From Commission-Based to Fee-Based Financial Planning
How I Moved from a Commission-Based Practice to Fee-Based: A Conversation with Michael Kitces
If you’re a financial planner who feels the quiet tension between how your firm has always operated and how you want to serve clients going forward, I want you to know: you’re not behind: you’re in the middle. Likely the messy middle.
In a recent Kitces Financial Advisor Success feature, I shared the real story of how I moved from a second-generation, commission-based practice into a fee-based, planning-centric firm, without burning bridges, abandoning legacy clients, or pretending the process was neat and easy.
You can read the full article here:
How Elizabeth Hand Transitioned a Commission-Based Practice to Fee-Based Planning
What I want to offer you now is why this story matters for you.
If You’re Carrying the Weight of “How It’s Always Been Done”
When I stepped into ownership of my family’s advisory firm, I inherited more than a book of business. I inherited:
A commission-based revenue model
Longstanding client relationships built on trust
An unspoken responsibility to not disrupt what worked
At the same time, I felt a growing pull toward fee-based financial planning: deeper relationships, clearer value, and a business model that supported sustainability instead of constant output.
The current model isn’t wrong, but it’s not fully right anymore. You want to evolve, but you don’t want to cause harm. Does this sound familiar?
What the Transition Actually Looked Like (Not the Highlight Reel)
The shift from commission-based to fee-based planning didn’t happen overnight and it didn’t happen all at once.
Instead, we:
Allowed legacy commission relationships to continue with integrity
Introduced fee-based planning for new and transitioning clients
Sold off parts of the business that no longer aligned
Changed broker-dealer relationships to support the future we wanted
What mattered most wasn’t speed, it was alignment.
If you’re anything like me, this is what you needed to hear: You’re allowed to evolve in phases. You’re allowed to hold complexity. You’re allowed to choose a path that honors both people and progress.
The Part No One Talks About: Confidence, Identity, and Self-Trust
What surprised me most during this transition wasn’t the logistics, it was how deeply personal the process was.
As a second-generation advisor, I had to grow into:
Claiming ownership instead of deferring to legacy
Making decisions without over-explaining or self-doubting
Trusting that my instincts were informed, not impulsive
This is where so many capable planners get stuck, not because they lack skill, but because they’re waiting for certainty before taking action. And I get it. It’s hard.
Why This Matters for Your Next Chapter
This story isn’t meant to tell you what to do. It’s meant to show you:
You’re not the only one navigating this in-between space
Sustainable growth doesn’t require a dramatic overhaul
Your inner steadiness matters just as much as your strategy
The transition to fee-based planning isn’t just a business decision. It’s a decision about how you want to feel inside your work.
Your Next Step
If this story resonates, I encourage you to read the full Kitces article and notice where you see yourself reflected, not just in the decisions, but in the emotions underneath them.
Read the full Kitces feature here.
And if you’re ready to explore your next step, coaching can help you reconnect with what you already know but haven’t fully trusted yet. You don’t need to have it all figured out.
You just need a place to think clearly and move forward on purpose.
In your corner,
Liz
