(Transcribed by TurboScribe.ai. Go Unlimited to remove this message.) Welcome to Ask Allison. Y'all ask the questions about having a fun and thriving practice and I answer them. We have a worksheet for you today so you can bring this answer into your life. You can access that at abundancepracticebuilding.com slash links where you'll also be able to ask any questions you have for Ask Allison. If you want more support, we've got some free trainings in there too.
If you can't get enough Ask Allison, check out our YouTube channel for our entire Ask Allison library. Welcome back to Ask Allison. Here's today's question. What are effective ways to make money in private practice instead of starting a group practice? So this is a great question. It's a hot question. People want to know. So first I want to thank TherapyNotes for sponsoring Ask Allison.
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So I'm going to answer your question, but first allow me a little rant. And this rant isn't necessarily for you, though it may apply, but I know it's for many people listening right now. People get very interested in the idea of passive income. There are tons of people online selling their courses to make courses and have magical passive income while you sleep. There is no such thing as passive income. Do I make money while I sleep? Every single night.
But there are four of us working all week long to make that happen. So if you want an alternative stream of income, do it because you absolutely love what you're doing, not just to make money if you don't want to really do this thing, because you will give up. The learning curve is so steep for things like courses and memberships, and it will take time and energy from your practice and or your personal life. And if you aren't excited about it, it's not worth it.
Also, don't venture into alternative income streams if you don't like marketing, because you will be working on your marketing every single day. Can I tell you that I get pissed off by how oversimplified people make this out to be? I feel like it is the opposite of informed consent when people are like, you can make money in your sleep. It's so easy. The absolute most effective way to make more money in private practice without working yourself to the bone is to raise your rates to premium fees.
And I don't know how much you want to make, so let's math this out to make sure that we're talking about the same kind of money. Let's say you currently take insurance, and it reimburses an average of $100 per session, and you see 25 clients a week. You take six weeks off a year. That's $115,000 a year on insurance at $100 a session with 25 clients. Okay, if you switch to premium fees, which will require a solid niche and strong marketing, you'll make significantly more.
So let's look at three different premium fees to see what that could mean for you. All 25 clients a week with six weeks off a year, so we're going to keep that stable and steady. At $200 a session, that's $230,000 a year. At $250 a session, that's $287,500 a year. At $300 a session, it's $345,000 a year. Is that the kind of money you're talking about? Now, if 25 is too many clients for you, do the math to figure out what it could be.
Be very, very clear that 25 clients per week is way less work than creating and marketing a course, managing and marketing a group practice, or any of the other alternative streams of income. That being said, if you're wanting to make millions, you're going to be hard-pressed to do that in a solo practice. I never say never, but I don't think the math will math here. But a tight solo practice with little overhead can definitely yield multiple six figures.
My favorite free setting resource is in my free worksheet today. Make sure that you set it right to accommodate taxes and retirements and vacations. This resource has you covered there. If you like the sound of premium fees, but you don't know how to get private pay clients in the door, we can help you. If you're still building your practice and you want help with this, hop on our socials and DM the word help, and we'll talk you through how to get there.
If you're full or you're nearly full, and you want to make that change to premium fees without losing all your clients in the process, DM me limitless, and we can talk through that. For that free worksheet, DM me the word sheets, and we'll send you that worksheet. All right, have a really great rest of your day. If you're ready for a much easier practice, TherapyNotes is the way to go. Go to therapynotes.com and use the promo code ABUNDANT for two months free. I hope that helped.
If you have questions for Ask Alison, or you want to get your hands on the worksheet for this episode, go to abundancepracticebuilding.com slash links. If you're listening, you probably need some support building your practice. If you're a super newbie, grab our free checklist using the link in the show notes. I'd love for you to follow, rate, and review, but I really want you to share this episode with a therapist friend. Let's help all our colleagues build what they want.