Have you ever landed a client that seemed like a perfect fit on paper—only to find that they left your team burned out, your workflows disrupted, and your profitability uncertain?
You’re not alone. I’ve seen even the most ambitious and successful firms fall into this trap. I call it the complexity-capacity gap, and it may be the most underestimated growth risk facing advisory firms today.
Why the Move Upmarket Isn’t Always a Step Forward
More wealth is being created than ever before. Business owners are exiting, estates are becoming more complex, and clients are seeking deeper, more personalized advice. So, why not consider moving upmarket in pursuit of these ultra-high-net-worth relationships? It seems like an easy and natural way to gather more assets.
But here’s the issue: not every client who meets your asset or revenue thresholds will be a good fit for your business.
Complex relationships often require a level of customization that your systems (and your people) may simply not be equipped to deliver effectively. What seems like easily achievable growth can quickly turn into a mirage, resulting instead in more work, more stress, and more margin compression.
Customization Without Capacity Breaks the Business
Successful clients expect comprehensive wealth management services from your firm—not just investment advice. They desire guidance on estate and tax planning, navigating family dynamics, preparing the next generation, managing business transitions and liquidity events, maximizing their charitable impact, and more. While it may be tempting to say yes to these opportunities, if your current model isn’t equipped to handle this level of complexity, you risk undermining the very business you’re trying to grow.
The economics are clear: when every client engagement turns into a one-of-a-kind project, your team is compelled to reinvent the wheel time and again. This not only disrupts workflows—it also undermines profitability. Customization without limits may seem admirable, but it’s a precarious path.
You Don’t Need More People – You Need a New Model
Most advisory teams today are lean. They operate on the principle of efficient multitasking and are stretched to capacity. Adding bespoke service requirements without first intentionally reconfiguring your team leads to an inevitable talent bottleneck that over time creates an inconsistent client experience.
Firms that succeed in this space don’t just hire more people, they rethink their entire structure and:
- Migrate to ensemble models
- Define clear roles and cross-train effectively
- Build capacity intentionally rather than reactively
Pricing: The Missing Piece of the Puzzle
More and more advisory firms are discovering that they deliver significantly more value than they receive in payment, especially those depending solely on AUM-based pricing models. When everything you do, from strategic guidance to relationship management and project coordination, is bundled into an overall portfolio management fee, you risk conveying that all this value is ‘free.’
Instead, it’s time to adopt a blended pricing model that reflects the full scope of your firm’s value, including some combination of the following structures:
- Retainers
- Project-based fees
- Scope-based pricing with clear service tiers
Remember, you're not just managing assets – you’re managing relationships, expectations, and outcomes. Your pricing should in turn reflect that fact.
Before You Scale, Step Back
So, what’s the takeaway? Before you think about expanding your services or moving upmarket, take a moment to step back and:
- Revisit your ideal client profile
- Define who and what your firm is built to handle right now
- Design your team and service model for consistency rather than heroics
- Be bold, thoughtful and clear in your pricing strategy
Complexity in and of itself isn’t the enemy. But complexity without clarity? That’s the real growth killer.
Coaching Questions From This Article
- How are you analyzing profitability per household?
- What are you doing to update your team’s capability deck—for both today and the future?
- What guardrails are in place to protect your margins while you scale intentionally?
About ClientWise LLC
ClientWise is the premier business and executive coaching firm working exclusively with financial professionals. We specialize in helping clients optimize growth and maximize revenue by engaging as a knowledgeable partner in accomplishing specific and significant business results. Our full-service coaching program empowers financial advisors, wholesalers, managers and executives to enhance performance through customized, action-oriented solutions based on each client’s specific vision and situation.
Our certified coaches are members of the International Coach Federation (ICF). They adhere to ICF’s strict code of ethics and have the experience and insight to work with you on the unique challenges and opportunities you face each day.
Drawing from an in-depth knowledge of the financial industry, ClientWise’s mission is to professionally develop industry leaders and consistently raise the bar for industry service, commitment and integrity. Simply put, our singular focus is to help you get clear, get focused, and get results.
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