fees Tag

When an advice business ceases to receive trail commissions it does not mean that they must stop receiving recurring income, and start relying on constantly winning new clients on a transactional basis. One of the most valuable components of advice businesses is the fact that they can generate recurring income from long-term relationships with their clients. It’s just that in a fee-based business, this recurring revenue may not be as ‘passive’ as it was in a commission-based business.

We are often asked by advisers to take a look at their pricing model and let them know if they “have it right”. This begs the question, “is there such a thing as the right pricing model?” The answer is “yes”, although what is the “right” model will vary for every firm. So here is a list of questions to ask yourself when considering whether or not you have got your pricing right: