The question of forming partnerships with one or more financial advisors is coming up more and more often these days. Choosing the right partner is an important decision, but before you do that, you must first consider the type of business structure you want. Here are three basic models:
> Sole practitioner. In this structure, you are your own boss. You are the sole source of business, you receive all revenue and you pay all expenses.
> Silo partnership. You have one or more partners, but each partner operates independently. You each have your own book of business and receive all the revenue you generate but share some expenses with your partners.
> Professional ensemble. This type of partnership is the most difficult to assemble but, ultimately, the most efficient — on paper, at least. It consists of two or more professionals with complementary skills and knowledge. As a member of such a partnership, you would share all clients, revenue and expenses.
Business models
Silo partnerships vs professional ensembles
- By: George Hartman
- October 29, 2010 November 5, 2019
- 14:19