What is Reoccurring Revenue in the context of a Registered Investment Advisor (“RIA”)?

Definition: This is revenue that is reoccurring, but not restricted solely to advisory fee revenue. An example is 12b-1 trail commissions, as they “reoccur”, but are technically commission revenue and not fee revenue.

When used in an RIA context: “90% of the financial advisor’s practice entails reoccurring revenue.”

See also: Episode 108