Hi all - 27 year old AFP with 5 years of experience at a 3 employee (including owner) firm~$400 m AUM. Only other Planner is the owner of the firm and i west many hats. Currently studying for CFP as well.

Curious if anyone can help me determine a realistic % of gross revenue to tie my value to for future negotiations. At this point - I am instrumental to the firm’s success - base comp - $85,000. Look forward to learning from the best!

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Posting as :
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Your value is in your ability to bring in new business, not in overall gross revenue.

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What’s your annual revenue and what do you think the overhead is?

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Advisor books are typically valued at 2-4% of AUA.

Hate to say it, if you can sell, young man, go be your own boss. Then you will know exactly how much you are worth.

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Additional Posts in Succession Planning: Buy/Sell Practice

Think about this for a minute... why would you sell a book? Because you didn't want it anymore or it was beyond its useful life, kinda like an old car... it's old, rusty and needs more maintainence than it provides useful transportation, it's in the repair shop more often... everytime it goes in you find something else wrong with it? Plus, the prices the buyers are willing to pay are outrageous, by the time you get it paid off it's in the junk yard. No easy solution to building a sustainable business except hard, persistent work. Control Your Future, Go Indie RIA!

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