- MDPs attract affluent clients with complex financial needs: Investors surveyed who leverage MDPs to meet multiple financial needs are more likely to be business owners and have higher investable asset levels.
- MDPs experience higher client growth during challenging market environments: In 2011, MDPs surveyed reported a 10 percent median growth in net clients while other practice types reported median growth rates ranging from 5–6 percent.
- MDPs receive more referrals from and generate more new revenue through professional partnerships: Just under half of MDPs surveyed derive one-quarter or more of their 2011 revenue from internal partner referrals while less than one-third of other practice types derive as much of their revenue from partner referrals.
- The most successful MDPs, based on revenue per client, have teams with wide-ranging expertise: They distinguish themselves from less successful practices with their larger staff, greater focus on high net worth and ultrahigh net worth clients, and diligent implementation of comprehensive financial planning services. Smaller firms with less diverse practices need to find a way to fill the gap as they grow.
- MDPs face unique staffing, sales and operational challenges that they must overcome in order to achieve success: Practices must find the right balance of solution experts, generalists and support staff to carry out their vision of catering to their clients' complete financial needs in the most productive and profitable manner.
- There is limited access to integrated technology solutions that can support more than one wealth management area: Effective management of operating costs and enhanced advisor productivity are critical to profitability.
NFP Advisor Services Group Publishes Aite Study On The Benefits Of Multidiscipline Practices To Clients And Advisors
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