Traditionally the financial services sector has been almost entirely remunerated via commission, and many advisers are now grappling with the basic question of "how" to make the transition - even if only in their minds - from working solely on commissions to charging clients directly for advice and/or service.
- You have to initiate the discussion. It cannot be avoided, and you cannot leave it to the client to ask the right questions - you must be proactive, confident of the value presented, and willing to be up-front.
- You have to be totally transparent. No trickery or magical playing with numbers. No detailed fine print that obfuscates. Provide your fees in a plain, easy-to-understand method.
- You have to put fees in context. Do not expect consumers to be able to work out whether your fees are reasonable compared to other choices, or how they relate to the benefits you provide to them. This element is a little different to Step 1 - which was a general positioning of why you are worth paying at all. Here, you must be able to personalize the value element for the client. Having told them the cost, you must be able to explain the benefit to them in order to identify the value being created.
- You have to put it in writing. Doing business on a handshake is fantastic, but to create lasting trust in a consumers mind, you must be willing to put it in writing for their safety. This takes some of the "risk" out of the equation for them. And of course, should there be problems in the future this is a critical element. After all, in a dispute a verbal contract is not worth the paper it's printed on, is it?
Like this? Then share it with others...or visit www.strictlybiz.co.nz for loads more useful and interesting information.