When it comes to building a rational bonus plan for employees, the irrationality of performance-based plans became clear during the 2008-2009 markets and economic crisis. A more rational bonus plan would be based on revenue sharing, but most owner/advisors shun that approach, fearing they will end up paying out too much in bonuses should revenue balloon.

Well, if you don't see the counter-productive, self-defeating, shoot-yourself-in-the-foot mentality in this fear, I'm not sure what to tell you. If you want to maximize your current cashflow, my advice is simple: fire everyone but your receptionist, outsource your investment management, and spend all your time bringing in a steady stream of new clients.

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