Team Split with a rookie

it is raping the rookie. 

And your branch manager is a total a hole for encouraging it.  (And he is in on it - the TEAM didn't decide to come to you with that BS offer before conferring with the Branch Manager)  Feel free to copy and paste my comments in an e-mail to your BM and ask him if it's true.  Please post his reply.

By the way - Ex Merril FA?  Where are you now?

They are forcing you to give up 50% of you commissions? I would have a serious issue with that if I were you. I'll bet FINRA would have an opinion ab out that as well.

Are you getting any other comp?  Are you getting clients from the team?

Other problem is... why are you being forced on the team?  Not having enough production by yourself?

and are we talking about 50% split on commissions on all clients, or just the ones from the team?  and your 50% then hits the grid?

are you getting salary from the firm or getting paid by the team?

Don't do it.  They want to use you and take your clients

To answer aeromaks question, I get a base salary for the 1st year and then declining salary 2nd year from the firm plus commission. I am being rated on the commissions I make.  Only my 50% my commission then hits the grid.  Firm policy is that everyone is on a team.  I am new so I was put on the team.  The team gave me no assets or comp.  If they helped me with a client, they took half the commission.  So I stopped asking for their help.  I opened 25 accounts on my own compared to the 5 with their help.  They don't talk to me.  They only sit in on meetings with me and I do all the prospecting and work around the account.  we do have an assistant that processes the paperwork.  I am given none of their commission or revenue from their accounts.

did you know that was the deal?

And if you are giving up 50%, why not try to be part of the team and see, maybe they will give you some of their book.

When I started, I thought I was to be given part of the book and a split would be part of the agreement.  Once I started I realized that I got no part of the book and if I asked for help with a client, they took 50%.  So I stopped bringing them in with prospect meetings and kept 100%.  Now the boss says that I need them in all the meetings and they get 50%.  I'm told that I should have faith and the numbers will work out.

UBS?

Yeah where are you at?? And more importantly why did you go there?

I'm embarrassed to say where I'm at because it's a highly regarded firm, not an independent, not a major wirehouse.  It has an excellent reputation.  My coworkers are amazing.  I never dreamed I would be in this situaion.  Everyone speaks highly of my boss and my partner.  I just don't understand.

[quote=EXMerrillFA]

I'm embarrassed to say where I'm at because it's a highly regarded firm, not an independent, not a major wirehouse.  It has an excellent reputation.  My coworkers are amazing.  I never dreamed I would be in this situaion.  Everyone speaks highly of my boss and my partner.  I just don't understand.

 [/quote]

 Ok so that leaves non-major wires(bear,gs),regionals,banks,boutiques and Ben Edward maybe...  So why did you go there?

[quote=EXMerrillFA]

When I started, I thought I was to be given part of the book and a split would be part of the agreement.  Once I started I realized that I got no part of the book and if I asked for help with a client, they took 50%.  So I stopped bringing them in with prospect meetings and kept 100%.  Now the boss says that I need them in all the meetings and they get 50%.  I'm told that I should have faith and the numbers will work out.

The boss is right, the numbers will work out - for the boss!

Dude, you are slave labor and part of a model that will enrich your partners at your expense. All the accounts you open-assets you bring in will go to them when you flunk out. Then they get a new slave and process begins anew.

Any partnership that doesn't fairly compensate all partners isn't a partnership.

Partnerships can be a good thing for rookies. The mentoring relationship can really help those just starting out. Unfortunately, in this case you seem not to be getting that help. And, you obviously have the ability to operate without their help. If you can, you need to seperate yourself from this group. Possibly move to another office? Regarding the mandatory partnership, even if true, maybe someplace else you can get something more for your effort. Like learning a successful business process for example. Staying where you are and getting nothing for it will drain you. And they could care less.

[/quote]

You are hired help, not a partner.

It's hard enough to make it in this business to begin with, without some snurdleys taking half your gross.

When I was offered to come onto a team at Merrill a year or so ago, my deal was that I would get 100% of production of whatever book I brought over, 33% of production on some assets they would give to me to manage (mostly <250K accounts), and then an equal % (3 partners) of all NEW business that comes into the partnership (regardless of who brought it in, including myself).

That actually seemed quite fair. 

You are the proverbial new guy in the prison shower.

[quote=B24]

You are hired help, not a partner.

It's hard enough to make it in this business to begin with, without some snurdleys taking half your gross.

When I was offered to come onto a team at Merrill a year or so ago, my deal was that I would get 100% of production of whatever book I brought over, 33% of production on some assets they would give to me to manage (mostly <250K accounts), and then an equal % (3 partners) of all NEW business that comes into the partnership (regardless of who brought it in, including myself).

That actually seemed quite fair. 

You are the proverbial new guy in the prison shower

[/quote]

I'd take that offer. ExMerrill, sounds like you dropped the soap as the new guy in the shower.

Well, I got a divorce.  I severed the relationship.  There are other financial advisors looking at taking me on with a more equitable split.   I appreciate everyone's advice.  I thought I was losing my mind.

Sounds like you should have severed their heads from their bodies.

I may be the only one who doesn't think that you got a bad deal.   Look at this from a slightly different perspective:  When another member of the team sold something, you received nothing.  You also did no work to get this nothing.

When you brought in a client and did all of the work, you got to keep 100%.

If you brought in a client and asked for help, they charged you 50% for the help.

In other words, you were never part of a team, you just had some people who you could choose to partner with in exchange for a split on a case by case basis.

You are absolutely right.  I would gladly do a split with a senior advisor on a prospect that I did not feel I could close.  50% is better than nothing.   My solo close rate was incredibly high.  I had several high level prospects that I lost specifically because of this senior advisor.  I also closed some prospects because of the advisor.  This advisor had no time for me and did not mentor me.

The proplem was I was now being told that I had to bring in the senior advisor in all of my prospects and split with all my prospects.

ExMerrillFA – My intentions are not to hijack your thread and if you feel this post does just that let me know and I will remove it...

With the practice I am with, I've had the opportunity to be on both sides of the desk. I do not have the experience in regards to an ideal relationship, but would like to ask for those with the experience to respond...

I feel the first initial interview and negotiation process for me left some potential benefits and value on the table because of my lack of biz knowledge. I also had the opportunity to "listen" in on a potential new hire and must say it is sometimes difficult to read someone's potential in the interview process.

My question that pertains with the OP is: (by team I mean any entity hiring a rookie/newb/fng)

1. As the "team" what do you want to see in a “rookie” and what would be a fair negotiation assuming the “rookie” has the potential you are looking for?

2. As the "rookie" what do you want to see in a "team" and what would be a fair negotiation assuming the "team" has the opportunity you a looking for?

Those of you that have the experience of being on one and/or both sides, I thank you in advance for you contribution.

Tks EXMerrillFA for letting me hijack the thread and let me know if this is not ok.

I actually welcome the conversation.  Also, any advice on what can be a fair and equitable split with a senior FA.  This FA wants to grow the book.  What has worked for others.  What has not worked.  Any incentive ideas?

Thanks EXMerrillFA... There is not much traffic on this site (other then Bobby picking on someone which I enjoy the laughs) anymore but maybe it will get a response or two next week. As for me, I am always looking for opportunities and this thread has the potential to educate me on identifying some opportunities no matter which side of the desk I may find myself on.

Hello,

I am an am not a rookie, what I mean by that is lots of time in the industry but changing roles.  That is my preface to say that I have not been in a team and am just sharing misc thoughts that have been shared with me recently.

Two different brokerages told me the best way to join a team was to join an office, put my head down and work and within 6 mos teams would notice me and if they liked me I could be asked to join.

Having said that, that isn't my goal so the next plan was that I could be brought on as an investment associate type position that would pay me a flat salary.  Good in the beginning but not so in the long run.   Was given an example of two people on a team one is earning the salary of 125k and the producer makes 400k and they both work equal, of course this is several years after the joined together.

My preferred would be to pay me a salary of xxx and then I would split 50/50 with the team or producer anything over a reasonable amount.  For example, salary of 50k.  Current production is 500k by the producer and I would split anything over 600k.  That way it would incent me and he/she would pocket all the money until we hit that bogey.  Having said that haven't gotten a taker yet, but really just came up with this in the last week.

Different things for different folks, my goal and my only goal is to work in a good atmosphere and make good money for the next 5 years.  Most folks are looking for what is the best path for the next 20 years and for those the best advice is go solo, unless you need a mentor to close or learn from.

Best of luck to you.

don't do it.

[quote=NOVA]

don't do it. [/quote]don’t do what?  

[quote=N.D.]…(by team I mean any entity hiring a rookie/newb/fng)…[/quote]

All though I respect other's opinions and feel your response comes with reason, I believe the focus of this thread asks more then what you have provided especially since you did not provide supporting information to your opinion.

Joining a team when you are a real newbie only makes sense if:

a) you think you will fail out without the supprot fo the team

b) you plan on building your career around this team

If you think that you would rather move off on your own at some point, then joining a team as a junior is a BAD idea.  Your assets are even less portable than if you left a B/D for another.  That's why some of the most successful teams have juniors that are "working their way up" on the team, or are family members.

[quote=B24]

Joining a team when you are a real newbie only makes sense if:

a) you think you will fail out without the support fo the team- (everyone new needs the support of something otherwise you would not be new)

b) you plan on building your career around this team- (you need to learn how to build from someone)

If you think that you would rather move off on your own at some point, then joining a team as a junior is a BAD idea.  Your assets are even less portable than if you left a B/D for another.  That's why some of the most successful teams have juniors that are "working their way up" on the team, or are family members.

[/quote]

Thanks B24... But again by team I feel this means any entity hiring a new person. So let me change it from "team" to "practice" if it helps. A newer person needs to grow with the help of someone or someplace and even if it is a one man shop that hires a new guy, it then becomes a "team" of sorts.

If you could, please add what you think is a good idea. You can speak from the point of view of the person hiring the new guy or from the new guy looking for an opportunity.

Someone like EXMerrillFA, for example, is fairly new, few assets, if any portable, and has potential. He just left a crap deal and is looking for a potential opportunity. What should he consider is a good deal? What will a potential hiring person look for most in his potential?

[quote=B24]

Joining a team when you are a real newbie only makes sense if:

a) you think you will fail out without the supprot fo the team

b) you plan on building your career around this team

If you think that you would rather move off on your own at some point, then joining a team as a junior is a BAD idea.  Your assets are even less portable than if you left a B/D for another.  That's why some of the most successful teams have juniors that are "working their way up" on the team, or are family members.

[/quote]

What if an older FA invites you to join him and you know that  a) he has a decent book  b)  is looking to retire within 5 yrs c) offers an acceptable split and the opportunity to take over his book ?

[quote=careerchngr]

[quote=B24]

Joining a team when you are a real newbie only makes sense if:

a) you think you will fail out without the supprot fo the team

b) you plan on building your career around this team

If you think that you would rather move off on your own at some point, then joining a team as a junior is a BAD idea.  Your assets are even less portable than if you left a B/D for another.  That's why some of the most successful teams have juniors that are "working their way up" on the team, or are family members.

[/quote]

What if an older FA invites you to join him and you know that  a) he has a decent book  b)  is looking to retire within 5 yrs c) offers an acceptable split and the opportunity to take over his book ?

[/quote]

Absolutely.  That would apply to my point (b) above.  The situation you want to avoid is joining a team of 4 hard-charging 45 year-olds with 500mm AUM that just need a gopher to get them coffee and talk to the clients they don't want to deal with so they have more time to make serious money. 

But I think if you are joining  a one-man team, and that one man is 60 years old, it's pretty clear what the goal is.  But I would make sure there are some things in writing, and also ask about his family.  The 25 year-old son may not have been interested in the "family business" when he got out of college (he saw dad as a "suit" that made enough to buy a nice car and go on fancy vacations), but a few years go by, he sees the real world, and realizes Dad is giving away a $400K paycheck to someone he doesn't know, well, he might just have a change of heart.