Transparency is important. So here's an explanation of how I am compensated for my services.

Similar to the traditional "recruiting" industry, I am paid if/when an advisor I refer to a custodian, RIA platform provider and/or existing RIA, chooses to utilize that platform.  The platforms themselves pay me a referral fee.

Equally important is to be aware of what I am not paid a fee for.  I do not get paid (by design) to refer you to a particular tech vendor.  Or paid to refer you to a compliance firm.  Or paid to refer you to perhaps a lending source.  etc.

This is an important distinction.  Why?  The only thing I am paid for is referrals to a vendor (custodian / platform provider / RIA), that you will always need to utilize.  If you have assets under management, you will hence need a platform for those assets.  It is not a matter of if you will need such a vendor, just which one to use.  Hence, as you're going to need to use this specific vendor type anyways, there is no conflict with me explaining how and why to use such a vendor.

This scenario differs from the other types of vendors I note above (e.g. tech vendors).  Depending on your circumstances, you might very well not need some of those additional vendors for your practice.  Hence, if I was paid by them, there could be an inherent bias associated with me suggesting them or not.  Again though, I am only paid by the particular vendor type that you will always need to use regardless.

Lastly, does this referral arrangement disadvantage you with a custodian/platform that I might recommend you consider?  No, not at all.  (It actually helps you - see question 7.)  Every custodian / platform provider budgets for this exact sort of expenditure as part of their business development efforts.  They only pay such fees, if/when new business comes their way.  And how I would I know all this?  I literally ran the budget for a custodian for over 5 years.  So I know firsthand exactly how it works.

As I note frequently on this website, I provide you with unbiased and unfiltered advice about all of the steps involved in transitioning to the RIA model.  I trust that you will find my transparency shown here is yet another demonstration of my commitment to that approach.

Still have questions though?  I would be happy to answer them.

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FREE WHITEPAPER:  “Steps To Take Now If You Anticipate Transitioning Your Practice To The RIA Model Anytime Within The Next 10 Years.”