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. As a result, confidently understanding client revenue and tracking it – client by client – across family groups – and over time – is becoming very important.
Our conversations with practices usually start with hearing of a well-founded lack of confidence in revenue. That lack of confidence often comes when the top-line revenue just doesn’t seem to make sense. The business has been putting on new clients each month, but the numbers aren’t going in the right direction. These are all real and common situations.