The median advisory practice revenue reached $427 thousand in 2015 and is forecasted to rise to $470 thousand in 2016. Similar to the AUM tiers depicted in Figure 1, the lowest revenue range, less-than-$250,000, characterizes the plurality of advisors. Looking forward, 28% of respondents expect to fall within this range in 2016, down 5 percentage points from 2015 levels. The other ranges are forecasted to be relatively stable, although we note that a 4-point increase in the percentage of RIAs expecting to be in the $1-5 million revenue range in 2016 vs. 2015. In general, the upward shift to higher revenue ranges likely reflects an increase in value added services offered by advisors, which we discussed in the Practice Management and Operations chapter.
