How to Create Multiple Revenue Streams as a Therapist
Most private practice therapists only have one income source – their private practice session rates, which is considered active income. This means that most counselors' income for therapists is based on the number of therapy sessions they conduct per year and the average cost of a psychotherapy session. There are only two ways to generate income – see more clients or increase your average session rate. However, there are a number of other revenue streams for therapists that can help practice owners increase their income. Wouldn't it be great to have multiple streams of income so that you're not reliant on just your session rates? With the right strategies, you can easily help therapists build a steady stream of income from a variety of sources, whether in solo or group practice, and earn enough money not to worry about your next sick day.
What is the difference between active income streams and passive income streams?
Active income streams are those that require your time and energy to generate revenue. This is the typical income model for most mental health professionals, including private practice therapists. For example, if you're a successful private practice counselor who only earns income from your session rates, then you have an active income stream. This is because you have to be working in order to see clients and earn money. A few of the additional revenue streams we describe below are also active revenue streams because you must trade your time to generate income.
Passive income streams are those that don't require your time and energy to generate revenue. For example, if you create an online course that people can buy and access at any time, then you have a passive income stream. This is because you don't have to be working as a business owner in order to make money - people can buy your course and access it whenever they want.
Deciding between active and passive income streams is a question that many individuals grapple with when seeking financial security. Active income involves exchanging time and effort for immediate earnings, such as in traditional employment or direct client services. On the other hand, passive income is generated with less ongoing involvement, allowing for earnings that continue even when you're not actively working.
The answer to whether you should earn active or passive income depends on your goals, circumstances, and preferences.
Multiple revenue streams in building a successful private practice
Many successful therapists are in private practice or work for themselves. Owning your own private practice therapist comes with many perks, including being your own boss. This is a favorable option because you have more control over your income and how much you make. You can choose to see more or fewer clients, and you can also increase your rates as you see fit within the scope of your private practice.
However, there are downsides to private practice too. For one, you are solely responsible for your income. This means that if you do not see patients, you do not get paid. Most of the time, this isn't problematic since most therapists have incredible work ethics (maybe too good, some say!) However, it can be difficult to take time off or go on vacation when you know that every day you're not working is a day you're not earning money. Additionally, therapists do not get paid for the time spent using business and marketing skills to build successful private practices. You can also run into financial concerns if you are unable to work due to illness, natural disasters, or other commitments. These situations are mostly unforeseen, making it difficult for therapists to plan financially for a sustainable private practice as small business owners.
Another downside to private practice building is that your income is limited by the number of new clients you can see. While this number can vary from therapist to therapist, the average full-time therapist sees between 20-30 clients per week. Every therapist can only physically and mentally see so many people in a day without running the risk of losing the quality of care or burning out. This is true even with a caseload full of your ideal clients. Thankfully, multiple revenue streams in private practice do not require one-on-one client work in exchange for money. In fact, some revenue streams become so passive that you can make money solely off of some online marketing and a therapist website!
So, how can you have multiple streams of revenue if you already have a successful private practice? The answer is simple - get creative! There are a number of ways to bring in additional income, even if you already see a full caseload of your ideal client. Here are a few income ideas...
Multiple revenue streams for therapists to active financial security
Consulting Services - Active Income Offering consulting services involves providing personalized advice, guidance, and solutions to clients based on your expertise. This can be done through one-on-one sessions, group sessions, or workshops. Consulting allows you to directly apply your skills and knowledge to help clients navigate challenges and achieve their goals. It's a form of active income because it involves direct engagement and time spent with clients.
Teaching - Active Income Teaching involves leading workshops, training sessions, or courses for individuals, groups, or organizations. This can take the form of in-person classes or online webinars. Teaching allows you to share your expertise in a structured manner, helping participants acquire new skills and knowledge. Like consulting, teaching is considered active income as it requires your direct involvement and time.
Online Courses - Passive Income Creating and selling online courses allows you to package your expertise into a comprehensive learning experience. Once you've developed and marketed the course, it can generate passive income as participants enroll and access the content at their own pace. While creating the course requires effort upfront, the potential for ongoing income without constant involvement makes it a form of passive income.
Digital Products - Passive Income Digital products such as e-books, workbooks, templates, or resources can be sold repeatedly without ongoing effort. These products provide value to your audience and can be marketed through your online platforms. Designing and creating the products requires initial investment, but once they're available for purchase, they can generate income without continuous involvement.
Speaking Engagements - Active Income Speaking engagements involve presenting at conferences, workshops, seminars, or events. Sharing your expertise as a speaker allows you to engage with a broader audience, showcase your knowledge, and establish your authority. While it's a form of active income because it requires your participation during the event, speaking engagements can lead to networking opportunities and potential referrals.
Affiliate Sales - Passive Income Affiliate sales involve promoting products or services from other companies through affiliate programs. When your audience makes a purchase through your unique affiliate link, you earn a commission. While affiliate marketing requires initial promotion and content creation, the potential for ongoing income comes from the purchases made by your audience.
Writing Books - Passive Income Writing and publishing books related to mental health allows you to share your expertise on a larger scale. While the process of writing and publishing requires substantial effort upfront, books can generate passive income through sales over the long term.
In summary, active income streams require your direct participation to generate revenue, while passive income streams allow you to earn income with less ongoing involvement. Balancing both types of income streams can provide financial security and flexibility in your mental health practice.
How to offer consulting services as a therapist
If you're a therapist in private practice, you may be wondering how you can offer consulting services. Even though you finished graduate school and own your own therapy practice, other mental health professionals may feel like imposters when considering becoming a consultant. However, consulting can be a great way to make extra money without having to see more ideal clients. When you offer consulting services, you are essentially offering your expertise to another individual or organization.
Some examples of common consulting fields for private practice therapists include:
Work with a new therapist as a private practice business consultant
Facilitate an in-depth training for a school district on how to recognize and respond to signs of abuse
Consult with small business organizations on how to build a successful private practice
Provide online marketing consultation to other small businesses or successful private practices
The first step in offering consulting services is to identify your area of expertise. What do you know that others may not? What could you share with others that would be beneficial? Once you've identified your niche, the next step is to reach out to potential clients. This could be done by sending a cold email or calling organizations that you think could benefit from your services. You can also create a therapy website or social media profile that outlines your consulting services.
When you're starting out, it's important to set realistic expectations. Consultant practices do not build as quickly. Don't expect to make six figures quickly from offering consulting because it can take many months to build consulting clients.
How to find teaching jobs as a therapist
If you're interested in pursuing a teaching job, there are a few things you should keep in mind. First, you'll need to have a minimum of a master's degree in order to teach at most colleges and universities. This is not usually an issue for therapists! Additionally, you'll likely need to have education and experience in the mental health field. Usually, the job listing will state the minimum requirements of education and experience.
Additionally, adjunct teaching jobs are usually easier to secure than full-time teaching positions. This is because adjunct positions are typically filled by people who already have full-time jobs, so they are not as picky about the position. Additionally, adjuncts usually only need to teach for a few hours a week, so they have more time to dedicate to their full-time job. Finally, most adjuncts are not looking for benefits like health insurance or retirement plans, so they are less expensive for colleges and universities to hire. As a result, adjunct positions are often seen as a way to ease into the world of teaching. While there are some drawbacks to being an adjunct, such as lower pay and fewer opportunities for career advancement, the flexibility and abundance of positions make adjuncting a popular choice for many therapists in private practice.
It is also important to think outside the box when looking for teaching positions. Many healing professionals have diverse backgrounds and are well-qualified to teach the business side of practice development, including how to create a counseling private practice business plan, marketing for therapists, and other growth strategies. Once you've found a few potential teaching positions, the next step is to put together a resume and cover letter that outlines your experience and qualifications. You may not have professionally taught before, but that does not mean that you do not have the skills. As a working therapist, it is important to highlight your clinical experience, as well as any program or large group facilitation. Program and group facilitation are both excellent examples of your ability to lead and engage a group of people. These experiences are often overlooked because therapists may not consider them as "teaching."
When you're interviewing for teaching jobs, be prepared to discuss your teaching philosophy and how you would approach the classroom. Most importantly, remember that you are interviewing for a job that is about more than just teaching content. Schools are also looking for someone who is engaging, supportive, and has excellent communication skills - many of which are also skills of therapists!
How to create an online course as a therapist
Creating an online course is a great way to make extra money as a therapist. Not only can you earn money from the sale of the course, but you can also use the course to market your private practice or other services.
The first step in creating an online course is to decide what the course will be about. What topics would you like to cover? What do you think people would be willing to pay for? Once you've decided on a topic, the next step is to outline the content of the course. What will people learn from taking the course? How can you make the course engaging and interactive?
Also, consider your strengths and interests when selecting a topic for your course. Do you love building successful private practices? Consider creating a course on private practice building to supplement a consulting practice. Or perhaps you excel at motivational interviewing? Consider creating a course for leading business coaches about how to use motivational interviewing skills.
Once you have the content of the course figured out, the next step is to start filming. There are many filming options on a shoestring budget. You can use a simple webcam or even your smartphone to film the course. Just make sure that the lighting is good and that you have a quiet space to film in. Once you've filmed all of the content for the course, the next step is to edit it into concise and easy-to-understand segments.
Once the course is edited, the next step is to upload it to a platform like Udemy or Teachable. These platforms make it easy to sell your course and handle all of the payment processing for you. Once your course is live, start marketing it! You can use social media, podcast or youtube channel, email marketing, or even traditional advertising methods like flyers and posters.
How to create a digital product as a therapist
Creating a digital product is another great way to make extra money as a therapist. Digital products are items that can be downloaded and used electronically, such as e-books, PDFs, audio files, or software.
The first step in creating a digital product is to decide what the product will be about. What topics would you like to cover? Many therapists have a niche or specialty in their clinical practice. Some focus on anxiety, some on depression, and others on more specific mental health disorders like PTSD. Even within those categories, there are different approaches and techniques that can be used. Additionally, many therapists sell private practice resources as digital products they used along their private practice journey. Overall, therapists have a lot to offer in terms of digital products.
Next, you will need to decide who the audience will be. Will it be for clients or therapists? Therapists in private practice can use their existing skills and knowledge to create digital products for other therapists, such as e-books on clinical topics or PDFs with therapy worksheets. Alternatively, you could create a digital product for your clients, such as an audio relaxation recording or a PDF guide to coping with anxiety.
Once you've decided on a topic and audience, the next step is to create the content for the product. This can be done in a variety of ways, depending on the product. For example, if you're creating an e-book, you will need to write the book and format it into a PDF. If you're creating an audio file, you will need to record it and export it as an MP3.
Once the content for the product is created, the next step is to upload it to a sales platform like Etsy, ThriveCart, Squarespace or Gumroad. These platforms will provide you with a link that you can share with people who want to buy the mental health product. You can promote the link on social media, on your website, or through email marketing.
Speaking Engagements for Therapists
Another way that therapists can make extra money is by doing speaking engagements or public speaking. This can involve giving talks or workshops at local events or even being a keynote speaker at a conference. For example, some therapists offer private practice building seminars at larger mental health conferences.
The first step in getting started with speaking engagements as a mental health professional is to put together a portfolio of your previous work. This can include blog posts, articles, videos, or even audio recordings. You can also include information about any previous talks or workshops that you have given. Once you have a portfolio of your work, the next step is to start marketing yourself as a speaker.
There are a few different ways to do this. One option is to contact local organizations or groups who might be interested in having you speak. You can start small and work your way up to larger organizations. Another option is to submit proposals to speak at conferences. This can be done through professional organizations and conference websites. Finally, you can also contact event planners directly and inquire about speaking opportunities. Many event planners are always looking for new speakers, so this is a great way to get your foot in the door.
Once you start securing these engagements, the next step is to start promoting them. You can use social media, email marketing, or traditional advertising methods like flyers and posters. The most important thing is to let people know when and where you'll be speaking, so they can decide if they want to attend. The more audience you attract to your speaking events, the more you can charge as a speaker!
How Therapists Can Earn Money as Affiliates
Many therapists use social media to create additional income streams, so why not you?! As a therapist, you can use social media to earn money in a few different ways. One option is to use your audience to generate sales, or more income, for other businesses. This involves working with brands to promote their products or services on your social media channels. You can also become an affiliate, which involves promoting products or services from other businesses and earning a commission on any sales you generate.
To become an affiliate, the first step is to grow your audience, usually through social media. This can be done by posting interesting and engaging content, using relevant hashtags, and interacting with other users. Growing your social media usually takes a lot of time, although there are a few shortcuts you can take. Once you have an engaged following, you can start reaching out to brands and inquire about working with them.
The next step to generate passive income for therapists is to sign up for an affiliate program. This can usually be done through the website of the business you want to promote. Once you're approved for the program, you'll be given a unique affiliate link to share with people who are interested in the product or service. When someone clicks on your link and makes a purchase, you'll earn a commission on the sale.
You can promote your affiliate links on your Instagram account, other social media, on your website, or through email marketing. The most important thing is to make sure that you're promoting products or services that would be relevant and interesting to your audience. Otherwise, people will simply tune out your promotions, and you won't make any sales or additional money.
Multiple Stream of Income: Private Practice Mental Health Clinicians
Creating multiple income streams as a mental health professional may initially feel intimidating. But compared to real estate investing or other more traditional ways to generate income, therapists can build wealth without large amounts of capital or trading time for income. Additionally, these additional streams do not require therapists to see more therapy clients or invest in more training to learn new therapy skills.
Therapists in private practice can use their existing skills and knowledge to create an online course, physical products, or other passive income streams. Services such as public speaking or teaching can increase your income and make more money in the same amount of time as doing private practice therapy work. Overall, additional income streams are never a bad idea when you consider the active income earning of private practice income.
Oct 3, 2022
