When a client hires me I usually do a financial plan for free. Your program suggest that I charge for the plan. How do I go back and charge an existing client for a financial plan when I've already done one for them in the past? How can I start to charge a client for something that I have always given them for free. Is there something more detailed that I can offer them? Can I increase my service to the existing client? I need some ideas, maybe some top notch programs that will take what I offer them to a new level? I feel that there should be a reason why I am increasing their fee. “I am changing the way I am doing things” really doesn't sound like a valid reason to me. Am I wrong? Earl Nightingale said prosperity is founded on a law of mutual exchange. Anyone who contributes to prosperity must prosper themselves. To me that means that if I want to increase my income then I need to increase my value to my clients. How do I do that in the context of charging them a new fee?

Article ID: 521

Last updated: 20 Nov, 2019

First of all, let's address what you do in the future with new clients: charge a fee for planning from now on with new clients.

There are several reasons for this:

1. The plan has value, therefore charging for it is a reasonable thing to do.
2. Charging a fee is good for the client because they are more likely to act on advice they pay for, therefore getting more benefit because results come from implementing.
3. Charging a fee is good for your self-esteem and confidence because you are being compensated for the value you create in the form of the plan rather than being forced into salesperson mode to use the plan to sell financial products at future meetings in order to be compensated.
4. Charging a fee for the plan causes the client to view you as a true advisor rather than a salesperson using the plan as "loss leader" to sell them financial products later.
5. Charging a fee for the plan ensures that you are compensated for your work, whether the prospects become clients or not.

A good starting point for the fee is $5,000. Under no circumstances should the fee for the plan be less than $2,000.

As far as existing clients are concerned... Just because you made a bad business decision in the past does not mean you are obligated to continue to make the same bad business decision in the future. Just so we are clear, it is a bad business decision to not charge for the plan. The truth will set you free is more than a religious statement. Tell your clients the truth the next time it's appropriate to create their next financial plan. Notice that I said "create their next financial plan" and not "update their plan." Every plan is a new plan. It might sound something like, "It's time for us to create a new financial plan for you because things have changed in your life and things have changed in the world. In the past I have made the mistake of not charging for the plan, but don't worry I'm not going to retroactively charge for work I have done for you in the past. The fee for the plan is now $5,000. Do you have any questions about what we're going to do or why it needs to be done?"

As you continue on your journey with us you will discover a value proposition for your clients that will put you in the top 1/10th of 1% of Financial Advisors in the world and you will likely significantly increase your fee and the quality of clients you work with. This value proposition builds on what you are learning from doing Financial Road Map® interviews. You can only implement one step at a time or you will become overwhelmed. For now, do lots of Financial Road Map® interviews and learn the lessons.

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