Five For Fees
Five For Fees
"Some people don't want to pay you at all," David laughs, saying that he doesn't want this kind of client anyway. "My style of business is very relational: I meet with my clients regularly and I care about them. Fees makes sense to me because my goal is to work with these clients for the rest of their lives."
Besides weeding out poor prospects there are other benefits:
1. Clients like it more. It puts you both on the same side of the table and assures clients that their interests are your interests.
2. You get paid for the continuing service you provide. Your fee-based business ensures you are compensated for doing what is best for your clients.
3. You build equity in your business. Barry Sommers, National Sales Manager with Bear Sterns, says "The future of the mutual fund business, and the financial planning business, is fee-based. You are the asset gatherer, and allocator." You build value into the business by creating long-term, recurring revenue that is not dependent on new sales.
4. You build trust with clients. Chuck Ebersole, independent broker for 25 years says "When I started to charge fees for the plans I put together, there seemed an easiness about it. Clients knew what they were paying for."
Ebersole tells his clients they are under no obligation to work with him, but that his initial fee covers all the meetings in the first year and the written plan. "If they want to work with existing advisors, that's fine." The reality is that most clients transfer their assets to the creator of the plan. They perceive more value in having a "real advisor" oversee their important financial matters.
5. Fee compensation is a more appropriate business model for a professional service. Commissions are for businesses that rely on salespeople to convince potential customers to buy. Fees are for service businesses, that rely on the relationships created by their advisors. This makes good sense to a client, and to any advisor who charges fees.
Bottom line: It enhances the trust relationship and makes you more money.
Bill Bachrach is considered by many top producers to be the financial service industry's foremost interview skills coach. Bill has spoken 4 times at the MDRT Annual Meeting, 7 times at the FPA Success Forum, and at MDRT Top of the Table. For more about his Values-Based Selling™ Mastery System, and his other programs visit his website .
Five For Fees - To learn more about this author, visit Donald F. Pooley's Website.
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Fund broker, David Bach, switched to charging fees last year, and is now firmly committed to it. His clients are okay with paying more because they're actually getting more: not just a financial product, but a lifetime of advice, attention, and professional services.
"Some people don't want to pay you at all," David laughs, saying that he doesn't want this kind of client anyway. "My style of business is very relational: I meet with my clients regularly and I care about them. Fees makes sense to me because my goal is to work with these clients for the rest of their lives."
Besides weeding out poor prospects there are other benefits:
1. Clients like it more. It puts you both on the same side of the table and assures clients that their interests are your interests.
2. You get paid for the continuing service you provide. Your fee-based business ensures you are compensated for doing what is best for your clients.
3. You build equity in your business. Barry Sommers, National Sales Manager with Bear Sterns, says "The future of the mutual fund business, and the financial planning business, is fee-based. You are the asset gatherer, and allocator." You build value into the business by creating long-term, recurring revenue that is not dependent on new sales.
4. You build trust with clients. Chuck Ebersole, independent broker for 25 years says "When I started to charge fees for the plans I put together, there seemed an easiness about it. Clients knew what they were paying for."
Ebersole tells his clients they are under no obligation to work with him, but that his initial fee covers all the meetings in the first year and the written plan. "If they want to work with existing advisors, that's fine." The reality is that most clients transfer their assets to the creator of the plan. They perceive more value in having a "real advisor" oversee their important financial matters.
5. Fee compensation is a more appropriate business model for a professional service. Commissions are for businesses that rely on salespeople to convince potential customers to buy. Fees are for service businesses, that rely on the relationships created by their advisors. This makes good sense to a client, and to any advisor who charges fees.
Bottom line: It enhances the trust relationship and makes you more money.
Bill Bachrach is considered by many top producers to be the financial service industry's foremost interview skills coach. Bill has spoken 4 times at the MDRT Annual Meeting, 7 times at the FPA Success Forum, and at MDRT Top of the Table. For more about his Values-Based Selling™ Mastery System, and his other programs visit his website .
Five For Fees - To learn more about this author, visit Donald F. Pooley's Website.
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