue which is same word different way to say it um your quality life will Decline and your business valuation declines so it is that critical that we make sure we create passive income and recurring Revenue in the

business because if we don't these things could happen all right so back on a positive note let's talk about the solutions here in the industry so I love subscription Revenue um I'm going to use three words subscription Revenue recurring revenue and passive income or passive Revenue um they're all the same thing they're just different ways to say it the reason why I think it's so important that we create passive income through membership plans and any other means is because when you create that type of Revenue

you have what I call Revenue control you control that Revenue stream um meaning if you had passive come through a membership program you can increase that pricing if you need to and it affects all hundreds or thousands of your members on it right and you can see yourself get a pay increase if you need to uh with inflation going up that is why I love passive income through membership programs is because you have Revenue control insurance companies don't give you Revenue control they they control the

revenue and they you know that's why they they control the discounts they control the cash flow whoever controls the money wins that's how it goes okay so in addition to um the passive income you generate from a membership program members are proven to buy three times more with your practice which increases your profit which increases your ability to reinvest and continue growing and finding more ways to to generate Rec passive income or recurring Revenue in your practice uh improves patient loyalty which in any business model

is extremely important allows to reduce dependence on ppos so incre increase your profit and automate manual tasks right you want to like I said earlier we talk about automating and and creating passive income or recurring Revenue but you also need to be thinking about how can I automate certain tasks in my business so that I don't have to hire somebody to do them or they happen automatically that is a passive income mindset which um I think is really important some of the issues out there we're

seeing are practices too many ppos it is the we're in the future of dentistry and the future of Dentistry is more passive income more membership programs um within your practice and I still see too many practices signing up for too many ppos under the sun right or every poo Under the Sun they kill your cash flow hurt your profit margins and jeopardize your patient experience why would you want to partner with them right so that's the issue with most ppos out there is is they're not

thinking a recurring or revenue or or passive income mindset how can I be the one that generates that there's a reason why insurance companies have the largest buildings in every state because they're generating passive income so just keep that in mind I think it's a really really really important business model feif for service practices a lot of the times you a feif for Service practice struggles with with retention and loyalty and even case acceptance um but also why not have passive income coming in through your

m membership program um you generate Revenue whether you do DST or not extremely important business model for you too and obviously you guys the feif for service docs you've figured out how to maximize your Revenue with with working with ppos but now it's how to take it to the next level and generate that passive income and then we have people in the in the that may be listening to this course that have an existing member membership plan but they're they're managing it manually and not able

to generate as much with it um you want to generate hundreds to thousands of active membership patients that pay you monthly or yearly that generate a lot of recurring Revenue so those are some of the issues there so let's shift gears here and let's talk about passive income through membership programs because it's very important so what is a membership program some people get this wrong in the ental industry they may have a they may say you may say you have a membership program but it's technically

a cash paying program where patients pay you um like a onetime cash cash fee to come into the office and get certain benefits and discounts there's no automation there's no annual renewals there's no monthly renewals that is not a membership program and that is not passive income I'm not going to be talking about that today a membership program is an alternative to dental insurance managed by your practice where patients pay an automated monthly or yearly membership fee or subscription fee to get access to certain benefits

discounts to your office very similar to Amazon Prime or Costco membership uh did you know fun in fact Amazon Prime their membership program is a multi-billion dollar a year membership program um and they got it right and they know that when members spend more or when members buy a subscription with them they buy more in fact usually when I do these you raise your hand if you've got Amazon Prime and you realize you spent more with them after you're joined I can guarantee you that 80%

of people are going to say yep I spend more I get a package on the porch every day so that's the power of the membership ship mindset which then gives you passive income so another thing I want to talk about is a lot of practices don't really look at their the revenue models within the practice and I think it's really really important to understand Revenue models especially in the business you're operating right so this is um the value ladder the value staircase of how you know

a practice would generate Revenue so starting on the far left side where says traffic um you're going to get awareness for your business through ads referrals emails events networking and other things you may be doing right those are just some examples then they're going to either come to your your website or come and visit your office and then you're gonna sell them on a some type of maybe a cleaning which I don't really recommend I like selling things like whitening and toothbrush for for maybe you

can sell those on your website too and say hey get a get a uh free whitening kit or a cheap one buy wh one whitening kit get the other um half offer for free when you buy off of our website um you can do things like that for like lead generation so the lowest staircase would be like attracting leads and attracting customers that come in that are are new to your practice that's that's how I would look at that stage but you want to make sure

you can you can monetize that and get some type of Revenue because well acquiring customers acquiring patients is expensive so you want to make sure you can get your money back from from the the whitening and toothbrush up cells the next thing you want to do is when a patient comes your office and again whether they're they're a new patient or or an existing patient you can do this you want to get them on your membership program so you're generating passive income from them and it's

more of a continuity or or loyalty program right where it's going to come in every month the revenue is going to come in every month and land in your bank account every month month um the next thing that you need to be doing is attracting small business owners to join your membership program and then you get more signups and more passive income from these local businesses in your area and then from there you start diagnosing and and and treating the patients when they when they need

it and you get more Revenue there after that you may have some type of accounts receivable issue the average office loses about $116,000 is a year in unpaid invoicing so once again the passive income mindset is how can I automate some of my problems I'm going to be talking about automating your your AR your accounts receivable and then the ultimate passive income is your business valuation um the more you get the better you get at at at optimizing each of these staircases or each of these

value steps in your practice the more value that your your business will be worth and the more passive income it'll it'll generate over time on on the day you sell it right so that's how I look at it take a snapshot of this this is one of my favorite things to look at I have a whole map um on my on on my Revenue engine or Revenue ladder in in our business here that I look at and I make my business planning around it our marketing

around it our sales around it I advise you to do the same and this obviously may be different depending on your business model um your practice model so you may need to customize it so this is what a practice typically charges for a membership plan well it ranges right depending on your demographics we'll talk about that in a minute where patients are paying $300 a year to $450 a year per member um or 30 35 40 bucks a month per member per month and they get

these certain discounts and benefits in exchange for the subscription and there's obviously some discounts and savings which I do think having a discount strategy is important um and necessary but you should never just discount you know like the ppos are forcing you to Discount I think it's just it's not good devalues your your business and just doesn't give you wiggle room so when you're pricing a membership program you want to look at your local demographics the cities the counties that you're targeting and you want to

base your pricing off of the median income so over here I got the median income you want to be looking at that and you you can look at the population size and the poverty and median age you know that those are always good to look at and understand in your locations that you're marketing but in all reality you want to be looking at the median income and then the top 10 practices growing practices with passive income through membership programs typically price their um membership pricing around

30% to 0.56% so under 1% of the median income of the areas you're you're locating you're targeting in right so in this example in Palm Beach Gardens Florida this PR this practice would um charge between $263 to $492 per per member per year you can divide that by 12 and and really um divide that by 12 and get the monthly subscription um a lot of people ask me why like what's the difference between yearly and monthly passive income I like both I think it's really important

to have offer both your patients they can join on a yearly subscription or a monthly subscription monthlies typically have a less uh less of a cancellation or attrition rate where yearli have a little bit more higher attrition rate than than the monthly so that's why I I do prefer monthly a little bit but there's pros and cons of both um I love the yearly because you collect money up front uh monthly is also cool because it's like under the radar payments for for the practice that

patients don't typically see a $30 payment or feel a $30 payment going out as much as is like a $450 payment the opportunity to grow passive income in dentistry through membership programs is increasing I've been doing this since 2014 and the opportunity keeps getting hotter and hotter for practices out there over 150 million Americans lack dental insurance which means they could join your membership program and in 2020 there was 28 almost 30 million Americans who retired early and we know what happens when people retire they

lose their Dental benefits there's that amount of people out there that need some type of benefit program that you can offer and not only help them but help your practice have a better passive income strategy so some of the benefits of creating a a membership program and generating recurring revenue and passive income from that is that number one you get a robust patient loyalty system a lot of times patients P will sign a yearly contract too to become a loyal patient every year very important you

generate that predictable recurring revenue or passive income that then Smooths out feast and famine months everyone knows that we have September that exists in dentistry I also know that um um April is a slow month and may is a slow month in dentistry we see that all the time so you got your feast and family months if you have this passive income coming in or reoccurring Revenue it's going to uh come in whether you do Dentistry or not whether you're busy or slow it's coming in

that's why it's so powerful right passive income increases the valuation of your business helps you give you a platform to reduce dependence on ppos reduces patient cancellations because patients commit with their wallets they're less likely to cancel and then again members buy two to three times more when they become subscribers to your practice there it is Big members buy more three and a half times more is what we're seeing a lot of too success mindset so when you have a membership program you want to use

it as a marketing or a patient attraction tool get as many people involved into your practice and learning about your membership program as possible uninsured inactive people that have uh Insurance get the switch them over small businesses retirement communities there is so much use it as a patient attraction tool to get more recurring revenue or recurring passive income whatever you use um patient retention tool critical case acceptance booster right you want to you want to the membership program to help you boost your case acceptance which

in turn boosts more revenue and another way to make passive income is to hire Associates and to you know leverage their time in the day um it's a very very important strategy that I think most practice owners should be doing is is building their practice in a way where they're going to hire Associates and um allow them to do the Dentistry while you continue growing it and and networking and do doing all the the essential things to grow the business and the core of it is

having a predictable recurring revenue or passive income mindset when you're growing membership programs if you're missing one of these components you don't have a good model and it's probably not going to serve you well if you have not read this book it's called Rich Dad Poor Dad one of my favorite books one of my first books I read as a buddying entrepreneur um Robert Kaki he talks about buying assets and not liabilities the definition asset is something that puts money in your pocket passive income like

a membership program or a rental property or a software company or whatever it may be you want to be able to buy or create assets that put money into your pocket every month right stay away from liabilities that's boats that's cars I mean obviously when you make enough passive income you can buy those boats and cars but the priority is especially if you're taking this course with me is to focus on all your effort on creating passive income assets so if you haven't read that book

read it one of my favorite alltime books another book that I recommend reading about um subscription revenue or passive income is the automatic customer creating a subscription business in any industry this is the book that inspired me to create boom Cloud so that I could help dentists and practice owners make passive income this is my obsession all of this out of these two books this can sum up my obsession on helping practices and helping you create more passive income so according to John warlo who wrote

this book um your valuations can increase uh quite significantly when you have subscription Revenue um so that is a long-term strategy you want to be thinking about and one of the best parts about creating automatic customers through subscriptions is that you insulate yourself from the worst of a potential recession uh I've lived through recessions uh with passive income and recurring revenue and I've lived through recessions without it and I prefer to have it with me at all times it's that important because I mean we our

economy goes in Cycles right so it's very important that that we get this model installed and running and growing in the practice like ASAP and if you do have one like you got to grow it cash flow strategies so the reason why another reason why I like membership programs is that you once again you have Revenue control you can increase pricing and you can time when the cash flow comes in so my definition of cash flow is the timing of money whether it's coming in or

going out that's what it is a lot it's not profit it's it's just the timing of money um you if you want to really have a healthy practice you can time the the recurring revenue and passive income from membership programs to get deposited into your bank account on the 1 and 15th of each month which usually Falls before most people's pay periods um so you now have an influx of cash coming in before payroll periods which let you sleep better at night that's why I love

it um in any economic downturn whether inflation is going up or stock markets going down or the job markets turning down uh managing your cash flow is the most important thing to do um and passive income does that for you so let's talk about some more opportunities in your practice aside from passive income um that can help you generate more Revenue so the average um the average practice loses anywhere from 116,000 to 20 120 ,000 per year in lost or unpaid invoices it's a big deal

this is the opposite of passive income this is not getting paid for active income which is really risky if you want to be operating your business this way so uh this is a boat payment you can buy a boat in cash or a sweet sports car in cash with this type of lost Revenue in the practice so passive income mind the passive income mindset says it's time to automate this type of situ uation the practice so you want to automate your AR um and we've got

some features inside of boomcloud that will that will help you do this in addition to helping you automate your membership program and the passive income there so here's an example of when I say automate that something boomcloud does our our software platform is it'll text your patient hey patient name I'm texting you to you know Dr Smith's office you have a payable balance click here to choose a plan and pay this amount they click yeah sick I'll totally do that that's what the patient say say

um you you click the the patient would click this and then it would send them to another landing page that says you can pay your balance in full or not ready to pay in full check out our monthly payment plans view plans and then the patient can see you know a three-month plan ,000 per month six-month plan 500 bucks a month or 12 month plan so this is a great way to have that passive income mindset and automate Revenue collections so this is you always want

to be automating everything you can and you always should be looking for Revenue opportunities so accounts receivable is an easy Revenue opportunity um within boomcloud we do help you look at for for Revenue opportunities so let's look at that so um we have what we call the revenue forecaster for uninsured patients will we integrate into your practice management system and if you don't have this this is a good exercise for you to do you want to go and look at how many uninsured patients you have

and then you're like do the math if each of them sign up for our 30 $5 a month plan what is the passive income generated from that and this this is a real life example of a practice who has over 8,000 uninsured patients if they sign them up to their uh Adventure Dental savings plan they would be making a quarter of a million dollars each month that's insane now obviously you're not going to sign all those patients up at once they're going to come within time

but my my point is the value here of this segment in your practice is being missed if you're not looking at it another reason why you want you want to look at Revenue opportunities is you know if you're dropping a PO plan you want to be able to like look at the ppos that you do have and that patients are that active in your practice they have if you're dropping a certain po you want to be able to message them and convert them to come over

and join your membership program and enter you know generate more passive income for your practice but more benefits for them too right next thing we want to look at is the patient Act activator um which is your inactive every practices have Ina active patients that they've stopped coming into the office uh you need to reactivate them a lot of the reasons why have they lost their dental insurance they're like well I can't go into the dental office if I don't have dental insurance so I'm never

going to go again right this is a great opportunity to Market your membership program to these patients and get them en join your membership program so once again you get more passive income we look at a couple other Revenue opportunities there's unscheduled treatment Revenue opportunities and then we're we have a a tool that we're building that will look at the the local B2B opportunities within your area so you can Target them and grow your passive income through membership plans another thing you want to be focusing

on once again the passive income mindset you want to automate things you want to generate predictable recurring Revenue uh coming in each month you also want to optimize your Revenue right those these are the mindsets of a passive income uh business owner minded business owner the big one of the biggest s I'm seeing in the industry right now that nobody is talking about is um financing forces you patient financing forces you to Discount your treatment on top of the PO and even on top of the

membership plan so it's time to optimize financing and get profit profitable financing so I looked at practices and the average membership program discount is like 15% off of treatment insurance is ranging anywhere from 35% to 50% so I put 40% in this example and then Finance ing discounts they're called The Merchant discount is roughly like 10 to 15% so if you look when that a membership patient goes through by the end of it you know if they need financing they're discounting you're you're discounting 30% which

is kind kind of a bit right but with ppos if a patient needs financing with ppos then you're at a 55% discount off of that poo it's insane right I mean if if it if it's uh I mean it can get higher depending on your your PO discounts this is why I think it's smart to find the right banking partners for patient financing that aren't forcing you to have a layer of discounting here once again whoever controls the money controls wins right um so you want

to find Bank partners that that have no Merchant discount so we have we're building a um basically a library of patient financing Solutions out there that don't or have a low lower discount than what's what's out on the current market market so we can help you optimize your income in the practice so three things that P passive income minded practice owners think of how can I generate passive income at all times continue generating passive passive income through a membership program how can you automate things especially

things that generate some types of Revenue and how can you um optimize your Revenue so that's kind of how I look at it now let's talk about how we can scale a membership program so systems help you scale practices that use boomcloud scale their membership program we looked at these three practic they they scale their membership program after a year of using boomcloud by a thousand per. that's insane meaning they all were man manually manag their membership program which is awesome but when they install the

system it's proven that they're able to scale faster so just under 2,000 active members over 500 active members for the middle one and over 250 active members it all adds up it's the passive income that you want to get right marketing also helps you scale you want to start with your existing uninsured patients inactive patients uh even your poo patients you want to educate them and let them know that you have a membership program you want to have flyers and B Shores email patients text patients

send letters to the patients announcing that you have a membership program social media posts social media ads you can use Direct Mail marketing to attract small businesses and retirees to join your membership program obviously having a page on your website and on Google ads and doing live presentations um to help attract people to join your membership program big thing happen right here is making sure you have some type of BB marketing strategy in place um you know that your office is doing and and reaching out

to local businesses identifying industries that could be good candidates for signing up their employees for to join your membership program really any any business that has like 49 and employees and less are good candidates because um typically they don't give their employees benefits and in this market you want to in in order to retain your employees you want to be able to offer them benefits so there's a lot that we can talk on this I think we should do a whole course on this and generating

passive income through B2B marketing but this is our simple process that I recommend that you do in your practice to generate more signups and passive income so let's look at the fun part here let's look at what prati how what practice are doing in regards to membership plans and how much passive income they're making so this is a practice that started their membership program just barely with us on the boom Cloud platform this is a monthin they sign up 150 149 active membership patients generating over

$5,000 in monthly recuring revenue or $64,000 a year it's awesome it's a quick start coming in and generating that much revenue monthly recuring Revenue that they do this each month it's going to compound that's another reason why I like passive income especially when it is reoccurring Revenue it compounds month of month over month the more you add to it this is why it's critical to put it in your practice now right this next practice has over a little over 400 active membership patients generating almost $15,000

in monthly recurring Revenue um or just under $200,000 in annual recurring Revenue started with their uninsured patient base and they're inactive and now they're converting poo patients to join their membership program uh just under 700 active membership patients in this uh practices platform uh over $24,000 in monthly recurring Revenue uh just under $300,000 in annual recurring Revenue they're doing once again using social media ads uninsured existing insured and existing inactive patients attracting them to come and join and build that passive income for them but also

get some benefits and Savings in return for doing that this last practice just under 2,000 active membership patients paying them almost $50,000 in monthly recurring revenue or over a half a million dollars in annual recurring Revenue each year whether they do Dentistry or not this revenue is coming in this is the power of passive income most practice owners you know like yourself may be only making income when you're working with patients when you got your hands in the mouth you eliminate that business model which is

not the best business model by creating a membership program and scaling that membership program you will generate revenue on Fridays when you're off golfing or off of the beach you will generate Revenue over the weekends it's so important to put this type of Revenue stream into practice like you need to do it today so I really appreciate you guys coming in and hanging out with me and buying this course uh I highly recommend that you you look at boomcloud go to Boom cloud.com schedule a demo

and see how boomcloud our technology can help you make more passive income we've helped thousands of practices in counting um Build and Grow membership programs and generate passive income uh nobody hates money it's a good thing to do we have Revenue growth managers that are trying to help you get more passive income and help consult you on some strategies we have um artificial intelligence or our Revenue Bots that help you identify and sign up uh patients to to join for passive income we're building a B2B

finder in our system to help you generate even more passive income through that we have the financing Marketplace that will help you um optimize your your your discounting off of patient financing and I don't have this on here but we have our accounts receivable automation that will help you automate that so you get you can ensure that revenue is coming in super important okay if you haven't taken this this read this book and taken my my next course that I have for you it's called fire

the ppos with these five strategies go ahead and scan your phone or text fire to 38524 37731 to get access to this free ebook and I have a a course on there a lot of courses on there that help you fire the ppos because this is definitely a strategy to optimize your revenue and the P the passive income minded dentists optimize their revenue so thanks for taking this course I'll have more resources um on generating passive income but hope you have a rocking day Rock on