Outsourcing – Ways to Cut Overhead Expenses
by Jonathan Henschen, CFS and featured in Producers Web June, 2006: It’s not uncommon for me to run into advisors who are paying up to five salaried assistants, and whose production is down around $500,000 in Gross Dealer Concession--their total net revenues from commission product sales and fee-based income. That’s a lot of overhead eroding what these advisors are actually netting at the end of the year! Even though our industry thinks almost exclusively in terms of “GDC,” an advisor’s “net revenues” are the true benchmarks of success. That means, the lower the cost of doing business, the more profitable the advisor! To prove my point, I recently began making highly profitable use of the outsourcing resources described here. As a result, my modest little experiment has reduced my business overhead. Big Time! See...
