Therapists: We Need to Talk About Money
Let's talk money. It's not always the most comfortable topic, but when it comes to running a therapy practice, setting your fees is crucial.
We've all heard the advice: "Look at the rates in your area, consider your experience and certifications, and set your fees accordingly."
This approach, based on the "usual and customary" rates, seems straightforward. It also gives you a benchmark, a place to start.
But have you ever stopped to wonder where these "usual and customary" standards came from?
Who Sets the “Usual & Customary” Anyway?
No one in particular decided on the "first fees." It likely stemmed from a combination of factors and historical practices. Add to that the tendency to avoid rate increases over time. When therapists set fees solely based on what others charge, it creates a cycle of undervaluing ourselves. We end up basing our worth on what others are charging, not what we actually need to earn a good living. That's a recipe for burnout and resentment.
Let's shift the conversation from "what everyone else charges" to "what I need to thrive as a therapist."
Shifting the Focus to Time and Energy Based Fees
Let's talk about time and energy based fees. This approach is all about setting your fees based on what you need as a therapist. It considers your expertise, the effort you put into each session, your current life circumstances, and the positive change you facilitate in your clients' lives.
Maybe you have a specialized area of focus that requires ongoing training and certifications. Perhaps you have a unique approach that yields incredible results for your clients. You could be married and your spouse's income pays well, or a single mom with an extra needs child. All factors matter.
There's ongoing education, professional development, maintaining a comfortable workspace, not to mention the importance of your own well-being. All these factors contribute to your ability to show up fully for your clients, yourself, and your family, and they deserve to be reflected in your fees.
Here are some practical tips to help you move towards time and energy based fee setting:
Calculate your operational costs: List all your business expenses. This includes rent, insurance, software subscriptions, continuing education, and anything else you need to keep your practice running smoothly.
Factor in your desired income: Consider your desired salary, benefits, and the lifestyle you want to maintain.
Consider your experience and expertise: Your value as a therapist goes beyond years spent in practice. Acknowledge any specialized skills, certifications, or training that sets you apart.
Assess your life needs and circumstances: What boundaries and limitations does your current life put on your practice and energy? Consider what your week needs to look like so you aren't ending each day as a pile of irritable mush.
Research market rates: Get a general sense of therapy costs in your area, but don't let this dictate your final price.
Set Your Rates with Confidence: You've done the work, you're worth it. Believe in the value you provide and communicate your fees clearly and confidently to potential clients.
I get it – it's easier said than done. So often I have been asked how I got to charge a premium fee of $350+ per session. My practice didn't start like that. There's fear of being judged or losing clients. I made plenty of mistakes and learned a lot along the way. But I took control of my income and made the changes needed to reach my goals.
This doesn’t mean everyone needs to charge a premium. The idea is to move away from a one-size-fits-all approach. Therapists with varying experience levels, specialties, and circumstances can set fees that accurately reflect their unique offerings (and privileges). Clients who truly value your work will understand and respect your pricing. And those who don't? Well, they're probably not the right fit for your practice anyway.
Imagine if every therapist embraced this approach. If everyone set fees based on their needs and the value they provide, wouldn't the "usual and customary" rates naturally rise? This shift in perspective would send a powerful message:
Mental health care deserves fair compensation.
Not only would it benefit individual practitioners, but it would elevate the entire profession, showcasing the invaluable service therapists provide.
Ultimately, the goal is to create thriving, sustainable therapy practices. By setting fees that reflect the true cost of running a practice – from your professional development to the quality of your energy – you build a solid foundation for your work. This translates into top-quality care for your clients while ensuring your own growth and longevity in the field.
Now, if you need further support in this process due to feeling conflicted, confused, or unsure of what the best choice is for you and your clients, I'm here to help. As a business coach for therapists, I offer individualized support and guidance for just this type of situation. Together, we can create a fee structure that works for you both financially and clinically. Are you ready?
Apply to Work with Me
Learn More About Me and My Courses
Focus on setting a fee that works for you and your needs!
About the Author
Introducing Audrey Schoen, LMFT! As a compassionate business consultant and expert in setting financial boundaries, Audrey is here to support therapists who are feeling scared about setting their fees. With her extensive experience as a successful practice owner and a parent of twins, Audrey understands the delicate balance between financial sustainability, client care, and self-care. She specializes in helping therapists establish healthy financial boundaries and navigate client relationships with confidence. Audrey provides actionable steps and empowering insights to help you make informed decisions, guiding you towards building a thriving and fulfilling practice that prioritizes both financial success and client well-being. Take the leap towards setting your fees with Audrey by your side, and embark on an exciting journey in private practice!
