Ep 111: Why The Right Advisory Fee To Charge Is The One That Not All Clients Say "Yes" To with Jim Stackpool

Financial Advisor Success

Michael Kitces

News, Business, Entrepreneurship, Business News

4.8 • 696 Ratings

🗓️ 12 February 2019

⏱️ 96 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Today I’m joined by our first international guest, who gives us a look at not only what financial advisor businesses look like in other parts of the world, but also how all advisors should start looking at their value propositions. Jim Stackpool is the founder of Certainty Advice Group, a practice management consulting firm for financial advisors based in Australia. With a unique focus on how to price and demonstrate the true value of financial advice, Jim is a firm believer that the expert value of advisors should be distinct from the products we implement.

In this episode, Jim shares what advisors need to consider when it comes to setting fees, as well as his advice for demonstrating value instead of simply justifying prices. Listen in to learn how to know whether your advisory services are priced appropriately, what many advisors fail to understand when it comes to being business owners, and what firms everywhere should be doing to make advice more valuable.

For show notes and more visit: https://www.kitces.com/111

Transcript

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0:00.0	Welcome to the Financial Advisor Success Podcast, where you go behind the scenes with
0:07.1	financial planner, speaker, and consultant Michael Kitsis to hear stories of how leading
0:12.5	financial advisors navigated the inevitable challenges that arise on the path to success
0:17.5	and get insight from leading industry consultants about how to break through to the
0:22.0	next level in your advisory business. And now here's your host, Michael Kitsis. Welcome, everyone.
0:30.2	Welcome to the 111th episode of the Financial Advisor Success podcast. My guest on today's podcast is
0:36.3	Jim Stackpole. Jim is the founder of
0:38.6	Certainty Advice Group, a practice management consulting firm for financial advisors based in Australia.
0:44.5	What's unique about Jim, though, is his particular focus on how to price and demonstrate
0:49.4	the value proposition of what he calls non-product-based financial advice, which is increasingly relevant as
0:55.9	fiduciary regulation continues to crop up both here in the U.S. and especially in Australia.
1:01.7	In this episode, we talk in depth about how to think about the true value of financial advice,
1:06.9	how the expert value of the advisor themselves should be distinct from the products we implement,
1:11.7	just as every surgeon uses a scalpel, but the value of the surgeon is not measured in scalples.
1:17.5	Why the value of advice is not merely tied to a goals-based conversation, but must tie to their
1:22.7	real-world complexities, and why in the end we should focus more on the enduring value or what Jim calls
1:28.9	the profound value of financial advice that can have material life-changing impacts for clients.
1:35.0	We also talk about how to know whether your advisory services are currently priced appropriately.
1:40.7	Why, it's actually a problem if you get too many people saying yes to your advisory fee pricing,
1:45.3	how even on renewal, you should consider raising advisory fees to elevate the business and the work
1:50.4	it does with clients, even if you lose a few along the way. And why the AUM model does perhaps
1:56.2	have it easier than other pricing models, since fees tend to naturally lift with the growth of
	...

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