PriceMetrix Inc., a well-respected industry data aggregator, just released a study finding that female advisors have more large households, more consistent pricing and more women as clients that their male counterparts. What, if anything, can we take from this study? First, the numbers:
- The average female advisor has 56 large households (defined as having $250,000 or more in assets), while the average male advisor has 51. (Females have on average 72 smaller households, while males have 78);
- While male and female advisors have about the same proportion of fee-based vs. commission accounts (21% v. 22%), men charge slightly more than women on average. This difference comes predominantly in the commission portion of the business; and
- Female advisors seem to be more consistent in their pricing, with a lower overall variation in the range of what discounters and non-discounters charge clients.
While the results are interesting, the numbers are so close that I don’t think you can draw too many earth-shattering conclusions from the study. According to the CEO of PriceMetrix “Ultimately, neither the X or Y chromosome determines the quality of an advisor’s practice, the advisor does. The prerequisites for success, though, are a consistent pricing strategy and knowledge of where opportunities lie in one’s book.”
Male advisors have to ask themselves what if anything they can do to improve their businesses with female clients, including the spouses and children of current clients. Sure, prospects may have a bias for whether they want to work with a male or female advisor; that is only natural. But in some cases this built-in bias can probably be overcome through good client service and a little TLC.
Firms with multiple advisors should also consider their mix of male and female advisors. After all, if your firm has all male or all female advisors, you are certainly sending a message to potential and current clients.
