The Pros and Cons of Both Strategies—Which One Works Best for You?
Would you rather go out of network with insurances or spend $110,000 on dental marketing each month? 🤷♂️
As someone who’s worked with hundreds of practices across the United States, I’ve seen both strategies in action, and both have their advantages and challenges. I’m going to break down the pros and cons of each, so you can make the right call for your practice.
The Pros of Going All in on Dental Marketing 💰
- 1. Keep Your Full Fees 💸
When you spend $110,000 on marketing, you get to keep the full fees for all your services. No insurance write-offs. This means higher revenue per patient. While you might discount your exams and x-rays (a strategic loss leader), the big-ticket treatments are all yours. - 2. Control Your Growth 📈
One of the biggest advantages of marketing is that you control your growth. If you want to expand faster, just increase your marketing spend. If you need to slow down, decrease it. You get to decide how fast or slow your practice grows. - 3. Attract Your Ideal Patients 💎
Marketing allows you to target specific groups, whether that’s high-income patients or those looking for specific services like cosmetic treatments. Unlike insurance-based patients, you attract patients who are more likely to pay for premium services. - 4. Build Your Long-Term Brand 📣
When you market, you create a long-term brand presence that leads to better patient referrals. Patients who come in through marketing will refer others who are also willing to pay for high-quality treatments, not just those looking for discounts.
The Cons of Dental Marketing 📉
- 1. Dental Marketing is a Risk ⚠️
Marketing isn’t guaranteed. No one can promise you that you’ll get a return on your $110K investment. If you’re not experienced, failure is possible—especially if you choose the wrong marketing partner or operate in a difficult market. - 2. You Need Rock-Solid Systems 🔧
Marketing doesn’t work without systems—phones, scheduling, and case acceptance processes must be flawless. Your dental marketing will bring in leads, but if your team can’t convert them, it’s money down the drain. - 3. It Takes Time ⏳
Marketing doesn’t deliver results overnight. Expect to wait 60 to 90 days before seeing a solid return on investment. If you’re looking for quick results, dental marketing might not be your best option. - 4. It’s More Effort ⚡
While it offers bigger rewards, dental marketing requires constant effort. You need to manage your budget, analyze the results, and keep improving. It’s harder work than relying on insurance reimbursements, but the payoff can be much greater. - 5. It Can Get Expensive 💸
If marketing efforts aren’t paying off and your systems aren’t in place, it can get expensive quickly. Spending $110K on dental marketing with poor results can financially strain your practice.
The Pros of Going In-Network with Insurances 🏥
- 1. Instant Patient Flow 💥
When you’re in-network with insurance companies, you get instant access to a pool of patients. This is especially beneficial for new practices looking to build a patient base quickly. - 2. Less Upfront Cost 💵
You don’t have to spend $110,000 on dental marketing. You’re paying on the backend with discounted fees for services. While it’s not the same as marketing, it’s cheaper in the short term. - 3. Feels Safer for New Practices 🛡️
If you’re opening a new practice, being in-network might feel like the safer option. You can grow your patient base quickly before transitioning to a fee-for-service model later on. - 4. Patients Love Insurance ✅
Most patients feel better when they know you’re in-network with their insurance. They don’t always understand the specifics, but they’re excited about lower costs, even if it’s just a coupon book.
The Cons of Going In-Network with Insurances ⚠️
- 1. Lower Fees 💔
When you’re in-network, you’re accepting lower fees than what you’d charge for the same services as a fee-for-service practice. The downside is that you’re making less money on major treatments. - 2. Slow Payments from Insurances 🕒
Insurance companies are notorious for slow payments. This creates cash flow issues and adds more stress to your business. You’ll constantly have to follow up to get paid. - 3. Less Control 🕹️
Relying on insurance companies means you’re at their mercy. They control the pace, the reimbursements, and even what services are covered. You have less control over your practice’s destiny. - 4. Loyalty? Not So Much 🤷♂️
Patients who come in through insurance are usually more loyal to their insurance provider than to you. When you provide high-quality care to fee-for-service patients, they’re more likely to become loyal, referring patients. - 5. Hard to Get Out of the Network ⛓️
Once you’re hooked into insurance networks, getting out is tough. You’re essentially locked into low reimbursements, and it can be challenging to transition to a more profitable model later on.
The Bottom Line: It Depends on What You Want for Your Practice
Both strategies have their merits. It comes down to what you value more:
- Control over growth and patient quality? Dental marketing might be the better choice.
- Lower upfront costs and faster patient flow? Going in-network could be right for you.
📢 Want help optimizing your systems and marketing? Schedule a free strategy call with SMC today! 🚀
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