Co-Founders Alan Moore and Michael Kitces review the highlights of the sixth-annual Member Benchmarking Study in this episode of XYPN Radio. Each year, the study gathers information from XYPN member participants to get an accurate picture of how advisors are doing in their firms.
This episode tells the data-backed story of an XYPN firm's journey, from the average growth in revenue, client profitability, and client relationships, to the value of community. Alan and Michael pull graphs from the study to paint a clear picture of what’s working and not working for member firms. And yes, the survey includes insights from XYPN members who started with the Network from scratch that yields incredibly impactful for those considering starting an independent fee-for-service RIA.
If you’re interested in learning what really works for fee-for-service advisors, then this is the episode for you.
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What You'll Learn from This Episode:
- How XYPN’s Benchmarking Study is conducted and how it compares to other industry studies (00:02:25)
- Revenue growth over time for a new firm who is joining XYPN with almost no clients (00:07:06)
- Client profitability from 2016 to 2021 through revenue per client, operating profit per active client, and operating profit margin (00:19:36)
- Growth of client household by practice phase (implementing, building, and scaling) (00:28:15)
- What XYPN members’ growth is in comparison to other competitors in the space (00:36:22)
- The difference of annual growth rate, revenue, and operating profit by practice phase and niche vs non-niche focus (00:41:05)
- Prospective conversion rates of firms with niche and non-niche focuses (00:54:20)
- Staff productivity for scaling advisors by business type (solo, boutique, and enterprise) (00:58:22)
- Average profitability per client for scaling advisors by business type (01:10:24)
Featured on the Show:
- Alan Moore: Twitter | LinkedIn | Facebook
- Michael Kitces: Website | Twitter | LinkedIn | Facebook
- CERTIFIED FINANCIAL PLANNER™
- XYPN Radio Nomination Form
- Ensemble Practice
- XYPN LIVE
- Figure 14: Avg. annual revenue for members who joined with fewer than 10% of current clients
- Figure 2: Client profitability over the last five years, 2016 – 2021
- Figure 5: Growth of client households and number of new households by practice phase in 2021
- Figure 10: Two-year compound annual growth rate by practice phase and niche focus
- Figure 11: Revenue and operating profit per client by practice phase and niche focus
- Figure 12: Prospecting and conversion rates of niche and non-niche firms
- Figure 29: Staff productivity by business type for Scaling advisors
- Figure 35: Average profitability per client by business type for Scaling advisors
This Episode is Sponsored By:
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