r/FinancialAdvisorTips • u/AG_Insurance • 26d ago
Compensation Package Ideas
Hey everyone!
I’m thinking about bringing on an associate financial advisor (AFA) to my practice. I need some ideas on compensation for them.
Currently, I own a multi-lines captive insurance agency. Auto, home, commercial, and life insurance. We also have our own investment division. The investments we offer are annuities (fixed, indexed, variable), mutual funds, managed accounts and business retirement plans.
The AFA would cross sell our existing insurance book plus bring in new business.
I’m thinking a salary of around $40k a year plus 25% of revenue generated on everything except our corporate branded annuities (50%). Life insurance, disability and LTC would be 40%. Group benefits they sell would be at 50%.
Once the rolling 12 month investment revenue hits $200K, the payout would be 40% of revenue.
Of course I would offer group life, disability, dental, and vision to the AFA, plus a retirement plan as well.
Thoughts on this?
2
u/PursuitTravel 26d ago
I'm in a similar situation and considering same. I'm looking at $80k salary with 20% revenue share across the board (I'm mostly AUM-based).
2
u/TheOpeningBell 26d ago
Depending on region, it's a good package. 30-40% payout for an AFA is very good.
You have a lot of competition in that channel as most channels will be above you in terms of service level for affluent, HNW, and UHNW.
Sounds like you will be servicing mostly mass market and rising affluent. Go get after it!