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What One Hire Is Worth

Our average advisor fee, priced against what a producing advisor adds to your firm. Adjust the numbers below to your own firm - not ours.

Firms writing FIA business and growing AUM - most of The Well's placements.

Assumptions
25 days
to pay back the placement fee, once ramped
Annual Revenue Added
$900K
Annual Cost (Comp + Overhead)
$458K
Annual Profit to the Firm
$443K
Enterprise Value Added
$4.4M
Revenue → Comp → Overhead → Profit
Comp
Overhead
Profit
Advisor comp Marketing & overhead Profit to the firm
148x
$4.4M in added enterprise value against $30K in placement fees

Read before you send this anywhere: these are planning estimates built from industry benchmarks, not a guarantee of any specific advisor's production, retention, or firm valuation.

Figures assume the advisor is fully ramped to the production level entered above - these are steady-state, not year-one actual, numbers.

FIA override assumes a 6-10% street-level commission on new premium. AUM revenue assumes a standard ~1% annual advisory fee. Enterprise value uses a 5x-20x multiple on the annual profit this hire generates - an EBITDA-style valuation approach, consistent with 2025-2026 RIA M&A data (roughly 4-7x for smaller practices, 10-14x for scaled platforms, higher still for UHNW-focused firms).

A pure-AUM hire often runs breakeven to a modest loss on comp alone in year one - the return on that hire shows up as enterprise value and compounding recurring revenue, not first-year profit. Adjust every input above to your own firm's comp grid, override, and overhead before using this in a real conversation.

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