How hard are these goals to meet....really?

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bullmarket2711's picture
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Joined: 2010-12-01

 How hard are the following goals to meet for a rookie.....In the First 12 months....1.8 AUM Total , 40k gross, 1.8AUM Fee Based36 Month - 3.5 AUM, 235k Gross, 3.6 AUM fee based Just wondering...any additional insight would be great as well.

SuperMan's picture
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Joined: 2010-09-18

They suck.  How much are you going to charge 1.8mm AUM to get 40k gross? 2.5%?  Plus, you are not adding it all at once.  Some will come slowly so it won't be on your books all year. 1.8mm first year is terrible -  I did 8mm first year. STEP YOUR GAME UP! Good luck!

squash2's picture
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Joined: 2010-03-09

I think these are the goals for his program SUPERMAN...Those goals are definitely attainable... $1MM in a pru va with a 1% trail will get you the gross. Like super said a lot of wire guys raise way more assets than that..Is that the new MSSB numbers?

bullmarket2711's picture
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Joined: 2010-12-01

Yeah those are for MSSB.... I thought they were pretty reasonable.  I have about 2 yrs experience and  I was trying to gauge how duable that is. To Me....I thought they were pretty attainable.

bullmarket2711's picture
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Joined: 2010-12-01

and they want 300k in the first 3month...600k for first tier

palmpre's picture
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Joined: 2010-09-07

When i look at them they wanted $7M AUM and $75K gross in first year. 

palmpre's picture
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Joined: 2010-09-07

Are they still offering 50% payouts for first 2 years?

bullmarket2711's picture
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Joined: 2010-12-01

Palm,First this is for the training program just so you know.  Maybe you were under the old program?  This includes a salary and you don't get paid till you surpass the salary.  The guy I spoke to told me 38% payout...Idk where 7AUM came from.  Even the 1st tier is 3AUM i think for the first year

primoisanass's picture
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Joined: 2010-10-23

Not unatainable goals. The problem will be in three years when the change the game on you midstream. Welcome to the biz

SuperMan's picture
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Joined: 2010-09-18

Oh, okay.  Well, if those are not your personal goals you can do it easy then.

BigFirepower's picture
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Joined: 2010-07-09

Hey everyone, ok, we all know this doesn't pass the sniff test. Sounds like MSSB has got a new scam on newbies going. Somewhere, there is a catch. And, for all you newbies out there, or folks looking at joining MSSB, just read the Massachusets Investigation of the firm regarding Resumes. Tell you everything you need to know about that place. Can only be described as a sweatshop.

squash2's picture
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Joined: 2010-03-09

My guess would be that those numbers are the minimum to keep from getting fired.. However in year 3 when the salary is gone you would be starvingSO year 3 end would be 3.6MM assuming you are earning 1% would be $36K@38%payout=fail...The only reason to do this would be salary for 3 years then jump with your assets(hopefully more than $3.6MM) and go indy/bank/ria/whatever...

bullmarket2711's picture
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Joined: 2010-12-01

i think thats pretty obvious.... No one will survive on 3.6aum @ 1%.  Those are the minimum.  1st tier is 3.6aum per year with 12-13 AUM by year 3. 

bullmarket2711's picture
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Joined: 2010-12-01

as far as a investigation of the firm...i do not see what you are talking about as well.  Please add

Greenbacks2's picture
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Joined: 2010-03-03

Here we go again. Rookies trusting a wirehouse. How many times have we been down this road? They bring them in pay them a wage for three years and then fire them or starve them out! Give them just enough training to know more than the average guy on the street, but not enough to know what they are doing, and scew the !@$!  out of clients and further demonize this business.   Rookies, please when we say never trust a wirehouse, WE MEAN IT! You do not trust them as a client or a rep! 

newregrep's picture
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Joined: 2010-03-22

That sounds extremely similar to ML goals.  I did some number crunching, and to have a decent chance of surviving; we need to bring in 10m in assets per year, adding 100k gross/annually to be a successful advisor like BG, BFP and all the other guys on this board.It's going to be a tough road....my Plan A is to make it, and my Plan B is to do Plan A. 

BigFirepower's picture
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Joined: 2010-07-09

Bullmarket, go to Google and enter ... State of Massachusets Morgan Stanley Smith BarneyThe firm was giving access to some rep, in contacting resumes online from a paid source. There was lack of oversight, violation of the online recruitment contract, and hundreds of violations of the national DNC list. The state did a very significant investigation, and the culture of the firm is exposed to a high degree. The fine for this, is going to be huge, and will no doubt have a huge impact on new employees, and any rep at the firm using the telephones. The culture of the firm is maybe the important reason to look...

BigFirepower's picture
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Joined: 2010-07-09

Newregrep, .....Successful Advisor, hmmm. Thanks for the compliment, but...I'm not convinced there is such a thing. Our careers are all about the journey, there seems to be no destination...But, thanks for bringing this up, got me thinking.Very important for any new rep, to define "success". If you don't, the goal posts will move forever....

Times7's picture
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Joined: 2010-10-26

The term "diminishing returns" comes to mind. From economics class, the point on the graph where the lines and curves of where GDC income, haircut payout, taxes, compliance, payroll and the fun business expenses and attending all of the kids soccer games and helping the coach by throwing whiffle balls in the sleet in at the practice in the spring meet. In golf, that would be above 45 degrees and not raining (misting okay).

Sportsfreakbob's picture
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Joined: 2008-08-24

I was told that the MSSB goals are in this neighborhood. Was also told that there is no margin for error. They give you the goals and you need to make them in the prescribed time frame. If you miss the numbers, at 6 months and one year, you are gone.Used to not be that way at SB - If you missed the goals but were working hard and the manager felt you had the ability but just needed some more time, you got the extra time. Now, its shoot first don't bother asking any questions

newregrep's picture
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Joined: 2010-03-22

Sports, you are absolutely right.  I'm not 100% sure of MSSB model but in ML, you must meet 3 criteria for you to NOT get fired.  If you are overweight in PC, but missed the net annuitized assets or net new household (250k account), there is no second time.  So make sure you balance each bucket accordingly.6 months and 1 year numbers are crucial and they take a monthly snapshop there after.Even given this situation, I still think it's a great place for a newbie to start.  They will pay a decent base 75-100k, while you study, and ramp up. 

Spaceman Spiff's picture
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Joined: 2006-08-08

Did I read that correctly that they want you to gather $10 million a year?  Wow.  I hate to burst your bubble, but as a noob, those numbers are going to be next to impossible.  It's going to take a few months, let's say 3, to build a decent pipeline.  You might be prospecting like crazy, but nothing big is going to jump into your lap.  Then you've got to gather more than $1 mil a month for the rest of the year?  Those are some seriously high goals.  How do you balance the buckets, without creating a conflict of interest?  If you're short on your annuitized assets, does that mean everyone gets a wrap account whether it is appropriate or not?It sounds like MSSB's goals are ridiculously easy while MLs goals are ridiculously hard.  Either approach could potentially spell failure for the noobs in their programs. 

TopNotch's picture
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Joined: 2009-08-20

There is still some leeway for the people hired under the Smith Barney side that have different goals than MS side.  I talk to a guy every day that I was in training with, he was SB side I was MS side, he didn't have near the gross or AUM I did, and he is underperforming on all 3 tiers but he is still there and even he doesn't understand it.  Complex Manger that hired him from SB side trying to feed him with accounts, bottom line SB hired him and is looking out for him so she looks good.  Moving on......................................

newregrep's picture
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Joined: 2010-03-22

Spaceman Spiff wrote:Did I read that correctly that they want you to gather $10 million a year?  Wow.  I hate to burst your bubble, but as a noob, those numbers are going to be next to impossible.  It's going to take a few months, let's say 3, to build a decent pipeline.  You might be prospecting like crazy, but nothing big is going to jump into your lap.  Then you've got to gather more than $1 mil a month for the rest of the year?  Those are some seriously high goals.  How do you balance the buckets, without creating a conflict of interest?  If you're short on your annuitized assets, does that mean everyone gets a wrap account whether it is appropriate or not?It sounds like MSSB's goals are ridiculously easy while MLs goals are ridiculously hard.  Either approach could potentially spell failure for the noobs in their programs.   Sadly, this is the truth.  My absolute minimum goal is 40k gross, 1.8mill annuitized assets and 2 (250k) accounts for the 1st year.  But if I follow that, I'll never eat and succeed.  10 million is the goal annually to have a decent book eventually...but I can keep my job as long as I bring in those assets I stated above.And you're right Spiff, the wrap accounts must be done or you'll be canned.  You can't balance the bucket without conflict of interest...sadly.

palmpre's picture
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Joined: 2010-09-07

newregrep wrote:Sports, you are absolutely right.  I'm not 100% sure of MSSB model but in ML, you must meet 3 criteria for you to NOT get fired.  If you are overweight in PC, but missed the net annuitized assets or net new household (250k account), there is no second time.  So make sure you balance each bucket accordingly.6 months and 1 year numbers are crucial and they take a monthly snapshop there after.Even given this situation, I still think it's a great place for a newbie to start.  They will pay a decent base 75-100k, while you study, and ramp up.  Nobody is getting this... average is $50k.. higher the salary you take, higher the goals

newregrep's picture
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Joined: 2010-03-22

palmpre wrote:newregrep wrote:Sports, you are absolutely right.  I'm not 100% sure of MSSB model but in ML, you must meet 3 criteria for you to NOT get fired.  If you are overweight in PC, but missed the net annuitized assets or net new household (250k account), there is no second time.  So make sure you balance each bucket accordingly.6 months and 1 year numbers are crucial and they take a monthly snapshop there after.Even given this situation, I still think it's a great place for a newbie to start.  They will pay a decent base 75-100k, while you study, and ramp up.  Nobody is getting this... average is $50k.. higher the salary you take, higher the goalsIt all depends on your location.  I have the highest salary ML can offer and my goals are not any different than 50k.

Spaceman Spiff's picture
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Joined: 2006-08-08

newregrep wrote:Spaceman Spiff wrote:Did I read that correctly that they want you to gather $10 million a year?  Wow.  I hate to burst your bubble, but as a noob, those numbers are going to be next to impossible.  It's going to take a few months, let's say 3, to build a decent pipeline.  You might be prospecting like crazy, but nothing big is going to jump into your lap.  Then you've got to gather more than $1 mil a month for the rest of the year?  Those are some seriously high goals.  How do you balance the buckets, without creating a conflict of interest?  If you're short on your annuitized assets, does that mean everyone gets a wrap account whether it is appropriate or not?It sounds like MSSB's goals are ridiculously easy while MLs goals are ridiculously hard.  Either approach could potentially spell failure for the noobs in their programs.   Sadly, this is the truth.  My absolute minimum goal is 40k gross, 1.8mill annuitized assets and 2 (250k) accounts for the 1st year.  But if I follow that, I'll never eat and succeed.  10 million is the goal annually to have a decent book eventually...but I can keep my job as long as I bring in those assets I stated above.And you're right Spiff, the wrap accounts must be done or you'll be canned.  You can't balance the bucket without conflict of interest...sadly.You might want to have some conversations with some veteran FAs about your $10 mil a year goal.  I've had that conversation with some big hitters in my area and all of them think that $10 mil is a stretch for the average advisor.  It's a rare breed who can average that year after year.  Hopefully you're one of those rare breed types!  I'd be thrilled with 60% of that goal in your first year of selling. 

puts's picture
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Joined: 2010-11-23

newregrepShould I be able to get 75k in Merrill pmd program in a major metro area?  waiting for offer.

newregrep's picture
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Joined: 2010-03-22

Spiff,I know it's a really tough goal if not down right impossible.  But I have to set high goals for myself to reach some where near that...I still remember this cheesy quote "You have to shoot for the moon to lay among the stars".Puts, which state do you reside?  Is this your first job?

C_FA's picture
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Joined: 2008-12-07

These numbers (I am ML) aren't easy, but I think they're doable.  We can write mortgages as well, we get paid on the gross, it counts as a NNHH, but it's not annuitized assets.  I have one for 1.6MM in the works from a cold call back in October.  Yes, that was luck.  They can pledge assets to bring the mortgage rate down, which is what this client is doing.  So that helps a lot.  Also, annuitized assets can be annuities with trail, wrap accounts, c shares, whatever.  Don't be afraid to use some a shares to hit your goals-especially in equity funds (a few good days, and nobody sees that 4-5% upfront charge anymore).  Most new guys come in, put everybody into MFA, and don't hit the goals.  Maybe do one wrap account and one transactional, say, for munis.  Many people will use an SMA; why not do transactional munis for a year or so, and then wrap it when you've hit the goals.  Whatever is best for the client.  Also, cash counts as an annuitized asset-do a WCMA for a business.  I've got one in the pipe for 650K.  Business owners are pissed off right now the banks are giving them 0 on balances.  In a WCMA, they can keep a lot of the funds liquid, and buy some conservative fixed income (munis, funds, etc) to boost the yield on their cash a little. And still have all the benefits of a business checking account they would have anywhere else.  There are a lot of ways to skin the cat.  I'm in this business 5 years now (survived at SB, went to a bank and hated it for a year).  This is the best place to do it.  Total independence; you're aware of what you have to do, do it.  I think the only downside with Merrill is a lot of people have Merrill accounts already, at least in some of the circles I prospect in.  The better part of Merrill is, you are building a business that will feed you in a few years. 

Greenbacks2's picture
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Joined: 2010-03-03

C_FA So it is not about the client? Nothing personal, but that is what is wrong with Wirehouses. Clients get what the rep needs to stay alive and what the firm needs to sell. Same OOOOh same OOh, S#!T at the wires.  

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