Just met with prospect. $4.2m but a long time DIY investor, very analytical, fee sensitive and not ideal client. Do I put in the effort to try to win it or just move on to someone...contd

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How did you come to meet with him? Did he seek you out? Sometimes when accounts get large or life gets complicated DIY's recognize that they need professional help. If he sought you out and there was good chemistry I'd keep trying

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Absolutely take the client on. If nothing else, the process will help you with future clients. Focus on what the portfolio statistics mean, the value you add, etc.

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Someone who understands our value and won’t second guess everything?

Ask to manage some of it. Say, 1mill to start. And go from there.

I’d try to win it. If he met with you he at least has some interest. I would stress things outside of just portfolio management to make sure he gets the value you bring. If you decide not to pursue him, send me his info. 😂

Did you find out in that first meeting what the guy wanted? That’s usually a pretty important question to ask

Show him something he can’t get elsewhere. Alternative investment, annuity, etc. unlikely to see the value in what you add if he’s a true DIY, but always worth a shot considering the amount.

Decide based on whether you like his personality

The question isn’t should you try, it’s will he show you where it hurts and can you be of value?

WTF is he on your radar?
I have a client with all of my licenses, but he got tired of DIY.
You'll never beat DIY in price, and winning on performance is a short time deal.
Can you show him a plan that he can't devise himself? If not then it'll be a short relationship.

Thanks everyone. He wants a plan and has protection needs, just doesn’t want to give up managing his ETF portfolio. He sees the value in the plan and strategy but thinks they are separate from asset management. I think he would rather pay a fee for the plan and insurance protection but keep his assets at Vanguard to self manage. I’ve explained that our comp comes from managing assets which covers all the planning we don’t charge for directly but he doesn’t agree. He knows I have to get paid somehow but I can’t just charge him a fee for the plan like he seems to want

FA OP - why are you not able to charge a flat fee for a plan that gives the guy a feel-good pat on the back for doing a great job so far? You just need to show him he's done great and now you can supplement his good work with a plan to help him around the blind corners of financial planning that comes later in life.
Do you have a minimum annual revenue you want to make from working with this person? Name it and quote it to him. He may want to pay once a year just to have his stuff reviewed instead of handing over the reigns on his beloved vanguard assets. 😂
Many DIY clients with over $1mil feel that asset based pricing doesn't align with value of services they would get from a financial professional. If you paid someone $40k/year to put you in a preset investing model, wouldn't you want them to dry clean your clothes and drive your kids to soccer practice too?
Or, like Hansel said earlier, ask to manage a portion to begin with (maybe $1mil to reach breakpoints) . Maybe put him in A shares at NAV with a low internal expense at a single fund family. No cost to him but you still make the 1% up front GDC. Use this to offset other pure planning fees to meet your intended revenue number from this client. If you're not able to charge for pure advice outside of asset-based fees on money management, you are missing out - you may need to look for a new BD/RIA. What do you do when a client has a huge 401k? Asset-based pricing is so limited.

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