Is Your Practice Ripe for a Subscription Model?

Brian Beck and Daniel FriedmanAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

The case for subscription-based financial services is so voluminous, it’s a wonder why the entire wealth management profession wasn’t built on it.

For advisors who want better client relationships, to get paid for what they know and to have a bulletproof plan for attracting new clients, the question they should ask is “Can I transition my business toward a subscription model?”

The answer is maybe. Take this little “acid” test, and you will know if a subscription model could work for your practice.

What is the age of your client base?

The great divide here is 60. If most of your clients are under 60, your practice is ripe for subscription services. If most are older than 60, the answer is likely not.

The reason is simple. Clients over 60 have already tackled the difficult questions related to estate planning, income generation and asset allocation. Perversely, these clients might consider why they even need financial planning assistance.