Our final analysis of Advisor Group’s 2013 Salary Survey shows commissions still dominate advisor compensation. But in the next five and 10 years, you expect fees to play a larger role. The most dramatic increase will be in the Atlantic: right now, 62% of you say none of your comp comes from fees, but in 2023, that will fall to 38%.
Also by 2023, only 31% of you predict your sole comp will be commissions. But that doesn’t mean you’re moving to fee only: just 7% predict your sole comp will be fee in the same year.
Advisors are also optimistic about compensation growth, with Albertans the most hopeful: they predict a 26% increase within five years and a 42% increase within 10.
n=813. Margin of error: +/-3.4%, 19 times out of 20. Due to rounding, percentages may not add up to 100%.
Data illustrations by Lena Diaz
- Sybil Verch,
My plan is not to charge any of my existing clients more. As a matter of fact, I see a lot more downward pressure on the existing fee structure in place today. I think my growth will come from increasing assets and either the number of clients that I deal with or the average portfolio size.
Advisors who run a commission-based business, when they convert to fee-based, may notice a drop in revenue, at least within the first six months. That’s because of the way that the structure is. However, following the transition period, it
produces a much more stable revenue stream.
- Jolene Laing,
Five years from now, I’m aiming for my revenue to be 30% higher than it is today. In my world, that means I will be managing 30% more assets.
cite client interest as a reason for not converting to fee
is the average predicted comp increase in 10 years
won’t convert to fee because their business structure doesn’t allow it
When do I have to worry about regulation?See more for more Salary Survey coverage.