Financial Advisors Increasingly Adopt Subscription Models, AdvicePay Report Shows

Financial advisory firms are rapidly embracing subscription-based revenue models, according to AdvicePay's third annual Fee-for-Service Industry Trend Report. The study, analyzing over 461,000 transactions in 2024, demonstrates a clear industry transition toward more predictable income streams.

The report highlights that 85% of all invoices are now subscription-based, a 2% increase from the previous year. Advisors have simultaneously increased their average monthly subscription fees to $278, a 4.9% rise from 2023. This trend reflects a strategic shift in how financial professionals generate revenue, particularly during market volatility.

Digital payment methods are also becoming increasingly prevalent, with 53.4% of transactions completed via credit or debit cards and 45.9% processed through ACH transfers. This indicates a broader transformation in client payment preferences and technological adoption within the financial services sector.

Importantly, the subscription model is not replacing traditional assets under management (AUM) fees but complementing them. By offering a more stable income source, advisors can diversify their revenue and reach previously underserved client demographics. The platform processed $838 million in financial planning fees since its 2018 launch, underscoring the model's growing legitimacy.

AdvicePay's CEO Alan Moore emphasized that this approach is becoming a strategic necessity for broker-dealers and registered investment advisors seeking resilience in competitive markets. The sustained growth suggests subscription-based planning is transitioning from an emerging trend to a core business strategy for financial advisory firms.