How To Successfully Market Your Tax Practice With Direct Response Marketing

Utterly confused about where to begin with marketing your tax practice?

If you’re on this page, then you’re not as confused as you think. Being here is recognition that you need a real marketing plan for your firm.

However, in order to get started with properly marketing your tax practice, you need a solid foundation in marketing concepts. While shiny new marketing ideas (really, just new “media”) with gurus materializing out of nowhere are constantly popping up, fundamental marketing is fundamental marketing, whether it’s 1812 or 2012.

Fundamental marketing is smart marketing. When you’re just getting started with a real marketing plan, there are really only two fundamental rules you need to follow:

1. Every bit of marketing you do, no matter how small, must be held ruthlessly accountable for measurable results.
2. Test, track, and measure everything. If you can’t measure it, see rule #1.

What do we mean by measurement? This means that no matter what your marketing message says, no matter what media you use to get it out there, and no matter who your target market is, you should be able to track every lead, every client, and every dollar of revenue that comes from that marketing.

For example, if you send 2,000 letters to tax liens in your state, you should know precisely how many phone calls you received, how many appointments you got, how many new clients came in, and how much money they spent with you.

Look at the flip side of this equation: You should be able to track precisely where every dollar of revenue in your practice comes from. When you look at a particular client, you should be able to look up what marketing piece brought them in and through what medium.

This type of marketing is called direct response marketing. The basic idea behind the concept of direct response marketing is that no marketing should be conducted if you can’t track the results that it gives you.

To get you started with direct response marketing, I have created this course titled How To Successfully Market Your Tax Practice With Direct Response Marketing. In this course, you will learn the following:

  • An overview of
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The future of your practice

Today’s message is pretty short. Basically, I want to hear from you regarding what help you need from me. Considering that it’s retreat season, and many practitioners are discussing the near future of their practices, I have created a short survey to gauge what my readers consider most important regarding the future of their practices.

Please take 30 seconds and provide your feedback. I’m here to help you, so I want to provide the most relevant articles possible to you. To take the survey, visit:

http://www.surveymonkey.com/s/HQQFT52

Thanks for your feedback!… Continue reading

The one surefire way to increase your profits

Most of the time, I’m discussing ways to increase your revenues and profits that have to do with marketing. However, if you already have a stable of clients, then there is an often overlooked method for increasing profitability: Raise your rates.

I’m sure at least one person’s jaw just dropped out their in tax-land. “I can’t raise my rates,” I hear you say. “I’ll lose all my clients, nobody will pay higher rates in this economy,” you exclaim.

In reality, you couldn’t be more wrong.

First, when was the last time you DID raise your rates? If you never have, or it’s been more than a couple years, then you’re long overdue anyway.

Second, people will, and consistently DO, pay higher fees for the services they use. People understand that the cost of doing business goes up. Your cost of living goes up, your payroll increases. Inflation is part of economic growth (and the economy is growing, just slower).

Third, if you take a serious look at your client base, you will most likely find that two instances of the Pareto Principle are in effect at your firm. The Pareto Principle, also known as the 80/20 rule, states that roughly 80% of your results come from 20% of your efforts. What this means in your practice is that roughly 80% of your profits probably come from just 20% of your clients. Similarly, 80% of your headaches probably come from 20% or less of your clients.

It’s time to critically analyze where your revenues are coming from, on a client by client basis. It’s also time to look at your headache clients, the ones that piss you off the most, take advantage of you the most, etc. One of the effects of raising your rates is that these clients tend to be the ones that go away, not the ones that are your best clients.

The relationship you have with your best clients will weather a rate increase. In fact, it’s not uncommon for your best clients to tell you they’re surprised you haven’t raised rates sooner, given the level of service you provide them. Your bad clients, on the other hand, will take their headache elsewhere, which should be just fine by you, as these clients tend to consume more of your resources than they produce.

Bottom line: Analyze your clients down to the dollars they generate and the resources in your practice that they … Continue reading