EP30: How Much Should Tax Resolution Businesses Spend On Marketing? - The Answer
Hey, it's Michael Rozbruch here. Also known as the Roz Man. And I teach CPAs, enrolled agents, attorneys, and other tax professionals how to build and grow lucrative tax resolution practices. And I get this question asked so many times. "Mike, how much should I spend on marketing to attract a new tax resolution client." Well, the rule of thumb is if you're doing paid marketing like if you're doing direct mail or even radio, the rule of thumb is about 20% of your gross amount of money that you're going to be taking in should be earmarked for budgeted for marketing. For example, for one $5,000 client, the cost per acquisition is about $1,000. That's 20% of $5,000. That's what you should budget and market for your tax resolution clients. About $1,000 is the cost per acquisition for each new client. So if you wanted five new clients a month, five new clients a month at an average fee of $5,000, that's $25,000 gross a month. You need to earmark or budget about $5,000 in marketing to attract your firm's new $5,000 tax resolution clients. If you want to do more than that, that's what you need to budget. But the rule of thumb is about 20% of your top line should be earmarked for marketing. So to attract new tax resolution clients. That's the video for this week. We'll see you next time.
If you want to learn more about the lucrative nature of tax resolution, click on the link below for some free training resources that I'd like to provide to you. Tax resolution is a way for you to generate profits and cash flow all year round. And on this free training, I teach you where to find clients that have tax problems, how to attract them to you, how to take them through the initial consultation, what to charge for certain resolution alternatives, and how to collect that money. All on this free training. So if you want to learn more, if you want to gain more profits, more cash flow during the year, and stop doing just cheap tax returns, click on the link below, and I'll see you on the other side. https://rozstrategies.com/2022-challenge