Refund Transfers Offer An Alternative Payment Method
Refund transfers are an integral part of any tax business because it gives taxpayers, especially those living in low income communities, an opportunity to complete their taxes without paying upfront.
Nevertheless, you'll still find tax preparers solely focused on getting paid upfront, which isn't necessarily bad, but I can't help but ask a simple question:
Do tax preparers really know the problem they are solving with refund transfers?
Imagine it’s the first day of tax season. Taxpayers are all excited because they’re going to get some money back, but unfortunately don’t have the money to pay your $250 tax prep fee.
Refund Transfers Solve Two Key Problems
In most cases, they wait...which is terrible if they really need the money. As a tax pro, you can't help but ask, "If more taxpayers knew they didn't have to pay upfront, would they wait?"
And if you do come up with the money, it still puts you in a tough spot because you probably would’ve preferred to pay down debt or other living expenses.
If a customer walks in, but you deny service because they can’t pay up front, knowing very well they don’t need too, did you add value? If your customer pays you up front, but it prevents her from paying a car bill, did you add value?
Refund Transfers Make A Strong Impact In Your Community
When you consider the dire circumstances that people face in low income communities, and show a willingness to provide helpful solutions, people gravitate to that. They look at you as an actual resource, as a person who isn’t just focused on doing the job.
If you really want to make an impact in your tax business, don’t just focus on completing a return, but instead, ask a couple of questions to determine if refund transfers makes sense for them.
Social Media Is Key
When it comes to letting people know about refund transfers, social media is key. The advertisement should focus on 2 things:
1. The pain point
2. The solution
(Reference the video at the 54 second mark to get an actual Facebook advertisement example)
Since you know that taxpayers need to visit your tax business, you can get very specific with your targeting. You can target people who are 2, 5, 10, or even 20 miles from your tax business (I highly recommend 5 miles to start and then expanding a bit more).
That means about 75,000 people will know your tax business has a refund transfer payment option. Facebook continues to be an extremely powerful platform to get your message across because of the ability to target people who will take action.
Imagine getting just a small piece of that? An extra 50 clients? 100?
The opportunity lies in how much value you bring, which can be a difficult adjustment if your main goal is getting paid upfront.
Still, I think it’s more important to consider the enormous impact refund transfers will have on people and how they support and champion your tax business in the community.