“If You Think It's Expensive To Hire A Professional To Do The Job, Wait Until You Hire An Amateur.” - Red Adair
I’m an Independent Financial Adviser and I’m currently inundated with new clients and referrals from accountants, solicitors and other legal/financial professionals. I also get numerous enquiries from clients of other financial advisers, including other IFAs.
I explain that there are no fees or charges until the client(s) and I have agreed the course of action and set the fee upfront, including how the fee will be paid.
My hourly rate, which I rarely use as the basis for an invoice, is £495 per hour which might sound expensive, however, I don’t lose clients and have never received a complaint about my service or the products/portfolios I recommend and monitor.
There are thousands of funds and hundreds of providers I can use so I spend time researching the correct solution for a client before putting everything in writing, getting it checked by the compliance team, and presenting it to the client in a clear, east to understand, way that matches their needs.
I apply three ‘C’s when working with a client:
Complexity
Consequences
Can’t
If something is complex, there are consequences for a client if they get it wrong, or they simply can’t do it themselves, then they need an adviser.
If it’s simple, there are no consequences, and they can do it themselves, I show them what to do and don’t levy any fees.
No matter which professional or trade you’re working with, it’s worth applying the rules above if you think it’s something you can do yourself.