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There is no normal in this space. It’s going to depend on many factors. One big factor is what you pay for…. If you pay for all your overhead, you are probably going to be in that 80-90% range. If you just show up to work, don’t own your book, and don’t pay for anything, it’s probably going to be closer to the 40-50%…. Also can depend on whether you are a lead advisor that is bringing in assets, or if you are a support advisor.
Also, an RIA is not going to have BD products. They are going to be fee-only. Are you thinking more of an independent advisor that can do both?
What role do you see yourself in? Do you have an RIA you are talking to?
Awesome thanks for the input!
We're 50% below $10mm AUM in fee based. 60% at $20mm, and 70% at $30mm, the 1% increase every $10mm past that, with cap at 90%.