Burns-Anderson has launched an adviser profit calculator, designed to determine advisers’ contribution to firm’s income and overall profitability.
B-A says the idea was prompted by one of its members, looking for a tool to reckon the salary and bonuses he should offer a prospective recruit.
Head of marketing Adrian Lewis says first-rate advisers deserve premium rates but it is often difficult to determine whether these are best value.
He says there are often hidden costs to the firm in employing an adviser, which, if not accounted for, can easily turn a good income into an unhealthy loss.
The calculator can be applied to both employed and self-employed status and will help determine the minimum income to validate the employment.
Lewis says: “Amongst other things, the calculator steers the user through typical expenses, including contribution to costs of the administrator or para-planner, regulatory fees, costs of software and supervision.
“One of the main benefits to firms is that it provides actual figures with which to negotiate a remuneration package. We have made a bespoke version for our members and are offering a generic version to firms who visit our website. The deal is that in exchange for their contact details we will provide a downloadable version. We guarantee that a salesperson will call.”