Advertising

[Taxman]

This will be my third tax season and I'm still trying to build a tax base. Can anyone share what type of advertising they use to attract clients and what does not work? Thanks

[taxmandan]

Advertising

I've tried mass mailing to new home owners, radio spots, "tax advice" ads in the newspaper, and find that devoting that effort to cultivating referrals is much more productive. For me the yellow page ads have been the best source of new clients outside of referrals. Especially during the non-tax season months when people are looking for the first time for a tax pro to prepare those 3 or 4 years of returns they haven't filed.

What works for referrals will depend on what client base you're looking for. If you want the RAL, EITC type of client, then referral coupons for $10 work really well. The more complex return, higher income clients will be looking for someone who will treat them with respect and take an interest in helping them with the tax issues in their investments, business, rentals, etc. So referrals are VERY important to get and keep those clients.

Ask for the referral (we often forget to ask but you gotta do it!), follow up with a Thank You card for a referral, if someone is really active and sends 3 or 4 new clients to me, I send them a gift certificate for dinner at a nice restaurant to show appreciation. It takes work to get referrals, but it can be worth it in the long run.

[geekgirldany]

I agree with taxmandan. I have been using yellow page ads the past five years. They have a "grow with us plan" where they give you discounts on ads instead of the regular price. I started out small but in 2005 I put a varily large listing. It helped bring in atleast two high paying clients. It helps being listed first also

I have also used yard signs. I have got customers from them because there are several subdivisions putting in down the road. Referrals are the best! Nearly half of my customers are from referrals. LIke you do one family member and then they tell the rest of the family. That is your best advertising.

I don't do RALs but I do tell people the electronic filing is free. That always seems to help because they think it costs more.

[Armando Beaujolais]

I get an incredibly high referral rate from asking clients if I can call them at work with the results on their return. It's about 90% that someone else will be around when you call. A good percentage of the time I get new clients scheduling that day.

Also, turn those people who call wanting free advice into paying customers. Lots of practitioners look at the "Can I ask just a quick (meaning I'm not going to pay you) question?" folks as deadbeats. In actuality, most want help but they're not ready to just throw themselves into an office they know nothing about, and they don't know where to start the conversation. I'll answer a question if it really is "just a quick question," like "I've lived in my home for 30 years do I have to pay tax on the gain."

Answer one and there is always a followup. I take the second question as a cue to ask about their return and give them a price quote. You're a nice guy because you answered a question for free, you get the chance to verify that your work has value, they're comfortable talking to you, and often the next step is scheduling an appointment. Yes, many of these people are deadbeats just looking for free information. Guess what. Giving them a price quote gets them out of your hair real fast. That approach results in about 50% appointments.

[JON]

Verbal advice

How do you attach your disclaimer??????????

[Chief]

Disclaimer

In the engagement letter.

[Bees Knees]

How do you attach your disclaimer??????????

You don't need a disclaimer for FREE verbal advice. The disclaimer for verbal advice only applies to PAID tax practitioners. Once you send them a bill, attach the disclaimer.

[Donanita]

Advertising

I don't do. Most of my new clients are from referrals.I started out with 75 clients and now have 400. Just try and provide a excellent service and reasonable price and your clients will recommend others to you.

[JG EA]

Business cards

One year when I wanted to grow I sent out 2 business cards with my newsletter. One was blank on the back and one was handwritten on the back with the words "Please refer us to a friend".
It was successful.

[Taxman]

Thanks

Thanks for the input. I want to make sure my advertising dollars are being spent wisely.

[JON]

Free Advice

I think in the late 1990s the tax case lost by a tax preparer had to do with verbal review on the telephone of a sale of personal residence. The liability insurance carriers still use it as an example in their presentations. If the person you are talking to does not understand just remember you as the professional will be held liable for those misunderstandings since you will always be considered to have known better..?? Free advice is worth what they pay for it, but may end up costing you more.

[Roberts]

ad

Referrals are key but how do you get the initial clients? Accountants aren't usually the type A personality to get clients easily.

I started last year VERY late after waiting for the IRS to tell me I had passed the EA exam. So I basically started in mid-March. I sent out 300 postcards and got 10 clients. This year I'm sending out 3,000 postcards and hoping to get 50! 95% are going to new home owners who purchased homes within a specific price range. I offer free home or office visits. A disabled client last year found me on the internet and said it was amazing I would do a housecall for no extra expense. The postcard gives a 20% discount to new clients and I'll send my old clients a 20% off coupon on January 1st. Price schedule basically assumes everyone gets 20% off.

I've written an article for a local business paper and they are giving me some free advertisement for my efforts. My community paper is having a free classified section for tax preparers for the month of March. Last year only one practioner participated so hopefully there won't be much more.

I'm also putting a flyer in the local paper. 5,000 flyers for $550 + printing. I've got another company paying for the other side plus printing and I'm doing all the work to produce. Last year I bought a $20 piece of software and it designs fliers and I'll produce it, coordinate with the printer. For $275 and some time I've got 5,000 fliers sent out to people within 4 miles of my house.

I'll put some fliers up at restaurants and grocery stores and internet advertising. We have a downtown flier that costs $130 for 4 weekly ads. Last year I got about $1,000 in income from that ad.

My goal is 70 NEW clients this year and to be at 300 tax clients in 4 years. If anyone has a better solution, please let me know. When I send out the 20% off coupon to last year's clients (each year) - I'll ask for referrals at that time. I like the 2 business card idea.

[Armando Beaujolais]

The church bulletin brought us a lot of clients.

[taxmandan]

Advertising

Jon is absolutely right about free advice on the phone. It will get you in trouble someday, the caller will give you half the info you need to give a correct response, listen to only half of what you say, and mess it up. Then it's your fault!

It takes 10-15 minutes of asking questions of a client to be able to accurately address any tax issues, that's way too long to tie up the phone, for free. I know of no 'free advice' caller, in 12 years, becoming a paying client, Armando certainly has amazing phone sales skills if he can turn them into paying clients!

In my office we offer to schedule an appointment for a consultation, half hour minimum. And usual response is: Oh, that's what the other tax offices said, no thanks, <click>

One thing that hasn't been mentioned that is important: Track what advertising works and what doesn't. Ask new clients how they found you. Advertising is cheap if it works, and very expensive if it doesn't, and you need to know to maximize the return on your dollars spent.

[ED SMITH]

Ten out of 300, 3%, is a good rate. I think if you get over 1% you are doing good. Perhaps you found some wording that attracts. Would you care to share it with us?

ED