The Perfect RIA Encore Episode: Measure What Really Matters?
Nov 7, 2025
Dive into the world of advisor effectiveness as hosts peel back common misconceptions about metrics. They expose how traditional indicators like AUM can mislead, revealing the importance of tracking revenue per hour instead. Hear why office hours and household counts are merely trophies rather than true measures of success. Gain insights on how precise record-keeping uncovers inefficiencies and how accountability can accelerate improvement. Embrace continuous learning to drive your practice forward and prioritize what really matters.
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Transcript
Episode notes
People Lie To Themselves About Numbers
- Advisors often sincerely misstate key metrics because they round or repeat old estimates.
- Micah Shilanski and Matthew Jarvis show that reported AUM, revenue, and days off frequently differ from P&L and ADV numbers.
The 1% Fee That Wasn't
- Micah gives a concrete example: an advisor who thinks they bill 1% on $100M and expects $1M revenue.
- Their P&L instead showed $497k, exposing either wrong AUM or incorrect fee assumptions.
Use Accurate ADV As Your AUM Source
- Track ADV accurately and never inflate it for external lists or bragging rights.
- Use your clearing firm's ADV as the authoritative AUM figure and avoid creative gross-ups.