How does Mindbody make money?

Mindbody offers tiered pricing plans starting at $30 a month and going to $145 a month

There has been a lot of advancement in the healthcare industry, with my exciting developments and companies emerging (some of which we have written up, and which you can read about here).

Mindbody is an interesting company in this space because, at first glance, there's nothing specific to healthcare about it. It's a cloud-based software provider, offering a business management software and payments platform for smaller and large businesses.

What makes Mindbody different is, as its name suggests, has chosen to specifically focus its efforts on the health, wellness and beauty industries, providing its software for fitness studios, including yoga, pilates, personal training, dance, martial arts, spas and salons.

The company is "committed to wellness," it says on its website, "Embracing all dimensions of wellness: physical, intellectual, emotional, social, environmental, occupational, and spiritual."

Mindbody makes its money off of its business clients, which pay a monthly fee to use the software. It has four tiered pricing plans.

The first plan, dubbed "Solo," starts at $30 per month and is for individual practitioners with no staff. it includes single professional profile and login, the ability to book classes or appointments online or in MINDBODY Connect, the ability to sell services and products, as well as branded gift cards online and in MINDBODY Connect. It also comes with 10 reports.

The next level is "Grow," which is for a small team looking to unify its brand for every service offered. It costs $60 per month. it included a separate login for all staff members, the ability to track staff hourly pay, tips and commissions, and basic point of sale with inventory tracking. It included 20 reports.

The third level is "Pro," for a business looking to manage the complexities of growth and gain deeper insight into success. It costs $85 a month. It comes with a CRM, full retail point of sale, the ability to sell products and services from the businesses' website, loyalty rewards programs, tiered memberships and analytics reports. It included 90 reports.

The final plan is "Accelerate," for a business focused on bringing clients back more often and boosting revenue through automated marketing efforts. It costs $145 a month and includes automated retention and win-back emails, customizable check-in emails, 2-way text/SMS confirmations, custom API access, and the ability to send over 40 auto email notifications. it includes at least 90 reports.

Founded in 2001, Mindbody has raised around $109 million in funding, most recently a $50 million round in February of 2014.

This is a good time to be in the healthtech space, as it is booming. Funding for health companies more than doubled year-to-year in 2014. By the second quarter of the year it had already surpassed the totals for 2013, and in the end rose 125% to a total of $4.1 billion. That is significantly higher than the 30% growth rate the space saw in 2013.

(Image source: mindbodyonline.com)