Stop Giving Away Your Value: Defining Terms as an Advisor
I had a really interesting conversation earlier with a good advisor who's been in our training program for years. He mentioned how he just learned—well, relearned—an important lesson. He had a meeting with a prospect earlier this week, went through a diagnostic, found out about their needs and goals, and then he started sharing ideas to help them. He was excited, feeling like he was truly helping this client. But right before we got on a collaboration call, he received an email from the client thanking him for the ideas. The kicker? The client took those ideas back to their CPA and moved forward accordingly, without the advisor.
The advisor was stunned. He thought, "Wait a minute, you took my ideas? Your CPA didn’t come up with them. Your current advisor didn’t come up with them. I did. And now you're moving forward with them but not with me?"
Of course, I told him, "My friend, I’ve been there. Too many of us as advisors give away our value for free." That inspired me to shoot this quick video and share some slides about the problem with giving away value—and more importantly, how to solve it.
The Problem: Giving Away Value
Many of us as advisors waste time selling prospects. We feel like we have to prove our worth by sharing good ideas upfront. The issue is, we’re not defining our own terms, so we give away valuable insights without earning what we’re worth. In essence, we sell ourselves short.
It’s like the game Battleship. You fire ideas over the wall and wait to see if they hit. Sometimes you get a "hit," but too often, you get silence, leaving you unsure if your efforts are valued.
The Solution: Defining Your Value
Here’s how you can start defining your own value and ensure you're compensated for your intellectual property.
1. Stop the Servant-Master Mentality
Too many advisors act like the servant, constantly adjusting to the client’s demands without defining boundaries. Instead, you should be an equal, leading the engagement on your terms.
2. Turn Intangible Value into Tangible Offers
Financial planning can feel intangible. It’s abstract, and prospects might not understand what they're getting. You need to create tangible service levels for your clients. I like to use three proactive service levels: Proactive Light, Proactive Core, and Proactive Max. Each of these tiers provides specific services with corresponding fees, making the value you're offering more concrete.
For example:
- Proactive Light: $200–$500 per month
- Proactive Core: $500–$2,000 per month
- Proactive Max: Customized pricing based on the client’s needs
3. Charge for Value Before Sharing Ideas
Using the example of the advisor I spoke with, before offering valuable insights, he should have explained his service levels and charged appropriately. That way, even if the client takes those ideas to someone else, the advisor is still fairly compensated for the value provided.
4. Leverage a Team to Bring More Value
Advising is not a solo sport. Leverage experts like CPAs, tax planners, and legal professionals to provide greater value to your clients. The more value you can offer through a collaborative team approach, the more you can charge and the better outcomes your clients will see.
Closing Thoughts
Ultimately, the more value you bring, the more you can charge, and the more you deserve to earn. The key is defining the relationship and ensuring you’re compensated for the expertise you bring to the table. This is the foundation of redefining yourself as a true professional in this industry.
