WP121 | Setting Sustainable and Competitive Pay Rates for Your Group Practice - Podcast Takeover with Amy Dover Featuring Guest Sonja Josselyn

Are you struggling to set fair and sustainable pay rates for your therapists?

In this special Wise Practice Podcast takeover, Amy Dover—licensed marriage and family therapist, group practice owner, and Wise Practice consultant—dives deep into the crucial factors that can make or break your compensation strategy.

From market research to revenue calculations, overhead costs to therapist specialties, Amy breaks down how to create a pay structure that attracts and retains top talent while keeping your practice financially stable. She’ll also reveal why the all-too-common 70/30 contractor split isn’t sustainable and how shifting to a well-balanced W-2 model can transform your practice.

But that’s not all—hear firsthand from Sonja Josselyn, a practice owner who made the leap from 1099 contractors to W-2 employees. She shares how a mastermind experience helped her rework her compensation structure, negotiate better insurance reimbursements, and build a team that aligns with her mission.

If you want to set pay rates with confidence and create a thriving, profitable practice, this episode is a must-listen. Tune in now!

Key factors to consider include:

  • Market research: Understanding local salary trends through job boards, surveys, and networking.

  • Revenue per session: Evaluating practice earnings per session, factoring in insurance reimbursements and CPT codes.

  • Overhead costs: Accounting for rent, utilities, staff salaries, and operational expenses.

  • Benefits and taxes: Managing employer taxes and potential benefits like health insurance and PTO.

  • Counselor experience and specialty: Offering competitive pay for specialized skills like EMDR.

Amy outlines three common pay models:

  1. Percentage-based pay: A revenue-sharing model (typically 50-60%) that aligns earnings with productivity.

  2. Hourly pay: Fixed hourly rates for billable and non-billable work, requiring careful tracking.

  3. Salary: A stable income model that may reduce motivation to maintain full caseloads.

She advises against 70/30 contractor splits, emphasizing that a sustainable practice should not exceed 60/40 for contractors or 50/50 for W-2 employees. Transparency in pay structures, clear criteria for raises, and non-monetary benefits like flexible schedules and professional development can enhance workplace satisfaction.

Amy encourages practice owners to seek consulting support for navigating these decisions, ensuring a balance between fair compensation and business profitability.

Making the Shift: From Contractors to Employees

Sonja initially believed that hiring 1099 contractors was the best route for her practice, as she had seen others take this approach. However, after joining a mastermind group, she realized that if she wanted to meet her long-term goals, transitioning to W-2 employees was necessary.

“I wasn’t going to be able to reach the goal that I wanted for this practice without actually having employees,” she shared.

This shift in mindset is common among practice owners who start with a contractor model but later realize that employees offer more stability, control, and alignment with their vision.

Setting Compensation Rates with Confidence

One of the most valuable discussions in the mastermind focused on therapist compensation. Sonja explained that she learned how to calculate what she could afford to pay her employees while still maintaining profitability.

“As an insurance-based practice, I had to go back and calculate my average reimbursement per session, factor in overhead costs, taxes, and then determine a fair compensation rate that still allowed for profit,” she said.

Beyond determining pay rates, the mastermind experience also encouraged her to negotiate better insurance reimbursement rates, further strengthening her financial foundation.

Investing in Growth: A Necessary Leap of Faith

Many new practice owners hesitate to invest in hiring because of financial concerns. Sonja acknowledged this fear but emphasized that growth requires upfront investment.

“You have to invest money to make money,” she stated. “It’s painful, but there’s no other way to get there. You have to make some sacrifices in the beginning.”

By hiring additional therapists and ensuring her practice was structured for sustainable growth, Sonja positioned herself to eventually work less while increasing overall revenue.

Finding the Right Team Members

Hiring is about more than just filling positions—it’s about finding the right people who align with the practice’s mission. Sonja, who runs a Christian-based practice, sought out therapists who not only had the right skills but also shared her values.

“I was looking for someone who was passionate about our vision. The therapist I hired was so excited to join our practice, and that’s exactly the kind of energy I want,” she said.

She credited the mastermind group for guiding her through the hiring process, from posting job openings to conducting interviews and making final selections.

The Value of Community and Mentorship

For those hesitant about investing in masterminds or coaching, Sonja’s experience serves as a testament to their value. She found that being part of a supportive community accelerated her growth in ways she couldn’t have achieved alone.

“This mastermind and the Wise Practice community have pushed me forward in a way I could not have done on my own,” she reflected. “I’ve gained so much knowledge, support, and encouragement. Yes, it was an investment, but I believe God guided me here, and He provides when we follow His direction.”

Final Takeaways

For practice owners looking to scale, Sonja’s journey offers key insights:

  • Be open to re-evaluating your business model. What works for others may not align with your goals.

  • Understand your numbers. A sustainable compensation structure is crucial to long-term success.

  • Invest in growth. Hiring and structuring your business for expansion requires financial commitment.

  • Hire for fit, not just credentials. Passion and alignment with your vision matter.

  • Seek support and guidance. A mastermind or coaching group can provide invaluable direction.

Growing a private practice takes patience, persistence, and the willingness to invest in both knowledge and people. As Sonja’s story illustrates, with the right mindset and support, it’s possible to build a thriving business that aligns with your values and long-term goals.

Sonja Josselyn’s Resources

Website

Instagram

Facebook

Links and Resources

Join the Mastermind Group

Looking for support and connection: Join the Wise Practice Community

Learn More about Wise Practice Consulting

Connect with Wise Practice on Instagram

Connect with Whitney Owens on Facebook

Check the podcasts on the PsychCraft Network

Previous
Previous

WP122 | Leading with Wisdom: Adding Supervision to Your Practice with Brittany Schank, LCSW

Next
Next

WP120 | 5 Key Considerations for Scaling Your Solo Practice to a Group: Podcast Takeover with Amy Dover Featuring Guest Tracy Gardner