- Ongoing revenue stream.
- Business diversification and expansion opportunities.
- Improved investor retention. Fee-based advisors often spend more time with their clients than their commission-based counterparts. Therefore, investor relationships may be deepened and strengthened, which leads to increased investor satisfaction and trust.
- Increased time to focus on cultivating existing and new investor relationships.
Many fee-based advisors find their strength lies in nurturing relationships and creating an overall financial strategy for their investors, rather than portfolio management. Therefore, many choose to outsource the portfolio management function of their business to third party money managers like CLS.
CLS has nearly 30 years of experience helping advisors transition their businesses to the fee-based model. We suggest beginning with current clients, and those most open to changing their fee structure. Prior to starting the conversation, advisors should reevaluate their financial objectives and ensure the investors are eligible for CLS’s advisory service. The conversation about switching to a fee-based model should begin with education on the benefits of fee-based service.