A typical advice firm will earn around $1.5 million a year, broken up into 61,000 small individual commissions, fees and trail payments. To make things more complicated, those little revenue transactions are collected from an average 15 separate sources.
It was true that for years, the business of advice was profitable enough that revenue statements from those sources were merely, chucked in the draw – because the figures seemed “about right”.
But times have changed. The licensing and compliance regimes are tougher. It takes longer and is more expensive to deliver advice services.
As a result, confidently understanding client revenue and tracking it – client by client – across family groups – and over time – is becoming very important.