How do you explain to your existing clients that you are changing to a flat fee structure? It's easier than you think...


The biggest question I get when clients are working to transition from an AUM pricing structure to a flat fee structure is “How I am I going to explain this to my clients?” To which I  usually say, “Don't sweat it too much?” Start with the new clients and don’t worry so much about the existing ones yet.” As you can imagine, some people don’t really like that advice.  So we’ll do some analysis on our current fees and help you create your formula for your new fees, to make sure that the formula you create and ensures you are being compensated appropriately and similarly and help make sure your clients aren't in for too much sticker shock.

Then we'll revisit the reason for the transition. This takes me back to my favorite thing: remember your why. Why are you making this change? What is it in it for you and your clients? You're losing sleep and work time to go through this transition, there must be a good reason. And if you start there, you’ll be able to explain it to your clients clearly, and everyone’s going to be on board. If you  need some help working through this transition, give me a shout.