Nobody Is Born Great at Fee Raises
Updated: Oct 1
I hear some version of this almost every week. An advisor tells me they'll raise fees once they feel a little more confident. Then a year goes by. Then three.
Here's the catch. Confidence shows up after the first fee conversation. After you've had it, lived through it, and realized the world didn't end.
The 'someday' trap
Most advisors are waiting for the day they feel completely ready. The script is perfect, every objection is covered, and the nerves are gone. How long have you been waiting for that day?
That day never comes.
The advisors who raise fees successfully still get nervous. They just go first anyway.
Start smaller than you think
You don't need to reprice your whole book in one shot. Pick a small group and treat it like a test run. Start with 10 small, unprofitable clients or your smallest client segment.
(the ones you might not fret if they chose to leave)
Have the conversations, notice what lands, and adjust before the next round. That's how any skill gets built, and fee conversations are no different.
What you'll discover
What are you bracing for? Most advisors expect pushback, tough questions, and clients heading for the door. Here's what they usually get instead:
"I was wondering why you hadn't raised fees yet"
"Makes sense"
And often the only clients who cause drama were ones you didn't fit your profile anyway.
The story in your head is almost always worse than the real conversation. (Your inner critic is a lousy forecaster.)
Every conversation teaches you something
Trust that each fee conversation is going to build a different muscle.
Somewhere along the way, the fee stops being the headline. You find yourself talking about value, and the number takes care of itself.
Put pricing on the calendar
When was the last time you took a hard look at your fees? Pricing shouldn't be a once-every-ten-years event. It belongs in your annual review process, right next to everything else you check. Every year, ask:
Do our fees still match the value we deliver?
Do our minimums still make sense?
Have our costs gone up?
Has our service model changed?
Are we aligning our productivity with our capacity?
If any of these make you pause, your pricing deserves a closer look.
Reps beat perfection
The advisors who are great at fee conversations weren't born that way. They got there the same way anyone gets good at anything.
Practice. Do. Learn.
And remember, there are experts out there that can squash the learning curve.
Take a deep breath
You won't feel confident before your first fee raise. You'll feel confident because you did it. So start small, get your reps in, and let your pricing and your confidence grow together.
Nobody is good at this the first time. Everybody who's good at it had a first time.
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