Investment Advice Revenue Benchmarks
The average investment advice business in the United States generates $2.6M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 22,339 investment advice businesses in the U.S., employing 108,388 workers with an average profit margin of 15.0%.
What Does a Investment Advice Business Actually Do?
Financial planners and advisors providing planning services — retirement, tax, estate, investment strategy. Compensation may be fee-only, fee-based, or commission.
Who buys: Individuals and families planning retirement, tax strategy, or major financial decisions.
How this is different: Different from portfolio management — advice can be given without managing assets directly.
Average Revenue
$2.6M
per year
Profit Margin
15.0%
industry average
Revenue / Employee
$528K
per year
Total Businesses
22,339
in the US
Est. Owner Income
$384K
small business avg
Labor Cost
30.0%
of revenue
Avg Employee Wage
N/A
per year (BLS)
Market Saturation
6.7
firms per 100K people
How Much Do Investment Advice Charge?
Investment advisors charge AUM percentage, hourly, flat fee, or a mix.
| Service | Typical range |
|---|---|
AUM fee | 0.5–1.5%/year |
Hourly financial planning | $150–500/hour |
Flat-fee comprehensive plan | $1,500–7,500 one-time |
Ongoing planning retainer | $3,000–15,000/year |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete investment advice business plan
A 12-section data-backed business plan for a investment advice business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the investment advice industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Claims & interest paid | $8 | $211K | Insurance claim payouts, interest paid to depositors, or securities transaction costs. |
Wages & benefits | $30 | $768K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $11 | $282K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $8 | $211K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $27 | $704K | Compliance, technology, professional liability, licensing fees. |
Net profit | $15 | $384K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
10.96%
openings/year
Closure Rate
8%
closings/year
Net Job Growth
+4.95%
annual
Businesses Closed
4,532
in 2023
Firm Count Trend
Should You Start a Investment Advice Business?
Startup Cost
$50K – $250K
Break-Even
5 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a investment advice business do?
- Financial planners and advisors providing planning services — retirement, tax, estate, investment strategy. Compensation may be fee-only, fee-based, or commission. Individuals and families planning retirement, tax strategy, or major financial decisions.
- How much do investment advice charge?
- Investment advisors charge AUM percentage, hourly, flat fee, or a mix. See the pricing table above for typical rates by service type.
- How much does the average investment advice make per year?
- The average investment advice business generates $2.6M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $384K per year at a 15.0% profit margin.
- How many investment advice businesses are there in the US?
- There are 22,339 investment advice businesses operating in the United States, employing a total of 108,388 workers.
- How much does it cost to start a investment advice business?
- Startup costs for a investment advice business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
Industry Growth & Survival
The investment advice industry is actively growing — adding jobs at a net rate of 5.0% per year. New establishments are opening faster than existing ones close (11.0% entry vs 8.0% exit), indicating healthy demand.
Approximately 66% of investment advice businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 4,532 firms in this industry closed permanently.
Industry Trend (2000–2023)
The investment advice industry has grown 111% since 2000 (from 25,041 to 52,814 firms).
See full historical statistics →Compare Investment Advice revenue with other industries: