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What is Savvy's revenue model - percentage of assets under management or flat fee subscription?

Ritik Malhotra

Co-founder & CEO at Savvy

Because we hire and acquire advisors with existing clients, we adopt the advisor’s existing fee model (how they charge clients) and split revenues between Savvy and the advisor. We don't come in and say, "Hey advisor, you need to be charging X percent or only a flat fee." Remember, they're bringing on their own clients, and so they have the functioning business – and we respect that.

The majority of advisors have a percent-based AUM fee. That is, they charge clients some percentage of the assets they are managing for them. Some of them may have certain clients that are on a flat dollar fee, but that's relatively uncommon. The industry average is 1% for AUM fees. But as you go higher on the net worth scale, typically that can drop down to 50 basis points. We think this aligns incentives: if revenue increases, so does the take-home for the advisor and for Savvy.

Find this answer in Ritik Malhotra, CEO of Savvy, on the rise of tech-enabled wealth management
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