How to Make More Money as a Therapist
After the initial excitement of training and becoming competent as a therapist, some hard truths about money emerge.
Facts like:
Most therapists don’t earn much
Many therapists struggle to make a 6 figure income.
Much of the remuneration therapists can receive is controlled by third party payers and stakeholders like insurance and government.
Even in a private practice, therapy clients often use rebates and insurance processes to receive free or discounted therapy.
Seeing more clients can increase your income but it means risking burn-out.
If you want to make more money as a therapist here is what you need to do.
For private practice these factors are essential if you want to make more money than you currently do without seeing a huge number of clients:
Locate your practice in an area where clients have the capacity to private pay live
Choose a niche associated with clients who can pay for therapy
Ensure you understand fee setting and set your fee adequately and revise regularly
Create a personal brand so strong that clients choose to work with you and are willing to pay to see you.
Beyond this, scaling your income beyond 1:1 appointments becomes the next priority.
What does it mean to scale your income? It means to increase revenue at a much faster rate than expenses, leading to exponential, sustainable growth and improved profitability.
There are two main ways therapists can scale their income.
Grow a group practice.
By growing a team, you can increase your income through the profit remaining after the team members’ wages and other expenses are accounted for. Profit margins are generally 10-15%. The downsides of this model include the financial outlays, increased need for administration support, policy, processes and staff turnover and retention issues.
Create additional income streams
Additional income streams, especially those that can be automated and sold over and over, are a popular and effective way for therapists to
scale their income. Unlike hiring additional clinicians or leasing larger office space, this approach minimizes overhead and avoids the
responsibility of managing a team. Instead, it focuses on building a personal brand, crafting marketable offers, and leveraging digital platforms.
While it does require time and strategic effort to build an audience, this can be accelerated through targeted advertising and smart marketing.
