The fee-for-service model lets the advice become front and center to your relationship with your clients, but it can sometimes feel like a hurdle when it comes to showing the value you provide in exchange for an ongoing fee. So how can you effectively communicate that message?
It can be daunting to meet with a financial planner, especially for clients who are just beginning this part of their financial journey and have likely never met with a financial planner before. A brief email introduction with what to expect at the initial meeting can go a long way to ease nerves and create a more inviting atmosphere for potential clients. If they seem like a good fit to continue, let them know the process for becoming a client, onboarding, and what you’ll be discussing in upcoming meetings. This way, you’re both on the same page and they’re not surprised along the way
Chances are your clients are just as invested in their financial goals as you are (and if they’re not, they may not be the best fit for your practice). But when they wrap up a meeting with you, they go back to their busy day-to-day lives and their other competing priorities. Make it simple for them by laying out what steps they’re responsible for, whether it be gathering statements for you to analyze or increasing their 401(k) contributions. Make it clear what steps they need to take.
There are several ways advisors can determine their fee-for-service cost. Many advisors find it helpful to explain the cost as an annual fee paid monthly. This sets the expectation that while you may not be meeting every month, you are maintaining their plan, and you’re there to answer their questions and provide advice when the need arises. Consider an Annual Client Service Calendar that lays out what actions you take each month.
Most clients are looking for a partner, not someone to make every single decision every single time. Have deep conversations about what being in good financial standing will mean for them, their family, and their future. You can show them their plan is as unique as their situation by relating your advice back to their goals and priorities.