More advisors to families of wealth are wondering if an asset-based pricing structure has out-lived its useful purpose

It seems long ago that wealth advisors could charge an asset based fee that covered the cost of providing investment services with a "cushion" leftover to cover additional services such as planning, education and advice. And, if all went according to plan, the firm would earn a reasonable profit margin.

Well, times have changed. The investment portion of the fee is being hammered down by low cost providers and the buying power of large investors. The cost of providing an unconstrained set of services is rising as clients demand more planning, education and advice without adding more assets. As a result that "cushion" that once covered those services and funded profits is dwindling.

So what are advisors to do? Based on our in-depth research and discussions with some of the top wealth advisors we suggest the following:

1. Get to know your costs intimately by constructing a bottom-up cost model.
2. Diligently work to understand what your clients want and value by building a process that allows more rapid recognition and response to prospect and client needs.
3. Articulate the value of what you provide in ways that clients understand and value.
4. All of the above!

Learn more about FOX as well as the important research it provides to those serving the ultra-wealth market by visiting the FOX Trusted Advisor Center.
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