Financial Planners / Advisors’ income are generally from the following sources:
- Annual advisory fee
- Commission from various financial services products (investment, insurance, will writing, trust setup, etc)
- Wrap Fee and trailer fee from investment’s assets under advice.
- Overriding income from downlines
FP/ FA firms are generally running on revenue-sharing system with the Advisors on all the income generated, Advisors shall entitle from the range of 60% to 80% for all the income generated. However, it does not mean that the higher the sharing pay out the better. The revenue-sharing structure is one of the main indicators of the level of support provided to the Advisors. In other words, the higher the revenue pay out, the level of support will most probably be lower.