Plenty of advisors hold back when it comes to talking about fees, afraid it might create tension. But it’s usually the silence that does the damage.
Openness earns confidence. When fees are unclear, prospects feel uneasy. When brought up too late, skepticism grows. But when you lead with openness and conviction, the conversation strengthens trust.
The key is timing, framing, and confidence. Too early feels transactional. Too late introduces doubt. When done right, the fee conversation makes prospects feel informed and confident, more likely to move forward.
When to discuss fees
Some advisors lead with fees, fearing that delay appears evasive. Others wait until the very end, hoping that rapport will justify the cost. But both approaches can backfire:
- Bringing up fees too early makes the meeting feel transactional.
- Waiting too long forces the prospect to ask, which can create discomfort.
- Relying on vague “value” statements leads to confusion, not certainty.
The better approach
Discuss fees after the prospect has shared what’s truly on their mind, and after you’ve clearly stated your ability to help them. Say it plainly. This earns trust and creates a natural opening to talk about your fees.
Example:
“You mentioned that you’re unsure if you’ll have enough to retire comfortably. That’s a concern I work with all the time. I want you to know that I can help you address this, and we’ll work through it together. Let me walk you through how my fees work so you can see how this all fits.”
If someone asks about fees early:
“That’s a great question. I’ll explain it, but first I want to understand what matters most to you.”
How to discuss fees with confidence
First, avoid abstract value proposition. Focus on specific services that directly impact your prospect’s financial well-being. Skip vague phrases that sound nice but mean little in practice.
What not to say:
“We provide holistic financial planning that adds long-term value to your life.”
What to say instead:
“Here’s what our service includes: portfolio management, tax efficiency planning, retirement strategy, and risk management. These services help you grow wealth and reduce risk.”
Use clear, simple language
Prospects value straightforward explanations. Speak plainly and avoid industry jargon.
Say this:
“We charge 1.5% of the assets we manage for you.”
Not this:
“Our fee is 150 basis points.”
Show fees clearly and simply
If you use a tiered fee structure, present it in a way that’s easy to follow.
For example:
- For accounts around $500,000, the typical industry range is 25%-1.75%. We charge 1.50%.
- For accounts around $1 million, the industry range is 00%-1.50%. Our fee is 1.25%.
- For accounts above $2 million, most firms charge 75%-1.25%. We offer 1.00%.
This approach eliminates confusion and reinforces that your pricing is both competitive and transparent.
The five essentials for a strong fee discussion
- Lead the conversation. “Would it be helpful to go over how our fees work?”
-
Highlight services, not abstract value. “We help reduce taxes, optimize retirement withdrawals, and align investments with your goals.”
- Even better: State your value by directly connecting it to the client’s specific issue.
- Explain fees clearly. “Our fees range from 1.25%-1.5%, depending on portfolio size.”
- Provide context. “Most firms charge between 1.25% and 1.75%. Our fee includes comprehensive planning and management.”
- Put it in writing. A one-page summary prevents misunderstandings and reinforces transparency.
Handling common fee objections
Even with the right timing and tone, some prospects will hesitate when it comes to fees. The key is to respond with composed assurance, not defensiveness. Here are three common objections and effective ways to address them:
Objection:
“I can get this cheaper somewhere else.”
Response:
“That’s possible. But lower fees often come with fewer services, less expertise, and more time spent figuring things out on your own. Our fee includes comprehensive planning, tax strategy, and ongoing support. It’s designed to help you build wealth over time, not just manage your investments.”
Objection:
“What exactly do I get for this fee?”
Response:
“You get more than a financial plan. You get a partner. We manage your portfolio, optimize your taxes, plan for retirement, and assess risk. And we stay in touch with regular check-ins and updates that adjust with your life. This is a full-service relationship, not a one-time transaction.”
Objection:
“Why should I pay when I can use an online service?”
Response:
“Algorithms invest. We advise. From taxes to retirement, your full financial picture gets human attention.”
Be proactive
The best advisors don’t just talk about fees. They make the case for why the investment is worth it, and show how it works.
- Anchor fees to services, AND your ability to resolve their concerns
- Speak plainly
- Provide written documentation
- Respond with confidence
Thoughts to carry forward
- Discussing fees clearly and confidently, after outlining your services but before the meeting ends, builds trust and increases the likelihood of client conversion.
- Avoid jargon and vague value statements. Instead, use plain language and specific examples to explain what the fee covers, ideally supported by a simple visual breakdown.
- Handle objections with measured confidence, reinforcing that the fee reflects the depth and continuity of your service, not just investment management.