The Two Things I Used to Have to Do
Hi there.
Business is open and things are really picking up. I’m grateful for everyone who’s shown an interest in the Advice-Only model. I’ve gotten pretty good at sharing what I do: “I help people make wise decisions with money, but I do it a little differently than what you’re probably used to.” “Different how?” “I run an Advice-Only practice, so I don’t sell products or manage money for people. I just provide advice and they stay in the driver’s seat.”
It’s a unique model, and most everyone I’ve spoken with about it has never heard of it. It presents some differences, along with some limitations. For example, I’ve spoken with dozens of retirees who are not interested in being in the driver’s seat anymore. That’s not a bad thing. They understand that they are paying someone to manage things on their behalf, and they’re 100% ok with that because they want their time back.
The flipside is for those who are comfortable with making those decisions and taking some guidance and running with it. The nice thing about that is we can be very intentional about the price and what we’re spending.
I recently met with one of my new clients, and had a conversation about the different ways that I charge clients for advice. The client had a budget in mind, and was interested in how he could get the biggest bang for his buck. That concern is what made me think that the ongoing version might be a better fit. My breakdown on hourly is pretty straightforward. But for the same price, I can engage the client for a longer period of time without either of us feeling like we’re taking advantage of the other’s time or wallet. It’s slower for me, but works out better for the client.
For someone with as much in motion as this client, a few hours wasn’t going to reach it. In option one – hourly – my client pays more up front, and I get the work done. In option two – ongoing – he pays slower, but the advice gets to be longer, more in-depth, and not as limited by an hourly rate.
In the past, if someone came to me and said I’d like some help with this: I’d either have to do the work with the hope that it’s good enough that they want me to manage their money, or do the work and try and find a solution that benefits them but also pays me (selling some kind of a product). Neither of those are inherently wrong. It just feels so good to not have to do either.
Which brings me to the important point. Never hesitate to ask the question: “How much do you get paid if I go this way versus this other way?” It only takes a moment, and the answer will tell you a lot.
Until next time, God Bless.
Ian
