Unbundling Services is a Competitive Moat 97% of Advisors Are Missing

Only 3% of Traditional Advisors Charge Planning Fees

This might surprise most in Wealth Management, but its the reality today.

While 97% of advisors are still chasing AUM and complaining about fee compression, there's a small group that have been pursuing hybrid practices and they're quietly building a different kind of business. They are also generating an extra $150,000 to $400,000 annually through planning fees, and the clients are actually paying them more while being happier with the service offering. These advisors are quietly generating up to 40% more in revenue per client.

I know what you're thinking. "My clients won't pay separate planning fees." That's exactly what most of the industry is thinking right now too. This is a case of crowd thinking being “dead wrong”. Its potentially one of the greatest untapped opportunity, and the crowd think is main reason why most advisors are simply missing out on what's become the most profitable part of many elite advisors practice.

Here's the reality: the advisors who've figured this out aren't just making more money. They've built recession-proof revenue streams that keep growing regardless of what the markets do. While everyone else worries about the next downturn, they're sleeping well at night knowing that 30-40% of our revenue has nothing to do with portfolio performance.

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AUM-Only Model is Killing Your Growth

I know what you’re thinking and I get it. The AUM model feels safe and familiar. It's just how the business operates, right!

But here's the problem—you're essentially running a commodity business and pretending it's sophisticated wealth management.

Think about what happens when markets drop 20%. Your revenue immediately falls, your clients panic, and you're scrambling to justify your value when portfolios are declining. Meanwhile, you're competing with robo-advisors and fee-only planners who are unbundling what you do and doing it cheaper.

The advisors who've cracked the planning fee code? Well, they're having a completely different conversation with clients. When markets get volatile, the clients aren't questioning their advisor’s value—they're calling for advice because they know the advisors are being paid specifically for their expertise, not just to watch their accounts.

Planning fees create what I call "fee compression immunity." While everyone else is racing to the bottom on pricing, these advisors are actually able to incrementally increase fees because clients understand exactly what they're paying for and why it's worth it.

What the Elite 3% Figured Out