What separates million-dollar advisory practices from the rest?
It’s not working 80-hour weeks or decades of experience—it’s strategic decision-making.
As client expectations rise, regulatory requirements expand, and competition intensifies, financial advisors face mounting pressure to deliver exceptional value while efficiently managing their most limited resource: time. The 2024 Kitces study on advisor productivity reveals that teams generating $1.2+ million in annual revenue have mastered specific operational strategies that any practice can implement.
Drawing from data across 600+ advisors, we’ve identified five critical takeaways that allow top-performing teams to dramatically increase productivity without sacrificing client satisfaction or work-life balance.
1. Team structure is the key driver of productivity
Leveraging support staff effectively rather than adding more lead advisors is the biggest factor in productivity and revenue growth. The 1+2 model (one lead advisor supported by two staff members) generated the highest revenue per advisor at $1.237 million. This structure provides necessary support and allows the lead advisor to maximize time with clients and prospects. Solo advisors without support cap revenue at $350,000 versus $900,000 for supported solo advisors.
This indicates that, if the goal is maximizing productivity, firms should maximize a lead advisor’s capacity within a 1+2 structure before forming a new, independent team with a separate lead advisor. This prevents overlapping client responsibilities and maintains operational efficiency.
When it comes to larger teams, the study found that teams exceeding three-to-four members experience diminishing returns due to increased management overhead. However, multi-advisor teams (e.g., 2+2 or 2+3) may still be beneficial in certain situations, such as training new advisors, freeing up senior advisors for business development, or offering more schedule flexibility. That said, these setups come with productivity trade-offs, so firms should carefully assess whether the benefits align with their strategic goals.
Pro tip: Prioritize hiring support staff as well as advisors. One without the other is inherently unproductive.
2. The impact of client type on productivity
Productivity isn’t just about working more—it’s about focusing on the right clients.
Teams command higher fees by serving clients with greater financial complexity and the willingness to pay for specialized expertise. The study found productivity remains relatively modest until clients reach $2 million in net worth, at which point it sharply increases.
Remember that your time is money.
The most productive teams dedicate more hours to their clients—especially on an ongoing basis. To move upmarket successfully, teams must build planning-centric practices led by CFP professionals who develop comprehensive plans tailored to high-value clients.
In fact, as the results show, teams earning less than $7,500 in revenue per client dedicate more hours in year one than on an ongoing basis. By contrast, teams earning more than $7,500 of revenue per client dedicate more time on an ongoing basis than during the first-year planning process. These affluent relationships require more ongoing attention, making efficient team structure, as discussed above, crucial for meeting elevated service demands.
Additionally, teams need to strategically reduce their client roster. Higher-net-worth practices serving $3 million-plus clients typically maintain fewer than 50 households per advisor, compared to the 100+ clients managed by advisors serving $500,000 clients. Without pruning legacy clients, firms inevitably hit capacity constraints that prevent them from serving more profitable relationships.
Pro tip: Firms should optimize client segmentation to ensure that time spent per client aligns with revenue potential. Use client tiers to structure service offerings and prioritize high-value relationships.
3. Time allocation differentiates high and low performers
In 2024, the typical advisor worked 41.0 hours per week, roughly identical to the typical American worker (40.5 hours). Senior advisors, who represent the largest group, spend just 19% of this time (about eight hours weekly) meeting with clients.
However, senior advisors on the most productive teams (generating over $1 million in revenue per advisor) spend significantly more time (24%) in client meetings compared to their less productive peers. This translates to nearly three additional client-facing hours weekly, typically gained by reducing administrative tasks, investment management, planning preparation, and marketing activities.
Notably, even the most productive advisors allocate only about one-third of their time to front-office activities (client meetings and business development). What matters most for increasing productivity isn’t working longer hours, but working smarter. This primarily means optimizing the amount of time advisors spend in direct interaction with clients.
Pro tip: In our own teams at Carson, we ensure tasks are being completed per the team configuration. This means trying to limit the administrative tasks of the lead advisor, allowing them to meet with clients and prospects.
4. Strategic pricing can unlock productivity potential
Many advisory firms suffer from a fundamental misalignment between their fees and the value they deliver.
The key to productivity often isn’t adopting new technology to deliver underpriced services more efficiently—it’s addressing the underpricing itself.
Correcting fee structures provides an immediate productivity and profitability boost without requiring changes to team composition or service model. Similarly, “overservicing” clients leads to unsustainably low revenue capacity, as teams spend valuable hours on undercompensated or entirely uncompensated services.
Research indicates that overservicing typically manifests as holding more than two client meetings annually, exceeding 10 personalized touch points per year, or including non-essential services that clients don’t particularly value (such as annual P&C insurance reviews).
Firms looking to right-size their fee structures should focus on establishing minimum fees that apply regardless of AUM, ensuring sustainable revenue per relationship. Additionally, firms primarily relying on AUM fees should consider implementing upfront planning fees for initial engagements and ongoing planning fees to better compensate for the depth of routine planning services provided to clients.
Pro tip: Remember that your time is money. Don’t be reluctant to charge what your services are worth, especially when market data suggests clients are willing to pay for your expertise. Additionally, be more intentional about scheduling—emphasis on striving to be proactive rather than reactive, which is exactly what things like our service calendar aims to solve.
5. The relationship between career progression and revenue growth
The study found that career path significantly impacts advisor productivity. Senior advisors with prior industry experience generate nearly double the revenue of those starting from scratch in their first 15 years ($400,000 versus $225,833). While this gap narrows after 15 years, those following a progressive career track still maintain a 10% productivity advantage.
Most importantly, longevity in the senior advisor role proves more valuable than diverse industry experience—those with 15+ years as senior advisor generate $300,000–$400,000 more revenue regardless of previous roles.
In terms of certifications, the study found that the CFP certification correlates with $125,000 higher revenue per advisor, though additional designations show minimal impact.
Pro tip: Advisors and early professionals in the field should focus on gaining practical experience rather than accumulating post-CFP designations. At Carson Wealth we also work to develop clear career progression paths for our team members to help with their progression.
The productivity of advisory teams is shaped by numerous factors, including team composition, technical expertise, client acquisition strategies, and pricing confidence. In essence, the most productive teams create structures and systems that allow their advisors to do what they do best: advise clients.
The most successful practices recognize that advisor burnout—working long hours yet still unable to adequately serve clients—undermines productivity at its core.
Start by conducting an honest assessment of your practice, then implement the single strategy that addresses your most significant gap—whether that’s hiring support staff, refining your client selection, restructuring your schedule, adjusting your pricing, or focusing on deepening your expertise rather than collecting certifications.