Refund Transfers Do More Than You Think
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 pros solely focused on getting paid upfront, which isn't necessarily bad, but I can't help but ask a simple question:
Do tax pros really know the problem they are solving with refund transfers?
Imagine it’s the first day of tax season. Everyone is all excited because they’re going to get some money back, but you don’t have the money to pay the $250 tax prep fee.
What do you do?
In most cases, you wait...which is terrible if you really need the money. 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.
Tax professionals need to focus on the value and the impact refund transfers bring to the lives of their customers.
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?
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, 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 office, you can get very specific with your targeting. You can target people who are 2, 5, 10, or even 20 miles from your office (I highly recommend 5 miles to start and then expanding a bit more)! That means about 75,000 people will know your tax office has a 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 it will have on people and how they support and champion your office in the community.