The Perfect RIA Fee Billing Faux Pas: How Advisors Lose Money Without Realizing It With Guest Lacey Shrum [Episode 286]
Dec 9, 2024
Lacey Shrum, founder and president of Smart KX, helps financial advisors navigate the tricky waters of fee billing. In this engaging discussion, Lacey reveals how manual billing errors can lead to severe consequences, even legal trouble. She emphasizes the psychological barriers that prevent advisors from accurately valuing their services and adjusting fees. The importance of automated billing systems is highlighted to avoid risks and enhance revenue. Lacey also stresses effective communication with clients to build trust and ensure adherence to fiduciary responsibilities.
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Missed Billings
- An advisor missed billing 17 clients, highlighting the risk of manual processes.
- The advisor didn't receive client praise for the missed billing, only internal issues.
Not Billing is Not a Favor
- Advisors don't do clients favors by not billing for services rendered.
- This can lead to issues with client relationships and trust.
Calculate Blended Fee Rate
- Calculate your actual blended fee rate to understand your true earnings.
- Compare this rate with your stated fee to identify discrepancies.