In the 172nd episode of Kitces and Carl, Michael Kitces and client communication expert Carl Richards discuss the limitations of advisor productivity relative to technology and how advisors can scale up instead. In practice, productivity gains through technology tend to yield relatively incremental results compared to that of client affluence. The data shows a steep curve: revenue per advisor accelerates dramatically as client affluence increases, because wealthier clients both need and can afford more comprehensive services – and are willing to pay premium fees for them. While servicing high-net-worth clients may require more time, it does not scale linearly with revenue. Instead, advisors working with affluent households tend to earn much higher hourly rates, which compounds the financial leverage of moving upmarket. For more, see https://www.kitces.com/blog/172-michael-kitces-carl-richards-scaling-financial-planning-client-technology-efficiencies/ and https://www.thesocietyofadvice.com/ How Revenue Per Advisor Changes With Client Affluence (Not Technology) [00:17] The Challenges Of Scaling Many (Less Affluent) Clients [08:21] Moving Upwards In Revenue By Taking On Fewer, Higher-Paying Clients [15:08] The Future Of The Advisor Profession: Affluence Vs Service [25:25]