Financial Advisor Success

Ep 389: Generating $5M In Hourly Planning Fees In The Blue Ocean Of Consumer Demand with Mark Berg

Jun 11, 2024

Mark Berg, founder of Timothy Financial Counsel, scaled his firm to generate $5M in annual revenue through an hourly fee model. He shares insights on structuring his firm for success, implementing time-tracking software, using a client waitlist, and hiring a president without a financial planning background. Berg sees the hourly fee model as an opportunity to reach a broader client base and discusses strategic growth and pricing strategies.

01:30:01

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Mark Berg

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Quick takeaways

Mark Berg scaled his financial advisory firm using an hourly fee model, reaching $5 million revenue.

Segmenting clients by complexity levels helps provide accurate quotes and balance client capacity.

Implementing time tracking software and hiring a president supported firm growth and efficient billing.

Deep dives

Mark Berg’s Firm’s Unique Hourly Fee Model

Mark Berg's financial advisory firm scaled from 1.8 million to 5 million in revenue over six years, maintaining a 25% profit margin with an hourly fee model. The firm segments clients into five complexity levels, offering accurate quotes in prospecting calls based on this segmentation.

Quoting Fees and Managing Scope in Financial Advisory

01:23

Specialized Expertise for Ultra High Net Worth Clients

01:28

Structured Salary and Benefits

01:15

Intro

4min

Scaling Up an Hourly Financial Planning Firm over 24 Years

2min

Financial Advisory Firm Revenue and Pricing Strategy

19min

Financial Planning Services and Revenue Model

16min

Managing Capacity and Time Tracking for Financial Advisors

18min

Selling Ownership and Growth Strategies

9min

Scaling a Financial Planning Firm with a Non-Billing President

11min

Advisors Compensation and Hourly Rates in Team Model

4min

Navigating Success, Scaling Business, and Serving More Clients

5min

Mark Berg is the Founder of Timothy Financial Counsel, an RIA based out of Illinois that's on track to generate $5 million in annual revenue this year serving 800 households. Mark's firm stands out for its rapid growth, scaling from $1.8 million to $5 million in revenue within just six years while maintaining a 25% profit margin, achieved entirely through an hourly fee model.

Listen in as Mark shares how he structured his firm to succeed with an hourly fee model, his strategic implementation of time-tracking software for efficient billing and capacity management, and how he uses a client waitlist to handle increasing demand. We also discuss Mark’s innovative approach to scaling the firm by hiring a president without a financial planning background, as well as why he sees the hourly fee model as a vast opportunity for reaching a broader client base.

For show notes and more visit: https://www.kitces.com/389

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Financial Advisor Success

Ep 389: Generating $5M In Hourly Planning Fees In The Blue Ocean Of Consumer Demand with Mark Berg

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Mark Berg’s Firm’s Unique Hourly Fee Model

Client Engagement and Scaling Strategies

Ongoing Planning and Capacity Management

Advisor Compensation and Profitability

Challenges and Lessons in Scaling the Business

Quoting Fees and Managing Scope in Financial Advisory

Specialized Expertise for Ultra High Net Worth Clients

Structured Salary and Benefits

Remember Everything You Learn from Podcasts