Many advisors feel overwhelmed while trying to establish fee structures when they transition to getting paid for the services they provide. Selecting a pricing model was, historically, never an issue because most fee-only financial advisors worked were paid based on the assets they managed.
In the pure advice world where services are completely detached from traditional mechanisms for generating income, well... we're seeing advisors freaking out a little bit about how to price your services when you try the monthly retainer model (or any other business model that means you get paid for advice and planning services rather than just asset management).
That's why we're dipping into the mailbag and addressing questions to help advisors think through a few common scenarios in order to select a pricing model that works.
If you're having a difficult time valuing your time or lining the services you provide up with an appropriate pricing structure, tune into this episode. And make sure you take plenty of notes on this great information that will surely help you build a profitable practice that serves your ideal clients at the highest level.
Listen to the Full Interview:
What You'll Learn from This Episode:
- A starting point for determining how to price your services.
- Why setting a time-based pricing model is challenging to maintain.
- How you can determine the value of your time.
- Why not honoring your time early and establishing a lower price point can negatively impact your growth after 6 - 12 months.
- Other types of fee structures that advisors can adopt.
- Why complexity-based pricing is less effective for new business owners.
- How to transition to value-based pricing model in the planning world.
Featured on the Show:
- Connect with Michael: Kitces.com | Nerd’s Eye View | Facebook | Twitter | LinkedIn | Google+ | YouTube
- Ep #18: The Career of Brittney Castro - From $0 to $250k Revenue in 24 Months with No AUM