What You Really Earn: Comparing Solo Practice and Contractor Work for Canadian Therapists
As a Canadian therapist, the choice between staying solo or joining a group practice as an independent contractor can be tricky — especially when money, time, and sustainability are all on your mind.
There’s a common assumption that group practices are rolling in profit while contractors are undervalued. But as someone who supports both solo and group practice owners, I can tell you: the reality is a lot more nuanced.
This blog will help you unpack the financial and operational differences between going solo and working as an independent contractor in a group practice — so you can make a decision that works for you, your energy, and your long-term goals.
1. The Solo Practitioner: Full Autonomy, Full Responsibility
Solo practice offers total freedom. You get to decide your fee, hours, branding, and systems. But it also means wearing all the hats — therapist, admin, tech support, marketer, and bookkeeper.
Revenue
If you charge $160/session and see 20 clients a week, that’s $3,200/week in gross income. But that doesn’t tell the full story.
Expenses
Office rent or virtual platform: $800–$1,500/month
Insurance: $100–$200/month
CRM (e.g. Jane, Owl): $60–$150/month
Payment processing: ~2.5–3% per transaction
Website + domain: $30–$100/month
Advertising/directories: $35–$300/month
Supervision/peer consultation: $100–$400/month
Accountant/bookkeeper: $100–$250/month
Licensing/association dues: varies by province
Business Licence: $25-$50/month
That’s not including your time spent on client inquiries, cancellations, tech hiccups, networking, and everything else that keeps your business afloat.
2. The Independent Contractor: Less Admin, Less Risk, Less Pay
In a group practice, you trade some of your autonomy and income for support and stability. As an independent contractor, you typically earn 60–70% of the session fee — depending on what's included in the agreement.
Example:
If your split is 60% on a $160 session, that’s $96/session. At 20 sessions/week, you bring in $1,920/week (gross).
What’s usually included in the split:
Client referrals and intake screening
Office space or virtual systems
Marketing + website visibility
Payment processing
CRM access
Team connection and consultation
Admin and tech support
You’re still responsible for your own insurance and ongoing education, but much of the business overhead is carried by the practice owner.
3. The Practice Owner’s Perspective: The Cost of Doing Business
When contractors see that 35-40% of the session fee goes to the owner, it can seem like a big cut. But running a group practice isn’t just collecting fees — it’s a full-scale business.
Group practice owners often cover:
Rent or commercial mortgage
Advertising, SEO, and website maintenance
Admin staff wages or virtual assistants
CRM platforms
Team onboarding and supervision
Insurance and legal costs
Technology infrastructure
Time (LOTS of time) on operations and team support
Many owners are still seeing clients themselves while holding the structure for others. It's a balance of leadership, logistics, and service.
4. So Which Model Is “Better”? That Depends on You
Some questions to help you decide:
Do you want full control over your business? → Solo may be the way to go.
Do you want to avoid admin and focus just on therapy? → Contracting might fit better.
Do you thrive in collaboration and shared infrastructure? → Group work could be energizing.
Do you want to test the waters before launching your own practice? → Being a contractor can offer that stability and experience.
Therapists often move between these models over the course of their careers. There’s no one right way — just the path that aligns best with your life and values right now.
5. By the Numbers: Quick Comparison
Keep in mind: solo practitioners carry more business costs (often 20–30%). When those are subtracted, net income can look quite similar across models. The real difference is in time, energy, and what you want to hold.
6. Final Thoughts: Know the Numbers, Own Your Choice
Both models can work beautifully when they're chosen with intention. If you value freedom and entrepreneurship, solo practice can be deeply rewarding. If you want structure and support, a group role can reduce stress and isolation.
Whatever you choose — understanding the real profit landscape helps you navigate with clarity instead of assumptions.
Looking for Support? I Can Help.
Whether you're building your solo practice or leading a group, individual coaching can offer clarity, accountability, and grounded strategy. I work with Canadian therapists to build sustainable, values-aligned practices — no burnout required.
