How Much Are Financial Advisors Worth?

Charge what you are worth

What’s your WORTH?

I’m not talking about Net Worth. I mean your VALUE. How much is your experience, problem solving skills, and knowledge worth? This week I’ve been coaching several clients who are working through the true value of their services.

 

Do you struggle with your own worth?

There seems to be a great deal of FEAR around what to charge for services, across all industries. In fact, when I first start working with a financial advisor client, this is the most common limiting belief I run into. I remember years ago coaching a client who had not raised his fees in ten years. He was limiting his profitability by keeping his rates low. He was charting a course headed straight for misery. He believed his low prices were a competitive advantage.

What this really meant for his practice was that he was overworked with too many cheap clients who didn’t appreciate his work. He couldn’t afford to hire a licensed assistant nor conduct the marketing tactics he needed to grow his practice.

The world needs financial planning – DESPERATELY. The world needs financial advice – URGENTLY. There is plenty of FREE information out there about how to live within your means, create a budget, and invest and save for retirement. Does that mean the public will take action?

Ever heard the phrase “You get what you pay for”?

Free doesn’t mean the consumer will get results. Only the most dedicated individuals can take full control of their financial situation on their own. The value of a financial planner is in the RELATIONSHIP and the ACTION taken by the client because they have received custom advice.

The value of financial advice is in the continuing relationship between the advisor and the client that allows the consumer to reconnect with their financial goals and the ability to course-correct according to changes in their situation or changes in the marketplace.  It’s up to you to communicate this value.

Ever been reluctant to declare your fee for services?

This past week my client met with a prospective UHNW client with a portfolio worth 100 million in investible assets. As the meeting ended he was reluctant to “ask for the business” and move ahead with an engagement letter because he would have to ask for his fee. He didn’t want to appear pushy or tacky so he didn’t ask. His FEAR was that this sum of money would “sound” high. His FEAR was that the prospective client would say “no.”

FEAR – False Evidence Appearing Real

The fear is inside your head telling you things that probably don’t exist. So what if the client says “no.”  When you hear “no” you ask questions and get to the bottom of why the client is saying “no.” It’s called overcoming objections and asking for the business.

What is your expertise worth? What is the value you provide? Become accustomed to answering these questions so that you can charge what you are worth and get it. Learn how to position your unique value proposition so that you have the cash flow and income to support living a good life.

If you’ve ever wondered HOW you can charge more, read this article I wrote years ago that breaks down the ways you can increase your fees: 7 Ways to Charge Top Dollar For Your Services

About Suzanne Muusers

2 Responses to “How Much Are Financial Advisors Worth?”

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  1. Great stuff…thanks Suzanne. I get client feedback regularly that reinforces that the value we bring far exceeds the cost of our advice, and I try to keep that front and center in my mind when engaging a prospective new client.
    Kevin O’Reilly recently posted..Debt, American StyleMy Profile

  2. Kevin,
    Yes, being aware of the value and being able to communicate it truly helps consumers “get” financial planning. My point in the post is that even companies with 500 million under management have trouble overcoming the fear of asking for their fee. We all have fears – but being confident about what you offer helps you greatly.
    Thanks for stopping by!
    Suzanne
    Suzanne Muusers recently posted..A Financial Advisor Business Plan Template You’ll Want to UseMy Profile