Revenues & Retention
Revenue Sharing Best Practices Infographic.
A no-cost, zero-risk opportunity to add revenue & build the value of your customer/patient base.
The opportunity to increase revenue is one of the most critical efforts any management team must do on a regular basis. Practitioner fees are a function of patient visits and physician time and Membership dues categories are fixed incomes for clubs. So, if you are going to increase your EBITDA you must find ways of getting your members or patients to spend more money outside of your walls.
Enter MyFormulary, an online solution that gives members the opportunity to find Functional Foods for Health — over 75,000 name brand food, supplement, health & wellness products sold online — assessed for efficacy through clinical research outcomes which get delivered directly to their home.
Our Efficacy Engine determines the effectiveness of food in the prevention/treatment of disease. We do this utilizing peer-reviewed clinical research from sources including Johns Hopkins, Mayo, Cleveland Clinic and the like.
In the MyFormulary model, we share 35% of the net revenue from the purchases your patients or members make on a co-branded landing page on our website. To be successful in generating additional revenue it’s important for you to concentrate on one of two things:
- Getting as many members as possible to purchase products; or
2. Getting a smaller number of members to increase their purchase dollars.
In the first example, if the club had 4000 members and 30% of them (1200) spent $75 per month, with margins of 45%, they would generate annual revenues of $170,100. In the second example, if the same club had 10% of their members (400) spend $250 on the site they would generate $189,000.
You can calculate your club’s revenue potential by using the Club Profit. Just change the variables in Yellow to see what revenue opportunities exist in your club environment.
Ancillary revenues are the bedrock of any club. Convincing your members to purchase their everyday needs on the MyFormulary website will also generate “Loyalty Dollars” which they can use to purchase additional services in your club or to pay for their monthly dues. For every $100 dollars a member spends on the MyFormulary website they receive $6 in Remedy Rewards.
Ask your MyFormulary team member to generate ideas on how to motivate your members to visit the MyFormulary website and to spend additional dollars so that your 35% revenue share can be maximized!