HIGHLIGHTS FROM THE 2025 INVESTMENTNEWS BENCHMARKING STUDY
Trends in Client Service & Pricing
I recently spoke with one of our clients, who clearly identified the biggest growth challenge facing their firm and many others.
“There are more than a million potential clients in my county, and at most a few thousand CFPs.
Competition isn’t really the issue – capacity and mission clarity are.”
Pricing remains one of the most overlooked levers in your firm’s valuation arsenal – making up nearly three-quarters (72.4%) of the average firm’s revenues. Yet despite the fact that the industry has dramatically evolved over the past two decades, very few firms have also evolved their pricing structures to align with the enhanced value they provide.
In recent years, an increasing number of advisory firms have expanded their service offerings to include more ‘family CFO'-type services. According to the 2025 InvestmentNews Benchmarking Study, nearly every firm now provides comprehensive financial, retirement, education, cash flow, and charitable planning services. However, only half offer estate planning, healthcare, and insurance planning. Even fewer provide tax planning, lending support, or trust integration services – areas where the clearest differentiation can be established.
As a result of this broader service offering, more than two-thirds of firms (68%) now identify as ‘wealth managers,’ while only 17% continuing to refer to themselves as ‘financial advisors.’ This has increased stratification among firms – with some focusing on long-term growth and leadership renewal, and others emphasizing stability and short-term continuity (keeping the status quo).
Not surprisingly, the expansion of services has also led to some increases in fees – but the trend remains limited. According to the benchmarking study data:
Larger firms with higher total revenue have experienced a corresponding increase in revenue per client. While a midsized firm with $2-3 million in annual revenue generates an average of $8,290 per relationship, larger firms with over $15 million in annual revenue typically generate 63% more, or $13,076, in revenue per client.
Clearly, the ability to offer a broader range of services and expertise is making larger advisory firms more attractive partners for bigger clients with more assets and complex needs. Surprisingly, the data also shows a notable expansion in the typical client mix. In fact, clients with $100K–$500K in assets now account for 43% of advisory relationships (up from 38%).
Perhaps this signals a shift in self-directed accumulators returning to advisory firms, or it may be driven in part by greater success in engaging the next generation of inheritors earlier in their wealth journey.
Exercising restraint on fee discounts
Earlier this year, the Fidelity RIA Benchmarking survey highlighted a concerning trend in fee discounting. As we observed at the time, although the percentage of firms offering discounts decreased in 2024, the practice remains common across the industry. Notably, firms managing less than $1 billion in AUM experienced an overall decline in fee schedules that directly affected their revenues.
Conversely, firms managing more than $1 billion improved their fee schedules, likely because of the shift in demographics towards smaller clients who often receive lower discounts. While larger firms tend to offer higher discounts, this is probably a strategic move—using their scale to attract and keep clients amid growing competition.
The InvestmentNews study, however, found a much lower rate of discounting—only 1% of firms reported offering discounts on their fees. For firms trying to refine their pricing strategy, maintaining a balanced approach remains essential. While discounting can be an effective way to attract new clients, it needs to be managed carefully to prevent profit margins from shrinking.
Some of the most successful firms in the industry are also those at the forefront of evolving their pricing strategies to better match the complexity and sophistication of their client relationships by:
But these firms aren’t just increasing their fees. They’re realigning their pricing structure with results and developing scalable, enterprise-ready models. At ClientWise, we’re noticing significant growth in successful firms adopting a blended pricing model that captures the full value they offer, using new fee-for-service structures or monthly retainers to satisfy both client and firm needs, while ensuring fair compensation for specific services.
The bottom line: firms are no longer apologizing for the value they provide. They’re demonstrating increased confidence in their value proposition – better able to articulate the comprehensive range of services they offer beyond merely managing investments.
Coaching Questions From This Article: