175 Supervision Is The Smarter Revenue Stream

There comes a point in many therapy careers where working harder is no longer the solution. You can raise your fees. You can tighten your cancellation policy. You can fill every slot on your calendar. And still feel financially vulnerable.

In this episode, Ashley Stephens and I explore why supervision often becomes the smarter revenue stream at that stage. Not because it is easy. Not because it is trendy. But because it is structurally different from therapy income.

Supervision is tied to licensure. Associates are required to have it in order to practice and accrue hours. That built-in demand creates a level of predictability that weekly therapy referrals simply do not. When designed intentionally, supervision can become a steady arm of your income instead of a reactive scramble.

We also slow down and talk about ethics. Required does not mean exploitative. Supervisees deserve clarity, transparency, and the ability to reassess the relationship. Supervisors have obligations too. Contracts matter. Review points matter. Documentation matters. When those systems are in place, supervision supports both parties instead of draining them.

And we address the legal realities. Supervising across state lines is not something you assume your way into. The compact does not automatically grant supervision privileges. Most states require full licensure and specific supervisor training. Getting this wrong can cost a supervisee their hours. That is not a risk worth taking.

In this episode, we discuss:

• How supervision creates more predictable income than session-based therapy alone
• The difference between stable revenue and predatory practices
• Why long-term supervisory relationships can reduce burnout
• What to confirm before offering supervision in another state

If you have been thinking about adding supervision to your practice or shifting more fully into it, this conversation will help you evaluate that decision through an ethical and business lens. Not as a side hustle. Not as a last resort. But as a deliberate professional move.

Download our free resource, Stop Working for Free: The Therapist Fee Reset, to identify where your practice may be leaking money.

And if you are ready to build supervision into your model with strong systems and clean boundaries, that is exactly what we teach inside our Step It Up Membership.

Get your step by step guide to private practice. Because you are too important to lose to not knowing the rules, going broke, burning out, and giving up. #counselorsdontquit. 

Transcript

Why Supervision Pays Smarter

SPEAKER_02 0:00

Anytime you can provide a service that is required for something else, I mean that's a built-in customer base. And yes, I said the word customer. So supervisees that you BTW Welcome to Balance Therapist, building practice test.

SPEAKER_01 0:31

Dr. Kate Walker protects the world.

Who We Are And What We Teach

Ethics And Fair Fees For Supervision

SPEAKER_02 0:37

At a certain point in a therapy career, raising fees isn't enough. In this episode, Ashley and I are talking about why supervision becomes a smarter revenue stream for many therapists, not as a hustle and not as a rescue fantasy, but as a structural shift. If supervision has crossed your mind as a maybe someday idea, this conversation will help you think more clearly about it. And before we get started, grab the free February bonus we created for you. Stop working for free, the therapist fee reset at KateWalkertraining.com/slash bonus. Now let's get to work. Welcome to Badass Therapist Building Practices That Thrive. I am an LMFT and LPC supervisor in Texas, and I am joined by my colleague Ashley Stevens, who handles the social work arm of Kate Walker training. And we do build, provide, deliver a completely online supervisor training all over the country. I don't even know how many states we're in now. So it's super cool. And we love what we do and we like to brag a little bit. I mean, this is pretty much all we do. So if you're thinking about training, I'm just saying we're kind of the go-to. So uh, but you know, enough about us. Well, no. Uh let's talk about money. So, with our topic today, why supervision becomes the smarter revenue stream. So I don't know about other states, but in Texas, this can become a really hot topic or it has, because not every state allows supervisors to charge supervisees. And in Texas, as long as it's not a part of your agency work, you can and you should charge supervisees for the work that you're doing to oversee their hours that they're accruing toward licensure. But Ashley and I are very, very careful about teaching you ways to develop business models that are ethical for both parties, right? We don't, if you're a supervisee or you're a grad student and you're listening to this, we do not want you to have to choose between buying groceries and doing supervision. All right. This is not about somehow preying on supervisees so that we can, you know, make a yacht payment. This is legitimately, we want supervisors, if you're listening to this, to know how to make money doing this so that everybody benefits. And we spend a lot of time on that. I mean, Ashley, talk about kind of what you've talked about with this.

Supervision As Burnout Buffer

SPEAKER_00 3:32

Yeah. So, you know, I talk about this topic quite a bit because while, you know, if you're not doing it, sometimes work pays for your supervisor training because they want you to become a supervisor. But the vast majority of people that we train are wanting to add kind of another arm. And we want to make sure that you are able to make some money, reduce your burnout, be able to have another system so that I kind of call it like puppet strings. If therapy dries up because it's the holidays or it's summer and you're like, oh my gosh, how am I going to make my house payment? You have another kind of string to pull on and say, okay, I'll take on a few more supervisees, or I'm going to write, finish this next chapter in my book, or whatever it is that you're working on. But supervision is such a magical and dedicated and passionate arm to doing this work. And in the social work code of ethics, I'm absolutely positive it's in all of the rest of them. It says that we are required to pass on our knowledge and experience to future generations of social workers. This is in that vein. And what we don't want to do, like, I don't want to create a whole bunch of supervisors that are even more burned out, even more overwhelmed, and kind of do this like, I got to meet them in the trenches in order for them to know that I'm with them in the fight. You need to be able to make a living, to be happy, to increase your productivity and your ability to kind of manage. And that supervision is an amazing way to do it.

unknown 5:08

Yeah.

Courses Vs. Required Services

Stable Demand And Pricing Power

SPEAKER_02 5:08

And we talked about in other episodes about how to avoid burnout with supervision, right? Because we want you to supervise. I mean, this is why we do what we do. We do it so that you'll continue to supervise, not get your S and put it in a box, or get your S supervise one time and then never supervise again. And so we don't want this to be something that you regret. And so, yeah, we talk about money. We want you to be able to make money doing supervision if that's part of your job description and your state rules, right? So one of the things I wanted to point out, because I do work with a lot of folks who are their business owners or they're new business owners, or they're early in their career. And we have a Facebook page called Texas Counselors Creating Badass Businesses. And it's a wonderful group. It's a very nurturing group. We've got over 5,000 people. But there's a lot of talk in there about, you know, how to, you know, write a book, how to design a course, how to, you know, whatever the latest and greatest certification is. And I know in the Step It Up membership, we have weekly coaching and we have webinars on this. Okay, here's how to dot dot dot, you know, get your course going, get your book going. And here's how I really, really feel about that. I'm really, really not sure if people understand that you may not be able to make a living from your course or your book. I mean, I know I'm being what my kids call dream crusher right now. But I get it. I mean, it's a passion, and you see other people around you doing it, and you think, oh my gosh, this is such a great idea. And I know I can do it, and I don't, I don't want to crush that dream. But the title of this episode is Why Supervision Becomes the Smarter Revenue Stream. And anytime you can provide a service that is required for something else, I mean, that's a built-in customer base. And yes, I said the word customer. So supervisees, that's you, BTW, right? Our grad students. You are the customers and your supervisor is marketing to you, right? They want to deliver a service to you. And so it is a great way to have a steady income stream because, you know, number one, the supervisees or grad students, whatever, they have to be there. That's part in in most states anyway, you have to have supervision in order to accrue experience hours toward licensure. So supervisors, it puts you in the driver's seat. You can decide how many you need, how many you want. We have a great episode out there about business plans that work for almost any situation. And you really should check that out. I'll make sure we put the links in the show notes. But it's a very smart income stream because you do have so much control. And I know for me, you know, when we teach the course, of course, we're teaching systems and all the things so that you can scale ethically. Um, and we try to put as much information in there that we possibly can so that you do see the business opportunities inherent in becoming a supervisor. So what do you think, Ashley?

Six‑Month Fit Checks And Retention

SPEAKER_00 8:38

Yeah, and I, you know, one of the things when people, you know, kind of are like, what are the pros? Unlimited. I mean, there are so many things. I could probably talk about this for a year. But one of the things for me that's most powerful when I was doing therapy for a couple of people here and there, but when I was doing therapy, one of the things that if I never do another intake in my life, it'll be too soon. I hate them. And that, like, okay, we've done this intake, I've asked you four million questions, and then I never see you again. Are you kidding me? We just did all of that for kind of nothing. And maybe that didn't happen that often. Most people don't ghost me, but it happens. People aren't ready for therapy, or the money dries up, or they change jobs and their insurance dies, whatever. Supervision is the smarter route for me and for everyone I know because you're locked in for the most part. And that's not to say I really encourage people. When I take on a new supervisee, I say, let's do six months at a time. It's like a good relationship, right? Like we'll determine if we need to break up after six months. If I'm not giving you what you need, if you need somebody who, like, I'm not trained in EMDR, if your big goal is to get trained in EMDR, maybe we set you up with a supervisor in a year from now or in six months from now who does that work and can tell you all the ins and outs of that because I can't. I'm doing that evaluation and that reflection, but I've been fortunate enough to say, even though I give them the option of breaking up with me, none of them ever take it and they're like ride or die for me, which is great and such an honor. Because Texas also no longer has time frames. There are people that I work with and I'm in the position to work with them, some aren't, where they're only working five or 10 hours a week. They have families that they're raising, they have other responsibilities, they're taking care of parents. So we're going to be together for more than two years at the minimum. We might be together for four years, five years, people who are too scared to take their test, and we have to work on their self-confidence. That is guaranteed income every week or every two weeks for as long as they need supervision until they get that LC or whatever LTC official and no longer associate. It's built in. And there is very little ghosting because they require it by the board. And it is illegal to do this work without supervision. So it's just a smart move.

SPEAKER_02 11:05

And I hope supervisees, you heard what she said about, you know, you have the power to fire your supervisor. And, you know, this idea that a supervisor could just willy-nilly fire their supervisee at this, it doesn't really work that way. There's a process involved. The supervisor can't just abandon a supervisee. It's unethical. In a lot of cases, it's against the rules. So you supervise that supervisee until they get another supervisor. So, supervisees, you do hold the cards here. And so it's a locked-in income, but it's not predatory. It's called Stop Working for Free, the Therapist Fee Reset. It helps you identify where your practice might be quietly costing you money and whether the fix is a simple boundary reset or a sign that your model needs to change. You can download it right now at KateWalkertraining.com slash bonus. It's quick, practical, and designed to give you clarity, not more homework. It's not like the supervisor is just going to say, okay, you're a chain to me now for the next however long. And I love that revisiting every six months. That's, I think, fabulous. And it gives everybody a chance to kind of regroup and say, okay, is this really working?

Supervisee Rights And Nonabandonment

SPEAKER_00 12:40

Yeah. It's vital. And if you're if you're listening and you're a supervisee and you're feeling that way, or if your supervisor has said that, feel free to reach out to CaterI and say, like, okay, how do I get out of this bad supervisor relationship? What do I need to do? What are the rules? What power do I have? Because you do. And I felt locked in before. You know, I've been through supervision myself. It was not good. I actually have like asked me one day about my trauma story from my first supervisor. It's not good. It can be really bad for you. It can set you up. So you deserve someone who is invested in not only you as a person, your career. And that doesn't mean that if they've given you some developmental feedback or some constructive criticism, that hopefully is for your betterment, not just to break you down, not just to be mean. You know, sometimes we have to do hard work as supervisors. But if you have a bad situation going, break up with your bad boyfriend, break up with your bad supervisor and find someone who is good for you, is good for your learning style, and will help you grow in this profession.

SPEAKER_02 13:50

Absolutely. I want to dovetail off of what you said about the reliable piece of that income. I mean, I don't know about you, but I have colleagues and they have let their counseling whatever practice go completely, and all they do is supervise. Yes. And so, you know, we always say, like, okay, you level one brand new supervisors, this probably isn't for you, right? We don't want you to just out of the gate, graduate, get your S, and you know, harness up 20 supervisees and say, let's go. That you need to see our episode about burnout if you do that. So we're not recommending that. But if you are further along in your career and you have had your S for a while and you have kind of been there, done that with your clients, or you're feeling that tug of burnout, I mean, focusing on supervision as your only source of income, it's not a bad way to go. In fact, it is. I'm gonna go back to our title, why supervision becomes the smarter revenue stream, right? You're not gonna face the same kind of cases, the same type of interaction. I mean, you and you do that. I mean, you have supervision as the majority of your income. And I mean, what are the pros and cons?

Full‑Time Supervising Later In Career

SPEAKER_00 15:09

Yeah, and and one of the things that's been so interesting to me, and I think this is a Texas thing, but many, many, many of my supervisees have either started in Texas, but our military spouses are in the military and they move. So that led me to also getting more state licenses because I'm the kind of person too, like again, see my earlier comment about never wanting to do an intake again. Same thing kind of goes for my supervisees. When I'm with you, I want to get you across the finish line. If you move, I'm not like, okay, well, that's on you. Have fun. Good luck to you. Goodbye. I don't cut those strings. I go, hmm, let me look into seeing if I can get licensed in that state and see what that would look like to become a supervisor. So fortunately, my first state was North Carolina, and there's a heavy relationship back and forth between military people between North Carolina and Texas. But that is also one of those things, like not only could that help you get open up a new state for client work, but also for supervision. And at one point, I was supervising in five states, which sounds crazy, but like breathe. But there was only like one in Oregon, a few in North Carolina, one in Virginia, and it was people that originally started in Texas for the most part. So that is also one of those things that just like it can be as consistent as you want to stay with them. But also, you know, remember that like you're hopefully in it for the long haul with them. And if they, God forbid, fail the first time they take their their finishing test or whatever it is, that you're not just gonna like, oh, you know, this is in sickness and in health. We're gonna see this through to the very end. But when I was having those five states, and I think I had 18 supervisees at the highest, it was some were groups, some were individual. Some states, like Oregon, don't make you meet with them every week, although it's something I required. They only require twice a month at minimum. And if you're working full-time, I think that's a little unethical. Like that's a lot of cases that you're going in and out before you see me again. But those kinds of consistent and just like clockwork, like you get to know these people. And like I would say, even you're kind of part of their lives. You're their mentor. And I have had people graduate and now are talking about becoming supervisors themselves. And it's like you just kind of see that ripple effect out of like, now who are they gonna supervise? And how many people are I'm gonna have like great grand supervisee children that, you know, it's such a cool thing. But passing along that that that knowledge and that experience of all the crazy things I've been through and the mistakes that I've made to prevent you from following in those mistake footprints, like worth it all day, every day to me.

Multi‑State Paths And Military Moves

SPEAKER_02 17:57

And we designed the course. So we're almost like, you know, supervision great-great grandparents anyway. Right. Cool. It's so cool. And I love seeing these courses go out to the whole country. It's just oh, that's why we want your feedback. We really, really do. We love it that you're taking our courses. Uh, we do our very best to keep everything ship shape and we are rules junkies. I mean, that's that's what we do, that's what we love. So let's talk about rules for a second as as it pertains to supervision as the smarter income stream, because it kind of turned into the wild west after COVID. And uh there were different rules in different states. But let's be real clear. I mean, and I'll talk about compact. If your state is part of the compact, that doesn't necessarily apply to supervision. Okay. So if you are, you know, if you feel like your counseling across state lines should dovetail into supervision across state lines, that is not, and I'm I'm maybe talking out of turn here. We do have an episode about the compact, but Ashley, right? I mean, supervision is not covered in the National Counseling Compact.

Mentoring, Groups, And Long Hauls

SPEAKER_00 19:13

No. And that is one of those things. There are many like if you think every state board has a different like ruler around how to get licensed, that same exact thing is in my experience. I've looked up, I think I'm probably upwards of 20 states that I've looked at specifically for supervision. What it requires are their designations. And I would say it's rare that you don't require a full license in that state. And that's not a compact, that's a full, you know, ununequivocal license in that state. But nearly all of them have requirements of their own: classes, coursework, taking a class in college, et cetera. And that's one of the things that Kate and I have done is look at some of those states and start getting up some of those states so we can say, if we can do this in Texas, what are the rules in Virginia and Tennessee and North Carolina and Oregon and Vermont and whatever else? So that you know that we are the place for you to go to. If you have any question about any state that you can trust that we're digging in those rules, we know the state code because we have gotten kind of many law degrees. I kind of say if you understand Texas state law, you deserve a law degree because it is such legalese and like it is a whole thing. But since we're playing in it all day, we know the ins and outs of many, many of these states. And zero of them so far have said the compact allows you to do supervision work, but some people are doing that. They're supervising across those state lines and it puts you at risk. It puts your supervisee at risk. I have seen many people say, my supervisor said that they were good and I trusted them. Because right, these are brand new people to the profession. They don't know what they don't know. I've had agencies in the state of Texas say you can do clinical work without a supervisor. It is a scrapshoot out there. It is absolutely the wild, wild west. So that is something you need a license, and often you need coursework, a certificate, a designation, even if it doesn't like in Texas, it's LCSWS for supervisor for social work. Some of them don't have that S, but there is on the board, it'll say this is a supervisor or not. Make sure you're doing your due diligence because you don't want to lead somebody astray and have their hours not count. Like I have seen them say, I'm done, and then they go to the board and they say that was not an approved supervisor. So they have to start over. It is absolutely not what we're going to be doing.

Rule Changes, Compacts, And Myths

Bonus Download And Membership CTA

SPEAKER_02 21:45

I just heard about a case today. Yeah. And so here is clearly, I mean, supervision is a smarter income stream. If you're listening to this, you're not gonna hear me see me make air quotes. It's smarter if you understand the rules. So understanding that, okay, if I'm a supervisor in Texas and I want to supervise my associate who's in, you know, Oklahoma for their Texas hours, okay, there you go. It's Texas, it's gonna count for Texas, but you can't count Oklahoma hours toward an Oklahoma license if you're not an Oklahoma supervisor. And I think there's a lot of misinformation out there. And again, not your fault. I mean, we like rules, we dig into rules, and I know a lot of us we depend on our agency to tell us what to do, like Ashley was saying. And uh I have this, you know, verbiage on our website. It's like, who has time to keep up all with all that? Well, we do. So yes, please reach out. We have KateWalker Training.comslash support. It's easy to get to and ask us anything, and we're happy to walk you through the process because supervision is so fun, it's such a great way to add to your mental health degree and what you do, whether you do it as a business or part of your agency. And we do want you to stay in it forever. We we don't want you to quit. So, yeah, if you are able to charge money because you are outside of an agency, we think you know, this is a really good way to go. So reach out to us if you have any questions. Can you think of anything else, Ashley? Well, I think that's it. All right. Okay, guys, take care. We'll see ya. Thanks for listening. Before you go, don't forget to grab the free February bonus. Stop working for free, the therapist fee reset. You'll find it at KateWalkertraining.com slash bonus. And if this episode sparked questions about fees, boundaries, or supervision, you don't have to figure that out alone. That's exactly the kind of conversation we continue inside the Step It Up membership. Thanks for listening, and I'll see you next time. If you love today's episode, be sure to leave a five-star review. It helps other badass therapists find the show and build practices that thrive. Big thanks to Ridgely Walker for our original fun facts and podcast intro, and to Carl Guyanella for editing this episode and making us sound amazing. See you next week.