A few weeks ago, I chatted with an adviser who told me how she’d just won a new client because she discloses the fees she charges on her website.
Apparently, the client explained he chose the adviser specifically because the fees page was transparent and showed “an absence of smoke and mirrors”.
Building an effective fees page isn’t easy, but our research shows most firms don’t even try. Indeed, only around one in 10 adviser websites disclose fees.
That statistic demonstrates the first of three reasons why some firms choose to disclose their fees online: it helps them stand out in a crowded field of firms that look the same to clients.
Research shows only 10% regret adding fees to their website
The second reason is transparency. I’m not saying for a moment that a fees page is the only way to show you operate a transparent business, but it can be very effective.
Finally, the advisers who disclose fees online tell me it’s a great way to filter out potential clients who might be fee-sensitive, while making face-to-face discussions about charges much easier.
Although they’re in the minority, most advisers who disclose their fees online seem happy with their decision. A poll I ran on LinkedIn shows only 10% regret adding them to their website.
It’ll probably be the second or third most popular page on the site, so you need to get it right
Despite that, there are disadvantages to online fee disclosure.
Firstly, some of the people the page filters out might have otherwise enquired about working with you.
Secondly, advisers who set fees based on an hourly rate often can’t quote a fee until they’ve met the client and agreed on the scope of work. This makes online fee disclosure significantly more challenging, although I’d argue some level of disclosure is still possible.
Finally, it isn’t easy to build a fees page. It’ll probably be the second or third most popular page on the site, so you need to get it right. That means doing more than uploading a PDF of your client agreement, and simply slapping your costs on the page won’t cut it either.
Simply slapping your costs on the page won’t cut it
Five things need to be on a fees page if it’s going to work for your business and your potential clients. They are:
1. Your fees
Show exactly what you will charge, at every stage of working with you. Be specific, avoiding the temptation to hedge your bets by showing ranges, because the potential client will anchor to one end of the range, which is never helpful.
2. The features of your service
Next to each fee, explain clearly, in simple language, what you deliver for each of the costs.
3. The benefits of the service
If you expect potential clients to understand the benefits of working with you for themselves, you’re going to be disappointed. Instead, use client videos and your Google/VouchedFor reviews to show the benefits of working with you.
4. Examples
It’s always useful to show how your fees work in practice. So add case studies and worked examples to help people gain a better understanding of the value of your proposition.
5. Comparisons
If your fees are below the average or there’s something that differentiates how you charge, adding a comparison makes sense.
That’s a lot of information to include, but don’t be tempted to leave anything out. Each of the five things are equally important and your page will be less effective without them.
Our research shows people who read fee pages are prepared to invest the time to get all the information they need. Give them what they want.
Phil Bray is founder and director of The Yardstick Agency. Click here to access its free scorecard to review your fees page.
“fee-sensitive”. Now there’s an interesting euphemism.
Smaller firms already have an inbuilt advantage – no VAT. They can also determine their own tariff.