Valuing your worth: appropriate fees for good service.

FOFA has certainly created a whirlwind of turbulence and many advisors are facing the reality of implementing the changes that this legislation has prescribed.

Charging fees has been one of the main protagonists of this legislation creating an array of emotions from anger, disbelief and frustration to optimism and positive expectancy. The truth is that it’s here to stay and the only factor that we can control is the way we choose to relate to it.

If we search for the silver lining what could it be and if we are to look at it with new eyes what possible benefit can there be that will sponsor positive emotion?

In answering this question we first need to be reminded about the real reason that clients engage with you.

Every sale is based on emotion backed up by logic. One of the key emotional needs that client’s expect their advisors to satisfy is the need for safety and security. It is a fundamental need second only to having a roof over their heads and food to eat. What a tremendous responsibility to carry knowing that the advice you give is a primary and essential factor in fulfilling such a core need.

Now for a brief moment think about all the actions you have taken up until now that has culminated in you being the expert advisor. Think about all the time, money and effort you have invested in providing sound knowledge, quality advice and professionalism.

What price would you put on it?

I’d now like to offer the following scenario. Let’s say you became ill and chose to consult with a particular medical specialist. Do you pay her for the consultation or do you pay her for her expertise in giving you an accurate diagnosis and the appropriate treatment? Furthermore, do you think she should have an issue or feel uneasy about charging her professional rates?

Perhaps only if she feels unqualified or has a low self-worth. As a financial specialist, charging fees opens a wonderful opportunity for you to perhaps, for the first time, talk about your value proposition.

If you met a prospective new client who was making the choice between you and two others advisors, what would be your uniqueness and why should they choose you?  Being very clear and confident about what it is an important factor in your comfort level about charging fees.

How aligned or even proud are you in charging your client fees for what you do for them?” The degree to which you are aligned and proud will have a dramatic affect on your client’s acceptance of your fees. If fees are making you freeze, it’s an indicator of resistance within yourself to it.

Most of the discomfort about fees from a client’s perspective is that it’s something different to what they are accustomed to and that their belief system about needs to change about how you are remunerated.

People pay for quality and emotional fulfilment. Good restaurants are full, expensive brands are still being purchased and overseas holidays booked.

Being comfortable and proud will enable you to be in right mindset to have a conversation with your clients about your remuneration. I’m of the opinion that we should not talk about fees and charges but rather about the way you get paid for your time and expertise.

Talk with your clients about the actions you take in providing the high level of professional advice. The facets of preparing the SOA, the focus and time taken in giving accurate and sound information, the investment you make in your own continuing education and advancement, the research you undertake and the high level of professionalism are a few such actions.

Many client’s are unaware of what goes on behind the scenes and having a discussion of this nature provides them with greater insight into what you do for them and acceptance an appreciation that your fees are well justified. Discussions of this nature build stronger client relationships.

As with many new challenges in life it’s not what happens to you that matters most but rather the way you think about it.

Feel deserving of the fees you charge with the knowing that it’s incomparable to the value you bring. It should be a ‘No brainer” and if it’s not there’s work to be done.

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Meiron Lees has been mentoring advisors for over 15 years after having been a successful advisor himself for many years. He uses his sound knowledge and experience in assisting advisors to gain objectivity and to reach the next level of success. For further information click here or email Meiron at meiron@innercents.com.au

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