anyone work for RBC Dain Rauscher?

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RULiquid's picture
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Joined: 2007-07-16

Interested in hearing what current reps have to say from their hiring process to where they are currently.
 
 
 
 

OldLady's picture
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Joined: 2006-11-19

I left 7 1/2 years ago right before the purchase by RBC -- have lots of friends back there.  One of the best decisions I've ever made was going independent then -- one of the worst decisions was waiting so long to make the move. 
I'm not sure what you're asking.  With this firm, a lot of what you're asking is going to depend on the dynamics of the branch and the branch manager.  Not a strong corporate culture, like at Merrill.

RULiquid's picture
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Ive noticed many people start at merrill, and many people leave after a few years.  Same thing with Edward Jones..people start there to get training then they go someplace else.  Seems like nobody is really happy where they are at and everyone is complaining or has sarcasm about almost every firm. 
I was just curious if what RBC pays for as far as helping you build your business like with literature, and other marketing tools such as a personalized website. 
Basically my style is this..I think cold calling and door knocking is over with.  Why? Because most people I know including myself dont like random people coming to my house, and random people calling my phone.  The psychology today dealing with this kind of prospecting is highly negative and frowned upon by the average person.  Sure it works for SOME people and you will always hear someone say "well it worked for me"  I also dont really intend on working for a firm where everyone is drinking kool-aid poured out by the higher ups.  Sure I cant be a begger when im a choser, but I also dont want to start someplace and then move to another.  What I will do instead is another post...nothing groundbreaking or that hasnt been done before.
Somehow after reading up on a lot of topics I notice that just about everyone switches firms sooner or later.  Is this the industry norm? Is turnover THAT high?
Now about compensation on RBC Dain I was curious as to what they pay you for say your first year salary wise.  I understand that eventually commissions will be my check, and Id like to know there is at least SOMETHING coming in during the career change and while I learn the business.
 
 
 

dalbroker's picture
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Joined: 2007-03-25

Write down and define everything you are looking forand seek out firms that offer what you want.

OldLady's picture
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Joined: 2006-11-19

I'm very happy where I'm at and I was reasonably happy at Dain (before RBC acquisition).  I went independent to own my business, to control my own destiny and to take some of my revenue to line my pocket rather than the CEOs.
As to training salaries, I'm guessing that varies depending on the region/cost of living.  There hasn't been a trainee at the local branch since they tried to replace me (& he didn't last).
You need to do some searches here to learn more about how this business works -- think you have an unrealistic idea about what support a firm is going to provide.
No personalized web page.  It is up to the local branch manager how to spend his resources.  I can tell you that my local manager would never spend scarce financial resources on a trainee & generally wouldn't spend them even for successful advisors -- typically reserved for branch client appreciation events & community support events.  They will get you business cards, a phone, a desk, a computer terminal & when I was there, you also got personalized stationary and notepads. 
If you're interested in the industry, go talk to your local branch manager.

RULiquid's picture
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Joined: 2007-07-16

Well I didnt think I would get any help for a personalized webpage although it is very important that a rep have one in my opinion.  Also in my earlier post I was not trying to imply cold calling and door knocking 100% wrong...I just dont believe TOO much emphasis should be put on it such as some places do.
 
so..about you, old lady.  you say you went independent to your own business.  How has that worked out for you? Did you take your previous clients with you? Seems like some places that isnt allowed.  I have also heard stories about reps who leave a firm getting sued or what not for the firms costs of train up...ever heard of this?

apprentice's picture
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Joined: 2006-06-06

RUL - from what I understand, RBC won't push you to prospect in any particular way, or tell you what kind of business to grow (this is good and bad).  Good firm, well respected in their communities, I believe they're midwest based still, and pay a base salary for a year or two.
Also - people have been moving around a lot lately.  High markets tend to promote decent waffles.  Not sure it's a good business decision in your first 2 years to try and drag your new relationships around.

drewski803's picture
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Joined: 2007-05-08

RULiquid, make sure your networking efforts or whatever get you 2-3 appointments a day.  Me, I doubt they will.  This isn't like selling lemonade, 99.9% of folks you know aren't truely QUALIFIED (they might have a sh1t ton of dough, but... well, you'll see.)

farotech's picture
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Joined: 2007-01-05

That's right. RULiquid, if you go in with that attitude, you won't make it six months. I guarantee.

OldLady's picture
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RULiquid wrote:so..about you, old lady.  you say you went independent to your own business.  How has that worked out for you? Did you take your previous clients with you? Seems like some places that isnt allowed.  I have also heard stories about reps who leave a firm getting sued or what not for the firms costs of train up...ever heard of this?
I don't want to be rude -- if you're exploring getting into this business, nothing about going independent is relevant.   
I went indy after 16 successful years in the business.  It has worked out great.  I took almost all of the clients I expected to and wanted to.  I had no employment or training contract, so this wasn't a problem.  Yes, lots of people get hit with reimbursing their firms for training costs and many contracts have non-compete clauses and non-solicitation clauses.  Always read and understand any contract you are signing.  If you aren't sure what it means or says, pay an attorney for their advice.
When I was there, Dain was a regional wirehouse headquarted in Minneapolis.  Since the RBC acquisition, I haven't really talked to people about culture changes.  They were very midwestern and well-regarded in the communities where they were located -- generally the mid-west and west.

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RULiquid wrote:
Well I didnt think I would get any help for a personalized webpage although it is very important that a rep have one in my opinion.  Also in my earlier post I was not trying to imply cold calling and door knocking 100% wrong...I just dont believe TOO much emphasis should be put on it such as some places do.

I think if you can replicate Uma's vebsite (see other thread) and just sit in your office and not cold call nor cold walk, and just get people who fill out an investment questionnaire on the website, you should do just fine.  Also, since you don't think people want to be cold called or door knocked, you'll have to go after the people who know you: your friends and family.  You will be one busy bee.  You'll probably bring in huge money actually and you can tell your manager what to do.  Don't be afraid to ask him to put the creamer in your coffee as well, all part of their job description.

RULiquid's picture
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drewski803 wrote:RULiquid, make sure your networking efforts or whatever get you 2-3 appointments a day.  Me, I doubt they will.  This isn't like selling lemonade, 99.9% of folks you know aren't truely QUALIFIED (they might have a sh1t ton of dough, but... well, you'll see.)
 
thanks, and when you talk of qualifying someone what all does that invovle? im sure different qualifications for different situations but there must be an industry standard.  if you dont mind sharing of course...
 
also..id like to point out something not directed to you drewski but to this board in general.  ive noticed a lot of people on here after reading through the threads are very upset, angry, or depressed.  there are a few golden lights who seem to give and take advice for what its worth, and enjoy uplifting conversation.  some here just seem to make sarcastic posts and comments.  it is very easy to see who here is unhappy. i wonder if that stems from poor job performance and being depressed about the future? a lot of doom and gloom around here. 

OldLady's picture
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RULiquid wrote:...when you talk of qualifying someone what all does that invovle? ...    ive noticed a lot of people on here after reading through the threads are very upset, angry, or depressed... some here just seem to make sarcastic posts and comments...a lot of doom and gloom around here. 
RU, let me give you a couple of insights.  This is an industry that attracts a lot of interest as a career.  It also is an industry that chews up and spits out most of its new hires (thrown around is an 80-90% failure rate).  These boards see huge numbers of interested & new to the industry posters.  For the most part, they ALL (including you) ask basically the same questions, over and over and over and over and over again.  It never occurs to you (or them) to use the search button.  Is it surprising posters take pot shots at questions, that although not stupid, are redundant and could be easily answered with a little effort on the posters part???  All of your questions have been asked and answered a hundred times over.
Second, to survive in this business takes tremendous sacrifice, tenacity, hard work, and a tough skin.  There are a few who luck into success, ie, family connections, etc., but that's not the majority here.  You don't have to be a member of mensa, but generally those who succeed are brighter than average, adapt to change well, have great communication skills, are very goal oriented/competitive, self-directed and have the ability to do those things that most people will not do, no matter how unpleasant.   
You show up & evidently without knowing anything about the industry or doing any research, start posting about how stupid we are because cold calling and cold walking are wastes of time (they are the two most cost effective methods to find clients).  Sure, people will start slapping you around.  I've never had anyone respond to my posts in anything except a postive manner (except for a crazy who thought I was an alias of joe or bobby). 

RULiquid's picture
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Joined: 2007-07-16

old lady i was not implying negative posts to me...you think i wrote about the negativity due to reaction to MY posts.  this is not the case..i noticed the coldness throughout the board before my first post.
 
I understand what people are trying to say what it takes to survive.  i know there is no easy road, and that the road could fall out from underneath me at anytime.  i DO know something about the industry from certain angles, just not all of them.  im here to gain some insight on different areas i am gray in.  like i said in an earlier post in reaponse to yours...that i wasnt trying to say all cold calling and door knocking is bad..its just not what it used to be.  not saying i wont do it because i will, because i have to.  its amazing how someone will take something you say and run with it with a negative spin.

sooolgoode's picture
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Joined: 2007-03-10

The best thing about our industry is you could be with just about any firm and make a very good living. The firm paying for marketing material, website, etc - don't even worry about it, it gets tossed.
At the end of the day, most of the people you will prospect won't really know the difference from AG to ML or Edward Jones or Charles Schwabb...they hire you and the story you sell them.
Get out there and PROSPECT, meet people, be a compelling character and have something smart to say, be arrogant to the degree that they NEED you to manage all their financial affairs.

RULiquid's picture
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now thats a down to earth good note. 

troll's picture
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RULiquid's picture
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no i didnt miss that part, and the reason im not worried about fragments is because a lot of people are like you here.  they just go around talking trash to everyone...especially new people as if they are some big shot.  go find someone else to pick at you are no different than a grade school punk

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RULiquid's picture
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joe i appreciate your concern for my well being but im not worried about being punctual on this forum by any means. u r very cocky

Analyst's picture
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Joined: 2007-06-12

joedabrkr wrote:You have a lousy attitude.  Good luck getting through the door with that chip on your shoulder.
I notice a lot of the new guys really come back at the vets with some pretty strong words.  The problem is, the vets are usually right and setting the new guys straight.
I'm new to this forum and haven't had any trouble with the vets.  I've been jabbed a couple of times, but nothing that wouldn't come in the real world for saying things that were totally off.
I think the new guys need to think before trying to dish it out like the vets because they don't have anything to back-up their words.  Some think it's, "just a forum", but the vets always seem to give good advice and due criticism.
I know this seems like a "kiss the vet's a** post", but the new guys need to have more respect.  I'm afraid if it keeps-up, the vets will do worse than come at you hard for your smart remarks and just go away.  Then we won't learn crap and it could cost us $1,000s.
 
 
 
 
 
 

OldLady's picture
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RULiquid wrote:old lady i was not implying negative posts to me...you think i wrote about the negativity due to reaction to MY posts.  this is not the case..i noticed the coldness throughout the board before my first post. <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
RU, yes, my second point related to you specifically.  Let me speak more plainly to my first, which addresses "coldness."  We work in a high pressure, long hours industry.  People (primarily new folks) come on here and say/ask the same things, OVER AND OVER AND OVER AND OVER AND OVER AND OVER.  The same questions, the same concerns.  People here get short-tempered when it's the same questions, same posts, day after day, month after month -- it's boring when it's been asked and answered many, many times.
People also get annoyed with stupidity.  There are a fair number of people here who are beat up all day long by cold calling, prospecting, canvassing & trying to close some business to make their numbers to stay in the business.  So they have a beer or two (maybe a little wine), long on and get to beat up on someone -- not surprising either.  It's a tough, tough business.
Sure, we know you just thought of your questions.  This forum would be a kinder, gentler place if those considering entering the industry and new brokers would:
1)  Read every post in every thread in Rookies & Trainees and Prospecting, Marketing & Selling before doing any posting.  Then go to step 2.
2)  Identify your questions (such as what is a qualified prospect, what marketing support do firms provide newbies, what about RBC Dain Rauscher as a firm) and then use the search function to find the answers.
3)  Post your remaining questions once you've done your homework -- they won't be stupid (hopefully) and they won't be the same redundant questions that are distained.  You will get helpful (for the most part) answers and guidance.
I don't post much & I've spent time trying to provide you information to your specific questions.  I'm not dumping on you -- I'm trying to explain your observation and to make this a less cold place.

sooolgoode's picture
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500 Day War(the Judge's post)...read it, embrace it

sooolgoode's picture
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I have it printed out and pasted directly in front of my workstation along with a nice picture of an M6 I'll buy as soon as I make my target AUM and bonus-keeps you hungry:)

RULiquid's picture
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old lady i got your point..so i went to the search and looked up stuff...i found a lot of good info. you know what is funny..its pretty bad to see edward jones harped on so much.
 
from what i take is that edward jones is a great place to start off but get the hell out.  it looked to me like edward jones uses their reps like dime a dozen...so what the reps do is get the good training, and get the hell out! ameriprise seems very...well if you have to pay for your own training thats pretty bad i think.  a company should at least cover all of that to help you get on your feet.  just my thought though.
 
lots of EDJ bashing...but hey it doesnt bother me since i have never worked there.  lots of people defending edward jones too.  i didnt see too many people who stayed with edward jones more than 5 years...if that.

pussman's picture
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RULiquid   Why don't you go out and interview with the firm.  If you get an offer then you can bargain with them. 

pretzelhead's picture
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RU-
Joe was 100% correct with his critique.  If you think you can waltz into a BOM's office with your $79.99 Wal Mart suit, clown bow-tie, and an attitude like a used car salesman who just had a 30-car month, you have got another thing coming.
I also find it interesting that you believe there is no longer any cold-calling or cold-walking.  How then, RULiquid, do you plan on bringing in new business?  Are the prospects going to call you up because they know that you just got your 7 and 66 and that you're ready to blow them up?  Is it the vast trove of knowledge that you've gained from reading the WSJ for the last 6 months because it was assigned in your finance class at your community college (assumption based on your writing skills)? 
Do you have a plan? 
You couldn't find the search button without being directed to it.  How will you find a qualified prospect? How will you close them?
I'm not here to beat you up, but you need to seriously LISTEN to the advice that these folks are giving you.  If you can't internalize suggestions being given to you here, how will you internalize information that someone sitting across the table is giving you?
How is it that you can capitalize "EDJ," but not the first word of each sentence?

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pretzelhead wrote:
RU-
Joe was 100% correct with his critique.  If you think you can waltz into a BOM's office with your $79.99 Wal Mart suit, clown bow-tie, and an attitude like a used car salesman who just had a 30-car month, you have got another thing coming.

I actually think he'll be fine.  His Wal-Mart suit should do the trick.  I think he is going to be one those new brokers that works in the Wal-Mart itself...you know, the one that is even less respectable than Ameriprise.  Anyways, he won't have to cold call or door knock, he can just do seminars to shoppers in kitchen utensil aisle!  I have a question though, do they make the brokers in Wal-Mart wear that stupid little happy face yellow button, the one that looks like this: ?

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snaggletooth wrote:pretzelhead wrote:
RU-
Joe was 100% correct with his critique.  If you think you can waltz into a BOM's office with your $79.99 Wal Mart suit, clown bow-tie, and an attitude like a used car salesman who just had a 30-car month, you have got another thing coming.

I actually think he'll be fine.  His Wal-Mart suit should do the trick.  I think he is going to be one those new brokers that works in the Wal-Mart itself...you know, the one that is even less respectable than Ameriprise.  Anyways, he won't have to cold call or door knock, he can just do seminars to shoppers in kitchen utensil aisle!  I have a question though, do they make the brokers in Wal-Mart wear that stupid little happy face yellow button, the one that looks like this: ?

Only if they don't wear the vest... "May I help you?"

RULiquid's picture
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man you guys are pretty low.  i can tell you arent happy with your current life as a broker or else you wouldnt have so much negativity.  if you are always getting mad at those looking to put a foot in the door then dont come to the rookie board.  go make a gripe thread about how unhappy you are.  like kids..."go get your 80 dollar walmart suit" wow i bet it took a lot to think that one up. 
 
pretzel head you are putting spin on my comments so you can poke at someone.  go find someone else to do this too.  if you really dont like new people in the industry then go find someone at your office that is new. 
 
"You couldn't find the search button without being directed to it"
you act like you trained me in person how to navigate this website and am posting my results online.  this is another sad stab to try to make everyone think you are funny and to get people to join your little 5 min of attempted fame on the board.
 
i can tell those who are well, and those are the ones who have shared in a more professional and positive manner.  you are the last that i would consider professional.  sad...

snaggletooth's picture
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RULiquid wrote:
man you guys are pretty low.  i can tell you arent happy with your current life as a broker or else you wouldnt have so much negativity.  if you are always getting mad at those looking to put a foot in the door then dont come to the rookie board.  go make a gripe thread about how unhappy you are.  like kids..."go get your 80 dollar walmart suit" wow i bet it took a lot to think that one up. 
 
pretzel head you are putting spin on my comments so you can poke at someone.  go find someone else to do this too.  if you really dont like new people in the industry then go find someone at your office that is new. 
 
"You couldn't find the search button without being directed to it"
you act like you trained me in person how to navigate this website and am posting my results online.  this is another sad stab to try to make everyone think you are funny and to get people to join your little 5 min of attempted fame on the board.
 
i can tell those who are well, and those are the ones who have shared in a more professional and positive manner.  you are the last that i would consider professional.  sad...

You have it all wrong.  How can you equate negative posts to not being happy in the business?  I love what I do, I love the money I make, and I will love the money I ultimately will make.  You just wait and see what this business is like once you start.
Oh wait I hear it now, "Attention Wal-Mart shoppers!  We are having a rollback on financial plans in the back corner of the store...It's now cut in half from $4.00 to $2.00.  Make sure to bring your green card for verification purposes." 

OldLady's picture
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RU, this is generally a terrific profession for those who survive the first three years.  But those three years are incredibly difficult.  I absolutely love what I do and I'm so blessed. 
If after doing some reading here, you're still interested, the next step would be to contact your local firms and see if they are hiring.  I know at the Dain office I was at, a trainee wasn't hired for the entire time I was there - 7 years.  We were fully staffed the entire time I was there.  Interview and find out if you like the people and ask those questions about their training, marketing support, salary, etc. 

RULiquid's picture
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thanks old lady..and i have already been in contact.  i am pretty good with selling as i have past experience in this.
 
 
curious...what worked for YOU when you started out?

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RULiquid wrote:
man you guys are pretty low.  i can tell you arent happy with your current life as a broker or else you wouldnt have so much negativity.  if you are always getting mad at those looking to put a foot in the door then dont come to the rookie board.  go make a gripe thread about how unhappy you are.  like kids..."go get your 80 dollar walmart suit" wow i bet it took a lot to think that one up. 
Nope
pretzel head you are putting spin on my comments so you can poke at someone.  go find someone else to do this too.  if you really dont like new people in the industry then go find someone at your office that is new. 
I never said that I didn't like new people in the industry, RU, I was trying to help you.  Those are the same questions a BOM will ask you in an interview (and many more).  You need to know the answers to those questions.  The Judge would agree with me on that.  Also, you need to be aggressive and confident without coming off as cocky and rude, knowledgeable, while not being a "know-it-all."
If you can't handle some light-hearted jabs then you can't handle the CONSTANT rejection that you will receive in this business.  This business IS sales.  This business IS about numbers.  The reason people say cold calling is dead is A) They're too scared to smile and dial, or B) They made cold calls to 100 numbers, got no positive results so they gave up, or C) See A.  Without CONSTANT prospecting, your pipe dries, you income dies.  As for the rest of your drivel below... Boo Hoo.  Get thicker skin or go sell ice-cream. 
 
"You couldn't find the search button without being directed to it"

you act like you trained me in person how to navigate this website and am posting my results online.  this is another sad stab to try to make everyone think you are funny and to get people to join your little 5 min of attempted fame on the board.
 
i can tell those who are well, and those are the ones who have shared in a more professional and positive manner.  you are the last that i would consider professional.  sad...

As for the rest of

OldLady's picture
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RULiquid wrote:thanks old lady..and i have already been in contact.  i am pretty good with selling as i have past experience in this....curious...what worked for YOU when you started out?
I will tell you because you asked, but my methods would be a poor or failing template to use.  First, I started in the business before the AUM days, and we didn't get much training salary/support.  You just needed to sell enough to take home enough to pay the bills.  Newbies now have way more pressure to gather assets than we did. 
Second, I had a small marketing nest egg saved up that I used to fund seminars.  In my day, I could mail out invites, rent a hotel hall, serve coffee and iced tea, and have a solid turnout.  I started with a 3 session (2 hour per session) basics of money management seminar.  Would meet with attendees starting the next day and would open accounts and they would write checks at that meeting. 
I also made arrangements to teach adult ed personal finance classes in every community college within a 3 hour driving radius and spoke before any group that would have me.  I worked night and day for 3 years.
I have never cold called or cold walked.  My practice is entirely from teaching and referrals.  I know many people think they are great public speakers, but I am superb.  I have an extensive public speaking background from a long time before I entered the business.  I close a very high percentage of the people who attend my classes.  I've given up tracking the numbers now, but I came across an adult ed class roster I taught about 3 years ago with about 22 attendees.  Every single one of them had become a client (that was exceptional, but a high percentage of my attendees end up working with me).
My father was the head of the trust department of the largest trust company (and bank) in the state for many, many years in my town.  So I have very good name recognition and credibility.     
If I were entering the business today, I don't know if I could make this model work.  I'd guess I'd have to feed people, so the cost goes up, so I have to sell more to recoup costs, but I'm already selling as high as I can, so I'd just take home less...  The advantage of cold calling and canvassing is the cost is low, low, low.  
You can't get referrals until you have some experience & clients.  When you start out, you're dangerous and know next to nothing -- so your friends, family, acquaintances don't want you managing their money (& you don't want pity accounts).  So your only option is to open accounts with strangers.  How do you get them to give you their money to manage? 
   

Chris Hansen's picture
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Joined: 2007-07-22

I'm an advisor at Dain. I was in the trainee program a year and a half ago. Its a decent firm. The training is more or less a waste of time in my opinion. The product offering from the firm as well as the execution of trades is impressive. What I enjoy most is the lack of pressure to sell certain products. I really feel like I'm running my own business, like I have the discretion to come and go as I need, to focus on the type of offering and presentation that I feel is appropriate.
Like most firms, management offers no assistance on marketing cost for rookies. When I started I paid for everything from seminars to mass mailers. It is possibly the closest you get to being Indy without having to pay staff or your own benefits package.
The biggest problem? The firm does absolutely NO FRICKING advertising. So, when you're cold calling you have to repeat the name of the firm at least three times. By the time you get done with the third pronounciation - the call is nearly a waste. Instead of saying RBC Dain Rauscer, I usually say "RBC" or "Dain Rauscher" - but never the two together. Fortunately the name is being changed to RBC Wealth Management in the fall so maybe that'll ease the pain.
All in all, it's a good firm. Because of the mediocre training program, I'd recommend it to more established brokers who are bringing their business over as opposed to a rookie just starting out.
For a new guy, I'd recommend a Merrill or SB if you can get in.

apprentice's picture
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CHansen - what kind of Branch manager support did you get during your first year?

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OldLady wrote:
RULiquid wrote:thanks old lady..and i have already been in contact.  i am pretty good with selling as i have past experience in this....curious...what worked for YOU when you started out?
I will tell you because you asked, but my methods would be a poor or failing template to use.  First, I started in the business before the AUM days, and we didn't get much training salary/support.  You just needed to sell enough to take home enough to pay the bills.  Newbies now have way more pressure to gather assets than we did. 
Second, I had a small marketing nest egg saved up that I used to fund seminars.  In my day, I could mail out invites, rent a hotel hall, serve coffee and iced tea, and have a solid turnout.  I started with a 3 session (2 hour per session) basics of money management seminar.  Would meet with attendees starting the next day and would open accounts and they would write checks at that meeting. 
I also made arrangements to teach adult ed personal finance classes in every community college within a 3 hour driving radius and spoke before any group that would have me.  I worked night and day for 3 years.
I have never cold called or cold walked.  My practice is entirely from teaching and referrals.  I know many people think they are great public speakers, but I am superb.  I have an extensive public speaking background from a long time before I entered the business.  I close a very high percentage of the people who attend my classes.  I've given up tracking the numbers now, but I came across an adult ed class roster I taught about 3 years ago with about 22 attendees.  Every single one of them had become a client (that was exceptional, but a high percentage of my attendees end up working with me).
My father was the head of the trust department of the largest trust company (and bank) in the state for many, many years in my town.  So I have very good name recognition and credibility.     
If I were entering the business today, I don't know if I could make this model work.  I'd guess I'd have to feed people, so the cost goes up, so I have to sell more to recoup costs, but I'm already selling as high as I can, so I'd just take home less...  The advantage of cold calling and canvassing is the cost is low, low, low.  
You can't get referrals until you have some experience & clients.  When you start out, you're dangerous and know next to nothing -- so your friends, family, acquaintances don't want you managing their money (& you don't want pity accounts).  So your only option is to open accounts with strangers.  How do you get them to give you their money to manage? 
   

Old lady, do you still teach the personal finance classes?  If so, do you still have the same level of success that you did in the past?
 
Thanks

OldLady's picture
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Joined: 2006-11-19

pretzelhead wrote:Old lady, do you still teach the personal finance classes?  If so, do you still have the same level of success that you did in the past?  Thanks  
I still teach them and I have an amazing level of success.  Primarily sponsored classes: community college, women's church groups, etc.  I like that they do all the marketing -- I just show up and teach.  It costs me nothing. 
The arrangement with the colleges is I teach the attendees and not market them.  So I can't do the old "this is really a 4 session class, the fourth will be your free meeting with me."  I never do anything with product.  I always get calls following the classes for appointments -- I just give them my e-mail and office phone number, so they can call or e-mail with questions.  I never have cards at these & if anyone asks for one, I make a big deal of explaining that I'm there to provide impartial information to help the public and I would consider it inappropriate to be seeking clients from the class.  People eat it up.  If someone persists in "how can I meet with you?" I'll just mention that I'm in the phone book and they're welcome to look me up & give me a call.  I never call attendees for appointments (that's one of the reasons I have such a great reputation as a presenter).
When it's over, I put them in my database and drip on them monthly with my letters.  I don't charge the groups, but allow them to charge for my workshops if they want to (I'm thinking of offering PTA groups a college planning workshop  that they can charge for as an easy money-maker for their projects).  I do run off and bring my own handouts, so I have that expense and my time. 
Just did a class (kind of a pre-retirement targeted class that I did a mailing for & hosted myself), 27 were signed up, 24 attended (it is July -- I can't imagine they can't find something better to do!), 20 appointments are set -- about half of them have already happened.  I'm just going into the second, closing meetings starting this week.  
But I've been doing this a long, I have a terrific word of mouth in a very small city (120,000 people).  I'm guessing what I'm doing shouldn't work and probably doesn't for most or there would be fewer advisors buying folks dinner and more doing it my way.  I'm reluctant to hold this out as a successful method.

Chris Hansen's picture
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Joined: 2007-07-22

pretzelhead wrote:OldLady wrote:
RULiquid wrote:thanks old lady..and i have already been in contact.  i am pretty good with selling as i have past experience in this....curious...what worked for YOU when you started out?
I will tell you because you asked, but my methods would be a poor or failing template to use.  First, I started in the business before the AUM days, and we didn't get much training salary/support.  You just needed to sell enough to take home enough to pay the bills.  Newbies now have way more pressure to gather assets than we did. 
Second, I had a small marketing nest egg saved up that I used to fund seminars.  In my day, I could mail out invites, rent a hotel hall, serve coffee and iced tea, and have a solid turnout.  I started with a 3 session (2 hour per session) basics of money management seminar.  Would meet with attendees starting the next day and would open accounts and they would write checks at that meeting. 
I also made arrangements to teach adult ed personal finance classes in every community college within a 3 hour driving radius and spoke before any group that would have me.  I worked night and day for 3 years.
I have never cold called or cold walked.  My practice is entirely from teaching and referrals.  I know many people think they are great public speakers, but I am superb.  I have an extensive public speaking background from a long time before I entered the business.  I close a very high percentage of the people who attend my classes.  I've given up tracking the numbers now, but I came across an adult ed class roster I taught about 3 years ago with about 22 attendees.  Every single one of them had become a client (that was exceptional, but a high percentage of my attendees end up working with me).
My father was the head of the trust department of the largest trust company (and bank) in the state for many, many years in my town.  So I have very good name recognition and credibility.     
If I were entering the business today, I don't know if I could make this model work.  I'd guess I'd have to feed people, so the cost goes up, so I have to sell more to recoup costs, but I'm already selling as high as I can, so I'd just take home less...  The advantage of cold calling and canvassing is the cost is low, low, low.  
You can't get referrals until you have some experience & clients.  When you start out, you're dangerous and know next to nothing -- so your friends, family, acquaintances don't want you managing their money (& you don't want pity accounts).  So your only option is to open accounts with strangers.  How do you get them to give you their money to manage? 
   

Old lady, do you still teach the personal finance classes?  If so, do you still have the same level of success that you did in the past?
 
Thanks

Depends on what you call support.
The support I did recieve consisted of advising me of how I needed to have a clear coherent understanding of the market movement each day in case a client asked for an explanation. He said I needed to know 3-4 quality "known-name" stocks that I could recommend and know their story - from eps, to div yield to ceo name to annual high/low price. Of course he reminded me if I was not working hard enough, making enough calls, etc.
Where I didn't get support? All seminars, advertising, mailing, marketing was put together/paid from by me.
The one thing that didn't happen that pissed me off was that I was the only rookie in my class who's manager didn't pass along any free/junk accounts to cut my teeth on. Matter of fact, of the 11 brokers in my office, no one wanted to part with their junk accounts.

pretzelhead's picture
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Joined: 2007-03-23

OldLady wrote:
Just did a class (kind of a pre-retirement targeted class that I did a mailing for & hosted myself), 27 were signed up, 24 attended (it is July -- I can't imagine they can't find something better to do!), 20 appointments are set -- about half of them have already happened.  I'm just going into the second, closing meetings starting this week.  

How many mailings did you send out to get 27 folks signed up?  Was it a targeted list?  Where did you get your list?

OldLady's picture
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Joined: 2006-11-19

I sent out not quite 1,200 postcard invites.  Yes it was a targeted list, sorry if it was unclear when I said it was a targeted class.  I got a company directory from a client.  I will do the same workshop again a month from the first -- the exact same postcard invite (except with the date change) to the same list.  I actually expect I may as much as double the response rate, because of the word-of-mouth from the first workshop.  I'll let you know -- we mail next Monday & the workshop will be the following Tuesday.
 

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