Financial Advisor

How Profitable Is A Financial Advisor? (Updated for 2024)

Updated: July 7th, 2024

How Profitable Is A Financial Advisor? (Updated for 2024)

So you want to start a financial advisor?

And the first question that came to your mind was, “well, are financial advisors actually profitable?

Especially considering:

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a financial advisor.

Let’s dive in!

Is a financial advisor profitable?

Yes, a financial advisor is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $3.15M per year with an estimated gross margin of 13%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your financial advisor.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your financial advisor is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a financial advisor worth it?

If you’re wondering if a financial advisor is worth it, the answer is a big YES. With financial advisors, you have the potential to earn $3.15M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a financial advisor to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful financial advisors case studies.

Examples Of Profitable Financial Advisors

Here are a few examples of profitable financial advisors, and a few more details about them:

1. The Generalist ($300K/year)

Mario got the idea to start The Generalist organically through two main explorations.

First, his lifelong passion for writing nurtured through school and fiction writing classes, became a consistent hobby. Second, his career in technology and venture firms led to combining his interests.

Encouraged by his friends to write about his work, he began The Generalist as a weekend project. It gradually absorbed his energy and excitement, leading him to pursue writing as a viable career through newsletters.

Is it profitable? Yes
How much money it makes: $300K/year

How Mario Gabriele Built The Generalist to $300K ARR

The Generalist newsletter, founded by Mario Gabriele, showcases impressive growth and monetization strategies, bringing in an average of $25K per month and $300K per year since its inception in 2019.

Read by 197 founders

2. Financial Samurai ($360K/year)

Sam started a personal finance website during the 2009 economic crisis. An advertiser offered him $1,000 to advertise on his blog, which he saw as an opportunity to focus on his financial advisory blog.

Is it profitable? Yes
How much money it makes: $360K/year

I Left My 13 Year Career To Start A $120K/Year Financial Advice Blog

Financial Samurai founder, Sam Dogen, shares how he turned his cathartic writing hobby into a personal finance site that generates over $10K a month in passive advertising revenue and has over 1 million organic visitors a month, as well as his tips on starting and growing a business, and diversifying clientele.

Read by 5,465 founders

3. Third Eye Advisors ($120K/year)

Arthur Robertson, the founder of Third Eye Advisors, was inspired to start his investment advisory firm after realizing the lack of financial education and literacy among millennials and Gen X. Coming from a background in finance and with a passion for managing and investing money, he saw the opportunity to provide customized financial planning and investment solutions to millennial business owners in the tech and cannabis industries. Within three months of starting the firm, Robertson was able to recoup his initial start-up costs of $10,000-$15,000 from serving clients.

Is it profitable? Yes
How much money it makes: $120K/year
How much did it cost to start: $13K

How I Started A $10K/Month Financial Planning And Investment Management Company

Third Eye Advisors is a boutique Registered Investment Advisor (RIA) providing customized financial planning and investment solutions to millennial business owners, founded by Arthur Robertson with start-up costs of approximately $10,000 to $15,000, recouping those costs within three months of serving clients, while the team is currently expanding and looking for Financial Advisors to come on board in Q4 2020.

Read by 6,596 founders

Learn more about starting a financial advisor:

Where to start?

-> How to start a financial advisor?
-> How much does it cost to start a financial advisor?
-> Pros and cons of a financial advisor

Need inspiration?

-> Other financial advisor success stories
-> Marketing ideas for a financial advisor
-> Financial advisor slogans
-> Financial advisor names
-> Financial advisor Instagram bios

Other resources

-> Financial advisor tips

How much can you make with a financial advisor?

With a financial advisor, you can make an average of $3.15M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $10. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a financial advisor make a week?

Based on our data, average weekly revenue for a financial advisor ranges around $60K. As such, you could see monthly revenues of $240K.

To know if your financial advisor achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your financial advisor.

How much do financial advisors owners make?

The income of a financial advisor owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established financial advisor is about $60K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a financial advisor owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Financial Advisor Profit Margins

Generally speaking, a financial advisor can expect profit margin of around 13%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a financial advisor, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, financial advisor owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, financial advisor owners can ensure long-term sustainability and profitability for their business.

Financial advisor owner salary

The salary of a financial advisor owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established financial advisor, in a prime position, might see an average weekly salary around the ballpark of $7.8K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, a financial advisor is quite promising if you plan on starting such. With a market size of $, you can enjoy a potential revenue of around $3.15M per year with a gross margin of 13%.

Considering this information, you can enjoy a return of investment within 12 months, especially if you have a monthly profit of $31.2K. Overall, the success of your financial advisor also depends on your effort and knowledge about it. If you persevere with these things, you can ensure that this financial advisor is profitable.

Make sure you have a proper financial advisor plan and know how to get clients for your financial advisor.