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Kitces and Carl - Real Talk for Real Financial Advisors cover image

Setting The Right Minimum Fee Per Client And The Revenue Model Generator: Kitces & Carl Ep 115

Kitces and Carl - Real Talk for Real Financial Advisors

NOTE

Maximizing Profit Margin through E-BOE Numbers

Firms focus on e-bok (earnings before owners compensation) to streamline profit calculation and can achieve profit margins of 50-85%, especially with efficient systems and large clients. However, profit margins decrease to 60-70% when team members are hired due to leveraging for more clients and growth.

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