Leakage Is Killing Your Growth
What Is Revenue Leakage? Revenue leakage is the silent, systemic loss of earned revenue that never makes it onto your books. It is not a single failure. It is the result of compounding errors across billing, collections, pricing execution, payout calculation, and advisor incentives. For Heads of Wealth, leakage is especially dangerous because it often hides in plain sight—until the numbers stop adding up. According to MGI Research, firms lose between 1 to 5 percent of topline revenue to leakage annually. That is $10 million lost for every $200 million in managed revenue. (MGI, 2022) Why It Falls on the Head of Wealth As the leader responsible for driving growth, advisor performance, and client satisfaction, you own more than the topline. You own the integrity of how that topline is earned. Leakage affects: If your firm is leaking value, your ability to grow AUM and retain talent is under threat. Where Leakage Hides The longer these gaps go undetected, the more they multiply. Business Impact of Stopping Leakage Firms that proactively address revenue leakage report: Leakage is not just an accounting problem. It is a performance barrier. What Heads of Wealth Can Do Conclusion: Leakage Is Optional In a high-margin, high-pressure environment, no wealth management firm can afford to leave money on the table. Leakage may be systemic, but it is solvable—with the right tools, the right partnerships, and the right leadership. As Head of Wealth, you are not just responsible for growth. You are responsible for making sure you keep what you earn.