New data suggests that mass affluent clients aren’t going anywhere – even if you raise your prices
Thinking of raising your fees but worried you might scare your clients away? New data suggests you needn’t have any concerns.
According to a ThinkAdvisor survey, mass affluent clients won’t say goodbye to the advisor they know and trust even if fees go up: in fact, most won’t even say anything about it. Just 27 per cent of clients who had investable assets of at least $250,000 would request a drop in fees if rates were raised – but even they would stay with the same advisor if that request was refused. Meanwhile, 22 per cent would not even raise the issue.
What then for high net worth investors?
Investors who boast more than $1millionin liquid assets are a little choosier when fees are raised. Only 16 per cent would stay quiet about raised fees, although 27 per cent indicated they would stay with their advisor if the additional fees were dropped when requested.
It seems from the survey that relationships are much more important to affluent investors than fees: indeed 38 per cent of mass affluent investors are unsure about how their advisors get paid.
Meanwhile, in a separate survey 90 per cent of advisors that moved to a fee structure that is assets based were able to keep hold of their clients. From the 10 per cent who did depart, most went to web based services or another advisor.
According to a ThinkAdvisor survey, mass affluent clients won’t say goodbye to the advisor they know and trust even if fees go up: in fact, most won’t even say anything about it. Just 27 per cent of clients who had investable assets of at least $250,000 would request a drop in fees if rates were raised – but even they would stay with the same advisor if that request was refused. Meanwhile, 22 per cent would not even raise the issue.
What then for high net worth investors?
Investors who boast more than $1millionin liquid assets are a little choosier when fees are raised. Only 16 per cent would stay quiet about raised fees, although 27 per cent indicated they would stay with their advisor if the additional fees were dropped when requested.
It seems from the survey that relationships are much more important to affluent investors than fees: indeed 38 per cent of mass affluent investors are unsure about how their advisors get paid.
Meanwhile, in a separate survey 90 per cent of advisors that moved to a fee structure that is assets based were able to keep hold of their clients. From the 10 per cent who did depart, most went to web based services or another advisor.
