Billing is more than just asset-based fees
While asset-based fees make up most of the revenue for firms involved in portfolio management, fee-only planners bill for
their services instead, regardless of the client's investments. Some firms charge a performance-based fee or charge for
services on an a la carte basis.
There are also different structures to consider, whether hourly, flat, tiered, or by class. Billing can become complicated and
time-consuming, especially when the firm's billing platform requires a significant amount of human involvement.
Which billing platform a firm chooses is as important as their CRM, portfolio management, or financial planning software.
The more time advisors spend mired in administrative work, the less time they spend helping clients or seeking new business.
With most advisors already struggling to manage their workloads in a typical 40-hour work week
13
, inefficient billing
software makes matters worse. Some of the best billing solutions automate much of this process.
Fee model type
12
AUM 62%
40% Flat
18% Hourly
14% Annual/Retainer
6% Subscription
6 © 2024 ENVESTNET, INC. FOR HOME OFFICE AND ADVISOR USE ONLY. NOT FOR DISTRIBUTION TO THE PUBLIC.
