The larger the proportion of small households in a book, the smaller the number of high-net-worth households, PriceMetrix says.
To attract high-net-worth households, advisors need to make room for them, the study says. “In this respect, keeping the percentage of small households in [a practice] to less than 40 percent stands out as a key metric: The number of high-net-worth households and the production derived from them decline significantly above this point.”