Millennial Financial Advisors Have Designed a New Business Model, Centered Around Millennial Clients
Millennial financial advisors have designed a completely new advisory business model, which is built around working with their own peers, according to financial advisor consultant Angie Herbers.
Herbers says in a ThinkAdvisor article, older advisors see millennial clients as investors that don’t have much money and are more interested in the now than in the future. She says that means those older advisors assume millennials don’t want to or can’t afford financial advice. Herbers says millennial advisors, on the other hand, see their peers as clients who don’t have high incomes, but are concerned about their futures and they want to get advice their way.
Herbers say millennial advisors charge their millennial clients about $215 a month. A low rate. How do they manage? According to Herbers they provide real basic financial advice, don’t manage assets, they don’t schedule appointments -- no fancy offices, but call and text instead and they don’t have to monitor or follow-up.
Herbers says most financial planners can handle about 85 clients, but millennial advisors with millennial clients can handle about 135 clients -- $350,000 per year with hardly any overhead.