How visibility into revenue per client, policy and segment helps make financial advice scalable.
Many firms are asking the same question today: which clients do we want to grow with, where is the real profitability, and which files deserve more attention? It sounds like a straightforward exercise, but in practice the detail needed to steer effectively is often missing.
Many advisors know their client portfolio well. They know which clients feel important, which files require more work and where opportunities lie. Yet in many firms, this still relies too heavily on a combination of experience, gut feeling and manual tracking.
Once you truly want to understand which clients contribute to your firm's profitability, you need more detail. A general overview of the portfolio is no longer enough. You want visibility into revenue per client, per policy and per type of file.
What we frequently see in practice is that firms export data from different systems and then use Power BI or other reporting tools to make sense of it. This can yield valuable insights, but it requires time, structure and manual effort — making the exercise heavier than it needs to be.
Yet the real question for a firm is usually much simpler: which clients deserve extra attention, which segments require a different approach, and where is the profitability today that guides further growth?
At myFaro, we want to keep it simple. Profitability insight should be available in the system the advisor works in every day. That is why we build not just dashboards, but also the ability to pull targeted lists, define segments and link concrete actions to them.
Insight only becomes valuable when it is directly usable in the day-to-day operations of the firm.
Based on this conviction, we have developed a new functionality within myFaro that categorises all possible revenue streams across different levels — both at policy level and at management level. This makes profitability far more visible and actionable in the daily operations of the firm.
It is not about a single figure, but about the sum of different components that together determine the revenue picture of a policy or client. This allows a firm to much better understand where the return comes from and how it develops based on the most recent quarterly values.
For branch 23, the management fee at policy level plays an important role. This is the fee the broker earns on the contract and generates recurring revenue. A fee at fund level may also apply, depending on the type of policy and the chosen insurer.
myFaro accounts for this. A firm can define an average fund-level fee per insurer and per product type. For example, an average fee at Allianz may differ from that at Vitis Life. Once a specific product type with a specific insurer is selected in myFaro, the system automatically applies those configured averages in the profitability calculation at client and policy level.
The same logic applies to branch 21. There, the combination of the potential broker fee on the policy and the average fee per product type at that specific insurer together determine the profitability for the firm.
Recurring revenue in many cases consists of the management fee at policy level, supplemented by a potential fund-level fee depending on the insurer and product type.
In addition to recurring revenue, entry fees can also contribute to a client's return for the firm. To truly steer effectively, it is therefore important to look beyond the recurring fee alone.
For more complex files, myFaro also makes it possible to clearly break down the different revenue streams. Think for example of tripartite structures and dedicated funds, where you want to distinguish at client or policy level between broker fees, policy commissions and any product-level fees.
That level of detail is precisely what makes the difference between a rough estimate and genuinely actionable profitability insight.
Anyone who wants to steer on profitability needs more than one total amount. You want to understand where the revenue comes from.
For us, this goes far beyond reporting alone. Profitability insight helps a firm to better segment its clients and then link concrete actions to those segments.
This can be commercial — for example based on growth potential or additional opportunities. It can also relate to service, such as the frequency of visits, reporting or follow-up. Once a firm clearly sees which clients, segments or policies are economically most relevant, it becomes much easier to direct time and attention in a focused way.
Segmentation based on revenue helps to better align commercial and service actions with the actual value of a client relationship.
It is important to note that for many policies, this data still needs to be added manually today. Revenue data at fund or product level is generally not provided in a standard or sufficiently usable format by insurers.
That is precisely why it matters that a firm can properly configure this logic per insurer and per product type. Once that framework is in place, myFaro takes over a significant part of the thinking and calculation. The advisor no longer needs to be concerned with this in day-to-day operations.
We believe financial advice only becomes truly scalable when this insight is easily available — directly in the software itself, without extra detours, without separate exports and without having to set up a new analysis each time.
That is why we continue to build dashboards in myFaro that we believe are genuinely relevant for making financial advice scalable. Not dashboards for the sake of dashboards, but insights that help make better decisions, spot opportunities faster and do more business with less time and less effort.
More business in less time, with less worry. That is the promise we are building towards.
Anyone who wants to grow with focus needs more than a good feeling about their portfolio. You want to know which clients truly contribute to your firm's profitability, which segments deserve extra attention and where the opportunities are that make the difference.
That is exactly what we focus on with myFaro. Revenue insight, visible in the system itself, so that firms can segment more easily, act more deliberately and make financial advice scalable.
Discover how to quickly gain visibility into revenue, segment clients more effectively and link actions that support growth and scalability.