This might seem like common sense, but common sense can often be a little bit uncommon. To hit your income goals as a Dietitian, you need to know what your actual goals are.
Specify your yearly income goal to an exact dollar. Now divide that by twelve and you’ll have a better understanding of what you want to make monthly.
In this article, let’s say that Kathy is considering making $50,000 this year, this is $4,166/month.
Step Two - Know your average Client’s Lifetime Value
Now here’s the trickier part, how much are the clients you have now actually worth to you?
Not your best client, not your one-off client, but your most average client, the one that makes you think, this is business as usual.
Then put these figures together
A = How much do they pay per session with me?
B = How often do they see me
C= How many years do they stay with me (If less than one year, just put one year)
D = How many people will they refer you to?
E = What is the percentage costs of providing your service (let’s say 20%)
So here’s an example, Kathy’s average client pays $70 for a session (more of course but the insurance takes it), and visits twice a month for six months. Her clients refer Kathy to one of her friends, and her costs/overhead is 20%.
Well in this example, Kathy’s average client brings $1340 of new business
Our average Client’s Lifetime Value goes up when
You charge more from them for your expertise
They refer you to more of their friends and family
You reduce your costs of service
You realize more of your Client Lifetime’s Value upfront when you close packages instead of just appointments.
Step Three - Implement a Marketing System that could consistently get you clients profitably
In Kathy’s situation, she now understands that each client is worth, on average, $1340.
This is a lot more than she anticipated, especially when on first impression they just pay $70 a session.
But over the whole lifetime of her client, they spend a lot more than that, and they refer people who organically help you grow too.
So the question becomes, how much would you pay to make $1340?
How much would you pay to have a client?
Well, let’s say we implement a marketing system that helps you get scheduled with appointments through paid advertising.
We get you booked with an appointment and it costs $50 (that’s quite high!)
You find that for every four scheduled appointments, one doesn’t show up (that happens)
You find that for every two appointments, one client becomes a typical, average client.
Based on these hypothetical figures, it’d cost you $135 to acquire an average client
Step Four - Know how much an average Client is worth to you from your marketing system
All you have to do now is subtract your Average Client Lifetime’s Value, with how much it costs you to get that client in the first place.
So, in Kathy’s example, her Clients are worth $1340, and the costs to acquire them were $135, which means the value of her clients from her marketing system is $1205
Step Five - Decide how many new clients you need a month, and reserve an advertising budget for it.
If you’ve done Step One, Two, Three, and Four, then its just
Monthly Income Goal / Client Lifetime Value from your Marketing System = Number of Clients needed from your System every Month
Kathy’s goal was to make $4166/month, and her client lifetime value from her marketing system was $1205. That means she needs around 3.5 new clients a month, so 7 new clients every two months.
She needs to reserve an advertising budget of $466/month, and she can be confident she’ll acquire all the money she’s spent on getting a client by the second session.
When we put it all together, she’ll be on track to make $50,000 a year with ease, because her marketing system is scalable and evergreen, it can last indefinitely.
So there you have it, five straightforward steps to hit your income goals as a Dietitian
- Solidify your goals with an exact figure
- Understand what your average Client is worth to you,
- Create a system where you can consistently get that Client and determine how much it costs to get that Client
- Understand how much that Client is worth to you now
- Decide how many new Clients you need from your system
And there you have it, if you'd like Paradigm Scale to create that system, we’ll be happy to do that for you. If you want us to keep fuelling your system, we’ll be happy to do that for you too, or do it on your own, we’ll help set you up. The fundamental thing is that we want to give you the biggest impact on your income goals, in the shortest amount of time, with the least effort from you.
