The Fact:
Three quarters of financial advisors expect to generate proportionately more of their income in the form of fees over the next three years.

The Implications:
When referring to ‘fees’ Canadian financial advisors typically include asset-based compensation (such as fees generated from wrap accounts) and fees charged for services. In either case, advisors plan to annuitize a larger portion of their revenue stream. Among the implications of this shift will be the need to clearly articulate the value that they bring to client relationships.

The Idea:
Advisors deliver substantial value to their clients above and beyond the selection of products and services. In many cases, however, advisors have failed to define and then communicate the value that they deliver and that has made them reticent to charge fees. A simple brochure or document entitled “What You Can Expect” will help define the service for your clients. That document should include a detailed description of how you add value to clients, both during meetings and behind the scenes. If you can ‘package’ the experience as a defined process, you will increase the perceived value to the client. We expect to see many advisors move to a tiered system that includes a baseline level of service that is covered by trailers and commissions and a high-end service that provides comprehensive planning and analysis.

The Next Step:
The Business Success Kit provides you with the tips, tools and templates that you’ll need to enhance practice productivity and profitability. It’s the most practical and comprehensive guidebook available for financial advisors. For more information, visit www.caifastore.com and click on the Business Success Kit.

Attend CAIFA’s National Conference to learn more ways to achieve long-term success. Visit www.caifa.com for more information and to register.