Financial Advisor Success Ep 094: Crafting Your Optimal Solo Practice By Simply Charging What You're Worth with James Osborne
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Oct 16, 2018 Join James Osborne, founder of Bason Asset Management, as he shares his journey of building a thriving solo advisory firm with over $225 million in assets under management. James reveals the benefits of his unique flat-fee structure, charging clients a predictable $4,800, which fosters transparency and aligns with his lifestyle goals. He discusses the emotional complexities of growth, the importance of personal fulfillment over income, and how to maintain a sustainable practice while prioritizing client relationships.
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High Revenue from Moderate Client Count
- Osborne manages about 80 clients with $225-250 million AUM, averaging ~$3 million per client.
- Flat fee pricing disregards asset size, creating a high-revenue, efficient solo practice.
Critique of 1% AUM Fee Model
- Osborne challenges the traditional 1% AUM fee, highlighting flawed economics and lack of fairness.
- He believes advisor services are worth a flat fee reflecting time and expertise, not a percentage of client wealth.
Client Growth Limits Advisor Income
- Growth beyond about 80-100 clients often reduces advisor take-home pay due to rising overhead.
- Many advisors chase growth unaware it may lead to less personal income and more management stress.