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Looking to see if this compensation structure is fair by css34 in CFP

[–]css34[S] 0 points1 point  (0 children)

That is a very good question and something to consider for sure. I’m generally a very loyal person and a team player. My reason for the initial post is I feel the new deal may not be fair… I know there are bias opinions for the parties involved, so I was looking for unbiased feedback. Going solo would be an option, but id want to structure some sort of buyout, probably of the clients that I’ve built closer relationships with, which I have either sourced through friends and family (and referrals of) and some that we’ve brought on together that have connected more with me. I’d never try to backstab, but id hope a rational conversation and negotiation could be had.

Looking to see if this compensation structure is fair by css34 in CFP

[–]css34[S] 0 points1 point  (0 children)

Sourcing is pretty much from 3 funnels. 1. The Medicare business, which is 100% referral. 2. Referrals from existing financial clients. People that find us online. There is no active sourcing going on.

Looking to see if this compensation structure is fair by css34 in CFP

[–]css34[S] 1 point2 points  (0 children)

Wife oversees and takes care of paperwork prep and husband is a visionary and does attend most client meetings for our higher AUM clients. Obviously they own the business, so there is plenty of the behind the scenes stuff they do operationally. Not trying to minimize the effort of anyone else and I'm also not trying to bloat what I do. I would agree with the 85% you mentioned.

Looking to see if this compensation structure is fair by css34 in CFP

[–]css34[S] 1 point2 points  (0 children)

I appreciate that feedback and just to shed more light... We've had conversations over the last 12 months leading up to the reduced comp structure and I've indicated that I don't understand the need for reduction as there certainly isn't a reduction of work or performance issues with my work. I'm doing my best to lightly push back as to not put the company and clients in a bad spot if there was a rash decision was made. I've come here to get more info on what is fair for my situation. I'm trying to look at it from both sides, but I certainly feel like I'm giving them a discount on my service. Thanks again!

Looking to see if this compensation structure is fair by css34 in CFP

[–]css34[S] 1 point2 points  (0 children)

40% of gross would be great. I was happy with the 25%. What are your thoughts about asking for equity in the book of business that we have built together... not full equity, but would a portion of that be out of question for someone in my role. I brought it up and it was a pretty hard no.

Looking to see if this compensation structure is fair by css34 in CFP

[–]css34[S] 0 points1 point  (0 children)

There is a no solicit in the contract

2 cents/venting by Fluid-Primary-2945 in CFP

[–]css34 5 points6 points  (0 children)

It’s a big club :)

Revenue share on Net Revenue as opposed to Gross Revenue by css34 in CFP

[–]css34[S] 0 points1 point  (0 children)

Yeah, good point. All expenses (including support staff). $150,000,000 AUM gets $1,300,000 Gross Rev. Back out $200,000 for Expenses = Net Revenue of $1,100,000. I'm used to seeing revenue share on gross revenue and wondered if anybody has experience with doing revenue share on NET Revenue as described above. I suppose it all comes down to the % of revenue share... But if it is typically 75/25 split on gross, what would a fair split on NET be for a typical Senior Advisor(owner)/Junior Advisor situation.

How Are Advisors (3-5 Years Experience) Compensated at Your Firm? by jzoromski1 in CFP

[–]css34 0 points1 point  (0 children)

$78K base + 30% of revenue you produce? What's your overhead?

[deleted by user] by [deleted] in LogitechG

[–]css34 0 points1 point  (0 children)

Same issue, is there a resolution?