Fee Model Calculator

Now let's talk about your financial targets

This will form the basis on which we create your pricing model. So, it's best not to underestimate here.
 
Don't worry if this isn't your actual number, though it's what we'll use to work out the pricing model

Your Hourly Rates

This is what you need to charge on average per hour of client-related work to hit profit targets
Advice Providers
Advice Producers
Admin

Your Standard Advice process

Imagine the process you'd take a fairly standard holistic client through. Don't worry too much about variations in strategy at this stage. We'll cover that later. Instead, consider
contact call
Pre-meeting logistics
Meeting Prepration
Plan Scope Session
Session debrief
Strategy Planning
Strategy Blueprint meeting
Finalise Strategy
Prepare advice
Present advice
Debrief advice with team
Implementation
Post Implement follow-up
Onboarding
 
Not including GST

Your Transactional Advice process

Now consider a client that is coming to you for advice on one or two simple areas. Your aim in this process is to solve their problem as efficiently as possible.
User Notes
contact call
Pre-meeting logistics
Meeting Prepration
Plan Scope Session
Session debrief
Strategy Planning
Strategy Blueprint meeting
Finalise Strategy
Prepare advice
Present advice
Debrief advice with team
Implementation
Post Implement follow-up
Onboarding
 
Not including GST

Strategy Variations

Now we've considered your core processes, we now need to think about variations. Not all clients will have the same issues, so it's important we consider those differences
User Notes
New SMSF
SMSF
Debt/ Financing
Estate Planning
Insurance
Specialist advice
Additional client management
Shares
Self-employed
Redundancy
Employee share holdings
Multiple investments
Travel
Financing
IReturns
Mortgages
Aged Care

1-to-1 Services

Let's start with the components of an ongoing service offer that relate to your 1-to-1 engagement of your clients. Consider the amount of time taken over the course of the
User Notes User Notes
Update thing
Simple portfolio review
Phone access (per event)
Adviser initiated phone contact
Client initiated phone contact
Adviser initiated meeting
Client initiated meeting
Meet with other advisers
Provide written portfolio valuation
Porfolio changes
Tax report
Record of Advice
Statement of Advice

1-to-Many Services

Now let's factor in those elements of your service offer that you deliver to a number of clients at the same time.
User Notes User Notes
Newsletter
Seminar
Prestige event
Offer of review
FDS statements
Webinar
Members Area
Budget Update
SMSF
sadad

Strategy Management

Just as with engaging new clients, differences in strategies will impact the way your service clients. So, it's time to have a think about how much additional time during the year would be taken up in looking after a client with each of the following strategies.
User Notes User Notes
SMSF
Estate Planning
Insurance
Specialist advice
Additional client management
Shares
Self-employed
Redundancy
Employee share holdings
Multiple investments
Travel
Financing
IReturns
Mortgages
Aged Care

Defining your service offerings

Now it's time to decide what you want to have in each of your service offerings. Go through the list and decide how many times per year you'd like to include in each offer. The numbers will update as you go, so you can consider the interplay between all of the offerings
 
 

Fee Schedule

Now you've been through the process and defined your minimum fees for both your initial engagement and ongoing fees. It works like this:

Then add to this base fee any adjustments that may need to be made based on the strategy requirements of the client

start by identifying the service package most appropriate to the client. Then add to this base fee any adjustments that may need to be made based on the strategic areas you're managing on behalf of the client during the yeer

Finally, remember these are just your minumums. You will need to make a decision of the value of the advice you're providing when setting a fee. However, these do give you the guidance of knowing the dollar point at which you're pricing model is adhering to profit targets, regardless of the fee mechanism (e.g. asset based, fee for service, performance fee) you're employing.

Engagement fee schedule

Ongoing fee schedule