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The Compounding Effect

Here's why doing this every month matters

Written by Kevin Gregor

Here's why doing this every month matters. The clients you convert this month keep paying next month β€” and the month after. Watch what happens when you act consistently:

Most studios reach out once, get results, and stop. Here's what they miss: a one-time push generates $2,010/mo this month and that revenue stream keeps going month after month for the life of those clients. BUT. If you do it one more month then you get the revenue from the new first month AND you keep the repeat revenue from the prior month. So in month 2, you're earning $3,819 (accounting for ~90% client retention).

Example: 100 clients converted per month at $134/mo avg, 90% monthly retention

Clients

1st Month

2nd Month

3rd Month

Clients Month 1

100

90

81

Clients Month 2

100

90

Clients Month 3

100

Total

100

190

271

Revenue ($134 per client)

1st Month

2nd Month

3rd Month

Clients Month 1

$13,400

$12,060

$10,854

Clients Month 2

$0

$13,400

$12,060

Clients Month 3

$0

$0

$13,400

Total

$13,400

$25,460

$36,314

By month 3, you're earning 2.7Γ— what you started with β€” not because you worked harder, but because prior months' clients kept paying. This is how studios grow: small, consistent monthly effort that compounds.

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