https://www.yourdream50.com/ria-training
Welcome to Mythbusters Registered Investment Advisor Edition. Here we tackle the tall tales of financial services marketing. We're here to show you what really works and what's just Investment Industry folklore Mythbusters registered investment advisor edition. Remember to like, share, and subscribe for more financial services marketing insights, and drop your questions in the comments below.
Welcome to Formula Two of the three formulas you need to succeed as an RIA or financial advisor. In Formula One, you learn how to calculate the exact number of leads, you need to generate the number of clients that you want. Now we're going to talk about there's two banks for financial advisors and RIA’ss bank. Number one is present bank. Number two is future bank, and you need to be filling both banks at the same time. I'll show you what that means.
Let's take a look at the formula. So it is NC times TF plus FYC. So let's say we got 10 new clients, the app is planning fees. So if you charge a planning fee, we're going to say that $3,000 financial planning fee, plus FYC is first year commissions. So if you sell any insurance or annuity products, and you take an upfront commission, what would be the first year commissions that you generate from that? So I'm going to do two examples, one with first year commissions, one without because I know there are RIA’s that don't charge them. So in this example, let's say a million dollars they brought to you I'm going to make this up, let's say you put 200,000 in an annuity, and you took the 5% up front tray it up percent copper upfront commission. So that's $10,000 plus FY AUM, which is first year assets under management fees. Let's say we have another 800,000. We've put it in the assets under management program.
Now, we're going to do a whole different video on why you shouldn't be the premiums right for price provider of what you do, and why you should not do the race to the bottom and why you should not only charge 1%, and why you shouldn't even only charge one and a half percent, and how you justify charging a whole lot greater assets under management fee. That's for another video.
So let's pretend that you charge 1% 800,000 meaning first year AUM fees $8,000. So 3000 plus 10,000 plus 8000 is 21,000. You got 10 clients, they're all exactly the same in this scenario, you generated $210,000 into your present bank account that goes into your bank account this year, because that AUM fee is going to come over the next four quarters. Now let's do an example without first year commissions. Let's say we've got our $3,000 planning fee, and now there's no first year commissions, let's pretend the entire million went into assets under management at a 1% fee. So now I've got 13,000 times 10 equals 130,000 in our present bank account, when it goes into our account next 12 months that we can use to pay bills, pay staff, take a vacation, do fun, stuff like that. So that's what our new clients are worth to us in our present bank account.
Stay tuned for Formula Three. We'll talk about future bank accounts. Then we'll talk about how we're going to bring this all together to scale your IRA to where you know you deserve to be.
https://www.yourdream50.com/ria-training
Thanks for watching Mythbusters registered investment advisor edition. Seth Greene is the nation's foremost authority on direct response marketing for registered investment advisors. He is a nine time Best Selling Author, a three time Dan Kennedy magnetic marketing marketer of the year nominee. Seth co-hosts the Sharkpreneur podcast with Shark tank’s Kevin Harrington. He is the CEO of the Inc. 5000 financial services marketing company and has been written about and registered rep insurance news net, Forbes, Inc., and many more. Thanks for watching Mythbusters Registered Investment Advisor Edition. Remember to Like share and subscribe for more financial services marketing insights and drop your questions in the comments.
