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Is that flat Predictable Minimum Annual Recurring Revenue fee or % of net worth fee in addition to the 1% of AUM that I charge for their investments that we now manage?

Article ID: 356
Last updated: 20 Nov, 2019
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b 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)?
b Under my current model, there are different means of compensation, depending upon the deliverable (I.e., planning fee, % of AUM, insurance commission, other). It seems that the planning fee would logically be part of the Commitment to Hire. When would the other pieces be brought into the discussion?
b How do we respond to someone when they say, "$7500/per year (our PMARR) is a lot of money?”
b 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.
b How do you determine what Planning Fee is appropriate for each client? I would imagine that different client circumstances require a different Planning Fee. You mention on tape from $2500-$3000. This seems high to me.
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