More than 250 years ago, Adam Smith argued that societies become wealthier through specialization. When people focus on doing one thing exceptionally well, they create more value that can be exchange with others.

Now let me translate this to our world of private practice today. Some practices choose the path of specialization while others remain generalists. Neither model is objectively better than the other. But each one represents a different value to its clients.

For people who value in-network providers, specializations matters less. In fact, insurances favor standardized services so there's less incentive for an in-network practice to specialize.

On the other hand, private-pay rewards being known for something specific. The clearer your specialization, the easier it is for the right client to understand why they should choose you and pay out-of-pocket.

That something specific must be valuable enough for the client to pay premium. And here's the curveball.

Often, therapists mistake the specific value to the client for their methods of treatment and expertise. Of course these matter, but usually people decide to pay out-of-pocket for other reasons.

The value they actually pay for could be rooted in a desired outcome, confidence, certainty, or privacy. For a private-pay practice owner, understanding the exact value they provide to their ideal clients can be a difference between marketing that attracts clients and marketing that doesn't.

Essentially, a private-pay therapist needs to solve two problems:
1. Deliver excellent care.
2. Convince someone to pay out of pocket.

Unfortunately, you can't always solve the second by focusing on the first. That's why understanding what's valuable to your clients is the most important element of your marketing strategy.

If you'd like to share your thoughts on this, please reply. I read every email.

See you next week,

Avivit

P.S. If you know another therapist building a private-pay practice, feel free to forward them this email. They can subscribe here.