Our theme for Q1 2025 is how to implement a multi-niche approach. We’d love for you to join the conversation in our Public Square.

When pursuing a multi-niche approach, it’s important to select niches that align with the firm’s existing fee structure. For example, if the firm charges a percentage of AUM, chosen niches should typically include clients with assets that meet the firm’s minimum account size. Similarly, if the firm charges a minimum fee, the niche should include clients with sufficient income to meet that threshold.

Adopting a new fee structure to accommodate a single niche can be complex and may not be profitable. Unless the firm has thoroughly evaluated and successfully implemented a new fee structure across all clients, it’s generally unwise to create an exception for one niche. If the firm is interested in testing alternative fee structures, it’s recommended to pilot the model with a small group of clients first. This allows the firm to confirm profitability and long-term viability before committing resources to a niche that may not sustain the fees under a traditional structure. Many firms that experiment with alternative fee models eventually decide to revert to their original structure.

To ensure sustainability and simplicity, it’s best for firms to maintain a standardized fee structure that accommodates all clients and to ensure that chosen niches fit seamlessly within this framework.

We Want Your Take! What unique fee structures have you used or observed working effectively with various niches? Share your thoughts in the OnNiche® Public Square!