57 replies [Last post]
AllREIT's picture
Joined: 2006-12-16

WealthManager wrote:Not an invalid point.  I'm a newbie (three
weeks of production) and I don't open anything up that's less than
$250k unless there is a real opportunity for more in the future. 
Maybe it's out payout structure but the small accounts are just not
really worth any of our time.  However, it's the fault of the FA
if they can't realize that there are opportunities for 
significant amounts of assets even if the accounts they setup are small.--WM

As an ML trainee you are in no position to turn down any monies.

Who cares if you can service them, just open them.

Fact is that converting customers from ML is most easy, since the
assets at any cost culture means that smaller accounts get shoved
aside. In fact the same is true at all the national wires. It's very
easy to explain that "Your broker doesn't care about small accounts, he
is too busy chasing after the next whale".

With regionals a simple "You're broker is an A-share pusher who doesn't
care about your investments" will do. If you see newish closed end
funds, a quick explanation of how CEF's work (i.e don't work) can be
like battery acid on the relationship.

It's like having a whole sardine key chain.

rightway's picture
Joined: 2004-12-02

It is all about the business you want to build.  If you want to
feast on $50k to $300k accounts that are not being serviced properly at
Merrill Lynch you can hang a shingle, or whatever, and do very very
well.  All the while serving a segment of the market that needs
help and appreciates your attention.

This is not the business model Merrill Lynch wants to prosper in, and
that is OK isn't it?  Over the last 8 years I have migrated my
business from the $200k profile to the $2,000,000 profile.  This
change of focus more than tripled my production and cut my stress and
time spent at work down significantly. 

When I decided to FOCUS on this market seriously, I found the that
these families just like everyone else...just with more zero's at the
end of their statement...with two big exceptions: they expect to pay
fee's and don't call me every month about market swings and requests
for distributions.  There are piles and piles and piles and piles
and piles of these families out there and they are easier to close,
easier to service, and far, far more profitable.  They are just
harder to get in front of.

The typical POA needs to embrace the tools they have, partner up with
specialists and Sr. FA's, and get after the larger clients.  
It is not a social statement about investors, just a business model

silouette's picture
Joined: 2007-03-13

Well said.

BullBroker's picture
Joined: 2006-12-26

This is exactly why I went to Merrill Lynch right out of the gate.  As far as I am concerned if brokers like Allreit and the like want to make a living off of the scraps of the Merrill table be my guest.  I went to ML because they have the best training and no one can argue with the fact that they know how to land the big clients.  I realize starting out I will have to service all levels of accounts, but I really want to build my book the right way.  I have saved up enough money and am not tied down with kids yet where I can afford to do this career the right way.  Build a book off of quality clients and in 10 years be able to be completely secure.  So to all those that want to make a living off of scraps, go steal the $50K Merrill accounts and I will see you in 10 years, see how all that pans out for ya!

blarmston's picture
Joined: 2005-02-26

Right- good to hear from you buddy. I thought you had given up on this forum...

BankFC's picture
Joined: 2005-05-27

There is a lot of truth to the statement that HNW are easier to close.  I have definitely found that to be true.

rightway's picture
Joined: 2004-12-02

blarmston wrote:Right- good to hear from you buddy. I thought you had given up on this forum...

Its nice when my absence is noticed...only if my presence had the same effect!!

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