Busy isn’t profit: what cheap fees taught me

The warning sign was at month end

When I started my agency, our fees were low. We were available, responsive and determined to win business. That helped us get going. But there came a point when everything felt busy and there was very little to show for it at month end. Every fee that landed was already needed.

Something is better than nothing can become a trap

A low fee can feel like a safety blanket. Winning the instruction gives you reassurance, even when the income leaves too little after the work involved. You can build a busy business around that habit without building the profit you wanted.

Confidence came gradually

We increased fees bit by bit as our reputation grew. I could see we were doing a good job, but community trust takes time. The lesson was to connect our fee to the value of our work and explain that value clearly.

Start with your own numbers

Look at your average fee actually achieved, the cost of delivering the service and the instructions that never reach completion. Then ask what a modest improvement in average fee would mean across your completed sales. Revenue matters, but the amount you retain matters too.

A practical action this week

Review your last ten completed transactions. Write down the fee received, any discount given and what drove that discount. Look for a pattern before deciding what to change. The answer may be pricing, qualification, confidence or the way your service is explained.

Keep reading

• Why agency owners become the bottleneck
• Your database could be your most neglected source of revenue