Value-Based Pricing for Plan Design Advisory
Plan design advisory services should be priced based on the value delivered — not the time spent. The value of plan design advisory is measured in cost savings: a plan design change that saves $300,000 annually is worth far more than the hours spent designing it. Price your services as a percentage of the savings delivered — typically 10–20% of the first year's savings.
The Plan Design Advisory Retainer
A plan design advisory retainer provides clients with ongoing access to plan design expertise for a fixed annual fee. The retainer typically includes quarterly claims reviews, an annual plan design review, benchmarking, open enrollment support, and regulatory updates. Retainers typically range from $10,000–$50,000 per year depending on employer size and complexity.
Transitioning to Fee-Based Compensation
IQ Insight
Advisors who transition from commission-based to fee-based compensation consistently report higher income, better client relationships, and more referrals. The transition requires a conversation with existing clients about the change — but clients who understand the value of fee-based compensation (no conflicts of interest, aligned incentives) typically embrace it. Start with new clients and transition existing clients over 2–3 years.