In this episode, Ray Sclafani discusses the critical importance of having a well-defined compensation philosophy in financial advisory firms. He highlights the common pitfalls of compensation planning without a clear strategy and emphasizes the need for a structured approach that aligns pay with performance, culture, and profitability. The conversation covers the essential building blocks of a strong compensation philosophy, how to implement it effectively, and the impact it has on employee engagement and trust in leadership.

Key Takeaways

1. More than half the industry lacks a clear compensation strategy.
2. Clear pay philosophies lead to lower turnover rates.
3. Transparency in compensation processes fosters trust among employees.
4. Regularly review and adapt your compensation philosophy to align with business changes.
5. Involve team members in defining key performance metrics.
6. A strong compensation philosophy reflects the firm's values and leadership style.

For more information click here to visit the Best in the Business Blog.

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To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode, Ray Sclafani explores how advisory firm leaders can move from solo leadership to shared, high-performing teams. Using the metaphor of a musical ensemble, Ray shares lessons from his high school band and real-world coaching with billion-dollar firms to show how clarity, trust, and accountability create lasting success. Learn how to define team roles, foster trust, and lead through leadership transitions while keeping your firm’s performance in harmony.

Key Takeaways 

• Leadership is most effective when responsibility is shared across the team.
• Clear roles help every team member understand how they contribute to the bigger picture.
• Trust among team members strengthens performance and accountability.
• Transitions in leadership are opportunities to evolve and sustain firm value.
• Every team member’s contribution is essential, like instruments in a symphony.

Click here for the Decision Making Problem Solving Model™. 

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

The advisory industry is facing one of its greatest challenges yet; a looming shortfall of nearly 100,000 advisors over the next decade. In this episode of Building the Billion Dollar Business, host Ray Sclafani unpacks how firms can overcome the "Great Talent Squeeze" and become an employer of choice for next-generation advisors. Ray explores the critical mindset, cultural shifts, and strategic investments firms must make to attract, develop, and retain elite talent not just for today, but for the future of the business.

Key Takeaways
1. Culture isn’t invisible, it’s your most powerful advantage. Build an environment rooted in trust, inclusion, and authentic leadership to attract the best.

2. Next-gen advisors expect modern tools. Investing in technology signals that your firm is forward-thinking and committed to advisor productivity.

3. Go beyond salary. Explore rev-share, equity, or performance-based incentives to align advisor goals with firm success.

4. Recruit ahead of capacity needs, benchmark compensation, and hold out for the right candidates to strengthen long-term growth.

5. Focus on potential and leadership qualities. Build a clear career path and communicate it early in the hiring process.

Click here for CFP Board 2024 Compensation Study

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this short but powerful episode, Ray Sclafani tackles a topic many financial advisors avoid: pricing. As firms expand their services beyond portfolio management into multi-generational planning, tax coordination, and family governance, their value has increased, but too often, their pricing hasn’t.

Ray challenges advisory leaders to view pricing not as a financial figure, but as a leadership decision that impacts enterprise value, team compensation, and client perception. He breaks down the mindset and mechanics required to evolve your pricing model with clarity, confidence, and consistency.

This episode is a must-listen for firms committed to delivering premium services and ready to price like it.

Key Takeaways

1. Most advisory firms are undercharging, not because clients can’t pay more, but because firms haven’t clearly defined and communicated their value.
2. Legacy pricing models (flat AUM basis points) are misaligned with modern, complex service offerings.
3. Advisors must embrace clarity, confidence, and consistency in how they present pricing.
4. Top firms are evolving with tiered basis points, flat planning fees, and project-based pricing to reflect complexity.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode, Ray Sclafani dives into a key leadership habit that high-performing advisory firms revisit every year: a structured marketing review. Far from a compliance audit, this annual reset is a strategic opportunity to realign messaging, optimize marketing systems, and attract the right clients for the future.

Ray walks through the five essential areas to evaluate:

1. Marketing calendar and plan
2. Ideal client segmentation
3. Value proposition and capability deck
4. Marketing collateral and communication
5. Digital presence and marketing systems

Whether your team is large or lean, in-house or outsourced, this episode outlines how to make marketing a firm-wide responsibility, not a side project. If you're ready to move beyond generic outreach and lead with intentional messaging, this is your playbook.

Key Takeaways

1. A structured annual marketing review helps firms stay aligned, relevant, and client-focused.
2. Without regular evaluation, your messaging can become outdated, misaligned, or unclear.
3. Marketing should be collaborative and cross-functional, not owned by one person or department.
4. Set 3–5 high-impact marketing priorities every quarter for measurable progress.
5. Align internal messaging before launching external campaigns.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode, Ray Sclafani challenges advisory firm leaders to rethink how they attract new clients. He exposes why many firms are unintentionally sabotaging their growth by relying on outdated, ad-hoc approaches to client acquisition like waiting for referrals or operating off of a founder’s charisma.

Ray dives deep into what it takes to build a scalable, repeatable, and measurable lead generation engine. He covers:

• Why most firms can’t answer “How many new clients can we take on this year?”
• How to define and align your firm around the ideal future client
• Why a compelling, differentiated capability deck is essential
• What it really means to “own your niche”
• The difference between a hope list and a functioning pipeline

This episode is a wake-up call, and a roadmap, for advisors who want to lead their growth, not just react to it.

Key Takeaways

1. Firms must calculate their true client carrying capacity before setting growth goals.
2. Growth requires clarity around the ideal future client, not just a general idea of your current book.
3. True differentiation comes from owning a niche so specifically that you become the obvious referral.
4. Firms that rely on one person’s memory or relationships aren’t building a business, they’re creating a vulnerability.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode, Ray Sclafani introduces a critical metric that leading wealth management firms—and the private equity firms evaluating them—are using to assess the health and enterprise value of their businesses: the Rule of 40. Originally born in Silicon Valley to evaluate SaaS companies, this simple but powerful formula (Revenue Growth % + EBITDA Margin %) has crossed over into the RIA world and become a litmus test for intentional, sustainable growth.

Ray breaks down:

• What the Rule of 40 really means in a recurring revenue business like an RIA
• How to calculate it (with real examples from ClientWise client firms)
• Where it falls short if misused
• How the most forward-thinking advisory firms use it as a leadership, compensation, M&A, and strategy tool

Plus, you’ll get five coaching questions to spark powerful conversations with your team—and begin leading like a CEO, not just a lead advisor.

Key Takeaways

1. The Rule of 40 = Revenue Growth % + EBITDA Margin %, and if the total equals or exceeds 40, your firm is financially healthy.
2. Many firms overestimate their growth by including capital market gains or acquired AUM—only organic growth tells the real story.
3. Leading RIAs use the Rule of 40 not just as a metric, but as a strategic lens.
4. Tracking Rule of 40 over time and by business segment (organic growth, next-gen, core team) uncovers the real levers driving enterprise value.
5. If your growth is passive or your margin is inflated, the Rule of 40 exposes the imbalance and forces better leadership decisions.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode, Ray Sclafani challenges financial advisors to shift from simply managing a successful practice to thinking like a CEO and capital allocator. Drawing parallels to the booming subscription economy, Ray explains how advisory firms, powered by predictable AUM-based revenue, are in a prime position to reinvest with purpose.

Whether it’s developing leadership, upgrading tech, or expanding into new client markets, this episode offers a compelling call to action: don’t coast on recurring revenue, leverage it. Learn how elite firms are acting boldly and investing in infrastructure, talent, and strategic growth to command premium valuations and build enduring enterprises.

Key Takeaways

1. Your AUM fee model gives you predictable cashflow, so you should treat it like a competitive advantage.
2. Don’t just preserve profits, deploy them in ways that support scalable, long-term growth.
3. Top valuations go to firms with vision, strategy, systems, and momentum, not necessarily the largest AUM.
4. Forecast with confidence and use recurring revenue to fund your firm’s future.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode of Building the Billion Dollar Business, Ray Sclafani explores one of the most underutilized but essential skills in financial advisory: the art of choosing clients wisely. Shifting from “more clients, more assets” to “right clients, sustainable growth,” Ray outlines how high-performing firms assess both behavioral and financial indicators to identify their next generation of A+ clients—even before they build wealth.

He introduces a client selection framework that focuses on advice-receptivity, future potential, values alignment, and more—all geared toward improving enterprise value through predictable cash flow. Ray also offers coaching questions to help leaders train their teams, align their growth strategy, and build a firm designed for the future.

Key Takeaways

1. Strategic firms focus on those who enhance predictable cash flow and align with long-term goals.
2. Traits like curiosity, respect for process, and ambition signal a high-value client even before assets arrive.
3. Scorecards, life-event triggers, and fee-based onboarding help firms assess clients strategically.
4. When firms define who they’re built to serve, growth strategies, referrals, and client experiences improve.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode of Building the Billion Dollar Business, Ray Sclafani explores the profound demographic shift reshaping the financial advisory industry: the aging of America. With 10,000 Americans turning 65 every day, and 80% of U.S. wealth held by those over 60, advisors can no longer afford to focus solely on accumulation. Ray outlines three powerful shifts advisory firms must make to stay relevant: reframing their value proposition, building capacity for aging clients, and leading multigenerational family dialogues. Packed with data, practical strategies, and team reflection questions, this episode is a must-listen for firms ready to evolve into future-ready advisors.

Key Takeaways

1.  Future-ready advisory firms go beyond money management, addressing deeply personal questions around spousal transitions, family readiness, and legacy.
2. Americans spend an average of 12.4 years in poor health at life’s end, with medical expenses potentially exceeding $472,000 per couple, this must be planned for.
3. Top firms are integrating elder care planning, collaborating with estate attorneys, healthcare advocates, and geriatric specialists to support aging clients.
4. 70% of heirs and 80% of widows leave their advisor after a wealth transfer. This signals a lack of relationship, not a lack of financial performance.
5. Building expertise via partnerships helps firms address issues like long-term care, dementia, and multigenerational needs more effectively.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode of Building the Billion Dollar Business, host Ray Sclafani reframes what it truly means to engage clients in a modern wealth management practice. He challenges the common misconceptions of client engagement which includes emails, gifts, and review meetings, and instead defines true engagement as emotional, intentional, and rooted in value. Ray outlines three pillars of effective engagement: proactive conversations, customized communication, and meaningful milestone recognition. He emphasizes that real engagement must be embedded into firm culture, not just left to the advisor. Listeners are encouraged to use tools like client journey mapping, achievement reviews, and feedback loops to scale meaningful connections. The episode closes with three reflective coaching questions designed to help advisors evolve their approach and deepen client relationships in a commoditized landscape.

Key Takeaways

1. True engagement is emotional, intentional, and value-driven, where clients feel genuinely seen, heard, and understood.
2. Effective engagement is built on three pillars: proactive conversations that anticipate client needs, customized communication that aligns with how each client processes information, and meaningful recognition of personal milestones.
3. It must be embedded into the culture of the entire firm, not dependent on any one advisor, and requires clear systems, roles, and shared ownership to scale.
4. In today’s experience-driven world, clients compare their advisors to brands like Amazon, Apple, and Netflix, expecting personalization, speed, and relevance.
5. When done well, client engagement becomes a strategic asset, creating loyalty, increasing referrals, and strengthening cross-generational relationships.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode of Building the Billion Dollar Business, Ray Sclafani dives into one of the most overlooked dangers facing advisory firms today: haphazard growth. While expanding your team, client base, and offerings may look like success on the surface, growth without intention can breed operational chaos, erode client trust, and reduce long-term enterprise value. Ray outlines the difference between reactive expansion and purposeful scaling, and offers a five-part blueprint for building a sustainable growth strategy that creates real client impact.

Listeners will walk away with a sharper understanding of how to reframe growth as a client-centered initiative, not just a business metric. Plus, Ray offers three powerful coaching questions to assess your firm's current trajectory and uncover whether your growth is building trust—or just making noise.

Key Takeaways

1. Scaling without value creation can lead to insolvency, not increased enterprise worth.
2. Haphazard growth is reactive, adding services or people without clarity or alignment.
3. Intentional growth begins with segmentation: know who you’re built to serve best.
4. Understand what your team can handle before quality slips.
5. Develop clear hiring, career paths, and retention strategies.
6. Communicate growth clearly so clients know how it benefits them directly.
7. Firms that win will be the most intentional, not necessarily the largest.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode of Building the Billion Dollar Business, Ray Sclafani challenges advisory firm leaders to adopt a shareholder mindset by asking a powerful question: What’s your stock worth? While traditional metrics like AUM, revenue, and profit margins signal a thriving business, they don’t fully reflect enterprise value—especially when planning for succession or outside investment.

Ray walks through four key metrics that valuation experts use: EBITDA multiples, free cash flow, recurring revenue, and reinvestment strategy, and explains why every billion-dollar RIA should track an implied share price just like a public company. He outlines how creating a simple, annual “financial DNA” slide can drive internal dialogue, next-gen engagement, strategic clarity, and market appeal.

To close, Ray offers four coaching questions to help advisors reframe how they lead, grow, and position their firm for long-term value creation.

Key Takeaways

1. Evaluate your firm like a public company.
2. Focus on EBITDA and free cash flow.
3. Recurring revenue enhances valuation.
4. Reinvestment strategies are crucial for growth.
5. Create a financial DNA slide deck annually.
6. Engage next-gen leaders as shareholders.

For more information click here to visit the Best in the Business Blog.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode of Building the Billion Dollar Business, Ray Sclafani shares how financial advisory leaders can turn a summer retreat into a powerful driver of culture, clarity, and momentum. Rather than focusing on perks or relaxation, Ray outlines how to plan a strategic retreat that strengthens alignment, deepens team ownership, and accelerates growth. From setting a clear theme to facilitating collaborative exercises, this episode offers a practical blueprint for designing a retreat with real return on investment. Whether you're aiming to rally your team for the next 90 days or build the next generation of firm leaders, this episode gives you the tools to lead with purpose—and finish the year strong.

Key Takeaways

1. A retreat should be a purposeful pause from daily operations.
2. Setting a clear theme is crucial for a successful retreat.
3. High-impact components include state of the firm and vision alignment exercises.
4. Team communication breakouts can address friction points.
5. A well-run retreat boosts morale and builds momentum.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode, Ray Sclafani breaks down a common but dangerous misconception in the financial advisory industry: the overreliance on market-based multiples like revenue or EBITDA for determining a firm’s value. He shares a real-world story about a financial advisor unsure of what a "7x multiple" actually meant, illustrating how valuation misunderstandings can derail succession, acquisition, and growth strategies. Ray offers a practical, nuanced view of valuation best practices, emphasizing the importance of reliable data, transparent assumptions, and holistic thinking. This episode is a must-listen for firm leaders preparing for succession, sale, or strategic growth.

Key Takeaways

1. It’s essential to know what the multiple is based on (e.g., EBITDA, revenue, EBAC).
2. Comparing firms without considering key differences (like size or client type) leads to inaccurate valuations.
3. Market sentiment influences multiples, not always firm fundamentals.
4. Discounted Cash Flow (DCF) offers a more accurate, customized valuation.
5. Industry benchmarks are helpful but must be applied with the right context.
6. A firm’s value story should include culture, client impact, and sustainability—not just numbers.

For more information click here to visit the Best in the Business Blog.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode of Building The Billion Dollar Business, Ray Sclafani uncovers surprising sales wisdom from none other than Mark Twain. Drawing from Twain’s groundbreaking campaign to publish and promote Ulysses S. Grant’s memoirs, Ray reveals timeless lessons for financial advisors on purpose-driven client acquisition. He shares how leading with purpose, telling powerful stories, equipping advocates, and being radically transparent can transform the way advisors connect with and grow their client base. The episode wraps with thought-provoking coaching questions designed to help advisory teams reflect, reimagine their approach, and deepen long-term client relationships.

Key Takeaways

1. Crafting a narrative helps clients see their own stories.
2. Equipping advocates is crucial for effective client acquisition.
3. Twain's campaign was about preserving a legacy, not just selling books.
4. Advisors should focus on the emotional impact of their services.
5. Stories resonate more than mere statistics in client communications.
6. Purpose-driven approaches can transform client acquisition strategies.

For more information click here to visit the Best in the Business Blog.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode of Building the Billion Dollar Business, Ray Sclafani explores one of the most powerful yet overlooked growth strategies in the financial advisory space: defining your ideal client profile. He shares why the most successful advisory firms aren’t chasing more clients—they’re focused on the right ones. Ray outlines five actionable steps to help advisors gain clarity, specialize effectively, and align their services to deliver greater value. Listeners will learn how ideal client profiling boosts marketing impact, sharpens referrals, strengthens team focus, and drives smarter, more sustainable growth.

Key Takeaways

1. Clarity on who you serve best is crucial.
2. Specialization helps advisors stand out in a crowded market.
3. High-performing teams use ideal client profiling for strategy.
4. Clarity makes referrals sharper and marketing easier.
5. Document both known and unknown client needs.
6. Align your value proposition with client needs.
7. Customize messaging to speak directly to your ideal client.
8. Evolve your ideal client profile as your firm grows.

For more information click here to visit the Best in the Business Blog.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode of Building the Billion Dollar Business, host Ray Sclafani highlights the vital role of succession planning in financial advisory firms and redefines business value as the ability to develop and elevate future leaders. He outlines eight essential qualities every future owner should embody and shares practical strategies for fostering an ownership mindset across your team. With coaching questions to guide meaningful conversations and steps to create real growth opportunities, this episode offers a clear path to building confident, capable leaders who will carry your firm's vision forward.

Key Takeaways

1. Succession planning is a leadership responsibility, not just an exit strategy.
2. The most successful leaders build future leaders.
3. Leadership development requires investment and intentionality.
4. Modeling ownership thinking is key to leadership development.
5. Start investing in future leaders now for long-term success.

Download our Successful Next Generation Leaders: 8 Essential Qualities checklist to help identify, develop, and cultivate the right future leaders.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this special July 4th episode of Building the Billion Dollar Business, Ray Sclafani steps away from strategies and frameworks to reflect on the deeper meaning of patriotism for business owners and leaders in wealth management. He shares a heartfelt message about the privilege of building something that lasts, the responsibility leaders carry, and why true patriotism is found not just in celebration—but in the work we choose to do each day. Whether you're leading a firm, developing the next generation, or simply navigating a tough quarter, this episode will inspire you to lead with purpose and pride.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.

In this episode of Building the Billion Dollar Business, Ray Sclafani explores the often-overlooked truth about mentorship: it has an expiration date. Drawing on real-world experience coaching top financial advisors and entrepreneurial leaders, Ray unpacks why mentorship is not just about support, but strategic growth. He shares how the most successful leaders choose their mentors with intention, regularly reassess their relevance, and seek out guidance that aligns with their current leadership challenges. You’ll learn how to identify your learning gaps, test for alignment, and structure mentoring relationships that sharpen your thinking—not just affirm it. Whether you're scaling a firm, stepping into succession, or simply craving sharper perspective, this episode will help you build a mentorship model that evolves with you.

Key Takeaways

1. 75% of executives attribute their success to mentors.
2. Not all mentors are meant to stay with you forever.
3. Mentors ask better questions than you're asking yourself.
4. Mentorship is not blind obedience; it's perspective.
5. Review your mentors annually to ensure alignment with growth.
6. Mentorship is a strategy, not a favor.

Find Ray and the ClientWise Team on the ClientWise website or LinkedIn | Twitter | Instagram | Facebook | YouTube

To join one of the largest digital communities of financial advisors, visit exchange.clientwise.com.