Relevance to Practice Management - Business Management for Financial Advisers

The firm an adviser chooses as a business affiliate will affect the practice’s strategy, compensation, personnel choices, and financial results. Each platform has appeal, depending on what you feel you can do well, what you need a partner to do—and what your personal goals are. As you develop your strategy, examine which model best suits your business.

If you do not have the time, money, and management capability to undertake an initiative on your own, consider how each of these firms would help you to fulfill your goals. They are sources of products, technology, advanced-planning education, contacts, acquisition and succession assistance, client referrals, and more. For some practices, the payout may become the overriding reason to affiliate with one firm rather than another.

But often this is a shortsighted approach. Remember that the higher the payout, the fewer dollars the affiliate has available to invest in infrastructure to support you. There are many opportunities to leverage the resources of larger organizations to build your business today and reap greater rewards in the future.

The key is to make sure the trade-off you make is the right one for you. It all depends on what you need and where you want to go. Your argument should never be about payout percentages but about dollars. Which platform can allow you to achieve the return on investment and the growth in revenue that you consider key to your firm’s future value?


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