If you want to earn a Million Dollars per year, you have to stop doing things that don’t pay as much as your highest paying activities. Let me walk you through what I’ve surmised is the ‘time-value per hour’ of a million dollar producer:
-8 weeks vacation
-1 week holiday (no matter what anyone tells you, my experiences are that no one does business the last week of the year)
43 working weeks each year
x 40 hours/week
/ 1720 hours
$581.40 per hour
The Most Important Key to Long Term Success:
Condition yourself to stop All Activities that can be done for LESS than $581 Per Hour
The only business activities we should be doing are:
• Working With Clients and Prospective Clients
• Cashing Checks (sounds a bit blunt – but best not to send your employees to do this for you)
To determine what your time is worth in your practice, just plug into the following formula:
How much time does it take for you to get a new client?
How much revenue do you generate from each new client?
Example – 6 one hour appointment + 1 hour of planning / $7,500 revenue = $1,072 per hour
Admittedly, this is not rocket science. On the other hand, why do so many advisors answer their own phone, lick their own envelopes, make copies, negotiate with vendors, etc.
Stop the insanity. Dust off the financial calculator and determine your worth. If you’re average client has $500,000 in assets and you charge 1.25% to manage their assets, you only need 133 clients. So get there, it’s not hard. If you need help, just check out our on-line store for the tools that I use in my own practice to do exactly as I say. If you’re goals are different, just adjust the math.
To Earning What Your Worth,