Financial Advisory Firms Increasingly Adopt Subscription Models, AdvicePay Report Shows

Financial advisors are increasingly turning to subscription-based models as a strategic approach to revenue generation, according to AdvicePay's latest industry trend report. The analysis of over 461,000 transactions in 2024 demonstrates a clear preference for monthly and quarterly subscription services, with 85% of all invoices now using this pricing structure.

The report highlights a notable increase in subscription fees, with average monthly rates climbing to $278, representing a 4.9% increase from 2023. Quarterly subscriptions and one-time fees also experienced growth, signaling a broader transformation in financial advisory service pricing.

Digital payment methods are becoming the norm, with 53.4% of transactions completed via credit or debit cards and 45.9% processed through ACH transfers. This shift reflects changing client preferences and technological adoption in the financial services sector.

Far from replacing traditional assets under management (AUM) fees, subscription models are emerging as a complementary revenue stream. These models provide financial advisors with more predictable income during market volatility, effectively functioning like a financial 'bond' in their revenue portfolio.

AdvicePay's platform has processed $838 million in financial planning fees since its 2018 launch, with transaction volumes increasing from 380,000 in the previous year to 461,000 in 2024. This growth underscores the increasing mainstream acceptance of fee-for-service financial planning.

Alan Moore, AdvicePay's Co-Founder and CEO, emphasized that subscription-based planning is no longer a niche strategy but a critical approach for broker-dealers and registered investment advisors seeking competitive advantage in advisor and client recruitment and retention.