What is Annual Net Revenue?

For broker dealer affiliated advisors, net revenue is the revenue you receive (as compensation) after any broker dealer fees.

Enter the amount that you receive as compensation (via 1099), NOT the total GDC that the book of business yields (keep reading for unique circumstances).

You can use GDC *IF* you capture the broker-dealer “haircut” and any fees as an expense on the “expenses” tab. This is particularly important to get a more accurate valuation if you are considering forming an RIA, changing BDs where your payout will be vastly different, or contemplating a transaction with someone whose payout will differ from yours.

For example, if your GDC is $1,000,000 and your broker dealer takes a 10% “haircut”, enter $900,000 as your net revenue. Any additional expenses, such as an override to your OSJ should be captured as “other expenses” on the Expenses tab.