Ihave a website that generates 2-3 clients per week. Although I am a CTA I do not want these clients and I tell them to find a local advisor.
I am thinking of ways I could sell these clients.
I know solicitors buy clients from firms like injury lawyers for you, national accident helpline etc. They also buy clients from other claims farmers. They pay a set fee when they accept the clients.
Is there anyway to replicate this system for tax clients?
I am thinking about asking for the first year's fee and then the local advisor takes the money for the rest.
Does anyone have any ideas or experience of this?
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Replies (7)
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Clients or leads?
It sounds as though you are selling warm leads, not clients. If so, the market is pretty much saturated and the value in a warm lead would not be anywhere close to the first year's fee.
Leads or clients
Normally when an accounting practice gets sold, the price is 1 to 1.5 times the gross recurring fees.
In this situation, these would command a lower price as they appear to be "leads" rather than existing clients of yours. It's still possible to sell and the value depends on the worth to the buyer as always. If the person buying the leads converts 1 in every 2 leads, then they would probably expect to pay 50% of the first years fees from this potential client.
We're launching a website soon which will have a section where it will be possible to list those unwanted leads and where other practices looking for them can find them.
Andy
Judging by the conversations I have had, I would estimate 90% of the leads I have would be taken on. This is roughly the same rate as claims farmers. I do know that the law has tightened up on this now, and claims farmers as such do not exist. I believe the referal has to be via "An alternative business structure", which I assume means a partnership.
Accountancymarket
Given that I get nothing for the client at the moment as I tell them to find a local advisor 50% would suit me fine. The clients I would refer would be quality clients in terms of fees and it seems I am missing a trick or two.
Maths wizard
Their details are not being sold on at the moment, and I would naturally disclose this when and if I went ahead wih it. I will speak to the CTA on how to make disclosures.
Can you get leads from the 'other side'?
hayley cropper?
Rather an odd choice of username for a new member, seeing as she passed away on Monday. I guess you are a Corries fan?