At a glance
- A firm growing net new assets 5% to 10% a year is doing well, he said, against an industry average of 2% to 3%.
- At a $1 billion firm, the difference is about $20 million of new assets a year against $100 million or more.
- Schwab's Julian Lopez, who moderated, told the audience to count only assets from new households when measuring organic growth.
Client referrals are the growth lever most firms underuse, Focus Financial Partners chairman Michael Nathanson told Schwab's IMPACT conference in Boston at the end of October, Financial Advisor Magazine reported.
A firm growing net new assets 5% to 10% a year is doing well, he said, against an industry average of 2% to 3%. Routine referral requests could lift growth to 10% to 20% or more.
At a $1 billion firm, the difference is about $20 million of new assets a year against $100 million or more.
Schwab's Julian Lopez, who moderated, told the audience to count only assets from new households when measuring organic growth. Exclude market performance, dividends, interest and new money from existing households. The result gives a principal a number to set against Nathanson's benchmarks.
Reported by the RIA desk from Financial Advisor Magazine. Published . Corrections