Best Ways To Boost Advisor Productivity: New Tech Efficiencies Vs Old Fee Increases: Kitces & Carl Ep 126

The Importance of Raising Fees

In this podcast episode, the hosts discuss the importance of raising fees for financial advisors. They highlight the trade-off between spending time and resources on implementing technology solutions to improve efficiency versus simply increasing fees. The hosts emphasize that raising fees can have an immediate impact on profitability, unlike the time-consuming process of implementing tech solutions. They share examples of advisory firms that have successfully increased their planning fees, resulting in significant increases in revenue. However, they also acknowledge the challenges and fears associated with raising fees, encouraging advisors to examine the stories and beliefs that may hinder them from charging their worth.

The Limitations of Technology

The hosts explore the common tendency among advisors to rely too heavily on technology as a panacea for growing their businesses and increasing efficiency. They highlight how technology can only provide a 10% efficiency improvement, and it cannot bridge the gap when advisors significantly undercharge their clients. The hosts argue that blaming technology for profitability and scalability issues obscures the underlying fee problems that need to be addressed. They suggest that if advisors want their businesses to be profitable, they must charge what they are worth, rather than relying solely on technology solutions.

Unraveling Stories of Value and Worth

The hosts delve into the deep questions around identity and self-worth that often come up when considering raising fees. They discuss the stories and narratives that advisors tell themselves, such as fears of losing clients or feeling like a bad person for pricing out those who need advice. They encourage advisors to examine these stories and challenge their beliefs about their value and what they provide to clients. The hosts emphasize the importance of unraveling these stories to gain clarity and confidence in charging appropriate fees.

Reflecting on Personal Growth and Value

The hosts stress the need for advisors to reflect on their personal growth and value as they contemplate raising fees. They suggest keeping a 'stoke file' with positive client feedback and reminders of the value provided. They also recommend paying attention to imposter syndrome and the deep-seated narratives that may hinder advisors from recognizing their own worth. By practicing self-awareness and examining these stories, advisors can gain the courage to charge what they are worth and show up confidently in their business.

Kitces and Carl - Real Talk for Real Financial Advisors

Best Ways To Boost Advisor Productivity: New Tech Efficiencies Vs Old Fee Increases: Kitces & Carl Ep 126

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Importance of Raising Fees

The Limitations of Technology

Unraveling Stories of Value and Worth

Reflecting on Personal Growth and Value

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