How To Create, Increase, and Communicate Your Value As A Financial Planner

I want to show you how to create and communicate your value as an advisor in a way that you probably haven't done before. If you can do this, then your fee or a monthly retainer is never going to be a barrier for someone to work with you. The result of using this value formula has directly impacted our business. In the past 30 days, we've been able to bring on four new clients with a total of $10 million in assets. This concept that I’m about to share with you has really transformed how we view our practice, Streamline Financial, and I think it could do the same for you.

It all starts with understanding value. A prospect decides to work with you because they believe that the value they will receive is far higher than the price that they're going to pay. It's simple. So, the big thing that we need to do is figure out how to widen this gap. You and I both know that we're delivering value that far exceeds the price, but not every person we talk to understands this. When someone thinks that your fee is too expensive, then the value chart, in their mind, has a very small gap between price and value.

For a long time, I thought it was hard to communicate value of ongoing financial planning or advice to people, until we started studying how to actually do this and communicate in a way that was instantly understood. We want to be able to say certain things in a way that will widen this gap and be perceived right away by the person that we're talking to.

There are two ways to widen the gap:

Option 1) Lower Your Price

I don't think you or I would recommend this. We both know that the value is there; you just need to communicate it well.

Option 2) Increase the Value

Here's the good news: you are most likely doing things that prospects find extremely valuable already. So, you're not going to have to change anything except how to communicate in a way that potential clients understand it. We need them to quickly understand that they're getting an amazing deal just by working with you.

How do we massively increase this value that we're providing? There are a lot of different parts of doing this successfully, and in this post, I'm going to talk about the first one.

Figure Out What They Value the Most

What is their ideal outcome or future state. What do they really want and really need. Then we can figure out what's currently stopping them from achieving that ideal.

Once we understand those two things, we can position what we're currently doing for our clients in a way that clearly shows them that we have the solutions to those problems. The way that we communicate their problems and our solutions is really the first part of the value formula.

And there's actually three other parts to the value formula that I’ll share very quickly to make up the whole formula.

IF = ideal future state; this is what we just talked about.

CS = chance of success; if they work with you, will they achieve this ideal future state?

These two elements are in the numerator, which we want to increase as much as possible.  

TF = time factor; how long will it take to get to the ideal?

E = effort; what has to happen to reach the ideal?

Then for these two factors in the denominator, we want to decrease this as much as we can.

There are a lot of conversation and frameworks that go in to figuring these out and communicating in a way where that value really far exceeds the price. If you want to learn exactly what to say to widen that value gap by using the value formula, and learn more about the other three factors, click here for a free training so that you can implement it in your own business.