How do I explain a fee-based or fee-only practice clearly?
Many people don't know how advisors are paid. Clear explanations build trust and filter for the right clients.
- Clients confuse fee-based and fee-only.
- Should we show numbers?
- How do we explain value?
Explain in plain language how you're paid: a percentage of assets, a flat or hourly planning fee, commissions, or a mix. Give a worked example, list what's included, and say how you manage conflicts of interest. Use terms consistently and only those your registration allows. Get the wording approved.
A clear explanation
| Model | Explain |
|---|---|
| Fee-only planning | You pay us directly; we don't earn commissions |
| Fee-based | Fees plus some product compensation; disclose which |
| Asset-based fee | A percentage of assets we manage, with an example |
| Commission | Paid by product providers; disclose how |
This is general information, not legal or compliance advice. Your dealer, firm or compliance officer decides what you can publish.
How we look at it at ShoutEx
We write fee pages and calculators compliance can approve.
- Jargon.
- Hidden costs.
- Terms used incorrectly.
- No example.
- Plain language.
- Worked example.
- What's included.
- Conflicts explained.
What advisors and regulators say
Here is what consumers and advisors say.
Community summaries describe recurring themes in public threads, not individual posts. Vendor pages describe vendor claims, so test them on your own calls.
Read next
Go deeper in the ShoutEx guides, or check the sources behind this answer.
We'll write fee pages compliance can approve.
Book a call →Follow-up questions
Should we publish exact fees?
Ranges and examples help.
Do fee calculators help?
With clear assumptions, yes.
What about minimums?
State them to save everyone time.