You have an hourly wage.
Not a typical $10 an hour, high school job, hourly wage. But dividing your gross revenue last year by how much you worked creates an hourly wage. For a lot of successful advisors, it looks something like this:
- $10 million FIA sales = $600,000 gross
- $10 million new AUM = $100,000 new recurring gross
- $30 million existing AUM = $300,000 recurring gross
- Assuming no other significant revenue sources; $1,000,000 gross revenue
- 45 / 52 weeks worked
- Each week worked at 45 hours
- Approximately 2000 annual hours
- $1,000,000 gross revenue / 2000 hours = $500 per hour
Your hourly wage will be unique to you. But first point is, you do have an hourly wage.
Second point is every second of every working day (yes…including right now) you’re affecting that hourly wage.
What are you doing this hour? Is it raising your hourly wage (i.e. meeting clients, closing business, working on marketing) or is it lowering your hourly wage (ordering supplies, filling out paperwork, putting out fires)?!?
With the tasks lowering your hourly wage, you have a choice.
- Outsource them to existing staff
- Hire new staff or
- Quit them altogether (this can be more attractive the more you think about it)
I guess there’s a fourth option – just keep doing the same thing. But if you choose that, don’t expect a different result. And don’t get frustrated at anyone else when your peer’s business goes up 30% while you’re looking for new highlighters at Office Max.