Revenue Split Models

Employee Advisor Payouts

A wide variety of Firms offer Employee Advisors a platform to build their client base with the Advisor earning a percentage of their revenue as their primary income. This is most commonly associated with Banks, Wire House, and Hybrid Broker/Dealers. But many local and regional Independent Firms also offer this model as well.

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Net Payouts

Working as an employee for a Firm is analogous to musicians who sign with a major record label vs. independents. The label will keep a larger cut which is justified by a broader distribution network with less effort from the artist.

Similarly, Employee Advisors in these settings earn approximately half of their revenue (typically between 40-45%) in exchange for having everything provided for them, including office space, benefits, and in many cases the backing of a well-established brand that clients are familiar with.

The payout range will vary, with some Firms offering as low as a 20 percent payout, and others can range up to 60 percent. However, of the cohorts of Firms, this group seems to gravitate tightly around the 40 percent band as a rule of thumb.

Other Considerations

It’s never just about the money. Well, maybe it is. But it’s not just about the payout. Explore other considerations and how they can impact the overall net income of the Advisor.

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  • Many Firms offer additional bonuses that Advisors can earn by reaching certain business goals. These may be tied to branch profitability, new accounts or assets, or Firm profitability.

  • Firms with an established track record and marketing system may be able to provide client leads to its Advisors. In these cases, the Advisors sole responsibility is signing the clients and managing the relationships.

  • As Advisors grow in their own careers, opportunities to mentor younger Advisors and earn additional income from their businesses may be available. It is not uncommon for a senior team leader to earn significantly more than their stated revenue payout after accounting for their overrides from their team.

  • One of the perks of being an employee is always the benefits package. Financial Firms are no different in this regard. In addition to health insurance and 401k plans, top Firms will also offer their employees equity opportunities in the Firm and other special perks for top producing Advisors.