30-Day Tax Firm Challenge: Day 4

How are you progressing on the challenges so far? Are you taking the time to work on them? Are you following a specific track?

Here are your challenges for today…

 

Online Marketing

Install Facebook tracking pixel to your website.
Estimated Time: 5-10 minutes

Have you ever been looking at something on Amazon, and an hour later seen an ad on a news site for the exact same item?

It’s not sorcery. It’s simply one use of cookies on the Internet.

While some people (myself included) take steps to disable this sort of tracking for privacy purposes, the vast majority of people don’t. From a marketing perspective, this invasion of privacy is a beautiful thing.

Think about it: Somebody visits your website, but doesn’t call you or sign up for your lead magnet. In the old days, that was it — there was nothing else you could do. But now, you can show ads to that specific person on other websites in order to get them back to your website and into your marketing funnel. Magic!

The easiest way to do this is with the Facebook ad platform. Simply go to https://www.facebook.com/business and create an ad account. Then select “Pixels” from the menu in the upper left and copy and paste your tracking pixel code into the header of your website. If you’re using a WordPress site, there are plugins that help make this easy. If your site is managed by another company, contact them for help in doing this.

Once you have this installed, Facebook will match visitors to your site to the person’s Facebook account and you can show customized ads to just those people — reducing your ad cost and increasing the click quality from those paid ads. Even if you have no plans to run these types of retargeting ads right now, install the tracking pixel anyway, so that the data is there for you when you’re ready to use it.

 

Offline Marketing

Contact 5 local organizations/companies to ask about presenting a Tax Talk.
Estimated Time: 30-60 minutes

Tax Talks are a simple, cheap, and effective way to get yourself in front of targeted prospects. All you have to do is find businesses and organizations that will let you come in and speak for anywhere from 5 minutes to an hour about a specific tax topic, and ask people to sign up for consultations with you right there on the spot.

Organizations of all kinds are always looking for speakers. Civic organizations like Rotary, Lions, and Kiwanis often need speakers. Business organizations like your Chamber of Commerce, Homebuilder’s Associations, and union halls also regularly accepted speakers. Real estate brokerage sales meetings, mortgage officers, banks, credit unions, and more all need or welcome occasional speakers at meetings.

The key to approaching these organizations is to tailor your Tax Talk to their needs. For example, if you have 10 minutes to speak at a Teamsters meeting, you’ll discuss 2106 expenses, moving expenses, and the like. If you were speaking at a real estate sales meeting, you’ll talk about estimated taxes, Schedule C expenses, real estate professional qualification, etc.

Your challenge for today is to simply reach out via phone or email to five local organizations or businesses to whom you could present tax talks. Simply inquire if they ever have a need for speakers, and that you would like to present some information to their members/employees about specific tax topics that are applicable to them.

 

Practice Management

Calculate a rough estimate of your Lifetime Client Value (LCV).
Estimated Time: 15-30 minutes

Knowing the revenue value of your clientele over a long period of time is one of the most important metrics you can use to track the health of your business. LCV is a measure of how much money a client spends with your business over the course of a typical business relationship.

For example, my average tax resolution client paid me about $5,500 in representation fees. Because I chose not to offer other services, I didn’t have an LCV-friendly business model. As such, the average LCV of a client was just the $5,500.

If I had chosen to offer other services, and retain those clients for annual tax return preparation, tax planning, payroll, and bookkeeping, the LCV would have been a lot higher. For example, let’s assume an 1120S, one 1040, 10 employees, and monthly bookkeeping. This represents an additional $5,000 to $7,000 per year in revenue. Assuming the average clients would stay with me for 7 years, that’s an LCV of between $40,000 and $55,000 over the life of that business relationship.

LCV can be calculated several ways. The easiest is to simply take your 2015 gross receipts and divide it by your total number of clients to find annual client revenue, and then multiply that by the average number of years a client stays with you.

To get more sophisticated, break your clients into logical groups, such as multi-service business customers and 1040-only individual clients. Then calculate your LCV for each group.

Knowing your LCV is important because it creates a basis for making marketing budgeting decisions. You’ll discover that certain client groups are simply worth far more money than others, which makes it easier to see which services and niches you should focus your marketing efforts on. Knowing how much they spend also gives you perspective on how much you should be willing to spend to acquire the client in the first place.

Comments on 30-Day Tax Firm Challenge: Day 4

  1. William Gonzalez says:

    I’m unable to get to Days 2 and 3 of the challenge. Is there a way to email them? Thanks.

  2. Jassen says:

    Days 2 and 3 were never posted to the blog. They were sent via email only at the time the 30-day challenge was running.

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