The Non-AUM Clients You Should be Working With

In the past, I’ve written about incorporating fee-for-service offerings for existing AUM clients as a way to add flexibility to your fee structure and drive revenue. From Quickstart Sessions to 401(k) advice, there are a number of ways you as an advisor can expand service offerings to clients that also rely on you to manage their assets.  

While these opportunities certainly may still exist with your current clientele, there’s another gold mine of potential clients out there that are often overlooked: clients who will never be AUM clients (at least not in the foreseeable future)!

It’s true: it used to be that working with folks outside of the traditional AUM model yielded little profit. It may have even cost you! 

Yet, these people with no A to M (as Michael Kitces put it in the Scaling Financial Planning Into a Revenue Center for Your Enterprise roundtable discussion) have complex financial situations and can be the ones who need a financial planner most. Now, the fee-for-service model that’s made easy by AdvicePay allows you to work with them profitably. 

So who exactly are these potential clients? And more importantly, how can you help them?

HENRYs

High Earners that are Not Rich Yet (HENRYs) are often who come to mind when discussing fee-for-service financial planning. 

These are individuals or families that earn a high income but don’t yet have substantial assets. (Think: doctors or lawyers making $200K+ per year but who also have mountains of student loan debt).

These clients can benefit from:

• Debt reduction strategies
• Employer retirement savings advice
• Budgeting
• Tax strategies
• Insurance Needs Analysis

Serial Entrepreneurs

Most entrepreneurs and business owners are going to sink their earnings back into their business(es) and may not have much left over for investing. 

While their AUM potential may be lacking, their financial situation can be highly complex and individualized. 

You can offer help with:

• Cash flow management
• Budget allocation
• Crisis management
• Longevity planning

Real Estate Investors

Much like entrepreneurs, real estate investors are going to turn their profits into more real estate holdings, leaving the bulk of the assets illiquid. 

While their assets may be tied up in properties, they can have substantial cash flow. 

Areas to help real estate investors are:

• Low risk investing to offset high-risk real estate investments
• Tax strategies
• Exit strategies for properties
• Budget allocation

Do-It-Yourselfers

Some investors enjoy (and excel at) managing their portfolios themselves, and they just aren’t willing to have someone else manage their assets. That doesn’t mean you can’t help them! 

Keeping a pulse on the market and their holdings can take up a substantial amount of time. They can benefit from advice on other areas of their financial lives, including:

• Retirement planning
• Insurance needs analysis
• Budget allocation
• College planning

AdvicePay YOUR way

Financial planning can be a complex business that calls for unique, flexible, and reliable solutions for each unique client you serve. 

You can integrate AdvicePay in big or little ways, for some or all of your services. No matter how you put us to work, we can make a big difference!