PFP2619. Choosing the Right RIA Fee Model for Lifestyle or Enterprise Firms

Fee model choice is not just a pricing decision. It is a business strategy decision that shapes service quality, capacity, profitability, and long term durability. This session compares the primary fee structures used in the RIA space, including AUM, hourly, project fees, flat retainers, subscriptions, complexity based pricing, and hybrid approaches. It shows where each model works best, where it breaks down, and how to select the right model based on the kind of firm you want to build, from a high autonomy lifestyle practice to an enterprise scale advisory business.

The session uses real world client scenarios to illustrate a common problem: AUM is often a poor proxy for workload and responsibility. A household with significant assets can require very little ongoing planning, while a high income household with modest investable assets can create intense planning, tax, and coordination demands. Attendees learn how to avoid hidden cross subsidies, reduce scope creep, and build pricing that matches the way work actually shows up in an advisory firm.

The presenters share practical implementation and governance techniques that make alternative fee models sustainable, including service tier design, clearly defined deliverables, decision rules for what is included versus project work, annual fee review cadence, and guardrails that limit fee volatility for clients. The discussion also addresses how investment solution access and advanced planning implementation can be aligned to pricing tiers so that client outcomes remain strong while team capacity and margins remain predictable.

Attendees leave with a clear decision framework they can apply immediately to evaluate their current pricing approach, select an alternative fee structure, and communicate pricing confidently to clients, prospects, and internal teams.

Learning Objectives:

• Compare major RIA fee models (AUM, hourly, project, flat retainer, subscription, complexity based, hybrid) and differentiate which models best align with lifestyle practice versus enterprise firm goals
• Determine common failure modes in non AUM pricing, including scope creep and cross subsidies, and choose service design controls that mitigate them
• Apply pricing governance practices, including annual review cadence and guardrails on fee changes, to improve predictability and client retention
• Analyze a client fact pattern and select an appropriate pricing approach and communication framing based on complexity, workload drivers, and firm strategy