Distraction-Proof® Advisor Ideas

Whether your firm allows you to charge for financial plans or not, never give a financial plan away for free.

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The issue isn’t whether you can or can’t charge. The issue I’m covering is using the word free.

When we hear that word, free, it really shows us there’s no value to whatever we’re going to be able to download or get for free.

If you are in a position where you cannot charge for a financial plan, don’t use the word free; use the word complimentary. I’ll give you some language to use for that shortly.

However, you want to be charging for financial plans, if you are able to. They are hugely valuable to a client. And anything we do get for free, we typically don’t value.

Some people ask, “How can I charge a separate fee for planning as well as the fee I’m going to charge for managing assets or for my hourly rate?” Here’s some language to think about:

“There are primarily two ways we work with clients. The first is through financial planning, and then there is the asset management, and we charge separate fees for these two services. The financial plan is typically a one-and-done engagement. It’s a one-up cost that is allowing you then to set down all of your objectives that you want to reach. We charge a one-time fee for that. The plan is dynamic in nature: we go in, alter it and change it when we need to, but it’s a one-and-done fee.”

When you let people see that it’s just a one-up cost, that it’s something separate from asset management, then they’re more inclined to understand why it’s a separate cost and be willing to pay for that.

Then, when you want to, or maybe you have a bit of a challenging client, you can provide an analogy:

“It’s kind of like building a home. There’s the architect’s fee, which is a separate fee, and there is the contractor fee’s that you pay to have your house built. The architect’s fee for the plans and the contractor’s fee for the building are separate.”

By providing an analogy like that, you let people see that this is how other professionals charge for their services as well. And you can emphasize, “We charge for the financial plan. It’s a one-and-done fee. It’s dynamic in nature, so we update it as we go.” That’s the way to describe how you charge for the financial plan.

If you are with a company who won’t permit you to charge for the plan, simply use this verbiage:

“A financial plan is so important, we don’t let price get in the way. That’s why we offer a complimentary financial plan to all of our clients. It’s vital to have a foundation to reach the choices you want to reach in 5, 10, or 20 years from now. And that all begins with a sound financial plan so we can see exactly where we’re going. It’s so important we don’t let money get in the way. We don’t charge for this plan; it’s a complimentary service we provide, alongside the asset management services we offer and the relationship that you and I are going to work on from now into the future.”

That’s the language to use, whether you charge for a plan, whether you don’t charge for a plan. But we never use the word free.

To get more effective at doing this,

1. Eradicate “free”. Eradicating free things lets people see that whatever you offer is of value, even if it’s complimentary.


2. Practice the language. If you’re charging for a plan, get comfortable explaining that it’s a separate cost, and be prepared to use that analogy. Or, if you can’t charge for a plan, get comfortable explaining that it’s so important you don’t let pricie get in the way.


3. Use this approach every opportunity you have, regardless of whether that person’s coming in with just a $50,000 IRA rollover, as far as they’re concerned. Let them know you work with clients on far more important issues to start with. “That’s why we prioritize sound financial planning.”

And then you can use one of those two other language tracks that I mentioned to let them know what they need to do next.

I look forward to bringing you another Distraction-Proof Advisor Idea next week.