Showing signs of multiple revenue streams in your financial advisor business plan presents a more sound investment to a safer risk along with potential investors to prospective lenders. Any company which depends totally on the task of the creator is, by its very nature, high risk. There is usually no succession strategy in this company if this creator should become ill or unable to work.


Advisor Sales Streams


Fees can be charged by advisers in a number of ways. The mode that most clients would prefer is for fees to be performance-based, when holdings and their investments grow in worth, paying the financial advisor only. As holdings will almost necessarily decrease in value in a market downturn, obviously, few financial advisors would consent to such a fee structure. A second best model for clients, and better model for advisers, would be to charge a fee which is a portion of assets under management. The advisor is rewarded using an increased fee if assets rise in value. The sales to the advisor would decrease, although not become zero, in case the value would drop. This represents that, even in poor marketplace times, an adviser could be doing better for a client than he would be doing without the help.


This leaves it up to the client to decide if they got advice given and the expected value out of the conversations, and is preferable for the advisor. Offering an hourly rate together with an asset -based fee enlarges the marketplace of who you can work with as an advisor.


Other Revenue Streams


Sales streams for the company could be from a number of other sources. They may be from the selling of products you've got created, including reports, guides, worksheets, and software to assist clients, from the proceeds from seminars or webinars to multiple clients and prospective clients, or from commissions on the selling of insurance or another financial products.


Notice that with each additional revenue flow which is added, there's potential for a conflict of interest. For example, in case you seek to offer a certain report, you could have the incentive to withhold the information inside from advisory sessions with clients you work with. If you do so, there's the look that it could be in your interest. You've got to take care understand the problems in adding revenue streams that are potentially inconsistent, and to uphold your reputation as a trusted advisor at any cost.