Example of Advisory Fee
Subscriber 1 has invested $10,000 = V Subscriber 2 has invested $100,000 = W S&P 500 Index increased by 8% during this buy/sell cycle = X Recommended fund increased by 12% during the same buy/sell cycle = Y Advisory FEE for each subscriber is the same and is computed as follows:
Advisory FEE = .4( Y - X)5,000.00 Advisory FEE = .4(.12 - .08)5,000.00 Advisory FEE = $80.00 (Each subscriber will pay this amount) Subscriber 1
Subscriber 1 Gross Profit (Before Advisory FEE) = (V)(Y) = $1,200.00
Subscriber 1 Net Profit = [(V)(Y) - Advisory FEE] Subscriber 1 Net Profit = [(10,000)(.12) - 80.00] Subscriber 1 Net Profit = $1,120.00
Subscriber 1 S&P Profit (S&P Index Fund) = (V)(X) = $800.00
Subscriber 2
Subscriber 2 Gross Profit (Before Advisory FEE) = (W)(Y) = $12,000.00
Subscriber 2 Net Profit = [(W)(Y) - Advisory FEE] Subscriber 2 Net Profit = [(100,000)(.12) - 80.00] Subscriber 2 Net Profit = $11,920.00
Subscriber 2 S&P Profit (S&P Index Fund) = (W)(X) = $8,000.00
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