Optimal Client Household Count for RIAs
The question of optimal client household count is crucial for RIAs, as it affects their profitability and ability to serve clients. This is the 22nd installment in a Financial Planning series by Tobias Salinger on building a successful RIA.
Finding the right number of clients is essential to avoid overextending a financial advisor's capacity. Newer RIAs must balance this amid the pressure of building a new business that relies on strong customer relationships.
Experienced advisors and experts point out that the right client headcount varies widely across firms and depends on factors like the RIA's client niche, menu of services, fees and assets per household.
- Client niche
- Menu of services
- Fees
- Assets per household
- Availability of support staff and internal or external resources
Author's summary: RIAs must find their optimal client count.