Conferences are a great place for us to meet with vendors and other advisors to gain insight, share best practices and identify trends. Our goal is to gain knowledge that helps us help our clients. I was recently reviewing the agenda for an upcoming conference and noticed a session titled, “Small Plans, Big Margins”.
After an extensive review of retirement plan services, advice and fees, we arrived at a simple conclusion; it makes more sense to price our services based on what we do for our clients, the liability we assume, and the advice we give rather than an arbitrary percentage of plan assets. The result is what we call Activity-based Pricing.