We Believe Adviser Software Pricing Needs to Change - Here's Why

Should software really become more expensive every time you hire a new member of staff?

Every new person means a larger bill, even if they only work part-time. This is the pricing model the adviser software industry has always adopted and to date, we’ve been no exception.

However, as we’ve worked with small and mid-size advice firms and seen the impact this structure has on their expenses, we’ve started to question ourselves and the accepted model. Why? Because you’re effectively being penalised for doing well, creating jobs and helping more people make sense of their financial status.

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A changing industry

Think about what growth looks like. You recruit an adviser because your client bank is expanding, you hire a paraplanner to improve response times, you bring in more administrators to deliver a better client experience. None of these decisions increase the value of the software you’re using. They simply amount to an investment in better service.

Traditional platform pricing means every one of these decisions costs money. The more successful your business becomes, the more people you employ, the more licences you need to buy. How has software billing ended up linked to payroll rather than business value?  

Today’s advice firms look very different to those of ten years ago. Now, you’re expected to deliver:

• Digital onboarding
• Client portals
• Cashflow planning
• Suitability reporting
• Workflow automation
• Secure messaging
• AI-powered assistance
• Regulatory reporting

To achieve these service and regulatory requirements, many firms have ended up investing in multiple systems over several years. This fragmented approach has meant yet more expense being absorbed by those trying to integrate their technology stack.

Because most of these providers are still charging firms per user, those that want to grow and improve their offering are seeing technology costs continue to rise. Not because they are receiving more value, but because they are employing more people.

A different approach

We launched AdviceObjects to address this fragmented approach to adviser software. We recognised it wasn’t going to meet the changing needs of firms and as our genuine all-in-one platform has evolved, we’ve begun to realise that our pricing structure should do too.

Instead of asking clients how many users they have, we’re now asking “how large is your advice business?”

In our opinion, a firm managing £500 million of client assets receives significantly more value from its technology than one managing £50 million. This feels like a much fairer benchmark than simply counting how many people log on every day.

As a result, we’ve decided to challenge the accepted per user platform model and introduce a new unlimited user structure, based on assets under advice. This means you can hire another adviser, recruit a part-time paraplanner or expand your client servicing team without worrying about additional software licences.

We were already helping clients grow their business through efficiency savings, but now we want to remove the barriers to recruitment too. Our new pricing structure is based around the size of your business, as follows:

Assets Under Advice

Up to £100 million: £299

£100 million – £250 million: £699

£250 million – £500 million: £1,499

£500 million – £1 billion: £2,999

More than £1 billion: Contact us

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A simpler, fairer future

We recognise that not every financial planning firm is the same. A newly established adviser with one or two users has very different needs to a business employing dozens of people.

For that reason, we’re not abandoning our per-user pricing model, we’re giving firms a choice. We recognise that per-user pricing is an affordable way for those just beginning their journey to get ahead, but we don’t want it to hold back businesses that have spent decades building a successful offering, simply because they have a larger team.

We are giving you the freedom to choose the pricing model that works best for you.

Regardless of size, almost every firm wants to grow, serve more clients, employ great people and deliver a first-class client experience. Technology should support this ambition and scale with your business, not add to your expenses.

Hereat Advice Objects we’re taking a bold step into the unknown and now we’re asking you to challenge your software provider’s pricing. We believe the assets under advice structure is the fairer way to charge growing firms. Perhaps it’s also the future.

For more information about AdviceObjects and our flexible approach to pricing, don’t hesitate to contact us for an initial discussion or demonstration.Alternatively, email: contact@adviceobjects.com