5. Ask for more assets. Certain products and services, like managed money, have breakpoints in pricing. Cross the threshold and it’s cheaper.
Advisors: Explain if they commit more money to the program, fees decrease a percentage basis.

6. Where does the discount come from? Prospects probably don’t know exactly how you are paid. Some might assume all fees go directly to the firm, but most know there’s a split between you and the firm. They might assume the “pain” of a discount is shared equally between you and the firm. It might be different, meaning the firm’s dollar amount of fees stays the same, but all the discounting comes from your side of the equation.
Advisors: If that’s the case, politely explain to prospects how discounts are shared. They will probably understand and be more flexible in their request, realizing you deserve to be paid.

Sometimes discounting is necessary to win business. You should have a strategy.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book Captivating the Wealthy Investor is available on Amazon.

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