AdvicePay Financial Advisor Community Blog

Calculating the ROI of AdvicePay: An Investment Worth Every Penny

October 11, 2023 By AdvicePay

When you're scouting for cutting-edge tech solutions for your firm, what's at the top of your checklist? Whether you are aiming to boost productivity, keep a competitive edge, or seamlessly expand your operations, it all boils down to one crucial metric – getting the best bang for your buck! Or, as we put it in more formal terms, achieving an impressive return on investment (ROI). In this blog post, we’ll explore three key areas where AdvicePay is helping firms enhance their profitability, all while remaining adaptable to changes in the financial advisory industry.

Competitive Advantage: Seizing the Growing Fee-for-Service Segment

As the financial advisory landscape evolves, so do fee structures. Fee-for-service financial planning continues to gain rapid popularity, and you must be considering these fees as another avenue for your advisors to engage potential clients or enhance existing relationships. The insights from Cerulli Edge – U.S Advisor Edition shed light on this shift. Over the past decade, the awareness of investor fees has grown significantly. Back in 2011, a mere 35% of investors were conscious of the fees they were being charged. Fast forward to the second quarter of 2020, and more than half (55%) of surveyed investors had a clear understanding of how they paid for financial advice. Clients are enthusiastic about fee-for-service financial planning because it aligns with how they pay for other services (think Netflix, Amazon Prime, and Hello Fresh), and it allows them to conveniently compensate their advisors using their cash flow while also providing an extra layer of transparency. According to Cerulli, most households prefer to pay for their advice via a fee (61%) (e.g., asset-based fees, financial planning fees) compared with 39% who prefer commissions. 

Offering fee-for-service financial planning is not just a trend; it represents a significant opportunity for you to cater to a broader client base and secure your place in a changing industry

Enhanced Productivity: Streamlining Workflows

One of the most significant areas where firms see a substantial ROI with AdvicePay is enhanced productivity. Traditional methods of handling fee-for-service financial planning used to mean lots of tedious manual work. Think about stuffing envelopes and mailing checks, drowning in paperwork.

With AdvicePay, these (let’s be honest) mind-numbing tasks are streamlined and scaleable. Our platform automates the entire lifecycle of fee-for-service financial planning, making the entire process more efficient. One large broker-dealer, who now uses AdvicePay, went from having four different and distinct departments that were managing physical checks to just one department that now processes the transaction. Furthermore, some firms have witnessed up to a 27% reduction in paperwork! As a result, checks no longer become misplaced, advisors get compensated faster, and whole departments that were once tied up with these necessary administrative tasks have been able to redirect their focus to other areas of the business. The hours saved by eliminating manual processes are now dedicated to improving client relationships and driving business growth.

Scalability: Growing Your Business Profitably

Scaling a financial advisory business often involves significant investments in technology and resources. The challenge is to expand the business without compromising client success or profitability. Unlike many other tech providers, there’s proof in the numbers when it comes to your ROI on AdvicePay. 

Within 1-2 years of implementation, on average, firms see a 457% increase in subscription-based revenue, a 1750% increase in new subscriptions activated, and a 1060% increase in advisors added to the AdvicePay platform. Furthermore, one firm saw an average of 3.2X net new asset growth for financial planners who charge for financial planning advice in AdvicePay. Without a robust fee-for-service focused solution, you risk losing top talent to competitors who prioritize providing the tools and flexibility. When you choose AdvicePay, you choose to future-proof your business by creating a new, steady stream of revenue and attracting the next generation of financial advisors.

Whether you’re a mid-sized firm or a large financial institution, AdvicePay is designed to meet your evolving needs, accommodate a growing client base, and improve your bottom line. The scalability of our platform ensures your firm can grow fee-for-service profitably without worrying about complications or limitations. This translates to a substantial ROI and allows you to focus on your core competencies no matter the growth stage!

As the industry-leading platform for overseeing the compliance, delivery, and payment processing of fee-for-service financial planning, AdvicePay is the only solution for firms that allows you to automate the entire lifecycle of fee-for-service financial planning in one comprehensive system. 

Start maximizing your ROI! Discover the power of AdvicePay. 

If you’re interested in increasing your subscription-based revenue by 457% (like many firms in years 1-2 of implementing AdvicePay) it’s time to schedule a meeting with an AdvicePay expert. 



Posted by AdvicePay

Topics: Practice Management, Case Studies, Fee-For-Service, Sales, Enterprise