Kill The Future Objections Brought On By Disclosure Of Commissions While They Are Little

I wrote the following script back in 2013 / 2014 to help advisors explain disclosure of commission to their clients. The script also helps the advisor to deal with their emotions relating to disclosure of commission. I believe this script provides a segue into dealing with industry changes that include disclosure of commission, the potential of banning commission and the advisor heading into a fee for service model.

Kill The Future Objections Brought On By Disclosure Of Commissions While They Are Little

There are many changes going on in the world. Like everywhere, there are changes going on in the Financial Advisor Profession.

Future changes include your Client Investment Statements are going to demonstrate both your Investment and the Fee we receive as your Professional Financial Advisor to Manage Your Investments.

Please note that YOU ARE NOT RECEIVING AN INCREASE IN FEES … only that your Statement is going to show the Fee separately that we receive as your Professional Financial Advisor to Manage Your Investments.

YOU ARE NOT RECEIVING AN INCREASE IN FEES.

Before we talk about the Fees, let’s talk about our Relationship.

We have been working together to help you create a plan, to reduce debt, grow your assets, protect your assets and leave a legacy for __ years. Is that correct?

Please think back to the following areas and rate yourself on a scale of 1 to 10 (where 10 is high) where you were when we started working together and where you are now.

Debt:
Auto – 1 – 10
Credit Card – 1 – 10
Mortgage – 1 – 10
Stress – 1 – 10

So clearly, when we first started our work together to create a plan, to reduce debt, grow your assets, protect your assets and leave a legacy your debt stress was at a level 8 and it has dropped down to a level 2 – 3.

How does that make you feel? Wonderful.

Please think back to the following areas and rate yourself on a scale of 1 to 10 (where 10 is high) where you were when we started working together and where you are now in your personal or business life in respect to improvements that we have made through having a plan, to reduce debt, grow your assets, protect your assets and leave a legacy.

Increase assets – 1 – 10
Protect assets – 1 – 10
Create a retirement plan – 1 – 10
Fund family education – 1 – 10
Contribute to charitable giving – 1 – 10

How does that make you feel? Excellent.

What are the three biggest improvements that we have made in respect to our work together to create a plan, to reduce debt, grow your assets, protect your assets and leave a legacy?

What are the three biggest things that you didn’t expect that we have made in respect to our work together to create a plan, to reduce debt, grow your assets, protect your assets and leave a legacy?

Based on the concerns that you had when we first started working together, the stress that we have helped to eliminate and the improvements that we have made, it is safe to say our relationship makes a lot of sense? Doesn’t it?

Here are the value adds that we provide you with to make it possible to create a plan, to reduce debt, grow your assets, protect your assets, and leave a legacy.

25 years of experience
Licensing
Continued education
Advocis member
E&O insurance
Office and systems
Support team
Expert advice/introductions to experts in accounting, insurance, money, tax

Does the value that you are receiving to create a plan, to reduce debt, grow your assets, protect your assets and leave a legacy make sense to you? Thank you.

As I’ve said, there are changes in the Financial Advisor Profession in respect to the disclosure of the fees that we receive to manage your investments, before the fee were lumped in with your investment statement.

Now the fee we receive to manage your investment is shown separately.

Please remember, there is no increase!
Please remember, there is no increase!
Please remember, there is no increase!

Only that your fees will be separated.

I want to confirm that you have received value by eliminating:
____________________________________
____________________________________
____________________________________

I want to confirm that you have received value by improving:
____________________________________
____________________________________
____________________________________

So to confirm, the fees will be shown separately, they are not an increase and these fees will be ( $200, $300, $400, $500 ) per month.

Does it make sense for us to continue our relationship versus trying to manage this yourself?

Thank you.