Let’s talk about one of the most common (and costly) mistakes I see advisers make when it comes to fees.
I say this with love, by the way, because I used to do it too: I’d have a great first meeting, we’d agree on the scope and they’d pay the upfront engagement fee, which covered the SOA. (Or, back in the day, we’d wait until the SOA was implemented, because everything was tied to product.)
After that, we’d deliver the SOA – already overflowing with projections, strategies and disclaimers – and that’s when I’d bring up the ongoing advice fee. Cue the overwhelm.
Cue the hesitation.
Cue the “we’ll think about it” email.
I realised, though, that this wasn’t happening because I was charging too much; I was just talking about it at the wrong time. I was asking clients to commit to ongoing advice at the exact moment their brains were fried – and, somehow, I expected them to just say yes.
So I made a shift.
I stopped offering a menu of “up-front” or “ongoing”. What I do now (and what you might consider doing) is just prescribe what they actually need. Let’s be honest: a financial plan is just a PDF, and it’s outdated the moment life changes (which is usually weekly).
What I offer is financial planning – ongoing, strategic, evolving.
So, instead of saying that it’s $X upfront or $Y ongoing, I now put it this way: “We’ve spoken about your goals and where you want to be in 12 months. To make that happen, we’ll need to work closely together over the next 12 months.
“Most clients choose to stay with us long-term because life – and money – keeps changing. For now, though, let’s just focus on what we can achieve this year. It’s an $X onboarding fee, then $Y per month moving forward.”
No pressure. No separation. Just one complete path.
Here’s the truth: if the first time your client hears about ongoing advice is at SOA delivery, it’s already too late. If they say no, they’re telling you, “I’m overwhelmed and I didn’t expect this.”
Our job is to educate clients about the journey, not just the product. So we don’t need to treat the fee discussion like a hard sell; it’s a gentle, intentional warm up. And when you do it right, it turns the most awkward fee conversations into obvious next steps.
Since I made this shift, I’ve found that:
- Clients say yes within 60 minutes
- They pay the onboarding fee on the spot
- Monthly fees start the next month
- I can pay for paraplanning and admin, and I spend more time doing the work I actually love
Clients benefit from this approach, too, because without ongoing advice, how do they know when to come back? They don’t. And they miss things like a “nothing” skin cancer diagnosis that turned out to be a trauma claim, changes to the concessional cap that could have reduced tax or a salary increase that wasn’t reflected in insurance – and now comes with exclusions.
With regular contact, they’ve got that sounding board. Plus, it’s obviously better for your business, as transactional advice models are hard to scale. Every month, you start from zero, and finding new clients is expensive and exhausting.
So: don’t sell a financial plan – sell financial planning.
Advisely Partner
