As a financial advisor, engaging in fee conversations with prospective clients can be challenging—and sometimes downright awkward! There are those who will focus solely on what you charge and overlook the broader value of how you can help. Others are convinced that they can DIY their financial plan for free.
To overcome the fee hurdle, it is essential to redirect these conversations toward the value propositions you offer. Financial advisors who can effectively communicate the benefits they provide will build a practice based on value, rather than fees. In this article, we’ll explore 4 tips for redirecting fee conversations to focus on your value proposition instead.
Proactively Address Fees
Rather than waiting for clients to bring up the topic of fees, take the initiative to address them head-on. During your initial conversations or presentations, clearly explain how your fees are structured and what services they cover. It can be off-putting to many prospective clients if advisors avoid the topic of fees or wait for the client to ask first. By openly discussing fees from the start, you establish transparency and set the stage for a value-focused conversation.
Here’s an example: “I want to take a moment to address our fee structure, as I believe it’s important for you to understand the value you receive in return. Our fee covers comprehensive financial planning, personalized investment management, ongoing portfolio monitoring, and regular performance reviews. By bundling these services together, we can ensure your financial goals are met effectively and efficiently.”
Consider utilizing a graphic or some other visually appealing presentation to illustrate the value you provide. (Hint: Check out this great graphic from Kitces.com highlighting 101 ways financial planning can help!)
Communicate in a Personalized Way
It’s one thing to communicate the full scope of your services, but it’s another thing to connect the dots between what services you offer and how that truly affects the prospective client sitting in front of you.
Avoid broad language that doesn’t really mean much to your client’s day-to-day needs. Saying that you offer investment management and financial planning may sound great to other advisors in the industry, but does your prospect know what that actually means? Use personalized language that addresses your prospect’s specific pain point.
Try something like this: “I understand that you recently went through a divorce and preserving your assets for your children is a top priority for you. Our comprehensive financial planning services include a detailed insurance and estate planning review to shield your assets properly for future generations.”
Go beyond what you will be doing and highlight how you will work together with your client to get it done. Discuss the steps involved, including any meetings, expected follow-up emails, and the timeline for the final presentation. Breaking down the barrier between what you provide and how you actually do it can provide insight into the process and allow prospective clients to better understand the value of your services.
Showcase Your Experience and Expertise
Prospective clients often underestimate the knowledge and experience that financial advisors possess. To redirect fee conversations toward value, showcase your credentials, certifications, and track record of successful outcomes for clients. Share stories and case studies that highlight how your guidance has made a meaningful impact on the financial well-being of others.
This social evidence can help prospects recognize the value of your services and position you as a trusted advisor capable of navigating complex financial landscapes. This is also a great time to highlight any niche-specific credentials or experience you may have.
Here’s an example: “I’ve been helping clients navigate the transition to retirement for over 10 years. I hold the Retirement Income Certified Professional® (RICP®) designation and have helped clients answer questions about Social Security claiming, tax-efficient portfolio withdrawals, and how to build an income floor using personalized investment strategies.”
Highlight Time Savings and Efficiency
Time savings is another area where financial advisors add value. Explain how often you make trades, rebalance portfolios, research investment opportunities, monitor regulatory changes, and make adjustments to their financial plan. Emphasize how this ongoing management frees up their time to focus on passions and priorities, knowing their financial affairs are in capable hands. Highlighting the time-saving aspect of your services demonstrates an additional layer of value.
You can say, “One of the key benefits of working with our firm is the time you save. We handle all the behind-the-scenes tasks, such as monitoring your portfolio, researching investment opportunities, and staying up to date with changes in the financial landscape. This allows you to spend more time doing what you love while we keep your financial strategy on track.”
Define Your Value With Indigo Marketing Agency
Fee conversations can be easier than ever before with a well-defined value proposition and a team of experienced marketing professionals on your side. At Indigo Marketing Agency, we can help you identify your target market and craft a compelling value proposition that actually resonates. Schedule a free strategy session to transform your awkward fee conversations into well-defined value propositions.
