Abstract
As recently as a decade ago, financial advisors made most of their income through commissions.
They didn't see the same client again unless there was another relevant product to sell.
Tired of the hamster wheel that is commission-based pay, advisors looked to build more lasting
relationships with their clients. Financial planning is one way to do that. Combined with regulatory
efforts such as the SEC's Regulation Best Interest, commission-based fee structures are becoming
far less desirable.
But as RIAs move toward fee-based pricing, consumers are dictating another shift. The modern
consumer subscribes to about anything, including streaming services, rideshares, food delivery, and
even coffee. Does such a system make sense in financial planning?
RIAs must take a long-term view of pricing and billing for their services and adopt software that
scales based on industry trends and overall growth. This paper discusses those trends and how firms
can prepare.
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