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![AUM Pricing Model](http://www.belayadvisor.com/wp-content/uploads/2016/09/Scott-MacKillop-300x300.jpg)
It doesn’t cost twice as much to manage a $1 million portfolio as it does a $500,000 portfolio so why do clients have to pay twice as much? That question is getting asked more frequently and we are starting to see advisors and money managers question the AUM pricing model and move to a flat-fee pricing model in response.
Long-time industry veteran Scott MacKillop is today’s podcast guest and he recently launched a new third-party money management firm called First Ascent Asset Management that charges a maximum fee of $1,500 to manage a client’s account.
In today’s show, we explore the industry standard AUM pricing model and discuss if it still makes sense in a world where technology and competitive pressures are forcing advisors to re-think how they do business.