In an open letter to financial advisors and wealthtech firms, digital marketing firm Snappy Kraken announced it had curbed its pricing and fees. Snappy Kraken’s CEO Robert Sofia said he hopes waiving setup fees and lowering prices will aid advisors who have an assets-under-management compensation model.
“For the majority of advisers who are compensated based on AUM, a drop in market valuations equates to a drop in income. Simultaneously, adviser workload increases because clients need more counseling. Doing more work for less compensation—especially during an already stressful time—can create a massive strain on an adviser’s psyche and on that of their family,” Sofia wrote.
Initially, the company charged a $489 setup fee for new members, and existing members paid $987 to add online advertising. The marketing firm is also extending its 20% discount, customarily applied to newcomers affiliated with particular firms, to new advisors and existing advisors who are experiencing financial hardship. The original price was $227, but advisors will now pay $182 to join the Snappy Kraken platform. The changes will remain indefinitely.
In addition to the pricing overhaul, Snappy Kraken is providing “crisis management communication,” a weekly email for advisors to send that offers behavioral guidance to clients. In April, Snappy Kraken will also relaunch a video tool to all users that was once reserved for clients in higher tiers. Advisors can use the tool to perform biweekly video marketing to their clients and prospects.
Following both services is crisis management education. Snappy Kraken will host a monthly webinar to help advisors cope with the effects of the pandemic. The first of the webinar series, “Prospecting Strategies for Volatile Markets," started in March.
“I realize that this is not 'business as usual' for advisers,” Sofia wrote in the letter. “As someone who has built his career around serving advisers, I feel a deep sense of responsibility to make whatever adjustments are needed to continue serving them through this crisis and on the other side of it.”
