How Tax Firms Acquire New Tax Resolution Clients – Survey ......2021/08/05  · Monetate Social...

How Tax Firms Acquire New Tax Resolution Clients –

Survey Results

Sandi Smith Leyva, CPA

Handout

About today’s speaker

Sandi Leyva, CPA

• Practice management and technology trainer since 1993

• Digital marketing: websites, social media, newsletters

About today’s speaker

Attorney Eric Green

• Practicing tax attorney• Author• Speaker• Coach

Learning Bullets• List the five top sources of new tax resolution clients• Describe the differences in marketing for tax

resolution clients versus regular tax clients• Identify several things that don’t work in acquiring tax

resolution clients

Learning Bullets• Name seven natural advantages to marketing for tax

resolution clients• Discuss at least two characteristics about a typical tax

practice’s tax resolution division• Discuss how to get started in tax resolution

Type of Tax Resolution Services

77.05%

90.98%96.31%

64.75%71.72%

2.87%11.89%

AuditRepresentation

Services forNonfilers

Services forTaxpayers withBack Taxes Due

(OIC, InstallmentPlans, etc)

Innocent Spouse Back PayrollTaxes (Trust,responsibleperson, etc.)

Criminal Other (pleasespecify)

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

What tax resolution/representation/controversy services do you offer?

75.41%

11.89%6.15% 6.56%

Tax resolution revenueis less than 25 percent

of my total annualrevenue

Tax resolution revenueis 25-50 percent of mytotal annual revenue

Tax resolution revenueis 50-75 percent of mytotal annual revenue

Tax resolution revenueis more than 75

percent of my totalannual revenue

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

In the past year, what percentage of overall revenue did your tax resolution revenue make up?

Responses

47.93%

52.07%

Less than 3 years ago 3 years ago or longer45.00%

46.00%

47.00%

48.00%

49.00%

50.00%

51.00%

52.00%

53.00%

When was the tax resolution service line started in your firm?

4.51%

71.72%

19.26%

1.23% 0.41% 0.82% 2.05%

I don’t know Less than$5,000

$5,000 -$10,000

$10,000 -$20,000

$20,000 -$40,000

More than$40,000

I prefer not tosay

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

On average, how much revenue do you earn per tax resolution client?

Responses

Tax Rep Network Member Survey

• 2018 Survey of TRN Members• Nonfilers: $17,200• Payroll Tax Cases: $14,700• Offer-in-Compromise: $7,800

Tax Rep Network Member Survey

• 4 years of bookkeeping @ $150/hour: $7,200• 4 years of tax returns @ $350: $1,400• Offer with IRS: $7,800• IA with state: $2,500• Total: $18,900

Top Five Sources of New Tax Resolution Clients

Top 5 Ways to Get TR ClientsTax Resolution

1. Referrals (89% of participants)2. Firm website (39%)3. Social media (20%)4. Networking groups (17%)5. Paid Ads (15%)

Referrals1. Clients (70%)2. Other professionals (34%)3. Accountants (33%)4. Attorneys (32%)

Ads

1. Google (10%)2. Facebook (8%)3. Radio (7%)4. Newspaper (6%)

0.41%1.23%2.05%2.46%2.87%

4.92%5.74%6.56%7.38%

11.07%11.07%

14.75%15.98%17.21%

20.49%39.34%

89.34%

Publicity through award(s)Press mentions or press release publicity

Recorded video, podcasts, or webcastsNewspaper, magazine, or online news column or article or guest…

Live video or live webinarsPro bono work, serving on nonprofit boards and the like

Direct mail to cold listSpeaking engagements, class instructor via a university, adult…

Email, newsletter, or opt-in campaignsDirect mail to warm list

I don’t know how they found mePaid Ads of any kind (radio, Google, TV, Newspaper, etc.)

Other (please specify)Networking groups like the Chamber, BNI, etc.

Social mediaYour firm website (non-advertising)

Referrals from any source

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

Sources

70.76%

34.32% 33.47% 31.78%

14.41%7.20% 6.78% 5.93% 4.66% 4.24%

Referrals fromclients

Referrals fromother

professionals

Referrals fromaccountants

Referrals fromattorneys

Referrals frommy networkinggroups or my

generalnetwork

Referrals frombankers

I have notgained taxresolution

clients throughreferrals

Other (pleasespecify)

I don’t know Referrals fromLinkedIn

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Referrals

10.42%

7.81%6.77% 6.25% 5.73%

3.65%2.08% 2.08% 1.56% 1.04% 0.52%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%Paid Ads

Interdependent Channels

• Some new clients may have heard about you in multiple ways• Some channels support or feed into others

– Social should feed into SEO (search engine optimization) and your website– Directory listings help SEO as well– Speaking engagements feed referrals

But Wait…. What’s NOT Working?

29.94%28.14%

25.75% 24.55%

20.96%

13.77% 13.17% 12.57% 12.57%10.18% 9.58% 8.38% 8.38%

5.39% 4.19% 3.59% 2.40%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Check which sources you have tried BUT HAVE NOT WORKED to get you new tax resolution clients: (check all applicable boxes)

So What Gives?

• You’re not going deep enough with the channel to make it work.• It could be:

– Your skill level– Your confidence– Your shyness– Your lack of time invested– Your lack of money invested– Your vendor if you outsource “One man's trash

is another man's treasure”– English Proverb

Are There Differences Between Tax Prep and Tax Resolution Marketing?

Not Really!

• Tax Resolution marketers use more ads.

Confidence in Marketing Skills & Results

Skills Confidence

• Accountants are brilliant and numbers, deadlines, taxes, and accounting rules. But they are not known for their marketing prowess, even though it’s an important business skill. Here’s how accountants felt about their marketing skills.

Satisfaction

• On a scale of 1-11, 11 being extremely satisfied, how satisfied do you feel about your current tax resolution marketing efforts? (Marketing for Tax Resolution ONLY, please)

😪😪3.62

50

34 33

24 24

16

9 104

7 7

0

10

20

30

40

50

60

1 2 3 4 5 6 7 8 9 10 11

Satisfaction Level

7 Natural Advantages to Marketing Tax Res

1. The IRS sets deadlines, so clients have a built-in sense of urgency.2. There is a great deal of suffering and worry on the client’s behalf.3. The fines and levies just grow and grow over time, increasing the pain

for the client.4. There is a monopoly on the work: you must be an EA, CPA, or attorney.5. The demand exceeds the supply of qualified practitioners.6. Many practitioners dislike the work, creating potential referral sources.7. There is huge potential to make a difference in the client’s life.

Underutilized Opportunities

Tax Pros Perceptions and Myths

• Feeling that tax res is a “step-child” service• Feeling that the clients are somehow undeserving of

representation• Feeling the clients can’t pay• Your own attitude may be holding you back from

– A gold mine– Solving the busy season time crunch– Making a difference in people’s lives– Really being appreciated

Underutilized Marketing Methods

• Email marketing– You may send a newsletter but you don’t pitch

• You’ve earned the right to pitch!– A good lead magnet can bring in new emails that you can warm up

• A lead magnet is a free item of value you give someone who gives you their email address and permission to email them.

83 percent of B2B companies use e-newsletters as part of their content marketing program.

Versus 8 percent of accounting firms

73 percent of millennials prefer communications from businesses

to come via email.

>59% of marketers say email is their biggest source of ROI.

Email marketing is the king of the marketing kingdom

with a 4400% ROI and $44 for every $1 spent.

You are 6x more likely to get a click-through from an email campaign than you are from a

tweet.- Campaign Monitor

Email is 40 times more effective at acquiring new customers than Facebook or Twitter. – McKinsey

Email marketing drives more conversions than any other marketing channel,

including search and social. – Monetate

Social Media

Social Media

• We asked accountants what social media platform they have an active presence on.

• 20% of firms get clients from social media• 24% of firms say it doesn’t work

Vastly Under-Utilized

• YouTube• Instagram

The Concept of a Funnel

Developing a Funnel

• Not everyone uses the phone these days• Not everyone is ready to buy• Develop a funnel to nurture prospects

1. Attract leads through social media, ads, blogging, SEO2. Offer a free item (lead magnet)3. Capture their contact info4. Nurture through email, blogging, questionnaires, webinars5. Once they contact you, start them on your sales cycle

New Client Acquisition Costs

Cost to Hire One New Client

• How much does it cost to acquire one new client in your firm? Not everyone knew. Here are the results of that question.

42.74%

30.71%

18.67%

5.39%2.07%

0.00% 0.41%

I don’t know Less than $100 $101 - $500 $501 - $1,000 $1,001 - $3,000 $3,000 -$10,000

More than$10,000

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

Approximately how much does it cost you to acquire one new client?

Computing CAC

• Total marketing costs for year / Total new clients acquired during year = CAC

Number of New Clients Needed Each Year

Client Acquisition Volume

• How many clients do tax pros want to acquire over the next year? The most common answer was 1-6. 77% brought in 1-18.

46.94%

30.20%

13.47%

8.57%

0.82%

1-6 7-18 19-48 49-240 More than 2400.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

In the past 3 years, how many new tax resolution clients have you brought in?

Responses

Demographic Data

Most of the firms that answered this survey were sole practitioners.

56.97%

38.93%

2.87% 1.23%

Solo Practitioner Firm of 2-10 Persons Firm of 11-50 Persons Firm of 50 or MorePersons

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

What size is your firm overall, including all revenue sources?

41.80%

8.61%

51.64%

5.74%

CPA Attorney Enrolled Agent None of these0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

What professional certifications do you have re: tax representation?

Responses

Summary

• Tax firms are missing out on higher ROI with tax resolution clients• They are easier to market to • Few firms “like” these clients which is better for you• Consider focusing on this revenue stream rather than taking what

comes at you• You the tax pro will need to acquire additional tax skills to serve

this client best

How to Get Started in Tax Resolution

Tax Rep Network

• Membership-based organization, with Silver, Gold, and Platinum levels– Tax resolution training, seminars, and workshops – Templates, forms, handouts, sample marketing pieces, and so much

more– 3 live webinars per month plus library

• For CPAs, EAs, attorneys, and tax professionals who want to build their tax representation practices.

• Led by Attorney and tax controversy expert Eric Green and 6 other coaches

Rave Reviews

“There is no tax problem that Eric hasn't already handled at least 50 times, at least I don't think so. If you need someone that knows the ins and out of the IRS procedures- Eric is the guy. Eric will not only have the answer to any problem you may have, but he also will have Plan B and Plan C. You can't go wrong with Eric.” – Marvin Mann

• See more testimonials: https://taxrepllc.com/testimonials/

Rave Reviews

“Eric's expertise in tax resolution and the support he provides through his TRN membership has provided so much valuable information and tools needed to run my business. As well, I love that he invites others in the industry to provide much needed information that could have otherwise been overlooked in being proficient in this field. I always look forward to learning tax debt resolution from him and his team. These guys really know their stuff!” – Gail Miller

• See more testimonials: https://taxrepllc.com/testimonials/

Find out more about Gold membership (and get $100 off for the 1st 3 months):

https://taxrepllc.com/trn-gold-promo/