There are differences in how much a new chiropractor can make depending on which avenue they choose. When starting a new business, or renting a space as a contractor with no current patients, it’s a slow build in pay. Contracting is a little easier because there is no major overhead; it’s easier to bring in money faster. Working as an associate, money is usually guaranteed right away through negotiating a monthly salary, monthly salary with commission, or commission only. In associate positions the patients are already entering the office and you are not paying any rent for the space.
Starting your own business there are costs for build out, marketing, equipment, staff, etc. and it takes longer to make profit at the beginning. Ultimately starting your own business is higher risk, but greater reward in the long run. This is where a new chiropractor may not net any money their first year but can make upwards of over two hundred thousand a year over time. This is typically where the highest income bracket resides. Some of these business owners open multiple clinics and possibly franchise. This is where you could be looking at a seven figure income in the long run.
As a new graduate or an associate, you should always consider, “how much specific profit am I adding to the practice?
As a contractor you can start your own business smaller, it’s less money up front, and eventually open a larger space of your own. You can rent out space or negotiate a contracting position with other offices. For example you can rent a room for around hundred dollars a day (give or take depending on the city) and bill seven hundred a day, that’s an eighty six percent profit. In this situation you’re doing all your own marketing, billing, bookings, etc. If you contract with another company you negotiate a commission split, check what your average split is in your state/province. As a general rule of thumb you should make NO less than fifty percent of your billings (the other fifty percent would go to the clinic you are contracting at. This covers their rent, advertising, front end/assisting staff, and equipment etc.). Ideally you can negotiate a split of at least sixty percent and then possibly increased commission once you hit a base amount of billings each month. This is called a sliding scale commission. Most chiropractors will agree to a commission split between fifty to eighty percent of their billings.
As an associate you get paid a salary no matter what billings are brought in that month. Yes there is guaranteed money but this is usually the least amount of pay. If you are unable to start your own practice right out of school or want to learn on another person’s dollar, you could agree to a monthly salary to guarantee income. In some cases this type of position can come with an agreement where you move to a contractor position, obtain some commission, or have the option to take over/buy out the previous chiropractor.
Word of advice, YOU ARE WORTH WHAT YOU BILL AND WHAT YOU ARE PAID! Do not agree to low compensation because you are new doctor. If any chiropractor is getting paid less than four thousand a month, this is not acceptable. Most chiropractors take a few months to build up their pay, but within that first year they should be making at least fifty thousand their first year. Typically it is acceptable that a new chiropractor will make between forty to eighty thousand dollars in their first year of practice; then upwards from there! If you are in a position where you are only making two thousand a month, get out. (The exception is if you are starting your own business with higher overhead and multiple staff, then the net income will be lower at the start).
What do you think about current salaries for chiropractors? Comment below!
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