While Advyzon’s client firms were nearly evenly split on whether to bill for services in advance, they showed a clear preference for quarterly billing (74%) versus monthly billing (21%). Half of the firms calculated fees using the end-client’s beginning balances, while a smaller but growing number of advisors, 16%, use the clients’ account average daily balances.
“I believe that all advisors want to offer pricing and billing mechanisms that are fair, but changing the fee and billing structure can be very difficult, even with the right technology in place,” said Rowlan. “That’s why when we see firms leaving the wirehouses or the broker-dealer world, they tend to by default do as closely as possible what was being done at the wirehouse and broker-dealer versus rocking the boat.”