Since launching a subscription-based revenue model three years ago, Scott Stratton charges a flat $99 per month and bills his clients automatically through credit cards using Quick Books online or automatic account withdrawals.

“It allows me to provide financial planning for people who do not meet my $250,000 minimum,” said Stratton, a financial advisor in Dallas.

According to Northwestern Mutual’s 2016 Planning & Progress Study, 57 percent of people without an advisor are interested in hiring one.

“Our research shows the main reason for not having an advisor is believing that they don’t have enough assets,” said Rebekah Barsch, vice president of planning at Northwestern Mutual. 

Subscription-based service is viewed as a business model that can overcome this obstacle. Some 80 percent of consumers are demanding alternatives to buying a product outright, including subscribing, sharing and leasing, according to a report by The Economist Intelligence Unit.

“For these clients, it usually is not retirement planning but more likely student loans, setting up savings goals, term life insurance, wills and education planning,” Stratton told Financial Advisor. “Not everyone needs every piece.”

The XY Planning Network has 400 financial advisors providing subscription-based services and requires it for advisors to be a member, according to Alan Moore, co-founder of the XY Planning Network.

“As financial advisors, we don't manage money as much as we manage behavior. And when you're managing behavior, that is an ongoing service, which lends itself to the subscription-style service offering," said Moore, who recommends advisors interested in adding subscription-based services create an annual service calendar.

Grayson Hofferber, who set up his subscription-based model in 2016 with the help of the XY Planning Network, employs a bookkeeper to invoice his clients individually and monthly.

“Monthly invoicing, handling of more frequent payments and managing ever-changing client needs are the downsides,” said Hofferber, an advisor in Denver.

That’s because financial advisory services are governed by a range of state and federal agencies, including the SEC, the FTC and ERISA. Payment processing companies have historically avoided financial services because of these compliance requirements.

“They just don't want to get in bed with us because of compliance requirements and so their system is not permitted for financial advisors," Moore told Financial Advisor. “The dirty little secret right now is there's really no compliant payment processing system for financial advisors and it's a major problem.” 

As a result, like Hofferber, advisors are forced to bill manually, accept checks or take online payments from customers' checking accounts. 

"Typically, I invoice through Chase QuickPay or ClearXchange, which keeps card processing fees to a minimum, so that I can keep my prices competitive for clients,” said Roger Ma, a financial planner in New York.

Some 50 percent of Ma’s revenue comes from monthly retainer clients. He  avoids becoming over extended by clearly communicating the services provided for the monthly fee. “Clients may think because they are paying on a monthly basis that they need to bombard you with a lot of questions or requests each month to make the fee worth it,” Ma said.

For Eric Roberge, the silver lining is engaging with more people than would be possible with an AUM model and a minimum investment requirement.

“I offer one subscription service where we create cash flow and balance sheets of where they are today, plan specific 12 month, 5 year and future goals and then build a plan to achieve their vision,” said Roberge, an advisor in Boston.

More than 50 percent of his revenues comes from this source and Roberge meets with clients three times per year to ensure that they stay on track financially.

“I act as a personal trainer for my client’s money, provide guidance and hold them accountable,” said Roberge, who launched his financial advisory practice with a monthly subscription fee in 2013.