Business model for retainer services

Financial Planning Fees & Clients

Charging for Retainers

Best Clients for Retainer Fees

Compliance and Retainers

Billing for Recurring Fees

Combining Retainer Fees & AUM

Broker-Dealer Compliance & Retainers

Compliance and Payment Processing

Positioning financial planning fees to clients and justifying value

A key feature of structuring your financial planning fees using the Retainer Model is transparency in pricing. This kind of disclosure is something that advisors have traditionally steered away from. The very thought of it may be inducing some anxiety in you, but the truth is, the marketplace is moving further toward transparent pricing as an industry standard, and it may be necessary for you to follow along with it. More and more information is available online that allows customers to assess their options. The best way to respond to this shift is by doubling down—be transparent with your value as well as your pricing. To do so, you as an advisor have to be certain of the value you bring to your clients and be able to clearly articulate why they should pay for your services.

Justifying AUM fees is a far simpler task. Give me a small percentage of your capital to look after the rest? It’s a no-brainer for clients, with the rationale almost built into the model. Selling Financial Planning on its own is far trickier as it is often difficult for clients to see what the outcomes of your relationship will be. You need to ask yourself these questions before your clients do: What can they expect to get out of their partnership with you? What can you provide that they cannot do for themselves? Make the answers to these questions as tangible as possible so that your clients can visualize the kind of service you will provide.

See the list of retainer services you can offer your clients in a retainer model.