% Recurring Revenue

Over the last decade, there has been a shift away from non-recurring (or commission) revenue in favor of fee-based, recurring revenue. Recurring revenue is considered more valuable because it’s more reliable.

Ideally, a Practice’s recurring revenue should be 80% or more. Additionally, a diversified revenue stream is highly attractive. Advisors that charge for financial planning enjoy a revenue stream that isn’t tied to the market – and that has a huge, positive impact on valuation. Start shifting your business model away from non-recurring revenue and focus on created fee-based recurring revenue.