The strength of the bond between client segmentation and profitability has been highlighted by figures suggesting just a handful of clients can generate more than a third of a large firm's annual revenue.
Figures seen by Professional Adviser, IFAonline's print title, show the 10 biggest earners for an adviser at London-based IFA Bradbury Hamilton raked in almost £200,000, or 36%, of his total £560,000 revenue for 2009. From a 240-strong client bank, the top 20 earners generated £280,000 for the adviser while the top 50 produced £440,000. In total, 94% of the IFA's 2009 revenue was generated by just over 40% of the clients. The Pareto Principle - an observation most things in life are not distributed evenly - originally referred to the view 80% of Italy's wealth belonged to just 20%...
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