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Here’s my call for 2018: Most roboadvisors are going to fail. Read on to see why I don’t drink the RoboKool-Aid that the financial industry and media are serving up.

A little revenue problem?

There is so no such thing as a little revenue problem. If you have a problem with revenue, that’s a big problem.

All the time.

This applies to anyone in any business working in any part of the operation.

Here’s a little secret. Very few roboadvisors have sustainable business models. The industry doesn’t know this yet, because most of these businesses are in their nascent stages. Their owners are still trying to “wait and see.” But in a few years, when the net present value of their projects are still less than zero, they’ll have to send them to the product junkyard.

Here’s the intrinsic problem that very few roboadvisors, only the ones who have billions and billions, are going to be able to solve.

Roboadvisors were invented so that advisors could reach mass-affluent people. I’m really not sure these people are done a favor by roboadvisors.

The average person who uses a roboadvisor doesn’t have enough assets to qualify for a human advisor. Most of these people will do it themselves. There have been easy-access, low-cost products available to them before. Why not just invest in a Vanguard asset-allocation fund? The masses are not going to throw their money into the robo-pit when they already have solutions that offer the same benefits.