Starting an Applied Behavior Analysis (ABA) business can be a rewarding career choice that allows you to help clients while also earning a good living. However, many who consider this path wonder – how much do ABA business owners make?
Unlike salaried positions, being an ABA business owner means your income depends on several factors. Your earnings can vary substantially based on your business model, location, experience level, and ability to market and expand your services.
In this comprehensive guide, we’ll explore the key factors that impact ABA business owner income and provide insights into earnings potential based on available data. Whether you’re considering starting an ABA business or are just curious about the earning potential, this guide will provide key insights.
Factors That Impact ABA Business Owner Income
An ABA business owner’s income depends on some key factors:
Location
Like any business, location significantly impacts how much you can charge and earn. The cost of living in your city or state can make a dramatic difference.
For example, average salaries for Board Certified Behavior Analysts (BCBAs) range from $75,000 to $95,000 nationwide. However, BCBAs in HCOL (high cost of living) areas like San Francisco and New York often earn well over $100,000 to maintain the same standard of living1.
As an ABA business owner, your rates and income potential will vary greatly based on your geographic location. States like California with strong demand, favorable regulations, and a high cost of living offer more earning potential than low-regulation states with lower costs of living.
Experience Level
Your experience level directly impacts your income potential. According to ZipRecruiter data, entry-level BCBAs earn an average annual salary of $56,297, while experienced BCBAs with 5-9 years of experience earn approximately $77,356 per year2.
As an ABA business owner, your reputation, connections, and expertise developed over time will allow you to serve more clients and command higher rates. New ABA business owners often start small and build up their practice over time.
Business Model
Your business model is key to your income. A solo practitioner working alone as an independent contractor has a very different earning potential than a clinic owner employing several BCBAs and RBTs.
Diversifying your services, having multiple revenue streams, and maximizing your capacity to take on more clients can grow your income exponentially. An ABA clinic owner who strategically expands their services and billing can earn well over $200,000 annually.
Marketing & Reach
Your marketing effectiveness directly relates to your income. The demand for ABA services currently outweighs the supply of providers in most areas. However, you still need to reach clients through marketing and networking to build a solid caseload.
ABA business owners who build authority and recognition through content marketing and networking tend to fill their caseloads faster. Developing an appealing brand and leveraging technologies like social media can boost your marketing reach dramatically.
Billing Setup & Efficiency
Your billing setup and use of technology significantly impact income. Manual billing and paperwork can consume hours each week. Using a third-party billing company can free up time to take on more clients and focus on service delivery.
Many ABA business owners are moving to fully paperless and automated workflows using tools like CentralReach. Streamlining administrative tasks maximizes time for revenue-generating activities.
Private Equity Investment
A recent trend shows private equity firms actively investing in ABA companies, indicating the profitability of the industry. In 2022 alone, private equity firms invested over $200 million into ABA clinic networks and software/billing tools3.
This willingness to invest substantial capital points to strong earnings potential for well-run ABA businesses. As demand continues to grow with insurance coverage expansions, PE investment in ABA will likely continue growing.
Tips for Maximizing Your ABA Business Income
If your goal is to maximize your income as an ABA business owner, here are some key tips:
Offer Multiple Services
Diversify your offerings beyond just ABA therapy. Provide assessments, parent training, social skills groups, and other services to serve each client more fully. Expanding your scope increases billable hours.
Take on More Clients
Fill your caseload by marketing effectively and reducing inefficiencies. Don’t take on so much that quality suffers, but gradually add clients to increase billable hours.
Increase Your Rates
As you gain experience, increase your rates for new clients. Offer bundled pricing packages. Also, add small annual % increases to existing client rates when allowed in contracts.
Leverage Technology
Use tools like CentralReach to automate scheduling, billing, notes, and reporting to save hours each week. Invest in tech that gives you time to take on more clients.
Hire Other Clinicians
Bring on other BCBAs and RBTs as independent contractors or employees. Leverage others to serve more clients under your umbrella.
Partner with Schools
Contract with schools and treatment centers to provide ABA services to entire groups. Scale your impact through organizational partnerships.
Create ABA Products
Sell original ABA curriculums, toolkits, online courses, or other products. Passive income adds up.
Specialize Your Services
Offer specific expertise like trauma-informed ABA, social skills training, early intervention, or counseling partnerships. Specialization allows higher rates.
Implementing even a few of these tips can substantially grow your income over time as an ABA business owner.
ABA Income Potential Based on Available Data
So what does the data show when it comes to potential ABA business owner earnings?
The revenue potential depends heavily on your business model and scale. But here are some key statistics to consider:
- The average salary for an experienced, fully licensed BCBA according to ZipRecruiter data is approximately $95,000 annually2. This provides a rough baseline.
- BCBAs in private practice settings often earn 5-15% more than salaried clinicians. They also have more control over factors that increase pay such as rates, hours, and clients1.
- The median income for psychologists’ private practices according to Bureau of Labor Statistics data was approximately $120,000 annually as of 20184. ABA is a fast-growing field with high demand, which points to strong income potential.
- A solo BCBA who fills 25 billable hours per week at an average rate of $120 per hour could potentially earn around $150,000 annually. This illustrates the potential of a modest private practice.
- An ABA clinic owner employing 5 BCBAs and 10 RBTs could conceivably generate over $1 million in gross annual revenue at average billing rates. The ABA owner’s net income with a well-run clinic could exceed $200,000 annually after overhead and payroll expenses.
- Some large ABA clinic networks are currently earning over $100 million in revenue annually based on private equity valuations3. Clinic network owners sell minority stakes in their businesses for sizable profits based on rapid growth and strong profit margins.
So while BCBAs in salaried roles earn incomes comparable to related fields, the potential upside as an ABA business owner is far higher. Six-figure incomes are very achievable with a successful ABA private practice. And multi-location clinic owners and ABA networks can potentially earn millions in annual revenue based on their scale and efficiency.
How ABA Salaries Compare to Other Fields
Given ABA’s specialized nature, many wonder how incomes compare to more general corporate fields.
For example, jobs in pharmaceutical sales, software sales, and medical device sales often pay between $75,000 to $150,000 base salaries, with total compensation often exceeding $200,000 including commissions, bonuses, and stock options.
Tech company Business Development Representative (BDR) salaries often fall in the $80,000 to $120,000 range.
So certain careers outside of ABA offer higher total compensation, especially in lucrative fields like medical sales, technology, and engineering.
However, unlike more financially driven fields, ABA offers the reward of helping clients develop life-changing skills and independence. For many, meaning and purpose outweigh maximizing every dollar earned. No amount of money provides the fulfillment that comes from overseeing an autistic child speaking their first words.
Additionally, skilled ABA business owners can earn very comfortable six-figure incomes that provide financial stability in addition to purpose. With strong business acumen, leveraging the tips in this guide can lead to an income that exceeds more traditional roles over the long run.
Conclusion
An ABA business owner’s income potential comes down to business savvy and execution. While a salaried BCBA role offers modest earnings, an ABA practice owner can substantially outpace salaries through factors like marketing reach, service diversification, strategic billing, technology leverage, and practice growth.
By starting small and progressively implementing income-boosting strategies, six and even seven-figure incomes are attainable for successful ABA business owners. And demand for ABA services will only continue increasing as insurance coverage expands and private equity further validates the industry’s profit potential.
For those who enjoy both purposeful work and financial stability, an ABA business is an ideal choice. No other field offers the ability to potentially generate a high income while also changing lives every single day. By following the tips in this guide, you can build an ABA business that maximizes both service impact and financial earnings.
FAQs
1. How much do solo ABA business owners make?
A solo BCBA in private practice can potentially earn $100,000 to $200,000 annually depending on their billing rates, hours, and caseload size. Those able to build a full caseload and bill 25-30 hours per week can earn over $150k.
2. What factors increase income for an ABA business owner?
Key factors that can increase an ABA business owner’s income include service diversification, hiring other clinicians, partnerships, specialization, leveraging technology, and effective marketing.
3. How much do ABA clinic owners make?
ABA clinic owners have much higher earning potential than solo practitioners. Those who open multi-location clinics and efficiently manage multiple BCBAs and RBTs can conceivably earn well over $200,000 annually.
4. How do I maximize my income as an ABA business owner?
Strategies to maximize income include filling your caseload, increasing billing rates annually, diversifying service offerings, streamlining admin with technology, hiring more clinicians, and partnering with schools.
5. What is the earning potential in large ABA networks?
The largest ABA clinic networks generate over $100 million in annual revenue. These networks sell minority stakes to private equity firms for substantial profits based on rapid expansion and strong margins.
6. How do ABA salaries compare to other therapy fields?
ABA business owners generally earn more than owners of private practices in related therapy fields like speech and occupational therapy. BCBAs also earn more than most social workers in clinical roles.
7. Can you earn over $300k as an ABA business owner?
Yes, multi-location clinic owners and large ABA networks with 100+ employees can potentially earn over $300,000 annually through scale, diversification, and operational efficiency.
8. Do ABA business owners earn more than salaried BCBAs?
Yes, most ABA business owners earn significantly more than salaried BCBA employees. The ability to control rates, hours, caseloads, and expand services increases income potential.
9. Is ABA a profitable field?
Yes, ABA is highly profitable, which is why private equity firms are investing hundreds of millions into buying clinic networks and tech companies in the space.
10. Does geography impact ABA business owner income?
Yes, ABA incomes vary drastically between low-cost-of-living rural areas and high-cost-of-living cities. Location impacts the rates you can charge clients.
