Financial Advisor Success Ep 248: Scaling Diamond Teams Profitably By Charging Separate Planning Fees with J.D. Bruce
Sep 28, 2021
J.D. Bruce, Chief of Innovation at Abacus Wealth Partners, shares insights on scaling advisory firms using the Diamond Team Model. He discusses how this approach allows for tailored client services, emphasizing the importance of segmenting clients into categories like Builders and Protectors. J.D. challenges traditional hiring practices, advocating for team members who can foster healthy conflict for growth. He also explores evolving fee structures, shifting from percentage-based to flat fees, and the necessity of adapting to clients' diverse needs.
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Three Client Archetypes
- Abacus segments clients into builders, protectors, and changemakers aligned with needs not just assets.
- Each segment has a distinct core question: how to build, how to know I have enough, or what to do with surplus.
Decompose Fees To Reflect Value
- Splitting investment and planning fees enables lower AUM percentages while capturing total value.
- Many high-net-worth clients accept larger separate planning fees once value is clear.
Sell Planning By Separating Value
- Present combined cost transparently and emphasize planning value so clients perceive worth.
- Don't argue price; demonstrate planning delivers distinct and visible value.