The right financial advice is a valuable investment.
But it can be challenging to communicate this to clients with little experience of advice.
How can you reframe your fees to convert more prospects and display your full value?
There are two important factors clients consider when deciding whether to use an adviser.
One is whether the professional can deliver strong returns, and the other is whether they can provide financial security. So frame your fees with these two things in mind.
Firstly: providing strong returns. Never let a fee sit by itself – always couple it with the value of your services.
For example, you might say that your client could expect to have an extra £3,000 a year during their retirement, for the cost of £2000.
You can also break the cost down by month. Ask your clients to think about their monthly gym membership or magazine subscriptions. In essence, across a 20-year retirement your services will cost just £8 a month to make them £3000 a year better off.
Secondly, highlight the risks of not getting advice. The upfront fee might be costly, but not making the right financial decisions could cost them £3,000 a year.
As long as you’re not too heavy-handed with this tactic, it will present your fees as a bargain.
You provide truly unbiased advice. You’re not restricted by product, nor led by commission.
So while the client may pay a little more, this frees you to offer the very best advice for them. Being transparent builds client trust and displays your true value.
Double down on this transparency angle by telling stories of clients you’ve had to turn away. Only when you can provide great advice at great value to a customer do you onboard them as a client.
Finally, take clients through the service decisions that affect their fees. Would they be happy with remote advice, or for support staff to work on their enquiry? While this will reduce the fee, people are usually happy to pay more for what they see as a superior service.
Simply offering the choice will lead to a better perception of the fee, and shows you’re open and able to adapt to their needs.
Turning your fees from an expense to a bargain can be as simple as using the right explanations in the right order. Never shy away from being open about your fees and their true value. Framing them in the right way while embracing transparency can take your conversion to new heights.