The Perfect RIA

Why Your Value Proposition Matters More Than Your Fee

Feb 28, 2025

Amber Kuhn tackles the challenge of advisory fees and how client perceptions impact value. Matt and Micah assert that it’s not just about percentages; it’s the consistent delivery of value that matters. They highlight the need for advisors to help prospects see the full range of services offered, rather than just fixating on costs. The discussion underscores that belief in one's fee structure and having clear processes are essential for building trust and conveying worth to clients.

05:40

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Quick takeaways

Advisors must emphasize the overall value and services provided to clients, rather than allowing fee perceptions to dominate the conversation.

Confidence in pricing structures and clear communication about value delivery can significantly enhance client trust and engagement in the financial advisory process.

Deep dives

Understanding Fee Structures and Client Perception

The discussion emphasizes the importance of how fees are perceived by clients and the value provided by advisors. Many clients tend to focus solely on fee comparisons when evaluating advisors, which can lead to misunderstandings about the overall service being offered. Advisors should communicate clearly about what clients are paying for, ensuring they highlight the benefits and value delivered beyond just pricing. By engaging prospects in evaluating their own financial decisions and understanding the control they have in the process, advisors position themselves more favorably and create a better sense of trust.

Understanding Value vs. Fees in Client Advising

6min

In this week's Follow Up Friday, Amber Kuhn highlights the ever-present challenge of advisory fees and client perceptions. Matt and Micah emphasized on Monday that the fee conversation isn't just about the percentage – it's about the value delivered. While they acknowledged that a 1% fee might indeed be too high for an advisor who's not actively engaging with clients, they argued that consistent value delivery changes the equation entirely. They stressed the importance of helping prospects understand the complete package of services they're receiving rather than fixating solely on fees and performance metrics. Their message was clear: advisors need to believe in their fee structure and have clear, tangible processes in place to support it.

Resources in today's episode:

- Episode Website - The Fees Are Only Up Because The Market Is Up… [Episode 297]