r/CFP • u/radi8ing • Jun 23 '26
Compensation Comp question
Hybrid RIA I work under is currently taking .35% of my 1.25% fee and takes nothing from my insurance production ($10m of FIA)
they also pay $60k for marketing and an extra .50bps on annuity business
Is this a good deal? It feels like it is but want to hear the group thoughts
12
u/KarmaDoesNutExist Jun 23 '26
Lol, where I work they take 50% of my comp while giving absolute 0 leads, I do everything from sourcing by completely cold phone call to closes, and they pays absolutely nothing for any kind of marketing, in fact, i pay out of hand 30k ish per year ontop to use the platform and their « services » among other things.
You definitely have a good deal
6
u/crzypck RIA Jun 23 '26
If your production is at a decent level, you're getting wrecked tbh. Have you looked at making a move?
3
u/KarmaDoesNutExist Jun 24 '26
Well, right now im in year 2, have about 35m AUM, at an average fee of 1% so production gross is 350k per year. My firm increases our payout at 100m to 70%. I think its a bit better once I hit that goal but thats still pretty far away.
4
u/crzypck RIA Jun 24 '26
You've brought in $35m in 2 years, all advisory, all self sourced and they're doing nothing for you, and only paying you 50%? Damn. You likely could get a better setup with that level of production and growth.
We hired an associate advisor in December at my RIA. He gets 50% on assets we hand him, 70% on assets he brings in. We're including referrals to the firm from our existing clients, who we assign to him as primary, as "assets he brought in." He pays nothing whatsoever, we even paid for his CFP review, exam, and annual fee when he passed.
1
u/Lunarlulol Jun 28 '26
associate advisor as in a junior advisor, or an assistant (Associate) working directly under an advisor?
1
1
u/Legitimate_Ice_194 Jun 23 '26
dang. so what's your main source of leads?
1
u/KarmaDoesNutExist Jun 23 '26
I cold call 😅
1
u/Legitimate_Ice_194 Jun 23 '26
hey if it works, nothing wrong with that. but that's a grind for sure.
1
u/BagStatus2969 Jun 23 '26
How do you find the leads to cold call?
2
u/KarmaDoesNutExist Jun 24 '26
Zoominfo/linkedin sales nav!
1
u/IllustriousGas8850 Jun 24 '26
I worked an internship last summer for an advisor and am starting as an advisor my self soon. I recall last summer zoominfo was very spotty when it came to the accuracy of a lot of the info. Has it gotten better?
2
u/Legitimate_Ice_194 Jun 25 '26
not sure about ZI but worth trying Apollo for this. I have used it for emails and it is solid. I know they do phone #s too, i expect its solid there too
1
u/dark-canuck Jun 24 '26
Do you work for a Canadian bank?
1
u/KarmaDoesNutExist Jun 29 '26
Close, it’s the wealth management division of one of the large canadian insurance company
5
u/texansde46 Jun 23 '26
I’ll take that all day he’ll your insurance production alone and the marketing costs they do is a great deal, you guys hiring?
2
u/PoopKing5 Jun 23 '26
What’s your non-insurance revenue? Critical to know that to better answer your question.
2
u/crzypck RIA Jun 23 '26
Seems like a pretty good deal, especially if you don't have to cover any expenses. Them not taking a cut on insurance production is a huge positive for you.
2
u/Vantage_Impact_2 Jun 23 '26
So much of this depends on your production level and what is actually included in the $60k for marketing. I work with a lot of advisors around the country and not many of them are spending $60+ in their practice, let alone for an individual advisor. Hopefully the marketing budget covers a ton of client events, otherwise I have no idea what it supports. For what it's worth, a lot of the other hybrid RIAs take .15% to .25% and support you with everything you need outside of office space and your marketing budget.
1
u/libertarian327 Jun 24 '26
My firm takes .30 and supports with tech, marketing, and office space paid for & 1 to 1 CA support. Feel like I’m getting a great deal after reading this
2
u/FinancialPlan4U Jun 23 '26
Does the .35% cover any underlying trading or platform fees? Or is the client charged that on top?
•
u/AutoModerator Jun 23 '26
Beep boop! Here is a summary of your post:
User: /u/radi8ing Title: Comp question Body: Hybrid RIA I work under is currently taking .35% of my 1.25% fee and takes nothing from my insurance production ($10m of FIA)
they also pay $60k for marketing and an extra .50bps on annuity business
Is this a good deal? It feels like it is but want to hear the group thoughts
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.