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You probably know that we’re based out of Omaha, a city that’s home to the College World Series, some of the nation’s greatest college football fans, and an award-winning zoo. My family buys a pass to the zoo every year and it is worth every dime.
One of the greatest features of our pass is that we can add on our relatives and nanny at a discounted rate. That’s a pretty simple idea that I’m sure you’ve encountered before, but have you thought about how you can use it in your practice?
One way this could apply to the advisory world would be to bundle extended family and friends AUM for fee breaks. Such a simple idea, right? While it could be really complex when it comes to fee billing, companies like Orion have done the heavy lifting for you in this area. Talk to your portfolio accounting software provider to see if they can handle it for you.
This approach could come in many forms, for instance:
That’s the kind of referral that doesn’t require much work on your part, and it’s a huge motivator for your clients to tell their loved ones about you.
It’s also the kind of situation that moves the needle for intergenerational wealth transfers. Keeping the money in the family means keeping it all with you. You can help your clients begin the conversation with their children about money just by offering consolidated fee structures.
Related: How Betterment Can Drive Advisors to Do Better
While it’s a simple idea, the real question for many advisors might be a logistical one. If you’re currently using Orion’s portfolio accounting system, there’s a simple way to associate households for billing. If you’re not sure how, just use their online chat to get in touch with their billing team.
What do your fee structures currently look like? Are you offering this or something like it to your clients? I’d love to hear how it’s going .