Fee revenue tends to make U.S. financial advisors and life insurance agents feel as if they're getting somewhere.
Researchers at the Center for Women in Financial Services, an arm of the American College of Financial Services, gathered data on the mood-enhancing properties of fee revenue when they conducted a survey of about 800 U.S. advisors and agents.
The survey team asked the participants whether they felt as if they were successful, according to their own definition of success. The researchers then looked at variables that correlated with feelings of success. One of the variables the researchers analyzed was revenue model. Another was gender.
Here's how sense-of-success rates looked, by revenue model, for all participants:
- Mainly fees: 84%
- Fee-only: 81%
- Mainly commissions: 66%
- Salary plus incentive: 77%
- Commission-only: 58%
Here's what the sense-of-success rates looked for women who participated in the survey:
- Mainly fees: 96%
- Fee-only: 87%
- Mainly commissions: 83%
- Salary plus incentive: 77%
- Commission-only: 55%
What It Means
Money talks. For many financial advisors and life insurance agents, fees sing.
The Survey
The Center for Women in Financial Services fielded the survey in late 2021.
The center has published a summary that talks about how many different factors, including firm size, firm business model and professional designations, correlate with participants' sense of success.
The analysis here is provided on a separate slice of survey results that the center shared with ThinkAdvisor on Thursday.
