Study Results Confirm Commonwealth Financial Network^®’s Practice Management Services Increase Advisor Revenues

Waltham, Mass. (February 13, 2007) — According to a recent study, advisors who earned between $200,000 and $400,000 in gross dealer concessions (GDC) and who took advantage of Commonwealth Financial Network^®’s free practice management services during 2006 significantly increased annual revenues over a control group of similar-producing advisors who did not participate in the services.

This year-long study, conducted in 2006, brought together 22 advisors who, in 2005, had grossed between $200,000 and $800,000 in GDC. Commonwealth’s Practice Management staff led participants in bimonthly conference calls that focused on increasing revenues.

For advisors earning between $200,000 and $299,999 GDC in 2005, study participants averaged a growth rate of 37.9 percent, compared with their peer group in the same production range who did not participate and who averaged an 18.2-percent growth rate. Participating advisors who grossed between $300,000 and $399,999 GDC in 2005 saw earnings grow by an average of 21.3 percent, compared with their peer group who averaged a 13-percent growth rate.

On average, study participants who grossed between $200,000 and $400,000 GDC in 2005 increased earnings by 25.2 percent, compared with a 16.5-percent increase for those who did not participate.

“Practice Management constantly refines the programs it offers to our advisors, so it’s gratifying to have data that supports just how much we help those advisors who want to take their practice to the next level,” said Joni Youngwirth, Commonwealth’s vice president of practice management.

“The results mirror what we’ve seen now for the last three years,” said Youngwirth. “While there was positive growth for participating advisors who produced over $400,000, this group is more likely to be focused on working with Practice Management to clarify business strategy, increase staff, eliminate business risk, and create a solid succession plan.”

While study activities during the first quarter of 2006 focused on setting goals and objectives and creating strategies, the second quarter marked the beginning of 18 bimonthly conference calls, including “Business Planning”, “Using Family Trees to Get Referrals,” “Transitioning to Fees,” and “How to Form a Study Group.”

Study participant and Commonwealth advisor Paul Bonapart of Financial Security Planning Services in Corte Madera, California, increased his individual GDC by over 44 percent.

“The study group facilitated interactions with my peers, which is valuable as an independent financial advisor,” said Bonapart. “Beyond focusing on profitability, I learned to internalize practice management as a key business planning principle. I now feel I’m actually working on the business versus working in the business.”

Commonwealth pioneered practice management assistance in 1989. It was the first independent firm to acknowledge that its representatives are small business owners, not just salespeople. Today, Commonwealth offers services ranging from hiring and managing staff, to disciplined strategic planning and succession planning.

For more detailed information on the study, please contact Emily Guadagnoli at 781.736.7980 x9639 or eguadagnoli@commonwealth.com.

Founded in 1979, Commonwealth Financial Network, Member NASD/SIPC, is the nation’s second-largest, privately owned independent broker/dealer, with offices in Waltham, Massachusetts, and San Diego, California. The firm supports more than 1,000 independent registered representatives nationwide and makes available a comprehensive array of financial products and services.

Contacts:
Emily Guadagnoli
Senior Public Relations Specialist
Commonwealth Financial Network
www.commonwealth.com
781.736.7980, x9639
eguadagnoli@commonwealth.com