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April 30, 2024
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depends on the size of the business. check out my topic history, I did a bunch of stuff on PWM a few years back.
round numbers: if you charge 1%, multiply that x AUM, then multiply that by 40-50% (typical margins)
Thanks for the reply, yes I've read all your PWM articles, great job! Do you know from what those margins depend from?
depends on the firm, how much revenue you do, how experienced you are, and so on.
example: someone at a wirehouse who has 30y experience and does $4mm in annual revenue gets higher payout (margin), say 50% than someone who'd 5y in the business doing $200k in revenue, who might get 35%.
independent firms usually have gross margins in the neighborhood of 80-95% but when you account for staff expenses and so forth, it ends up being comparable to wirehouse advisors.
thanks for the quick reply, I've heard independent firms usually offers higher margin, but didn't know about the staff expenses
Talking about margins, for someone who's 5y in the business for instance, what would be the base comp if payout is 35%?
comp = revenue x margin
that ought to answer the question, lemme know if I've misunderstood
pardon my english, maybe I didn't express myself correctly.
I was trying to understand what would be the base salary of an employee if he's bonus is equal to 35% of payout
no base salary, your compensation is a direct result of the revenue you bring in. it's 100% tied to that. you eat what you kill. capiche?
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