Welcome therapists and group practice owners! I’m Nicole McCance, a psychologist turned business coach for therapists. I know exactly what it’s like to start out simply wanting to help people, only to one day realize “oh, I accidentally became a business owner.” Whether you planned to build a group practice from day one or found yourself there thanks to a growing waitlist, I’m so glad you’re here!
I want to talk about something that stirs up a lot of emotion in therapist interviews and Facebook groups alike: Keeping 40% of the session fee.
P.S. Not a huge fan of reading blogs? (I’m more of a podcast girl myself) You can listen to my podcast episode all about this topic by clicking here or by watching my YouTube video below!
How Much of the Session Fee Should Group Practice Owners Keep?
Yep, I said it. You should be keeping 40%.
And if that made you squirm a little, stay with me.
The truth is that you didn’t sign up for this field thinking you’d become a CEO. And yet, here you are! Balancing being a therapist AND a business owner (something they totally don’t teach us in grad school). And for many of us in the helping profession, there’s a whole lot of guilt and hesitation around money.
So let me be crystal clear… You are allowed to make money!
And with the right business systems for therapy practices, you can build something sustainable, ethical, and wildly impactful, all without burning out or underpaying yourself.
Now you’re probably asking, “Ok, sure.. But why 40%?” Let me explain.
When you pay a fully licensed clinician 60% of the session fee, you should be keeping the other 40%. Period. (And yes, there are exceptions, like highly specialized psychologists – but for the average clinician, 60/40 is the sweet spot.)
Here’s where I want you to really pay attention: What are you actually providing for that 40%?
Because when you break it all down, it’s not just rent and a few tissues. It’s a business in a box!
What Your Therapists Get for Their 60%
This list is very important. In fact, I want you to walk into interviews with this written out so you can speak to it with clarity and confidence. Here’s what you’re offering:
- A fully furnished office (you cover rent, utilities, furniture, supplies.. even Kleenex!)
- All admin and operations support
- A team atmosphere and the power of community
- A steady stream of client referrals through strategic marketing
- website, directories, SEO, headshots, Psychology Today profiles, all handled by you (Hot Tip: Click here to get my free Psychology Today profile template from Instagram!)
- Access to premium practice management software like JaneApp, where you cover the cost (Hot Tip: Click here to try JaneApp FREE for a month!)
- Covered credit card fees
- Optional peer consultation and team meetings
- Monthly trainings to build clinical skills and community
This is what allows your team to do what they love. See clients, then go home.
When you look at everything as a whole, it’s clear you’re not just providing a job. You’re providing a home. And that 40% goes into building and maintaining all of it!
Increasing Your Profit Margin
Most business owners outside of our industry can’t increase their profit margins without cutting quality.
But the good news is that you can ethically increase your profit margin simply by supervising!
Hiring pre-licensed clinicians (50% split) or practicum students (you do not need to pay students in provinces and states where allowed) gives you the ability to boost your margin without reducing quality. In fact, many clients love the idea of a second set of eyes on their case. It feels like a bonus for them!
And when your business systems for therapy practices are dialed in, like onboarding, supervision, communication, and operations, this becomes scalable.
It means you’re not starting from scratch with every new hire and you’re not reinventing the wheel every time someone asks a question or needs support. You have systems that create consistency, reduce stress, and give your time back! All of this allows you to grow with confidence, knowing your foundation can actually support it.
There’s No Ceiling in Group Practice
I want you to remember this. There’s no ceiling in group practice.
When things get tight, you always have the option to see a few clients to boost your cash flow. That’s a gift! Most businesses can’t do that.
But what makes group practice truly special is there is no ceiling. Unlike solo practice, where your time and energy cap your income, group practice can grow as big as your systems and vision allow.
THAT is where freedom lives!
So whether you’re just getting started or scaling past 7-figures, I want you to remember that keeping 40% isn’t just fair, it’s essential to building a business that lasts.
And when you build it with heart, strategy, and the right business systems for therapy practices, it becomes something people WANT to be a part of.
Want more tips on growing your practice? Follow me on Instagram and listen to my podcast for all the best support for growing your therapy practice and attracting more clients!
And if you want to dive deeper into exactly how to build a thriving, scalable 7-figure group practice (where I walk you through the 5-step scaling method I used to grow from solo to 55 therapists in just three years), join my FREE masterclass!
Your Business Bestie,
Nicole
