According to an industry-wide survey, wealth-management practices serve 142 clients per producing or revenue-generating advisor. Despite the survey's findings, no industry-wide consensus has been reached as to the ideal size of an advisor's book of business.
Cerulli Associates has reported that almost 64 percent of 2,000 practice management professionals noted an excessive number of non-ideal clients holding back their productivity. And while wirehouse managers state that technology allows advisory teams to grow client rosters, managers still hesitate to give an ideal number for client rosters.
According to AdvisorHub, an ideal roster size hinges on the segment where the advisor operates. For example, the demands of ultra-wealthy clients tend to limit an advisor's numbers, according to Andy Sieg, president of Merrill Lynch Wealth Management. Advisors often debate the correct average number of clients for them. Wirehouse executives find it difficult to pinpoint a number because of the differences across the client continuum, leaving them to abandon the one-size-fits-all model.
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