How advisers are making money off wealth coaching

Wealth Coaching is becoming an increasingly popular new business opportunity for many financial advisers, but how do really you make money from it?

Just like personal fitness training, which wealth coaching is often likened to, advisers who are doing this successfully are charging fees based on a combination of high touch - high cost, and low touch - low cost services and products.

According to Glen James managing director at Fortify Financial there’s no right or wrong formula here, rather it’s going to depend on what works for the client.

“In my own business, I have actually created both models: high touch and high fee and the low cost and low touch method, which was made possible by offering an online course.

Increasingly wealth coaches are achieving scale for their businesses by selling e-books, online courses, mobile financial goal apps and video webinars and distributing those to a maximum number of paying clients or subscribers.

“I believe the financial planning industry is moving towards a more transactional fee for service world, not an on-going fee for wealth management – particularly for the under 50’s. There still is a need for pre-retirement and post-retirement on-going advice relationships – at this time,” he said.

Glen’s high-tough high-fee model includes three face-to-face meetings within the first six weeks and then every three months or on demand for any questions.

“I’m basically a personal chief financial officer (CFO) for an individual.

“This is profitable once you scratch the itch for the cash flow planning and debt control, because the client is more likely to listen to you and to understand the need for risk protection. This can be factored into the spending plan you work through with the client.”

While Glen highly recommends using smart technology systems to improve scale and cost efficiencies, he draws the line when it comes to using third-party cash flow tools, such as budgeting software.

“I have found the overwhelming response from clients is that they don’t care how much they have spent on things throughout the year but more so they just want to know how much they can spend and also see their savings increase and goals ticked off!

“I use a shared Google sheet which is a spending plan that enables clients to see what they need to put into which bank account each week.

“The low-cost online course generally leads to other work within the business.”

Glen has the following 3 tips for advisers who might be interesting in repositioning their business to include wealth coaching.


Start to change your mindset.

Think of yourself as a coach. Someone who meets with someone, looks at what they are doing, listens to what they say and make suggestions to bring them closer to the desired situation. I always think about Roger Federer or any other elite sports person. Why does the best person in the world at something need a coach? They are the best! They still need someone from outside looking in pushing them along. You are this person to your clients. This has nothing to do with the most amazing investment portfolio or risk protection plan. These things will come once you get on board with your clients’ goals.

Set a base line for your client, and your business.

In my business – I don’t take on a client or do any investment advice or “planning” until a client has my four foundations in place.

  • First: Spending plan
    Second: Cashed up and consumer debt free
  • Third: Personal protection plan
  • Fourth: Wills and estate plan

These are examples, but just have a base line of things that people must do. These are the basics in an adviser’s mind but in a client’s mind, getting even the first two foundations sorted – would change a lot.

Survey your clients.

Ask them what their biggest pain points are in their financial life. Probably over 70% of people will say day-to-day cash flow management or getting out of debt. This will be a good start. You can then go back to them with a solution, without having to find new leads!

The best way to get new leads are from making people happy and making a difference.


The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice Education Pty Ltd or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here.

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