An Italian sociologist and economist, Vilfredo Pareto, developed principles that have been ubiquitously applied to diverse aspects of business and human behavior.
Effective marketing is a critical component to every financial planning practice.
This is true no matter the form of compensation, the size of the firm or the age of the practitioner. The cost of living for the financial planner and the planner's staff inexorably increases, certainly at the rate of inflation. However, some planners, whose income has been reduced while getting started, require a larger increase factor in order to catch up to the standard of living that is justified. The costs of goods and services to operate the practice also increase, and experience shows this exceeds the rate of inflation. As a financial advisor matures, he or she wants more effective tools and service capacities, not just a contribution of the prior capacity.