Typical LTV is 6,000-18,000 pounds for mass-affluent and 25,000-80,000+ pounds for HNW over a 5-8 year client tenure, combining initial fee + ongoing AUM percentage.
Components
- Initial advice fee: 500-3,500 pounds - Ongoing: 0.5-1.0% AUM p.a. over 5-8 years - Ancillary: protection, mortgage, tax planning
Churn assumption
12-18% annual client attrition is normal; below 8% indicates strong retention (and stronger LTV-based CAC tolerance).