American Counseling Association Survey: Should Counselors Be in Private Practice?

Let’s chat about some pretty eye-opening findings from the American Counseling Association's (ACA) latest Counseling Workforce Survey. A lot has changed since their first survey in 2014, and while it’s awesome to see a 36% increase in employed counselors, we’re also facing some real challenges—especially since COVID-19 turned our world upside down.

One thing that really stood out? The need for us to find better ways to improve our income. Many of us are juggling multiple jobs, buried in student debt, and struggling to feel financially secure. But there’s good news! Starting a private practice and learning some essential business skills can make a huge difference. Let’s dive into the details.

The Current Counseling Landscape

Since 2014, our profession has grown a lot. But the pandemic brought major changes. Telehealth became a big deal, and more counselors are thinking about going into private practice.

Counselor Compensation: Where Do We Stand?

The ACA survey showed that counselor educators make more money (about $77,000 on average) compared to professional counselors. If you’re just starting out (less than three years of experience), you’re looking at an average salary of around $57,000. This can go up to nearly $80,000 if you’ve been in the field for over 20 years.

Here’s a quick breakdown:

• Full-Time Counselors: $71,000

• Part-Time Counselors: $51,000

• Average Professional Counselor Salary: $49,589 (2014) to $70,956 (2024) – a 43% increase

• Average Counselor Educator Salary: $66,405 (2014) to $77,171 (2024) – a 16% increase

Despite these increases, a lot of us are still feeling the financial strain, especially with the average student loan debt for counselors sitting at a whopping $79,500—113% higher than the national average!

The Financial Strain of Counseling

Our financial struggles are real. The average lifetime earnings for counselors ($1.3M) are similar to those with just some college education or a high school diploma in other fields. In contrast, psychologists rake in about $2.2M over their careers.

The Impact of Student Debt

Here’s how student debt affects us:

• 65% – Hinders savings and retirement goals

• 53% – Makes it tough to buy big things like houses or cars

• 49% – Impacts our quality of life

• 46% – Challenges meeting other financial obligations

• 34% – Stops us from pursuing career aspirations

Almost a third of us (29%) hold a second part-time job mainly for the extra pay (77%). Clearly, we need better income solutions within our primary profession.

The Promise of Private Practice

This is where private practice comes into play. The U.S. behavioral health market is expected to grow by $49.3 billion over the next decade, reaching $136.6 billion by 2032. This growth presents a golden opportunity for us to establish and thrive in private practice. Or. it provides an opportunity for online mental health tech companies to exploit counselors and profit off of our labor.

Why Private Practice Rocks

Starting a private practice has some big perks:

• More Money: Set your rates and manage your client load to boost your earnings.

• Financial Freedom: Pay off debt faster and gain financial stability.

• Better Work-Life Balance: Control your schedule, reduce burnout, and improve your quality of life.

• Return on Investment: You’ve invested so much time and money into your training it is time for YOU to get the return on investment from that NOT online tech employers.

• Feeds Your Soul: Focus on getting great outcomes and doing the kind of work your soul longs for!

Skills for a Successful Private Practice

But here’s the thing—running a private practice isn’t just about seeing clients. We need to build business skills and stay updated on new technologies and ethical standards. Here are some key areas to focus on:

Specialization

Specialize in areas like grief/loss, addiction, EMDR, and dissociative disorders to stand out and command higher rates. These also allow you to focus on improving your clinical outcomes which means more clients having great experiences in therapy! It also means that you get to find what YOU are really great and magic at- not simply focus on being a therapy mill provider who is only focused on seeing as many people as possible.

Business-Related Skills

Running a private practice involves:

• Billing and Insurance: Get good at billing insurance companies correctly.

• Note-Taking and Documentation: Keep thorough and compliant session records.

• Leadership and Management: Develop skills to lead a team or expand your practice.

• Marketing: Learning how to talk about what you do so clients you can help can easily find you.

Ethical Considerations with Emerging Technologies

As telehealth and AI become more common, it’s crucial to stay informed about ethical practices related to these technologies to provide the best care and remain compliant with regulations.

Getting the Support You Need

To make a successful transition into private practice, we need the right training and support. The ACA survey highlights the need for more training in specialization, business-related skills, and ethics on emerging technologies. Here’s how you can get that support:

• Continuing Education: Take courses that focus on the business side of private practice and specialization areas.

• Professional Networks: Join counseling associations and online forums to connect with peers and mentors.

• Workshops and Webinars: Participate in events that cover the latest trends and ethical considerations in our field.

Let’s Embrace the Future Together

The ACA survey shows we need to find new ways to boost our income. By starting private practices and learning essential business skills, we can achieve financial security, pay off our debts, and ditch those multiple jobs.

Let’s support each other on this journey. By investing in our growth and continuously learning, we can build thriving practices that benefit both us and our clients.

Ready to Take the Next Step?

If you’re ready to dive into the world of private practice, we’ve got you covered. Check out our 10+ hours of free trainings on leadership, finances, and everything related to private practice. And if you’re looking for a comprehensive guide to building a successful practice, our Business School for Therapists is here to help.

Learn more about it here and take that first step towards a financially secure and fulfilling career!

Cheers to your success!