Welcome to another episode of Building Your Multi Million Dollar Practice. Last time we discussed how to get over the fear of the sale (listen to episode 14 here). This week we come to the final part of this series on Moving to Advisory, we are focusing on how much you should charge for your advisory services.
There are different ways that you can bill for your services; you can either charge an hourly rate, or you can bill based on the value you provide to your clients.
Billing on an hourly rate not only diminishes the value of your services, but it also makes it more complicated for your clients. The amount they pay each month will vary, but with a retainer fee, they know exactly what cost to expect and what they will be getting for their money. This will also help them understand the true value of your services.
Thanks to advances in technology, many of your tedious and time consuming tasks can be automated, This means that you are able to get more done in less time, You are still providing the same level of service, it’s just becoming more efficient for you, and with a retainer model you will still get paid for the same value of the service, rather than the number of minutes it takes to complete the tasks.
How do you determine the price of your services? It is all based on perception of value. Listen to this episode to hear the formula for calculating what you can be charging!