How to make clients pay for advisory
What do you do when everybody needs advisory but nobody wants to pay for it? Della Hudson FCA explains.
If your clients are anything like mine then they all need business advice but most of them aren’t willing or able to pay for it. So what do you do?
First, remember that we’re giving them solutions to their problems and not just a service we want to sell as another income stream. I love my food but even the best restaurant in the world won’t get my custom if I’m not hungry.
Identify what is causing your client pain. And then tell them briefly about your solution e.g. they are struggling with cashflow and you’ve spotted that their debt collection process leaves something to be desired.
The conversation should go something like this:
You: I’ve noticed that you’re struggling to find enough cash to pay your wage bill at the end of each month. Is this something that worries you?
Client: Yes, it keeps me awake at night.
You: I think we could do something to help you by putting in a better debt collection process so your customers pay you more promptly. Would you be interested in that sort of help?
Client: Yes please. Thank you for solving my problem.
You: It would also save you overdraft interest each month.
Client: Even better. What do I need to do?
As a script it needs a bit of work but put something together in your own words. Have lots of ways that your solution could help them but don’t use them all; focus on the one that gets traction.
Some software now comes with a dashboard or portfolio view that will summarise all your clients on one page and allow you to compare their numbers to find the ones most in need of help. We’ll be talking about this in our series of advisory webinars.
Once clients realise that there Is a value to our advice, in this case the improved cash balances, reduced overdraft interest, and the reduction in stress, they will understand what they are paying for. You can then decide whether it is most appropriate to charge for your advisory work on a fixed fee, hourly rate, or an amount related to the value that you are providing.
The beauty of advisory services as an income stream is that the value is much easier to demonstrate, and therefore charge for, than the peace of mind that comes from a properly completed tax return.
How to do Advisory 1-2-3
- Watch the related webinar: How to make clients pay for advisory