Kitces and Carl - Real Talk for Real Financial Advisors Setting The Right Minimum Fee Per Client And The Revenue Model Generator: Kitces & Carl Ep 115
19 snips
Jun 29, 2023 AI Snips
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Episode notes
Fee Depends On Client Count
- You can't set a minimum fee without choosing how many clients you'll serve.
- Michael Kitces says revenue per client equals your income goal divided by client count.
Lifestyle Practice Revenue Formula
- Set a personal income goal and pick a business margin to find required revenue.
- Divide required revenue by desired client count to get the minimum fee per client.
Client Rejected The Annual-Only Model
- A prospective half-billionaire told Carl Richards his annual-focused service model wasn't a fit because he expected constant availability.
- Carl used that rejection to clarify his target client profile and service boundaries.