AUM vs. Flat Fee:
Stop Treating It Like a Pricing Debate
AUM vs. Flat Fee:
Stop Treating It Like a Pricing Debate
AUM vs. Flat Fee:
Stop Treating It Like a Pricing Debate
Most firms think the fee model is the decision. Our data on over 7,000 marketplace clients says otherwise. The real driver of retention isn't the fee. It's whether the engagement is built to last.
Download the Whitepaper Today
Most firms think the fee model is the decision. Our data on over 7,000 marketplace clients says otherwise. The real driver of retention isn't the fee. It's whether the engagement is built to last.
Download the Whitepaper Today
Why this matters:
The fee model isn't your real problem
Why this matters:
The fee model isn't your real problem
Why this matters:
The fee model isn't your real problem
Every RIA eventually asks the same question. Should we charge AUM, flat fee, or both? It feels like a pricing choice. Our data says it's something else.
We looked at over 7,000 clients who hired an advisor through Zoe's marketplace. Investable assets barely predicted which fee model a client picked. Age only mattered near retirement. But one thing predicted first-year churn clearly: whether the advisor managed the client's assets or ran a planning retainer. That gap was bigger than any wealth gap or age gap in the data.
That changes the question. It's not "which fee is better." It's "does our service model match what this client actually needs, and does it have a clear path to renew."
Every RIA eventually asks the same question. Should we charge AUM, flat fee, or both? It feels like a pricing choice. Our data says it's something else.
We looked at over 7,000 clients who hired an advisor through Zoe's marketplace. Investable assets barely predicted which fee model a client picked. Age only mattered near retirement. But one thing predicted first-year churn clearly: whether the advisor managed the client's assets or ran a planning retainer. That gap was bigger than any wealth gap or age gap in the data.
That changes the question. It's not "which fee is better." It's "does our service model match what this client actually needs, and does it have a clear path to renew."
Source: Zoe Financial marketplace records, April 2021–July 2026. Findings describe Zoe's client population and may not apply to other firms
Source: Zoe Financial marketplace records, April 2021–July 2026. Findings describe Zoe's client population and may not apply to other firms
What's inside
What's inside
Why assets are a weak shortcut for fee choice: Flat-fee adoption barely moved across most asset bands. Here's what that means for how you price your first conversation.
Retirement stage beats age every time: Clients under 55 look almost identical in fee choice. The real split shows up later, and it's about the work, not the birthday.
Income is the clearest signal you're not using: High income, moderate assets. This household may need more advice than their portfolio size suggests.
The real predictor of first-year churn: It's not wealth. It's not age. It's whether the relationship is built around ongoing management or a defined project. See the exact churn numbers by service model.
Why younger clients may be worth more than they look: Retained younger clients showed the highest net dollar growth in the sample, despite starting with less.
Why assets are a weak shortcut for fee choice: Flat-fee adoption barely moved across most asset bands. Here's what that means for how you price your first conversation.
Retirement stage beats age every time: Clients under 55 look almost identical in fee choice. The real split shows up later, and it's about the work, not the birthday.
Income is the clearest signal you're not using: High income, moderate assets. This household may need more advice than their portfolio size suggests.
The real predictor of first-year churn: It's not wealth. It's not age. It's whether the relationship is built around ongoing management or a defined project. See the exact churn numbers by service model.
Why younger clients may be worth more than they look: Retained younger clients showed the highest net dollar growth in the sample, despite starting with less.
A Practical Guide: Find Your Firm Type
A Practical Guide: Find Your Firm Type
If you're AUM-first: See where ongoing advice retains naturally, and where account size still matters even within that model.
If you run planning retainers: Learn how to price and staff for a different relationship pattern, and set expectations that higher first-year turnover may be normal completion, not failure.
If you're hybrid: Get clear on which engagements should become ongoing relationships, and which are meant to solve one problem and end.
If you're AUM-first: See where ongoing advice retains naturally, and where account size still matters even within that model.
If you run planning retainers: Learn how to price and staff for a different relationship pattern, and set expectations that higher first-year turnover may be normal completion, not failure.
If you're hybrid: Get clear on which engagements should become ongoing relationships, and which are meant to solve one problem and end.
Is Your Fee Model Built to Retain, or Just to Price?
Is Your Fee Model Built to Retain, or Just to Price?
Download out whitepaper and see where your firm's engagement design creates unnecessary churn.
The material presented by Zoe Financial is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Material presented has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Past performance is no guarantee of future results. Zoe Financial does not provide legal or tax advice, and nothing contained in these materials should be taken as legal or tax advice. SEC Registration does not constitute an endorsement of Zoe Financial by the SEC nor does it indicate that Zoe Financial has attained a particular level of skill or ability.
The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. Lower expenses do not guarantee better investment performance.
Certain information contained herein may constitute forward-looking statements. Due to various risks and uncertainties, actual events, results or the performance of a fund may differ materially from those reflected or contemplated in such forward-looking statements.
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Transform the way you serve your clients by scaling smarter and delivering more.
Ready to Give Your Clients More?
Transform the way you serve your clients by scaling smarter and delivering more.
Ready to Give Your Clients More?
Transform the way you serve your clients by scaling smarter and delivering more.
Overview
Platform Features
Zoe Financial, Inc. (“Zoe Financial”) is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Zoe Financial provides investment advisory services and access to independent registered investment advisers through its platform. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website. The information provided by Zoe Financial is for educational and informational purposes only and should not be construed as personalized investment advice or as an offer to buy or sell any security. All investments involve risk, including possible loss of principal.
The information in the visuals are for illustrative purposes only, and doesn’t represent an actual user’s account, balance, or return. Zoe Financial does not provide tax or legal advice.
Fiduciary Advisors shown are not affiliated by Zoe Financial.
Strategies and techniques discussed—including fractional trading, direct investing, asset allocation, rebalancing, tax-loss harvesting, and direct indexing—may not be suitable for all investors, may have limitations, and can trigger fees, expenses, and tax consequences.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
Copyright © 2026 Zoe Financial, Inc. | All rights reserved | Sitemap
Looking to find a vetted financial advisor? Search for a financial advisor on our sister site:
Zoe Financial, Inc. (“Zoe Financial”) is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Zoe Financial provides investment advisory services and access to independent registered investment advisers through its platform. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website. The information provided by Zoe Financial is for educational and informational purposes only and should not be construed as personalized investment advice or as an offer to buy or sell any security. All investments involve risk, including possible loss of principal.
The information in the visuals are for illustrative purposes only, and doesn’t represent an actual user’s account, balance, or return. Zoe Financial does not provide tax or legal advice.
Fiduciary Advisors shown are not affiliated by Zoe Financial.
Strategies and techniques discussed—including fractional trading, direct investing, asset allocation, rebalancing, tax-loss harvesting, and direct indexing—may not be suitable for all investors, may have limitations, and can trigger fees, expenses, and tax consequences.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
Looking to find a vetted financial advisor?
Search for a financial advisor on our sister site:
Copyright © 2026 Zoe Financial, Inc. | All rights reserved | Sitemap
Overview
Platform Features
Zoe Financial, Inc. (“Zoe Financial”) is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Zoe Financial provides investment advisory services and access to independent registered investment advisers through its platform. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website. The information provided by Zoe Financial is for educational and informational purposes only and should not be construed as personalized investment advice or as an offer to buy or sell any security. All investments involve risk, including possible loss of principal.
The information in the visuals are for illustrative purposes only, and doesn’t represent an actual user’s account, balance, or return. Zoe Financial does not provide tax or legal advice.
Fiduciary Advisors shown are not affiliated by Zoe Financial.
Strategies and techniques discussed—including fractional trading, direct investing, asset allocation, rebalancing, tax-loss harvesting, and direct indexing—may not be suitable for all investors, may have limitations, and can trigger fees, expenses, and tax consequences.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
Copyright © 2026 Zoe Financial, Inc. | All rights reserved | Sitemap
Looking to find a vetted financial advisor?
Search for a financial advisor on our sister site: