The Rummage Group breaks the industry into firms, models and types. There are about 2,000 broker dealers and over 10,000 RIAs that employ financial advisors. Making up these firms are about 10 models; wirehouses, regional firms, independents, RIAs, hybrids, insurance companies, boutique firms, chop shops, banks and discount firms.
This table, based on research by the Rummage Group, uses industry averages and estimates. Keep in mind, there are always exceptions to the rule.
The read more on whether you are at the right firm, model and type, click here.
|Model||1-10 Entrepreneurial Scale||Payout Range||Payout After Expenses & Haircuts||Comments|
|Bank||5 to 6||20-50%||20-40%||Best model to grow a book quickly and still keep the industry average payout.|
|Boutique||7 to 8||40-70%||40-60%||Some unique opportunities which are hard to find.|
|Discount||4 to 5||Salary+ Bonuses||NA||If you can sell, itŐs the easiest place to make 100k in the first year.|
|Hybrid||8 to 9||50-85%||40-70%||For advisors who want to straddle the fence between the models.|
|Independent||9 to 10||85-95%||60-80%||The best choice for Entrepreneurial minded advisors wanting to keep most of their revenue.|
|Insurance||7 to 8||30-90%||30-70%||Best for those who love insurance.|
|RIA||10||95-100%||60-80%||For advisors who are mostly excited about managing the money.|
|Regional||6 to 7||30-55%||30-45%||For those who want a little more attention and flexibility than a Wirehouse.|
|Wirehouse||6 to 7||20-50%||20-40%||For those who need a big name.|