Stop Chasing the Highest Payout: Model What You Keep
Don’t chase the biggest payout. Build a one‑page model that shows what you actually keep after fees, tickets, service and time costs.
“It’s not what you make—it’s what you keep.”
I say that a lot in recruiting conversations because the headline payout can be blinding. Money is consequential, and I don’t fault advisors for prioritizing it. The problem is that there are lots of advisors who prioritize the upfront money at the expense of their 10+ year payout. You need to understand what you’re trading. The long-term decisions get made in the footnotes: platform fees, ticket charges, and the strings attached to any upfront note.
Let's take a look at a few of the guiding principles of how to accurately model what matters most to you between upfront dollars and long-term payout.
What the model must include
1) Payout vs. platform fees. Two firms can advertise the same payout and deliver very different nets once platform fees are layered in. (And some “service” line items live outside the payout grid.) You need every built-in cost in your upfront decision-making process.
2) Ticket charges & trading habits. If your practice uses mutual funds or non‑NTF funds often, ticket economics matter. On some platforms you accept a lower payout in exchange for absorbed tickets; on others, you get a higher payout but absorb the costs. The right answer depends on your actual trading mix.
3) Upfront note vs. ongoing economics. The big check is tempting, especially after a life event or when you’re eyeing an acquisition, but don’t mortgage five to seven years of superior economics for a short‑term win. Build the trade‑off into your model. Only prioritize upfront money if there is a specific reinvestment you want. Otherwise, I meet lots of advisors who wish they had done the opposite 5-10 years into their platform.
4) Time and trust costs. Service and technology gaps convert directly into hours and stress. Reliability affects retention and production. This is felt exponentially by your team, who spend hours on hold for support tickets and answer client questions about technology problems.
A simple way to compare offers (30–45 minutes)
Create a one‑page sheet with these items:
Columns: Offer A / Offer B / Current.
Rows:
payout %
platform fee %
average ticket cost per account per year
expected note amount and term
required minimums/locks
transition support you’d actually us
rough service quality (write a sentence, not a number)
your weekly admin hours.
Add an “Estimated Annual Net” row and a short “What could go wrong?” note under each column.
W‑2 vs. independent realities
If you’re W‑2, it’s easy to get sold the idea of “value” at 50%+ haircuts once you start producing $1.5M+. That can be fine if you want the turnkey lifestyle, but make sure you’re actually getting that value. Many advisors pay a premium for a soft landing, then recalibrate once the note burns down and they’ve built confidence in the independent toolset.
Action: run the numbers you’ll live with
I can’t emphasize this enough. Price the model as you practice today, not as you hope to practice. Both matter, but I meet advisors who prioritize the long term vision and it stunts their growth.
Assign a dollar value to time saved (service/tech). Note how the model changes if a platform reduces your admin hours by even 5–8 weekly.
Treat the big check like debt: what do you pay back (explicitly or implicitly) and when are you free again?
Here to help you model your choices
You don’t need a perfect model, just an accurate one. The only number that matters is what you keep, and whether the way you earn it feels sustainable three to five years from now.
If you need help comparing platforms and recruiting offers, this is what I do every day for advisors. I have the tools, resources, and connections to help accelerate your decision-making and eliminate hassle and stress.
Click here if you want to schedule a confidential, complimentary call.