Help & Documentation
Understanding the scoring models, metrics, and definitions used in the Advisor Intelligence Hub.
Advisor Tiers
Advisors are segmented into four tiers based on their book of business size and revenue production.
| Tier | Distribution | Typical AUM | Revenue Baseline | Activity Level |
|---|---|---|---|---|
| Platinum | 5% | $150M+ | $130K+ | Highest engagement |
| Gold | 15% | ~$75M | ~$75K | High engagement |
| Silver | 35% | ~$35M | ~$35K | Moderate engagement |
| Bronze | 45% | ~$15M | ~$18K | Standard engagement |
Scoring Models
Two primary scores are calculated for each advisor to identify growth opportunities and retention risks.
Growth Potential Score (0-100)
Measures an advisor's potential for increased production. Higher scores indicate greater growth opportunity.
Base Score: 50 points
Adjustments:
- YoY Revenue Growth: Score adjusted by (YoY change % × 0.5)
- Revenue Momentum: +20% weight for recent 3-month trend vs prior 3 months
- Activity Level: ±10 points based on activity percentile within tier
- Training Bonus: +5 points for >20 training hours, +2 for >10 hours
- Tier Advancement: +10 for Bronze advisors in 70th+ percentile, +8 for Silver in 80th+
Churn Risk Score (0-100)
Measures the likelihood of advisor attrition or significant decline. Higher scores indicate greater risk.
Base Risk: 25 points
Risk Factors:
- Revenue Decline: +35 for <-15% YoY, +25 for <-10%, +15 for <-5%, -10 for growth
- Activity Decline: +20 if touches dropped 40%+, +10 if dropped 20%+
- Net Flow Risk: +20 for outflows >$1M, +10 for any negative flows
- Peer Ranking: +15 if below 20th percentile, +8 if below 35th
- Tenure Risk: +10 for <2 years (new), +5 for >20 years (potential retirement)
Opportunity Classifications
Definitions for the opportunity filters and categories used throughout the application.
High Potential
Growth Potential Score > 70
Advisors showing strong indicators for increased production and book growth.
High Risk
Churn Risk Score > 70 (network view) or > 50 (opportunities filter)
Advisors showing warning signs that require attention to prevent attrition.
Needing Urgent Intervention
Triggered when ANY of these conditions are met:
- YoY revenue decline greater than 20%
- YoY revenue decline >10% AND activity dropped more than 30%
- YoY revenue decline >10% AND net outflows exceed $500K
Recommended Action Categories
System-generated recommendations based on advisor performance patterns.
Urgent Intervention
Immediate attention required. Severe revenue decline or combination of declining metrics.
Tier Advancement
Advisor is performing above 80th percentile in their tier (Silver/Bronze). Ready for promotion consideration.
Sales Coaching
Proposal conversion rate below 20%. Would benefit from sales process improvement.
Activity Boost
Activity level below 30th percentile within their tier. Needs engagement support.
Training Program
Less than 5 training hours in trailing 12 months. Would benefit from professional development.
Maintain & Grow
Healthy performance with no critical issues. Focus on continued growth and engagement.
Key Metrics Explained
Definitions and calculations for metrics displayed throughout the application.
Total AUM
Assets Under Management - the total market value of all client assets managed by an advisor or across the network.
T12M Revenue
Trailing 12 Month Revenue - total revenue generated over the past 12 months (commission + advisory fees).
Revenue Yield
T12M Revenue ÷ Current AUM × 100
Measures revenue efficiency relative to assets managed.
Conversion Rate
Accounts Opened ÷ Proposals × 100
Percentage of proposals that convert to new accounts.
Net Flows
Net asset movement: deposits and transfers in (positive) minus withdrawals and transfers out (negative).
Revenue Momentum
(Recent 3M - Prior 3M) ÷ Prior 3M × 100
Short-term revenue trend indicator.
Total Touches
Client Meetings + Prospect Calls + Service Calls
Overall advisor engagement activity level.
Composite Benchmark Score
Average of tier percentiles across revenue, AUM, activity, and conversion. Provides holistic peer comparison.
Cost & Profitability Metrics
Operating cost and profitability calculations at network and regional levels.
Cost per Client
Total Operating Costs ÷ Total Clients
Average cost to service each client relationship. Lower values indicate greater operational efficiency.
Profit Margin
(Revenue - Operating Costs) ÷ Revenue × 100
Percentage of revenue retained after operating expenses. Higher margins indicate better profitability.
Net Income
Total Revenue - Total Operating Costs
Absolute profit after all operating expenses are deducted.
Operating Cost Components
Total operating costs include four main categories:
- Payout Amount: Advisor compensation (80-92% of revenue based on tier)
- Platform Costs: Technology and infrastructure ($8-15 per client)
- Compliance Costs: Regulatory and compliance (2-4% of revenue)
- Support Costs: Operations and service support
Payout Rates by Tier
Platinum: 88-92% payout
Gold: 85-89% payout
Silver: 82-86% payout
Bronze: 80-84% payout
Health Status Indicators
How network and regional health statuses are determined.
Network Health Status
Regional Health Status
Primary Drivers
The system identifies the primary factor driving each advisor's growth potential or risk status.
Growth Drivers
- •Low Activity - Activity percentile <30 in tier
- •Low Conversion - Proposal conversion rate <20%
- •AUM Decline - YoY AUM change <0
- •Needs Training - Less than 5 training hours
- •On Track - No significant growth barriers identified
Risk Factors
- •Revenue Declining Rapidly - YoY revenue <-10%
- •Activity Dropping - Recent 30-day touches <70% of prior 60-day average
- •Significant Asset Outflows - Net flows <-$500K
- •Severely Underperforming Peers - Below 20th percentile in tier
- •Normal - No significant risk factors identified
Compliance Exceptions
Tracking and scoring of regulatory and compliance issues that impact advisor risk profiles.
Exception Types
Suitability
Investment recommendations not suitable for client risk tolerance, time horizon, or objectives.
Trading Violation
Unauthorized trading, excessive trading (churning), or trading outside approved parameters.
Documentation
Missing or incomplete client files, account documentation, or supervisory records.
Supervision
Failure to properly supervise client accounts, correspondence, or trading activity.
Customer Complaint
Written complaint from client requiring formal investigation and response.
AML/KYC
Anti-money laundering or Know Your Customer verification failures.
Disclosure
Failure to properly disclose conflicts of interest, fees, or material information to clients.
Severity Levels
Compliance Risk Score (0-100)
Measures an advisor's compliance risk based on exception history over the trailing 12 months.
Base Score: 0 points (clean record)
Score Factors:
- Critical Exceptions: +40 points each
- High Exceptions: +25 points each
- Medium Exceptions: +10 points each
- Low Exceptions: +3 points each
- Open Exception Multiplier: ×1.5 for unresolved issues
Compliance Status Classifications
Compliance Review Action Category
Compliance Review
Triggered when an advisor has any critical exception in the trailing 12 months OR has more than 1 open exception. Requires immediate compliance team attention and remediation planning.