Financial Advisor *teams*

17 replies [Last post]
MoMo's picture
Offline
Joined: 2006-05-05

I have not seen this topic covered in this forum yet, and please don’t bash me if it is a bad question. I have been working as an analyst and making 50k for over 9 months now. However, I was recently offered a position (after applying of course) to join up with UBS. I have heard some people say that leaving a decent salary of 50k to make 30k is insane, and that the failure rate is something to the tune of 70 percent. But the branch that I will join has groups that work as “teams”. 3-4 guys on a team with leads already generated for me to work with… Helping them bring in the client and working together to close the accounts… Is this better than going solo? Any advice would be great.

Helter Skelter's picture
Offline
Joined: 2006-09-19

THe leads won't be generated FOR you...they will be generated BY you.

Shmer33's picture
Offline
Joined: 2004-12-06

Momo:
 
Why would somebody give you leads?  If leads grew on trees (bank program) then the payout at UBS would not be so high…   <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
    

BrokerRecruit's picture
Offline
Joined: 2005-04-19

What kind of analyst are you?  If you're on the institutional or fund side, I think a move like this is nuts, IMHO.

JCadieux's picture
Offline
Joined: 2005-01-23

MoMo wrote:I have not seen this topic covered in this forum yet, and please don’t bash me if it is a bad question. I have been working as an analyst and making 50k for over 9 months now. However, I was recently offered a position (after applying of course) to join up with UBS. I have heard some people say that leaving a decent salary of 50k to make 30k is insane, and that the failure rate is something to the tune of 70 percent. But the branch that I will join has groups that work as “teams”. 3-4 guys on a team with leads already generated for me to work with… Helping them bring in the client and working together to close the accounts… Is this better than going solo? Any advice would be great. Momo-Relax.  It's a good question.I assume that the leads will be generated by the team, not by the company.  It's not unusual for a team to bring in a junior partner when their marketing begins to bring in a lot of small (but potentially profitable) prospects.  It allows the senior partners to focus on the big leads without throwing away clients in the $100K to $500K account range.This has been answered elsewhere on the board, so I'll summarize.Being on a team is a great way to get started.  Read your teaming agreement carefully.  Get everything in writing.  Find out what has happened to other junior partners in this team.Don't be afraid to ask the question:  "If this all falls apart, can I take my clients with me."Also ask:  "What happens after X years when I'm operating at the level of a senior partner."Good luck and let us know how it works out.

MoMo's picture
Offline
Joined: 2006-05-05

Thanks for the information JC.

futureadvisor's picture
Offline
Joined: 2006-08-27

What is a typical team structure/offer?  Most of the guys I know who joined teams already were producing for a year or two, but if you start out as a new broker, what are you bringing to the team?
I think that the team approach sounds great, and am considering it myself, (espeically if you are having trouble closing you can bring in a senior partner, and you can say that your team already has x dollars under managment ect)  but am not sure how the payout works?

logan's picture
Offline
Joined: 2005-05-08

Should be offering you $45k or so.   
Unless $30k was just thrown out there for sake of conversation.

futureadvisor's picture
Offline
Joined: 2006-08-27

If a team wants to add a junior partner is the common approach to say that you are on a salary 45K or whatever?  And then they take all of your comissions?  But when you start up as an advisor in training dosn't the firm pay you a salay.
Is that really fair?  What if you bring in a lot of business and are producing more than your salary? 
Jeff Cadieux do you have any insights about typical team strucutre who are adding a junior team member who has no production for the past year?  And do you still get a salary from the firm?

fritz's picture
Offline
Joined: 2006-01-11

They are bringing you in for their benefit, not yours.  Make sure you can keep your accounts if you stay at the same firm.  This could work out good for you, but 95% of the time it will not from what i have seen in similar situations. 

BondGuy's picture
Offline
Joined: 2006-09-21

JC's answer just about covers it. I would add, that for a young person just starting out, the exposure to successful FAs is priceless.

JCadieux's picture
Offline
Joined: 2005-01-23

futureadvisor wrote:If a team wants to add a junior partner is the common approach to say that you are on a salary 45K or whatever?  And then they take all of your comissions?  But when you start up as an advisor in training dosn't the firm pay you a salay.
Is that really fair?  What if you bring in a lot of business and are producing more than your salary? 
Jeff Cadieux do you have any insights about typical team strucutre who are adding a junior team member who has no production for the past year?  And do you still get a salary from the firm? With my clients, it's very very rare for a new kid to be hired into a team as a full or junior partner.   Instead, you'll be in the role of a sales assistant.Your title could be anything: including Financial Advisor or Senior Associate.  But the title is just marketing.  You're a sales assistant.  Day by day you'll be building a book for somebody else.There's nothing wrong with starting as a sales assistant on a team, but you need to build a book of your own in order to grow out of the role.Note:  a common exception happens when you (or a family member) already know somebody on the team.  This is an excellent way to get started.If you want to get onto a team, join a good training program and perform well as an individual.  Consider it a twelve month interview.  At that point, teams may be interested in you.BondGuy wrote:JC's answer just about covers it. I would add, that for
a young person just starting out, the exposure to successful FAs is
priceless. Good point, BG.   Excellence is contagious.

futureadvisor's picture
Offline
Joined: 2006-08-27

If I worked as an intern for a team during college, how would it work if they hire me as a jr partner?  I wanted to get some sort of idea on how other people in a similar situation are working on teams.
I know that it is possible, and would only start out as an FA right now if I could do it on a team, but want to be able to build my own book, not just build someone elses.
Then what would be the standart structure if I worked as a solo advisor for a few years and then joined a team?

Helter Skelter's picture
Offline
Joined: 2006-09-19

futureadvisor wrote:
If I worked as an intern for a team during college, how would it work if they hire me as a jr partner?  I wanted to get some sort of idea on how other people in a similar situation are working on teams.
I know that it is possible, and would only start out as an FA right now if I could do it on a team, but want to be able to build my own book, not just build someone elses.
Then what would be the standart structure if I worked as a solo advisor for a few years and then joined a team?

Son, I think you only need to be worrying about studying for your U.S. History II exam.

Boomer's picture
Offline
Joined: 2005-04-01

If a young broker was to start with a team....what would be a fair setup?

I am wanting some details...

I am talking with a very large team of 3 (corner office types). They are
targeting a specific market and I have some strong conections in that
market.

What type of things should I ask or bring up?

JCadieux's picture
Offline
Joined: 2005-01-23

Boomer wrote:If a young broker was to start with a team....what would be a fair setup?

I am wanting some details...

I am talking with a very large team of 3 (corner office types). They are
targeting a specific market and I have some strong conections in that market.

What type of things should I ask or bring up?This board needs a FAQ page.  The same questions keep coming up.I did a search for the word "Team" in posting subjects and came up with nine threads with over 100 replies in them.  Here's a quick cut and paste from one of my previous posts:(Note, highlighting added because I cut this from search results...)-----------------------------------------Starting in a team can be an excellent place to begin your career.  But almost no entry-level advisors can get onto a team without some major compromises.Be sure to read your teaming agreement carefully.  Consult a lawyer too.  There are several issues that should be addressed.Be
sure you know your role going in.  Some "junior partners" end up being
no more than sales assistants.  Who owns your book?  Do you get
production credit?  How will your performance be reported to the firm? 
Can you leave the partnership and bring your clients with you?I know several trainee-level team
members who worked for a large firm that recently trimmed
"underperformers" in its training program.  A number of these brokers
were surprised to discover that most of their production credit had
gone to the senior team members.  They were terminated as underperformers for that reason.It's probably better to establish yourself as in individual producer first.  Then you'll be able to enter the team as an equal partner, not a junior one.

  • Is the deal balanced?  Will your contribution roughly equal your split percentage?
  • What contribution will the team make to you?  Is there a synergy that will make the team more than the sum of its parts?  If not, then you may be better off on your own.
  • Is the small print acceptable to you?  Do you understand it all?  If not, then get legal advice.
  • Would you trust all of these guys with your checkbook?  Your car keys?  Your family?  If not, then think very hard about this.

Also,
keep in mind that I'm a recruiter, not a FA.  This means I've seen a
LOT of brokers and done a LOT of deals.  But my experience is limited
when it comes to living with a team in the long-term.Anyway, hope this helps.

BondGuy's picture
Offline
Joined: 2006-09-21

These are business partners you are evaluating. Much like a marriage this has to work on many different levels. You and your partners need to be a match for each other, have complementary work habits, business ethics , and a shared vision of the future.
Many of these relationships are traditional hunter-skinner type of partnerships. The younger FA is usually the hunter, delivering the meat to the table, where the Senior Broker- Skinner  takes over and makes a meal out of it. Fortunately, the hunter's job is the easier of the two positions. It takes talent and experience to turn prospects into satisfied paying clients. Younger hunters lack this experience and need to find their talent. Unfortunately, because the hunter position is the easier of the two, hunters can lead short unhappy lives as they are more easily replaced. Within a partnership it is important to outline expectations in writing before you walk through the front door on day one. This includes a job description for all team members. This makes everyone's job clear cut. If the Senoir partners want to add to your workload down the road, time to revisit the partnership agreement. Everything has a price. More work equals more M-U-N-Y.
 Put all the details in writting including the terms of a divorce.

vbrainy's picture
Offline
Joined: 2006-07-26

Most every successful advisor I have seen is very self centered and selfish.  Honestly.  Never assume they are trying to help you out of the goodness of their heart.  Like someone else said, they are bringing you on for their benefit.  Make sure your eyes are wide open.

Please or Register to post comments.

Industry Newsletters
Careers Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×