Meg runs a boutique advice firm on the NSW South Coast.
Late forties. Divorced. Twin teenage daughters, both talented triathletes and keen surf club competitors.
She is independent-minded. Self-licensed. Fitness fanatic herself – former junior gymkhana champion, three-time national university hill climb cycling champion.
She wants for her daughters what her parents gave her: the support to see how far they could go.
HER FIRM
150 clients. Fees ranging from $1,000 to $15,000.
She worked every day, limiting Sundays to just an hour or two.
No marketing. No networking events. No social media. An embarrassing website she only updates for compliance purposes.
Didn’t matter. She averaged a new referral every week.
Most were referrals from loyal clients, many were friends, fellow parents of sports-mad children, running mates, cycling buddies.
She hated saying no to requests for advice.
She only accepted about a quarter of referrals, passing the rest to a trusted friend who worked at a local Retireinvest office.
MEG’S REALITY
She always had her computer at the girls’ competitions.
Answering emails, double-checking statements of advice, and sometimes escaping to her car for Teams meetings that couldn’t be avoided.
She thought she was managing.
‘Clients for life’ was a commitment to be there when her clients needed her.
AUGUST 2023
Her mother’s long-term lower back issues were diagnosed as advanced pancreatic cancer.
Meg was the eldest sibling who talked almost daily with her and lived fifteen minutes away. Her younger brother lived in North Queensland.
Meg started making the meals for her dad, driving them to appointments, managing the constant flow of support and updates from family and friends.
She was still trying to serve 150 clients.
Still answering emails at her girl’s events.
Still working Sundays.
THREE MONTHS LATER
Meg was organising her mother’s funeral.
A few days after the wake, Meg broke down in a way she had never experienced before, even after her tough divorce.
Years of overwork and over-commitment collided with the loss of a love for someone who had been there for every minute of her life. Someone who showed her what unconditional love was. Who was always on every sideline, every event, proudly admiring her every step, whether forwards or back.
Meg broke because the last three months of her mum’s life, she hadn’t been present; she hadn’t given back properly when time became so important.
THE COST
‘Clients for life’ didn’t serve her clients.
They got a burnt-out adviser checking emails during her mother’s medical appointments.
‘Clients for life’ didn’t serve Meg.
The pressure from missed client commitments meant she couldn’t be totally there with her mum.
TWELVE MONTHS LATER
Meg made changes:
She transferred half her clients to her trusted friend.
She now has a minimum access fee of $12,000.
She promises to be a ‘valuable partner’, not a ‘client for life’ proposition.
She never wants to lose control of her life again.
THE PARADIGM
The financial advice industry celebrates ‘clients for life’ as a gold standard.
High retention rates mean high loyalty, which means high renewals, which means higher valuations, which means happy days.
But ‘clients for life’ thinking creates a trap:
As a firm’s expertise grows year after year, existing clients’ fees relatively decrease while commitments persist. Any advice firm content with inflationary increases for existing clients misunderstands the value of their relationships, which reduces the profits needed to fund better growth and returns.
Referrals from ‘clients for life’ increasingly do not reflect current ideal prospects.
Fundamentally, ‘clients for life’ creates significant capacity issues when advisers can’t let clients go, even when the relationship no longer serves them or potentially the best interests of the clients.
Every “yes” will add to a growing capacity problem similar to Meg’s.
The traditional solution to hire more team members requires more precious time and commitment to train, manage, develop, and double-check the work of new team members.
Which takes more time.
Which creates more capacity pressure.
The cycle continues for as long as advisers convince themselves they are coping, or until something breaks.
For Meg, it was her mum.
ACCESS PRICING’S REAL PURPOSE
Access pricing isn’t just about controlling supply and demand.
It’s about controlling lives – yours and your team’s.
When Meg set her new minimum access fees at $12,000, some clients left.
Were these the clients she should have been sacrificing her mother’s final months for?
No.
But ‘clients for life’ thinking meant she couldn’t realise that until it was too late.
THE ALTERNATIVE
Access pricing forces the question: “Who is my ideal client?”
Not “Who can I squeeze into my capacity?”
Not “Who referred this person, so I feel obligated?”
Not “Who will be upset if I say no?”
But: “Can I help this client achieve what they want without sacrificing what matters most in my life?”
Access pricing helps make that decision for you.
THE HARD TRUTH
Some of you reading this might resonate with Meg’s situation.
Successful firm. Good clients. Constant new referrals. iPad at your kids’ events. Working Sundays.
Thinking you’re managing.
It’s ironic for an industry that spends all its time planning the lives of others and doesn’t prioritise its own plans.
Meg wishes she made better plans years earlier.
Don’t be like Meg…
Set your unique and proper access fees.
Jim
Photo Credit: canva.com/photos/MAEEikDjLKk/