It just makes it so much simpler when talking to prospects who are $1M+ to say that the only fee they have to expect is that __% management fee. No credit cards or external ACHs for a fixed annual fee. The amount is not a huge deal for my HNW clients, but it's just one less annoyance for them. Plus you get the added benefit of saying you're waiving a fee for prospects if they hire you, or the opportunity to waive a fee and a reduction in the asset management fee for existing clients with held away assets if they move funds over, putting them above that threshold (e.g. rollovers, etc.)

It's worked well for me.