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Fee Split for new RIA

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Feb 10, 2014 5:43 am

My situation is this; I'm a junior in college and work as an intern at an RIA.  I love my job and I love working with clients so I've decided that I want to pursue this as a career.

 I want to start my career as quickly as possible and in an efficient manner.  I like the firm I'm currently with and would like to join them as an IAR, while bringing in my own clients and building my book.  I'm a good salesman and I network well; I believe that I could bring in around 10MM in the first year.  While I don't graduate for another year, I signed up to take the series 65 in the next couple months, so I will be able to register as an IAR in my state.  

I haven't mentioned any of this to my boss, the firm's managing partner yet.  I want to wait till I have the series 65 in order to show the initiative and that I'm not just full of hot air.  Once I have the 65 I want to approach him about taking me on as an IAR and work to build my book.  What I haven't been able to find is the normal split of fees for such a relationship.  I realize it's dependent on a lot of variables.  The managing partner does the allocations in our model portfolios and that isn't something that would change, however I would plan on taking the lead in the day to day managing of the accounts.  What is a reasonable split of the fees?  Our normal AUM fee is somewhere between .9-1.5%, plus all trading costs.    

What am I missing here and what is the best way to convince my boss that it is a worthwhile enterprise?  Thanks for your help.