With the current trend of mergers and acquisitions in the industry, many advisors are looking for stability and security in their careers.
Top 5 Reasons Self-Employed Advisors Reconsider Their Options:
1. The business is being sold or rumors of it being sold.
2. No clear succession planning.
Advisors want to ensure that their clients and business will be in good hands after they retire or move on from the company.
3. For better technology & streamlined processes.
With new technologies and tools becoming available, advisors are seeking opportunities to streamline their work and improve their efficiency.
4. Paying away too much for very little to no support.
Advisors want to ensure they are getting the best value for the fees they are paying.
5. Moving to a restricted model.
Some advisors may be looking to move to a different business model that aligns better with their personal and professional goals.
With over 6 years experience of recruiting Financial Advisors, we've got the insights on the differences between being employed vs self-employed and the earning potential.
SELF EMPLOYMENT
As a self-employed Financial Advisor, you have the opportunity to retain between 55% – 93% of your gross turnover. Factors such as the size of your business, the support provided, and your personal preferences will all play a role in determining your earnings. Many advisors start in an employed role for a few years before transitioning to self-employment to build a client base and network of professional introducers.
EMPLOYMENT
In today’s market, employed Financial Advisors typically earn 1/3 of their gross income. This type of setup typically includes an allocated client base, new introductions, and full paraplanning and administration support. However, this also comes with a lower commission/bonus structure and a higher validation model.
We’ve been delighted to appear at both Money Marketing interactive events, in Leeds in May and London in September. Not only did we have a stand at both events but our Co-Founder Lewis was invited to speak at both events on the panel discussion for the ‘Financial Adviser 2B Showcase’.
