Membership model

Definition

Monthly plans that prepay for treatments, turning occasional spending into predictable revenue.

Why It Matters

A real membership base lifts the multiple above what a discretionary-spend cash business earns, because it makes next quarter predictable. Check the count and the churn, and then check the banked credits, which are a liability a buyer inherits: treatments already paid for and not yet delivered are work you will perform for money the seller has spent. Get the balance quantified in the working-capital conversation rather than discovering it in month two.