How do we respond to someone when they say, "$7500/per year (our PMARR) is a lot of money?”
"As your new financial advisor, I would not recommend that you hire me if you could not afford me. I have no doubt in a year from now that you will wonder how you ever lived without me and feel that the $7,500 is a bargain. Would you like to get started?
Just received a mailing list from a friend and potential Ideal Client (600 names). He knows everyone on the list and attempts to cycle through and contact 2 per day. He is not an Ideal Client yet. I have given him a book, but not been able to get his wife to commit to a Phone Consultation or a Financial Road Map®. She was going to retire and the company just offered to retain her. When it settles, I hope to do a Financial Road Map® with them. In the meantime, do you have any thoughts on what might be appropriate to do with the names on his list? They're not Ideal Client referrals, but not totally random either. There are email addresses for about 20%, phone numbers for about 25% and addresses for 100%.
You don't need his wife on the phone to do the Phone Consultation. Proceed with him. After the Phone Consultation then you can worry about whether or not a Financial Road Map® is relevant for both of them. If so, work it out with him. Follow the process. There is no Financial Road Map® until after the Phone Consultation. Follow the process. Do one step of the process at a time. Follow the process. Focus on one piece at a time. Follow the process.
I want to create a concise answer to the question of what do we charge. You mention two things and I can't reconcile them. Either "set a Predictable Minimum Annual Recurring Revenue and honor it for all clients" or "use an annual fee of ____ % of their net worth or assets". These seem very different. I'm fine with charging an initial one-time separate $2500 fee for creating the plan. But on going do I charge a Predictable Minimum Annual Recurring Revenue or % of assets/net worth for the 10 deliverables/3 meeting annual on-going process.
In the interest of simplicity of you and for them, you may prefer to charge a flat annual fee instead a % of assets or net worth.
How can it be the same Predictable Minimum Annual Recurring Revenue fee for everyone if it's based on % of Assets/net worth?
It can't be. It can only be the same if you charge the same flat fee for everyone.
Do we set a fee and then reduce it for what we collect in advisory fees (% AUM )and then bill the difference?
No. You will no longer be the Money Manager, therefore you will no longer collect a money manager fee.
What if the amount they already pay just for AUM is more than the Predictable Minimum Annual Recurring Revenue?
They will be very happy to receive even more value for less money than they have been paying in the past. This will likely increase their loyalty to you and your refer-ability.
Clients agree to pay for their plan (and pay at the end of the first meeting) $5,500 to have their Implementation Plan written. My annual ongoing Ideal Client Fee is $11,800. Do I collect this (annual ongoing fee upfront) from them at the same first meeting or do I do it at Implementation Meeting?
You can do it any way you choose. Many advisors bill it quarterly and have it automatically deducted from an account, usually their money market account.
I realize mine is not the optimal model, but until I actually get an Ideal Client and transition to referral only, it is the one I've got. Here is my situation -- I've met with a few attorneys since my return from the Academy, actually took out the Financial Road Map® and tried to get them to go through it with me [they all refused and I do not expect that to change] but they all were intrigued enough with what I was saying to ask me for the words for them to use [most likely in an email] so that they could tell their clients about me and give them the chance to contact me. No, they will not give me their clients' names for me to contact directly; nor will they send the VBFP book/Road Map to their clients on my behalf. They want a short blurb on what I do, what makes me appealing/different, etc. so that THEY can make the INTRODUCTION/REFERRAL. I've learned from the Financial Road Map® Interview that what we say, how we say things, the language we use, etc. are all critical to the rapport building. So, with all that in mind, what words would you suggest I put before the attorneys so they can make a "warm" third party referral without having experienced the Road Map first hand [again, they won't do it, but I am confident they will make introductions].
Our program is all about helping you implement what we teach. Instead of a question about implementing what we teach you are asking me how to help you do something different. After spending a few days with me in San Diego, I'm sure you won't be surprised that I will not go down this path with you. I do have some advice that you may find helpful, however. My advice is that you only work with Subject-Matter-Experts in two ways: 1. As important members of your deliverables team to serve your Ideal Clients to get their entire financial house in order and keep it that way forever by making smart choices about their money that are in alignment with their most important goals and their most deeply held values. While this is not the objective, it is not uncommon for the SMEs to become clients and to refer you to their friends, family, colleagues, and clients after they experience what it's like to work you a professional like you who operates at a level of client service they have...
I have a relationship [developed last year - "pre-BAI"] with a senior person at the Major League Baseball Players Alumni Association that needs to be followed-up on. In fact, he owes me a call that I would like to preempt by calling him. I believe the Financial Road Map® experience, and the three meeting process, etc., could offer solutions to many of the problems voiced to me by not just Major League Baseball, but by others in professional sports [some of whom I may have access through people I know]. I need the words to use for my centers of influence [these with direct access to sports personalities] to get them to give me access to their constituents. This is not a situation for me to run a Road Map [they are not physically close] but one where I would like to get their interest to possibly invite me to meet with their Board and/or refer me directly. I need a script!
My answer will be similar to the answer to your previous question. Contrary to your point of view, I believe this is the perfect person with whom to create a Financial Road Map® experience. (Notice, I did not refer to this process as "run a Roadmap.) Your problem, in my opinion, is that you have the same "disease" infecting most FAs. (Don't feel bad. It's a highly contagious disease that inflicts almost everyone in our business. It's curable.) That is, you see some people as "centers of influence" who can refer you to others / "direct you to their constituents" instead of as human beings you can help by completing their Financial Road Map® and helping them get their entire financial house in perfect order and keep it that way forever by making smart choices about their money that are in alignment with their most important goals and their most deeply held values. Some of your Ideal Clients are well-connected people who can introduce you to lots of other people who can benefit from...
For the last 10 years we go annually to Charity a function for a Dialysis Association. Our neighbors assist their sister (who is a kidney transplant recipient) to organize this. The neighbors nor the sister are Ideal Clients - not delagators. My aim is to get to the medical specialists and treat and do the kidney transplants and a couple that attend the charity ball each year.
There are potentially a few people who could potentially be Ideal Clients at the ball with own business etc.
My thoughts were of donating say 3 of the VBFP books per table ( the customized books are due arrive on 10th May and the Charity Ball is on the 14th May) I could include a Financial Road Map® conversation over the phone This may be beneficial to the people concerned and I may be lucky to get an Ideal Client.
Perhaps I could contact the doctors at the dialysis unit later and mention I donated the books, if they received a copy and if not--- it may be of interest to them.--- would they like a book sent and set up a 20 minute phone conversation. Bill, what do you think? Can you suggest more or something else? If you agree I will try to draft up a couple of phone conversations --- first to the charity ball organizers (my friends) and secondly the doctors at the dialysis unit.
You are being more creative than you have to be. There are already 3 processes that exist for you to apply. In advance, ask your neighbors / ball organizers to help you create a list of the most important and influential people who will be attending the ball and to point them out to you once you are there. 1. The self-referral process. Apply this when you meet these influential people at the ball, as well as to everyone else you meet there. 2 & 3. The Referral and Group Self Referral process. Any of these people who become Ideal Clients can either refer you directly to everyone else they know, some of whom will have attended the ball, or can arrange for you to conduct a Group Self Referral / Ideal Life session. Remember, you can be very successful working on the box instead of thinking outside of it.
For several years I have run an annual review program for all of my clients. As such this is something they have come to expect, generally around the same month each year. As I look to introduce the new world to them, including the values conversation, I seek assistance in terms of a script that clearly articulates the improvements to my service, as well as the road map conversation. For many years clients have received a circle chart and progress reports as part of my existing review process, so some of the ‘new world’ is something they will not perceive as added value.
I am keen to introduce Values-Based Financial Planning™ to existing clients, outline to them the new direction of my business and that I invite them to be a part of this. I am struggling with a script to clearly differentiate the added value of the new world to them.
Prior to their next scheduled review, as succinctly as possible, I would like to introduce the idea, outline an overview of the conversation we will have BEFORE we then run their standard annual review. Where clients realize the new world is for them, I would immediately slot them into the next space on my 3 meeting process schedule rather than run the review meeting.
Everyone else I am obliged to run the review meeting and put the exercise down as practice, complete the work that comes from the review meeting itself and then see them in a year’s time. Either way, I am not sure how to best articulate the conversation. Could you suggest some ideas for a script to help me keep on track and ensure I best communicate the added value?
In the "New World" you will get your entire financial house in perfect order and keep it that way forever, making smart choices about your money in alignment with your most important goals and your most deeply held values, so you have a 10 level of confidence that no matter happens in the markets, the economy, or the world you will achieve your goals. We deliver on this promise by providing 10 core client deliverables broken into a list of 143 deliverables checkpoints orchestrated by me, your Trusted Advisor, and supported by a team of best-in-class subject-matter-experts in financial planning, asset management, insurance, tax, and legal. We will meet 3x / in the coming year to get your entire financial house in perfect order. Each meeting covers different elements of the client deliverables and when every single action item is complete that's when you can legitimately say that your entire financial house is in perfect order. We will continue meeting 3x / year to make sure your...
Can you please suggest an appropriate scripted reply, when my clients (often happens in the Values Staircase™ Conversation) ask me, "Are you a life coach or counselor?” I’m looking for a response that has a yes but we are also so much more impactful i.e. a wow factor that’s compelling, succinct and all about them.
"Nope. I'm just a really good Financial Advisor who will help you align your most important goals with your most important goals."
I am building a pool of groups I will approach to offer the Ideal Life PowerPoint (Self Referral) program. The script for the program is comfortable. Is there a script for how we would approach these groups to make the offer?
You "approach" the decision-maker for the group by referral. Ask your existing clients, friends, family, and colleagues who they know who is a decision-maker for a group where you could make this presentation. Can you guess what you do next? That's right, you ask questions to determine whether or not contacting this person is RELEVANT. You use the same questions (following the same process) you would ask for an individual referral and introduction. What else would you do following the process that you have learned and applied to this situation? Would you have your client, friend, family, member or colleague make a warm introduction to the decision-maker? You're learning that the process is always the process. The situation may be somewhat different, but the process, the steps in the process, and the sequence are the same. See the self-referral flow chart. In this case the offer is the group self-referral (Ideal Life) presentation.
I will be meeting with a professional money manager soon. I explained that I offer comprehensive financial planning and it would compliment their offering to their clients which his purely investment. My question to you is is it a good idea?, What should I share with them? The 5 critical reports? The three meeting process? The 143 item checklist? Anything else? It is not a cold call, I know them personally and professionally.
What's the purpose of the meeting? The only reasons to meet with a money manager are: 1. To do their FRM as a prospective client. Is this a referral or self referral? 2. To vet as a potential SME. If this is the case, follow the process that Mark teaches. Your question appears to indicate that you are approaching the Money Manager to gain access to their clients. That is not part of our model. If my assumption is incorrect, follow the appropriate process based on 1 or 2 above.
I am in self referral land, and I've had a few occasions when I've been treated like a salesperson (I've already got an investment guy, you're a money guy, etc.). What is your compelling response to that?
It is the same you would have with a referral who says, "I already have an advisor," (see script for follow-up call in Mastery Series 2) because you have made the same offer. The offer being to give them a copy of a book that contains some concepts and ideas that will help them , , and (fill in the blanks with what they just told you matters to them) and have a conversation with them on the phone about how the concepts in the book will help them , , and . Ask your questions, make a deep emotional connection, make the offer, answer their questions, give them the book, and schedule their phone consultation. Or not. Next. I can't help but wonder, however, if you are really getting meaningful, important, significant, and compelling information during your self-referral conversation and then using that information effectively when you make your offer. Remember to go deep to make an emotional connection and then make the offer. It's hard to imagine many people refusing your gifts. ...
After completing the Financial Road Map® Interview with friends to help me get more experience, they decided to get a financial plan done. I relayed the cost of completing the plan, but not the cost of an on-going relationship (as I was unsure that was the best time to have that discussion being fairly new to the process). I am meeting them Saturday morning to have a pre-planning meeting. What is the best practice for inviting them into my Ideal Client community at this point and discussing the annual fee (I am thinking $10K...this would be my first Ideal Client invite)?
Your answer to your question is perfect. When it's time to tell them how much the ongoing relationship costs, just tell them how much it costs. If they have any other questions, just answer them directly and transparently until you come to an agreement to do business... or not. Remember, every time you answer a question you finish with a question. i.e. Does that answer your question? Are you ready to proceed? How else can I help you feel good about your decision to hire me to help you get your entire financial house in perfect order and keep it that way forever?
I have been given the opportunity to give a 10 minute presentation to a group of people. I need 20minutes if I were to go through the recommended ideal life group presentation. Do you have any thoughts on what I should focus my time on in the presentation?
Tell them why giving you 20 minutes will be worth it for the group. Then follow the process we have given you. A 10-minute group referral process does not exist. If you can't get the time you need to accomplish the task, don't accept the invitation. (Analogy for why this should be an easy decision: If the pilot on your next flight to America was told that he would only be given enough fuel to get halfway there, what would you hope he does: (s) Accept half the fuel and do the best he can with a water landing in the Pacific Ocean or (b) Only agree to fly a plane that has enough fuel to get to the destination?)
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