Why the Best Advisors Raise Their Minimums When Everyone Else Lowers Them
Intelligence from Elite Advisory Practices
The Contrarian Move That Defies Logic
While 73% of advisory practices lowered their minimums during 2022's market turbulence, one Advisor did exactly the opposite. As his peers dropped requirements from $1M to $750K or even $500K to "stay competitive," Marcus raised his minimum from $1M to $2M.
The result? His worst year ever, right?
Wrong.
He closed 18 new clients in the following 12 months—a 40% increase in prospect quality and a 60% improvement in close rate. His average client revenue jumped from $8,400 to $14,200 annually. While competitors struggled with capacity issues and margin compression, he also had his most profitable year on record.
This isn't an anomaly. It's an underutilized strategy that elite advisors deploy precisely when conventional wisdom suggests the opposite. While the industry races toward accessibility, the most successful practices create strategic scarcity.
💡 **Quick Question**: Have you ever considered raising your minimums during uncertain times?
Hit reply and tell me your biggest concern about implementing this strategy.
The Conventional Wisdom Trap
The standard "lower minimums to survive" playbook seems logical during uncertain times. Market down? Prospects cautious? Lower the barriers and cast a wider net.
This thinking destroys practices.
The Race to the Bottom When advisors compete on accessibility rather than value, they enter a self-defeating spiral. Lower minimums attract prospects who view advisory services as a commodity, leading to fee pressure and endless comparison shopping. These prospects didn't choose you for expertise—they chose you because you were available.
The Desperation Signal Nothing communicates weakness like reducing standards during challenging times. Prospects interpret lowered minimums as either financial desperation or diminished confidence in your value proposition. Premium clients—the ones you actually want—see accessible positioning as a red flag about service quality.
🎯 **Think About It**: How many prospects have you attracted in the last 6 months who viewed your services as a commodity? The race to the bottom is more expensive than you think.
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The Capacity Destruction Industry data reveals that clients below $500K in AUM consume 2.3x the service hours of clients above $1M, while generating 40% less annual revenue. Lower minimums don't just reduce individual client profitability—they destroy your capacity to serve valuable clients properly.
The Brand Dilution Effect Once you position yourself as the "accessible" option, reversing that perception becomes nearly impossible. Your referral sources begin sending lower-quality prospects, and your premium positioning evaporates. The temporary gain in prospects creates permanent damage to your market position.
⚡ **Coming Up**: The exact framework elite advisors use to turn market uncertainty into competitive advantage. This gets specific...
The Advanced Strategy Revealed
Elite advisors understand what behavioral economists have proven: scarcity and exclusivity increase perceived value, not decrease demand.
The Scarcity Psychology Leverage When Marcus raised his minimum to $2M, he didn't lose prospects—he attracted better ones. Prospects who previously viewed advisory services as interchangeable suddenly saw his practice as exclusive. The psychological principle is fundamental: barriers create aspiration, not rejection.
The Quality Client Magnet Higher minimums don't just filter out small clients—they attract a completely different prospect category. These clients value expertise over access, view fees as investments rather than costs, and make decisions faster because they understand what quality service requires.
Sarah H., a $2.8M producer, implemented this during 2023's banking crisis. She raised her minimum from $750K to $1.5M, positioning it as "capacity management to ensure exceptional service during market volatility." Her prospect quality improved dramatically: average decision time dropped from 6.2 weeks to 2.8 weeks, and close rates increased from 34% to 67%.
The Confidence Compound Effect Higher standards don't just change your prospects—they transform your performance. When you know you're selective, your presentation improves. You stop apologizing for fees and start confidently articulating value. This confidence radiates through every client interaction, creating a compounding effect that improves all business metrics.
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🔒 PREMIUM CONTENT BELOW
You've just seen how two elite advisors transformed their practices by raising minimums during market downturns. But this is where most advisors get stuck: the implementation.
What you'll get in the next section words:
✅ The exact 5-phase implementation framework
✅ Word-for-word scripts for communicating with prospects
✅ The "Grandfather Protocol" for existing clients
✅ Marcus’ complete strategy breakdown
✅ Step-by-step psychology tactics that drive results
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