A pro who is looking to add CoreValue to their practice asked: "How does your most profitable advisor run their business?" Great question...
Advisors have a variety of different business models, so the answer varies. Management Consultants have a different use case from CPAs; Investment Bankers earn based on success fees, and Financial Advisors are looking for product sales, service revenues and fees from AUMs.
Here's what we know:
- We hear routinely that lifetime value of a middle-market consulting client is $20,000-$50,000
- A full-service strategic consultant can effectively manage 3-5 clients at a time
- Our customers use their CoreValue Unlock Deep-Dive Analysis to generate a report which advisors sell as a service for $4,500-$10,000. This analysis also shows where the advisor's proposed services tie directly to holes in the client's business. Later, they can also sell updates to the report
- Long term engagements typically earn a $3,000-$5,000/month retainer, with specialty services additional. For example, if an advisor is a CPA or fractional CFO they could earn a retainer; plus add specialty services to build financial systems such as operational reports, financial statements, or documenting tangible assets
It's helpful to use this analogy: CoreValue-powered advisors can be the
- Architect, generating the deep-dive analysis report ($4,500-$10,000)
- General Contractor, managing the engagement to increase operational strength and value ($3,000-$5,000/month)
- Trade Person, providing specialty services and earning additional service fees
Is it valuable for you to have a system that predicts the value of a given engagement, and tracks the value you create over time? CoreValue-powered advisors can propose engagements knowing that the result will be a 10X or 20X return for the business executive. Makes hiring you a no brainer, right?
If you want to learn more, shoot us a note using the form to the right.
Please comment below, we love the conversation. Or email us blog@corevalueforadvisors.com.
