Business model for retainer services

Financial Planning Fees & Clients

Charging for Retainers

Best Clients for Retainer Fees

Compliance and Retainers

Billing for Recurring Fees

Combining Retainer Fees & AUM

Broker-Dealer Compliance & Retainers

Compliance and Payment Processing

Who is the best fit for retainer fees?

Who is the ideal customer for financial planning retainer fees? The quick answer is younger clients. The retainer model was born out of a desire to service Gen X and Y customers by taking their financial planning needs into consideration. While in the past, financial planning was typically offered as an add-on service to asset management, the retainer model now gives younger clients the opportunity to access this as a separate service. Its applicability is due to its flexibility, which allows financial planners to grow their client base by scaling their businesses in the direction of a younger market.

While this group may not have a large liquid asset base, they do have income and a desire to use it in an intelligent way. This is where retainer fees comes in. The monthly retainer model is perfectly suited to this demographic whose only certainty is flux. A monthly fee is a far more palatable commitment for those whose lives are characterized by dynamism. Pricing transparency, a key feature of the retainer model, is highly suited to a client base that is used to making online comparisons for most of their spending.

By diversifying into the Gen X and Y market, financial planners can forge relationships with clients from early on, prizing long-term client retention as an important facet of the retainer business model. If you can advise your clients about the effective use of their money when they are in their twenties, you may be managing some large assets of theirs when they are in their fifties and sixties.  Have a look at the best targets for financial advisor marketing.