Behind The Advisor Ep #413: XYPN's 2025 Benchmarking Study Highlights LIVE
Oct 8, 2025
In this engaging discussion, Michael Kitces, a renowned financial-planning researcher, teams up with Alan Moore to dive into fascinating insights from nine years of XYPN benchmarking data. They explore why launching a fee-only firm can be particularly challenging, especially in the first year, and the meaningful impact of CFP certification on growth and client acquisition. The conversation covers strategies for effectively scaling revenue, the common pitfalls of underpricing, and the importance of outsourcing administrative tasks to enhance advisors' well-being.
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Revenue Ramps Slowly Over Years
- Year one for advisors starting from scratch is almost always very low and brutal, but revenue trends upward over years two and three.
- By year three many firms add as much revenue in year three as in years one and two combined.
Plan A Multi-Year Runway
- Expect a runway of three to five years when launching a fee-only firm and plan household finances accordingly.
- Use savings, partner income, or part-time work to avoid quitting early when revenue is minimal.
CFP Link To Higher Growth
- CFP certification correlates with materially higher revenue growth, lower client acquisition costs, and wealthier clients over time.
- The CFP likely helps via competency, consumer preference, and self-selection of motivated advisors.
