Getting good clients

[Skate1968]

Here is my situation: After going through a ton of Red Tape with the IRS i understand that they made a "standing job offer" to me. Meaning that i fully passed thier interview process and would be hired if it weren't for the fact that there is a federal hiring freeze.

In the mean time I'm contracting myself out to a friend's firm. And getting OK $. I would be happy taking some business away from H&R Block.

But I'm not sure how to go about this. Plus I'm not sure if this is the best idea because I'll likely have to drop any clients that i get when i work for the IRS.

My CPA license is currently on 'inactive' status. I should get caught up with CPE credits and 'active status' in November 2007.

If anyone has ideas for me, please share.

(I have a little Brother All in One. I wouldn't think that RALs would be a good way for me to go. My experience is with higher net worth clients (someone else's clients))

[Skate1968]

And please forgive if this has already been discussed at length. Please refer me to any other thread which deals with this. Or just tell me what 'key word' to put in the search engine that will lead me to the discussion.

Thanks

[BOB W]

I'm......

... not sure what you are asking. Could you be more specific with your question.

[Skate1968]

How can i take business away from H&R block?

How can i take business away from H&R block? I could easily match thier price. (but i'm not set up to do RALs)

[BOB W]

On...

.... such short notice, you can only advertise. Mucho bucks. If you have any existing clients, you must tell them you are looking for more clients.

Where will you be working from? House > office?

If you are working from home, starting out can be a slow uphill battle. My suggestion is to get in touch with a local insurance agency (broker) and see if you can rent some space from them. Insurance brokers love the additional activity you can bring to them and you will benefit from their activity.

[dsi]

I would certainly drop off some of my business cards to local insurance brokers, bankers, stock brokers, real estate brokers, etc. However, this method may not get you the H&R type clients. Maybe if you open your office next door to the H&R office you might get a few?

[Eli]

Don't forget...

attorneys. I get a good amount of referrals from bankruptcy attorneys. People filing for bankruptcy are sent in for amendments and most have come back during the next tax season.

Eli

[Anarchrist]

Here's some suggestions I've seen posted on other boards. Referral programs seem to be big.

All is fair in love an war. I passed by a Hewitt booth this year in the local Wally World. This was on April 14th and there were at least 50 people in line who had been waiting 2 hours. I handed out about 15 of my business cards and said no waiting lines at my house and walked away. Picked up about ten clients that evening and next day. Hewitt never said a word or called. Don't know whether to expect a law suit or not.

* * * * *

What I do with referrals is give the client a free return when he/she sends me 10 clients. I will refund them the fee for their return or they can have a family member come in for a free tax prep.

* * * * *

I OFFER $5.00 also for each referral sent. When the new referral comes in and prepare their taxes, I send a thank you note with a $5.00 check to my client that referred him. I also do a drawing; who ever refers more clients wins a TV. [valued at $200.00]. They sure do make an effort for that TV. My business grew from 1200 to 1800 clients last year, thanks to the LORD and to this method.
It is very hard work keeping up w/the referral list/ thank you cards and checks.

* * * * *

Our referral program has doubled our business every year for the last 3 years using it. We take $10 OFF for every new prepared return to the person who generates the new referral AND we give the new client a $10 DISCOUNT. We either reduce the existing clients fees if they haven't been in yet or send out checks if its after the fact. Our business now does 550+ returns from home. For every 3 new clients generated, (all in same year) the existing client that referred them has ALL prep charges refunded that year. (We only offer through March 31st). We use a paper based mailer to track the discounts so we know who gets them. Our existing clients put their name on them and hand them out.
My thinking is this, I'll hand out $10 Bills ALL DAY long to attract new clients...)Of course both parties have to pay me first). Plain and simple...it works! One client referred me 15 new ones last year...that's a record for us...I was VERY HAPPY to pay her!

* * * * *

Here's my marketing idea.

"Friends don't let friends use H&R Block" (although I'm certain to be sued)

with a copy of the front page of this report: http://www.gao.gov/new.items/d06563t.pdf

[Snaggletooth]

Get Other Clients

Skate, you're not likely to get many HRB clients. Analyze your own talents, and ask yourself if this is what you really want.

1. 2/3 of all Americans only qualify for "short" forms. This means a W-2 and maximum tax for the taxpayer and no opportunity to maximize net income with capital gains, businesses, itemized deductions, etc. This type of taxpayer situation is what HRB is really hoping for, as they don't want complications that result in typing up their upper-level expertise staff. You can't save them any money. You can counsel some of these people and convince them they are paying maximum tax, but you rarely get the opportunity. Your tax expertise or CPA expertise is useless unless you can get them out of short forms.

2. The Earned Income Credit crowd. I'm not talking about everyone who gets it. I'm talking about those who rush the HRB offices in January to claim their children before their ex-spouse can get their W-2s. Liars, Cheats, Thieves. People will pay an extra $300-$400 to get a $2000 check the very same night their taxes are prepared instead of waiting 10 days? HRB wants these people and big-time rip-offs. Do you? (Remember, they own the bank that's making this money -- you don't)

3. "Bigger is Better" mentality. They have become so established that the very name of H & R Block is synonymous with income taxes. Advertising. Stores in traffic areas. Customer base of millions who believe they are sticking with the "biggest and best." Can you do this? The poet said "if you build a better mousetrap the world will beat a path to your door." If this was ever true, it no longer is. Without marketing, no one hears about your mousetrap and no one hears about you. Examples on the post by Antichrist(?) show how he markets.

You will get H&R Block clients from time to time. I get a couple every year. But a good many of their clientele is largely not wide-minded enough to accept alternatives, and I would advise not to expect a lot of influx from their customer base.

Yes, there is a lot of discussion on this board from time to time about H&RBlock and Jackson-Hewitt. There are some very good preparers who work for them, but in general much less expertise than that of an established independent preparer. But understand, if you judge their success, remember they are for-profit entities who target the general public and not specialty firms who reduce taxes. Judge their success on their phenomenal advertising messages, profitable financial products, and image. They're not supposed to be the CPA on the corner. They don't even want to be.

[Girard Van De Lay]

referrals

I like what the Antichrist posted about referral fees. How long has he/she been doing taxes out of their house? 550 returns out of a home office is alot. I also run my business out of a home office and the problem is where I live in CA no ourdoor signs to attract new clients.
This year we are sharing an office with a lady that is about to retire not the best location but the rent is right for now. We have always given a referral fee our is 25 dollars per referral and it generates some referrals not a whole lot. Slow and steady growth this year hopefully an explosion!!!

[Skate1968]

Thanks to everyone who responded.

.... such short notice, you can only advertise. Mucho bucks. If you have any existing clients, you must tell them you are looking for more clients.

I told a few existing clients that i was looking for more. Thanks.

Where will you be working from? House > office?

Yes, home office.

Here's my marketing idea.

"Friends don't let friends use H&R Block" (although I'm certain to be sued)

with a copy of the front page of this report: http://www.gao.gov/new.items/d06563t.pdf

Wow! Good article!

Snaggletooth,

Thanks for the well written insightful post. Keep in mind that i have a 'standing job offer' from the IRS. And i'm currently getting work contracted to me from a friend's firm.

I'm just looking how to best make a few bucks over the next few months.

There is a good chance that IRS employment will soon prevent me from preparing returns by June 2007. Knowing that I'm sure that there are many businesses that wouldn't want me. And i wouldn't want to misrepresent myself in such a situation.

Thanks again to everyone.

[BOB W]

So .......

...... sell your clients to your friend.................