Anyone ever buy a client list from another Therapist?

[smoochy "yassassin"]

Hi Everyone, it has been a while, I had a baby recently so it has been hectic!
Anyway, My buisness partner were approached by an another therapist who is moving to another state and is selling her client list. We are intereested in purchasing, but it is also a risk! She is asking $500 for 290 names, only of which about 15 are somewhat regular.
Now, we ask her if she would accept $400 and we would send out a letter on her behalf telling her clients that she is moving and that she has refered them to my partner and I. We took down the price for the cost of sending the letters for as she will not have the time to do it before she leaves. we think that this is the best way to do this from a buisness point of view, and just as a ccurtosy to her clients. We are at a loss because she claims that she has told the ones that she see regularly and that she doesn't feel the need to inform the rest of them. What do you all think? Also, we thought about telling her, we will give you $400 now and if we get at least 5 client to come to us, we will mail her the other $500 and I really think that is reasonable. Any thoughts are ver welcome! Thanks!

 

[Hotch]

First, congrats on your new baby!

A couple of questions, how far is your location from hers? do you offer the same modalities/treatments as she does? how do your rates compare to hers?

I agree you do have some risk by purchasing this list. But, there are some benefits as well. First, you're getting a list of 290 people who you know have had massage and who are most likely interested in continuing to receive massage. So it's a very qualified list which granted isn't guaranteed to come see you but who very possibly might try you out if you contact them.

At $500, each name on this list will cost you roughly $1.73 and assuming you charge $60/hour for a massage, you would need to book at least 12 appointments to break even, allowing $200 cost of mailing letters (stamps, paper, etc) to 290 people. With 275 irregular and 15 regular clients, I think this is entirely possible/probable, provided she is giving a glowing recommendation to her regular clients.

IMO, if I were presented with this opportunity and it was something I decided to do, I would pay her the entire amount up front. $500 really isn't a lot of money and with her moving out of state, I'm not sure she'd be willing to take part now and part later. However, this doesn't mean you shouldn't negotiate the price or terms if you feel it's warranted.

Keep us posted on what you decide to do...

 

[Megan B]

Our Location is roughly 15-20 min. away from hers. We do offer the same treatments and the cost is the same. thanks for the questions, but the real dillema that we are having is whether or not the letter should come from us or from her. What do you think? again we think that this is just good buisness ethics and proper to her clients, not to mention is their a legality issue in buying/selling a client list. Could we or she be sued if proper notice is not given that she has released her list of names to us?

 

[Gone !]

Hmm.... I don't think I would buy someone's list. First off, can she legally sell her list of clients, after all the information is suppose to be private? These situations make me want to not give my real name to anyone. :roll:

 

[Missy H]

First off, can she legally sell her list of clients, after all the information is suppose to be private?

This is a concern to me too. What sort of privacy policy does she have in place? What is the law in your state regarding health records? Is she required to comply with HIPPA? Meaning has she ever accepted insurance reimbursement for sessions?

 

[lesley.mullin]

Isn't anyone inquiring into someone's medical history required to uphold to privacy issues?

 

[Where is my vote!!!!!]

Our Location is roughly 15-20 min. away from hers. We do offer the same treatments and the cost is the same. thanks for the questions, but the real dillema that we are having is whether or not the letter should come from us or from her. What do you think? again we think that this is just good buisness ethics and proper to her clients, not to mention is their a legality issue in buying/selling a client list. Could we or she be sued if proper notice is not given that she has released her list of names to us?

With regards to the distance between your location and hers, this might reduce the odds of those clients seeking treatment from you. I don't think it would automatically rule it out, but a lot of people consider distance traveled when choosing their massage therapist.

I honestly don't think there is a legal issue involved since you are in essence buying her business and a client list would be considered an asset of that business. Is she giving your their intake forms or just a database of names, addresses and phone numbers? If the legality is a huge concern, check with your state massage board if you have one. Does she currently trade under a ficticious business name or just Jane Doe, CMT?

IMO, the letter would be most effective coming from her rather than you as there would be name recognition which would increase the odds of the letter being opened rather than discarded. Even if she doesn't want to do the letter herself, I would encourage her to permit you to send in out in her name (with her approval of content of course.)

As for HIPAA concerns, I admit that I'm not as much an expert in this area as I should be, but I don't think HIPAA was designed to prevent disclosures of info in the case that a business sells and honestly, in this case, HIPAA may not even apply. If someone else on this board can provide clarification I'm sure everyone here would benefit.

 

[ladybug]

It is legal to sell client names and addresses. When I closed my business to move across the country, I sold part of my client list. (The other part of my list, I referred and didn't feel right just selling to anyone that my client's wouldn't visit).

There are many businesses that sell client names, in fact you can purchase names and addresses from health clubs and such to send out flyers about your business.

 

[luv2wsh]

The clients on the list must have signed a specific form for HIPPA coverage, You can refuse to sign this form. If they did sign, The medical records are covered. Name and address are open game if I read the law right.
You are getting a deal at $500 dollars. I sold mine for close to $4000.00. Each regular coming in at least twice @ $60.00 and the occasionals. and that was in 1995.

 

[Milk Maid]

Thanks eneryone for your imput! We are only buying names, addresses, and #'s NO health histories or the like! So that is not the legality in question. I am aware also of marketing companies that sell names of people interested in certain things and that is totally legal and when my partner and I discussed this that was one of the first things that we thought of! But I think that we are going to go with the giving her $400 and tell her we are going to send the letter on her behalf. I just don't feel right contacting these people with out her telling them first! I also TOTALLY agree with the point of , if they see a letter from our buisness, more than likely they will be like, I already have a therapist, in the garbage! but if it is coming from her they will recognize it and open it then they see our name and hopefully come to us! Any other thoughts?

 

[UditaC]

I agree, it needs to come from her.

 

[Pompal 09.]

My experience...

Hi there,

Last year I purchased a massage clinic from a fellow practitioner. Included in the purchase were all of her client files...about 300 or so all together. I think 10-20 of them were regular clients.

I sent out mailers to all of them. I spent a lot of time on putting the letter together, I added coupons, business cards, etc. It was very tastefully done, and I was sure that people would be so impressed by this mailer that my phone would be ringing off the hook.

Only two people responded!

I have since vowed never again to do any marketing through the mail. I feel that it's a waste of time and money (think about all of the trifolds you'll have to make!). I've had way more success with giving excellent massage to my regular patrons and depending on their referrals.

Just something to think about...but good luck in whatever you decide to do!