Why Tiered Pricing Works for Wealth Management

Tiered pricing, often seen in a ‘Good-Better-Best’ structure, is a powerful pricing psychology principle. It provides potential clients with options, allowing them to self-select the level of service that best fits their needs and budget. For your holistic wealth management business, tiered packages offer several distinct advantages:

• Clarity and Transparency: Clients can easily see what services are included at each level, reducing confusion.
• Increased Per-Client Revenue: By presenting higher-value tiers, you encourage clients to consider a more comprehensive relationship than they might have initially envisioned.
• Attract Diverse Client Segments: Different tiers can cater to clients with varying levels of wealth, complexity, and service needs.
• Simplify Sales Conversations: Instead of building custom proposals from scratch every time, you start with predefined frameworks.
• Position Your Value: Tiers allow you to clearly differentiate service levels and articulate the added value in premium packages, moving the conversation beyond just AUM or hourly rates.

Designing Your Holistic Wealth Management Service Tiers

Effective tiered wealth management packages aren’t just random bundles of services. They are strategically designed to align with client needs and your business goals. Here’s how to approach the design process:

1. Identify Your Ideal Client Segments: Who are you trying to serve? Consider factors like net worth, income level, life stage (accumulation, pre-retirement, retirement), complexity of financial situation (business owners, executives, inheritors), and specific needs (complex tax, estate planning, philanthropic goals).
2. Define Service Levels: Based on your client segments, determine 3-4 logical service levels. Avoid having too many tiers, which can cause analysis paralysis. Common structures include:
   • Foundational/Core: Basic planning, investment management for less complex situations.
   • Comprehensive/Growth: Deeper planning, more active management, inclusion of basic tax/estate considerations.
   • Premium/Platinum: Highest level of service, includes advanced tax planning, complex estate strategies, philanthropic advising, access to specialists, more frequent meetings.
3. Map Services to Tiers: Carefully decide which specific services belong in each tier. The ‘Good’ tier should offer significant value, the ‘Better’ tier adds crucial layers of complexity and access, and the ‘Best’ tier provides the highest level of service and expertise. Think about the frequency of meetings, access to advisors, included planning modules (e.g., just retirement vs. full financial plan vs. plan plus business consulting).
4. Name Your Tiers: Use names that reflect the value or focus of the tier (e.g., ‘Core Wealth Partner’, ‘Comprehensive Financial Steward’, ‘Legacy Builder Program’) rather than generic ‘Bronze, Silver, Gold’ which don’t communicate value effectively.

Examples of Services Within Tiers

Let’s look at potential service inclusions for illustrative tiered wealth management packages:

• Tier 1: Foundational Financial Partner (Example: $3,000 - $7,500 annual fee or starting at 0.75% AUM for lower balances)

  • Initial comprehensive financial plan (delivered over 3-6 months)
  • Annual financial plan review meeting
  • Investment management (core portfolio construction and rebalancing)
  • Basic retirement planning projections
  • Annual tax review (basic) and coordination with CPA
  • Access to advisor for scheduled calls (e.g., quarterly)

• Tier 2: Comprehensive Wealth Steward (Example: $7,500 - $15,000 annual fee or starting at 0.90% AUM, stepping down at higher balances)

  • All services in Tier 1, plus:
  • Semi-annual comprehensive financial plan reviews
  • More frequent investment portfolio updates and discussions
  • Detailed cash flow and budgeting analysis
  • Basic estate planning guidance and coordination with attorney
  • Insurance needs analysis (life, disability, long-term care)
  • Education funding strategies
  • Prioritized access to advisor, more frequent contact points.

• Tier 3: Legacy Builder Program (Example: $15,000+ annual fee or starting at 1.00% AUM, stepping down at higher balances, potentially with fee caps or fixed fees for ultra-high net worth)

  • All services in Tier 2, plus:
  • Quarterly or more frequent comprehensive financial plan reviews
  • Advanced tax planning strategies and proactive year-end tax planning
  • In-depth estate planning, including charitable giving strategies
  • Business succession planning assistance (if applicable)
  • Philanthropic advising and family wealth education
  • Coordination with multiple professional advisors (CPAs, attorneys, insurance agents)
  • Highest priority access to lead advisor and potentially other specialists.

Note: These are illustrative examples. Actual pricing and service inclusions will vary based on your firm’s specialization, cost of delivery, target market, and value proposition. You might also consider adding optional ‘add-on’ services that clients can purchase regardless of tier, such as one-time project work (e.g., complex stock option analysis, specific real estate transaction consulting) or access to proprietary research.

Pricing Your Tiered Packages Beyond AUM

While Assets Under Management (AUM) has been the traditional model, many holistic wealth management firms are exploring fee structures that better reflect the value of planning, advice, and coordination, not just investment management. Tiered wealth management packages are perfect for incorporating alternative or hybrid fee models.

Consider these approaches when pricing your tiers:

• Value-Based Pricing: What is the tangible financial and emotional value you provide at each tier? Consider the complexity solved, the time saved, the tax savings generated, the peace of mind delivered. Price tiers based on this perceived and delivered value, rather than just the cost of your time.
• Subscription/Retainer Fees: Charge a flat annual or monthly fee for the services included in each tier. This provides predictable revenue for you and predictable costs for the client, decoupling your fee from market fluctuations. AUM can still be a component, but the retainer covers the planning and advice.
• Hybrid Models: Combine a lower AUM fee with a planning retainer fee that varies by tier. For example, Tier 1 might be 0.75% AUM + $2,000 annual planning fee, while Tier 3 is 0.50% AUM + $10,000 annual planning fee for clients with higher asset levels but complex planning needs.
• Cost-Plus Considerations: Even with value-based or retainer models, understand the cost of delivering each tier’s services (advisor time, staff support, technology, overhead) to ensure profitability.

When presenting pricing, use anchoring by listing the highest-value tier first, even if you expect clients to choose a lower tier. This makes the middle tier seem more reasonable and the bottom tier a clear entry point. Clearly articulate the benefits clients receive at each tier, not just a list of services.

Presenting Your Tiered Packages Effectively

Once your tiered wealth management packages are defined and priced, how you present them is crucial. Avoid burying your options in static PDF documents or spreadsheets, which can be overwhelming and make comparisons difficult for clients.

Modern clients expect clear, interactive experiences. This is where tools designed specifically for presenting service options shine.

• Visual Comparison: Use comparison tables or visual layouts that highlight the differences and key features of each tier side-by-side.
• Interactive Selection: Allow clients to easily select a tier and potentially add optional services. Seeing the total price update live based on their selections provides transparency and control.
• Clear Value Articulation: Next to each feature or tier, briefly explain the benefit to the client, not just the technical service name.

For creating a dedicated, interactive pricing experience for your tiered packages and optional services, consider a tool like PricingLink (https://pricinglink.com). PricingLink allows you to build shareable links where clients can explore your tiers, select add-ons (like a specific one-time analysis), and see the price configured live. This provides a modern, transparent experience focused purely on price selection and lead qualification.

While PricingLink is laser-focused on interactive pricing and does not handle full proposals, e-signatures, or CRM, its simplicity and affordability make it powerful for solving the specific challenge of presenting complex pricing options clearly. If you require a more all-in-one solution that includes proposals and e-signatures, you might explore platforms like PandaDoc (https://www.pandadoc.com), Proposify (https://www.proposify.com), or wealth-management-specific CRMs with proposal features like Wealthbox (https://www.wealthbox.com) or Redtail CRM (https://www.redtailtechnology.com). However, for a dedicated, modern pricing configuration tool, PricingLink offers a uniquely streamlined approach.