How fee-based planning revived my practice

Gregory Gagne, ChFC

By Gregory B. Gagne, ChFC

Making the change to a fee-based model has been a life-changing experience for me, my staff and my clients.

When we first started our fee-based model, we had only 20 clients and about $5 million in assets under management. With a fee-based planning model in place, we doubled that in the last several years. We doubled it again. And we doubled it yet again. Actually, we’ve doubled it about six times. We’re now in a critical mass situation where the amplification and growth is occurring faster and faster and faster.

Finding a solution to a struggling business

Part of the reason for the move to a fee-based model was because I was struggling. I was at a point in my career I’ll call “under the table” for my MDRT qualification status. I was going to have to either leave the business or figure out how I could change something about the business that would allow me to survive and thrive. That’s when I made the decision to move from a transaction-based model to a fee-based model.

Moving past self-imposed barriers

Moving from the commission-based model to fee-based wasn’t as difficult as I initially thought. It’s primarily a psychological barrier, perhaps caused by fear of the unknown we advisors put on ourselves that prevents us from taking that first step. I can assure you, though, if you can wrap your mind around making the shift, you’ll quickly find your clients are going to align themselves with you.

In fact, when I told my clients about the change to fee based, they cheered me on. They felt relieved knowing exactly how I got compensated. Now, we can work together as a team instead of in a relationship that sometimes felt perhaps a little too salesy.

Some of the advantages, for me, of having a fee-based practice include

• Recurring revenue
• Getting more involved clients
• Adapting to regulatory changes
• Increasing business resale value

Going to a fee-based model relieved a lot of stress for me in my practice, and I didn’t lose any of my clients because of it. You have so much to gain by switching to a fee-based practice.

Gregory B. Gagne, ChFC, is the founder of Affinity Investment Group LLC in Exeter, New Hampshire. His investment advisory firm manages more than $200 million in assets, serving about 300 clients. He’s an 18-year MDRT member with nine Top of the Table qualifications.

Watch the video with Gagne to learn more about fee-based planning. He’s also spoken at MDRT Annual Meetings about time management and working with middle-market millionaires.

For more fee-based planning resources, visit

• Regulatory change checklist
• Cost of advice tool
• Monetize the value of your practice