A question I get asked all the time is, “Mike, how much should I spend on marketing to attract a new tax resolution client?”  The rule of thumb is, if you are doing paid marketing such as direct mail Google ads or radio, 15% - 20% of gross sales should be earmarked for your marketing budget.

For example, for one $5,000 client, the cost per acquisition is about $1,000.  That’s 20% of $5,000 which is what you should budget for marketing to acquire each new client.  If you want five new clients a month, five new clients 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 $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 to attract new tax resolution clients.

Remember, it takes money to make money. You should view your marketing spend as an investment and not an expense.

Remember the general rule of thumb is to spend 15% - 20% in marketing to attract a new resolution client and when you look at the numbers it makes sense to spend your time and money marketing to high value clients instead of the cheap 1040 crowd.

To learn more about how to market to tax resolution clients and how to have a lucrative tax resolution practice keep following the blog and our social media accounts. You can also register for a free training here called ,"The 7-Figure Tax Resolution Practice Blueprint"