How Much Did You Make Your First Year

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Ryan561's picture
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Joined: 2009-01-30

How much did you make your first year in the business?

Sam Houston's picture
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Joined: 2008-12-01

eleventy kabillion dollars.

UNDERMINDED's picture
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Joined: 2008-10-14

55k w/ GK1

B24's picture
B24
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Joined: 2008-07-08

About 60K w/GK2 ($5mm) after 8 months on own at home.

Ryan561's picture
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Joined: 2009-01-30

What is a GK1 or GK2?

Morphius's picture
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Joined: 2007-07-21

iceco1d wrote: What's the difference between a GK1 and GK2? 
1 GK, give or take a GK.   

B24's picture
B24
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They are just two different levels of "Goodknight" plans, where a veteran gives some assets to you.  A Goodknight Level 1 (GK1) is $5mm in assets, a GK2 is >$10mm in assets.  Then there are "Super Goodknights" which I think are like $25mm or more.  That's usually for huge offices, guys retiring, family situations, etc.

snaggletooth's picture
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Joined: 2007-07-13

B24 wrote:
They are just two different levels of "Goodknight" plans, where a veteran gives some assets to you.  A Goodknight Level 1 (GK1) is $5mm in assets, a GK2 is >$10mm in assets.  Then there are "Super Goodknights" which I think are like $25mm or more.  That's usually for huge offices, guys retiring, family situations, etc.
 
What does the Good Morning plan consist of?

brandnewadvisor's picture
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Joined: 2007-03-23

about 20k (year 2000)- no good knights, just late nights.  At 80 hrs/week I think I would have been better off delivering pizzas; but sure glad I didn't.

Hank Moody's picture
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Joined: 2008-11-10

brandnewadvisor wrote:about 20k (year 2000)- no good knights, just late nights.  At 80 hrs/week I think I would have been better off delivering pizzas; but sure glad I didn't.If your first year was 2000, why did you call yourself "brandnewadvisor" when you registered here, in 2007? Which one are you lying about?

The Duke's picture
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Joined: 2009-01-30

Good observation Hank....I was wondering the same thing. 

B24's picture
B24
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Joined: 2008-07-08

Somehow I remember him explaining that back several months ago.  It seemed to make sense at the time.  I just can't remember the explanation.

UNDERMINDED's picture
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Joined: 2008-10-14

Just wanna clarify B24 you made the common mistake of getting it backwards and they should really change this:

GK1=10million
GK2=5Million
Super=20+
I would think GK2 would be higher than 1 in assets but whatev.
 

B24's picture
B24
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Joined: 2008-07-08

You're right.  I wasn't really paying attention.  Thanks.

Bodysurf's picture
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Joined: 2008-08-02

$24,000; first year was 2002.

TheBigE's picture
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Joined: 2009-03-18

$63,000  in 2008.  My can sell was October 2007.  It helps when you hit the milestone bonuses. Don't plan on the new account bonus too much.  I hit it twice so far and feel like I've done fairly well. By the way, I took over a 5m existing branch.  That helped a bit but wasn't the main source of my commissions.  It's tough out here.  Be prepared to work your butt off.  

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

snaggletooth wrote:B24 wrote:
They are just two different levels of "Goodknight" plans, where a veteran gives some assets to you.  A Goodknight Level 1 (GK1) is $5mm in assets, a GK2 is >$10mm in assets.  Then there are "Super Goodknights" which I think are like $25mm or more.  That's usually for huge offices, guys retiring, family situations, etc.
 
What does the Good Morning plan consist of?
 
If you've ever had one you'd know. 
 
 
$55K inheriting a book between the size of a GK1 and GK2. 

Chuck's picture
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Joined: 2007-06-22

71k first full selling year... can sell was oct 07.  hit the milestone bonuses and got the new account bonus several times... took over an office with less than 5 million.... really miss that salary, even though it wasn't much it sure helped offset taxes and 401k contributions... starting from ZERO is really tough, but I guess if this job was easy everyone would do it.

secretknowledge's picture
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Joined: 2009-03-28

$40,000 in 1987
$75,000 in 1988

selva83's picture
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Joined: 2009-04-21

Thanks everyone.  I needed to hear it from seasoned professionals in the advisory/broker business-------------------------------------------

albuquerque
mortgage

www.directhouse.com/mortgage/Albuquerque_Mortgage_NM_Home_Loans.html

Gaddock's picture
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Joined: 2007-02-23

Year 1 - My goal was to have the same or better credit score. Goal was successful.
 
I started with AGE on Jan 27. Should have started in the previous November but I already had the series 7. They gave me a salary of $4000 a month until I was live and then a sliding scale for two years. I was live on August 1. My production up to the first Jan 1 was pathetic. 5 months I did a bit over $17k in gross. 10 hours a day cold calling and trying to get some traction. If you had a pulse you were my guy/gal. The fist half of the year my production was pathetic as I said. Mid year I got lucky and landed a few larger accounts and my gross started picking up. When I hit $60k I got a $25k bonus for expenses to be paid out in two installments on August 1.
 
My actual taxable income with salary and commissions was just over $36k (my production year and tax year are split up). I ended year on August 1 with around $78k in gross, to include the first 5 months of year 2, just barely making Crest Club. I was told that was very good but it sure didn't feel like it. My taxable income was around $58k that I just filed a month ago.
 
Year 2 - Goal is Presidents Club. Goal will be successful (I hope)
 
Starting on the next August one I was spending all day dialing and smiling and taking any and everything possible. I was getting some good referrals as the trading I was doing worked pretty well while the market was crashing down around us. Things really started picking up. Gross as of last month, month 8 of year 2, was just under $160k. Once you get over $120k you are entitled to a 25% of gross bonus. This month I'll do around $27k. At current levels I'll probably produce around $230 ish total in year 2.
 
That all being said year 2 will be ....
 
$230 ish in projected gross this coming August 1.
 
$57,500 ish in bonus. 10% of it paid in cash in Month 1 of year three, the rest vests in WFC stock over the next four years. A rookie retention like bonus???
 
The remaining $12,500 in cash as the second installment from the year 1 expense bonus.
 
I'm pretty proud and VERY VERY LUCKY!!
 
I had ZERO contacts and did every single account as a result of good old cold calls.
 
Things are really taking off. I hope to do over $500k in year thee.
 
IF I CAN DO IT YOU CAN DO IT!!!!!!!!!!!!

B24's picture
B24
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Joined: 2008-07-08

Gaddock, that would be pretty damn good trajectory if you pull it off (the 500K). Good luck.

fa09's picture
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Joined: 2009-06-03

Thanks Gaddock. Looks like I found it.

Wachbroke's picture
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Joined: 2009-08-01

125k production first year from scratch-- haven't inherited Daddy's book or picked up on the oldest FA in the office to beg for his book either-- was a 1mm producer within 7 years. What does it take?  Work and work smart.  A lot of FAs business models are dead-- they just haven't figured that out yet.  That's the advantage that new brokers have.  I built a business capitalizing on the arrogance and errors of others.

Squash1's picture
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Joined: 2008-11-19

Wachbroke wrote: 125k production first year from scratch-- haven't inherited Daddy's book or picked up on the oldest FA in the office to beg for his book either-- was a 1mm producer within 7 years. What does it take?  Work and work smart.  A lot of FAs business models are dead-- they just haven't figured that out yet.  That's the advantage that new brokers have.  I built a business capitalizing on the arrogance and errors of others.

Explain...

workinhard's picture
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Joined: 2009-08-21

Yes please explain... that is pretty awesome!

workinhard's picture
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Joined: 2009-08-21

Still would love to hear that explaination?

MrMarket's picture
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Joined: 2009-09-16

Bump

chief123's picture
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Joined: 2008-10-28

That guy was a fraud. He won't come back and tell you how..

Moraen's picture
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Joined: 2009-01-22

I agree with chief. Guy was full of sh!t.

hoss's picture
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Joined: 2009-09-06

Seriously?  125K is above average but not by much.  I would assume he hasn't posted a reply because he has been busy prospecting and selling.  This is a 50 to 60 hour a week job, probably more in the first year or three.  Broken business model could refer to the commodotized trading model.  You'd better offer something else or you're done.  

MrMarket's picture
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Joined: 2009-09-16

hoss wrote: I would assume he hasn't posted a reply because he has been busy prospecting and selling.   
No, he is posting on other threads.   Perhaps he has conveniently forgotten about answering the question?

Squash1's picture
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Joined: 2008-11-19

Wachbroke wrote: 125k production first year from scratch-- haven't inherited Daddy's book or picked up on the oldest FA in the office to beg for his book either-- was a 1mm producer within 7 years. What does it take?  Work and work smart.  A lot of FAs business models are dead-- they just haven't figured that out yet.  That's the advantage that new brokers have.  I built a business capitalizing on the arrogance and errors of others.

Yeah $125k wasn't much but hard to do from scratch in your firs year.. but to be a $1MM producer by year 7 takes a little more

Moraen's picture
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Joined: 2009-01-22

There's a reason the guys name is WachBROKE.

Leverage's picture
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Joined: 2009-09-22

Hello all.  I'm new to the forums but currently in my second year in the business with one of the large mutual insurance companies masquerading as a financial planning firm.  My first year in the business was 2008.  I started in late January and made approx. 40K.  Being that I am with one of the large mutual insurers, this was done all on life and d.i. insurance commission sales.  Frankly, I worked my a$$ off for most of those 11.5 months with the exception of one period where I hit what I deemed a "big case" which amounted to 11K of FYC paid out at one time. 
Yep you got it, of not for that one big case, I would have only made about 29K.  With the advent of policy lapses, decreasing FYC commissions, increasing expenses, miniscule renewals and a new managing partner, this year is on track to be a bit worse.  I'm currently looking at a few other firms in an effort to escape the world of commission based life insurance sales.
 
 

steve246's picture
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Joined: 2009-09-30

Congrats on your success and good luck with your goals. Any suggestions on how to come up with names on who to cold call?

Wachbroke's picture
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Joined: 2009-08-01

hoss wrote:Seriously?  125K is above average but not by much.  I would assume he hasn't posted a reply because he has been busy prospecting and selling.  This is a 50 to 60 hour a week job, probably more in the first year or three.  Broken business model could refer to the commodotized trading model.  You'd better offer something else or you're done.  
        Thanks, hoss.  Been busy doing my job. Haven't been back here and didn't know I'd get dumped on just by answering a question. But really, 125K in year one is not THAT amazing- but to duplicate that hard work and those actions to then get to 1mm is a committment that a lot of FAs just won't make. The haters here are telling me a lot about their own business- and lack thereof- that they don't believe it can be done. First thought: if you don't believe it, you're not working toward it and it will never happen.Did start from scratch no inherited book or family in the business.  12 years in business now. My goal was to hit 1mm in production in 10 years-- did it just short of 7. In that time worked 60 hour weeks and most weekends. I also watched bad habits, arrogant attitudes and lax work ethic of lots of FAs in my branch. Figured if it was happening in my branch it might be all over the industry which = opportunity. My business is 100% referral now from client base I built through cold calling and seminars. I figured out what I'm good at and what I'm not. Not a good closer on the phone but good at getting face to face apps and can close if I can get them in my office or get through their front door. Not a great stockpicker (use outside money mgrs) but I build good MF ETF and bond portfolios. Never forgot the real work starts after the close.  Earned 4 designations in first 10 years including CFP and CIMA. Knowledge alone won't make a 1mm producer but helps spot opportunity and as new FA helped give me credibility with prospects.Not afraid to spend on my business Paid to hire better assistants. Fin planning is centerpiece of my practice and I'm 75% fee based but that's no panacea-- if you're just dumping people in wrap programs with no value added you're killing your business. If you're transactional with no value added you're killing your business. I'm new to this forum but if a mil producer is so rare that constant posters can't believe it can happen, then there are a lot of weak puke slackers here.--And you all have a target on your back.Would be great to hear more from those who also have a goal and are working to build and grow a business--- YOU CAN DO IT!

Wachbroke's picture
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Joined: 2009-08-01

Moraen wrote:There's a reason the guys name is WachBROKE.Sorry to disappoint you, Moron, but my posting name refers to my firm that has forgotten how to treat its FAs. Go back to selling your B shares, dogmeat firm-recommended stocks at a 60% discount and 12 year surrender annuities. Pal, your excuses are your own.

Squash1's picture
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Joined: 2008-11-19

Million dollar producer by year 7 is impressive anywhere.. Are you on the indy side of wachovia(you mentioned hiring assts)?

So your 125K production in first year was all from cold calling? Did the seminars come later?

Moraen's picture
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Joined: 2009-01-22

Wachbroke wrote:
Moraen wrote:There's a reason the guys name is WachBROKE.Sorry to disappoint you, Moron, but my posting name refers to my firm that has forgotten how to treat its FAs. Go back to selling your B shares, dogmeat firm-recommended stocks at a 60% discount and 12 year surrender annuities. Pal, your excuses are your own.

Wachbroke - my apologies for doubting you. It was inappropriate for me to comment as I did not knowing you. Happy you reached those goals, and it is very impressive.

However, before you make assumptions about ME, maybe you should do a little research. You were right about one thing - firm recommended stocks - since I OWN my own firm and am not OWNED - I make the recommendations.

I sell absolutely zero insurance and annuities. Zero loaded mutual funds.

wired's picture
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Joined: 2007-09-16

12k plus food stamps my first year at EJ. Went on diversification trip though. Couldn't afford to buy food while I was in Aruba because I need to save my money for taxes I had to pay on the trip

bb44's picture
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Joined: 2005-06-17

Watchbroke my goal is to be like you. That is awesome. How many assets do you have under mngt? 

CFP83's picture
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Joined: 2009-11-14

Moraen wrote: I sell absolutely zero insurance and annuities. Zero loaded mutual funds.

Sorry to hear that....for your clients sake that is.  Hopefully then your referring them to someone for this.

Moraen's picture
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Joined: 2009-01-22

CFP83 wrote: Moraen wrote: I sell absolutely zero insurance and annuities. Zero loaded mutual funds.

Sorry to hear that....for your clients sake that is.  Hopefully then your referring them to someone for this.

I am. I include insurance in their planning, but don't actually sell the insurance. That business is referred out.

And I don't "sell" annuities, but use no-load versions as they are needed. And I hope you don't mean you hope I refer out loaded mutual fund sales.

Besides a "Registered INVESTMENT Advisor" is not the same as a Financial Planner. Although I do financial planning. It's simpler, and other people win.

Next time use a little ROOGLE - I have posted about this repeatedly. Welcome to the forum.

Ronnie Dobbs's picture
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Joined: 2009-07-23

Wachbroke wrote: 125k production first year from scratch-- haven't inherited Daddy's book or picked up on the oldest FA in the office to beg for his book either-- was a 1mm producer within 7 years. What does it take?  Work and work smart.  A lot of FAs business models are dead-- they just haven't figured that out yet.  That's the advantage that new brokers have.  I built a business capitalizing on the arrogance and errors of others.

I've made 100K this year so far, in my first year. I believe him.

Ronnie Dobbs's picture
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Joined: 2009-07-23

No problem Ice. Everyone on here has a thing for anyone who does well in the beginning, because they didn't. I just get tired of the banter for no reason. Get over it, there are people who do very well in the beginning and it's not always contributed to getting an office, or assets. Some people do the right things.

newrepd's picture
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Joined: 2008-07-21

I came across site a while ago which is from the 1990s
 
A Sanford Bernstein & Co. report on the Future of Financial Services made me curious. Issued more than a year ago, the report estimated the compensation of the average retail broker at $156,000 for 1996, a whopping increase over the $128,800 for 1995. In fact, the estimate was a bit high. The Securities Industry Association later reported that in 1996 the average broker produced gross commission revenue of $358,800 and had average W-2 earnings of $143,000
 
http://www.dallasnews.com/sharedcontent/dws/bus/scottburns/columns/archives/1998/980210TU.htm
 
Then today I read this: http://hotjobs.yahoo.com/career-articles-10_best_bets_for_a_solid_second_career-941
7) Financial Advisor
Do you love numbers and people? Financial advisors help people make decisions about where to invest their money to help them enhance the quality of their lives. Some training programs exist that do not require a college degree, but the Bureau of Labor Statistics says a bachelor's or graduate degree offers the best prospects both in terms of employment opportunities and higher salaries. With prospects for jobs to increase by 41 percent, this is one to check out. Median annual salary: $59,979

So what happen?
 

3rdyrp2's picture
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Joined: 2008-11-13

newrepd wrote:Do you love numbers and people? Financial advisors help people make decisions about where to invest their money to help them enhance the quality of their lives. Some training programs exist that do not require a college degree, but the Bureau of Labor Statistics says a bachelor's or graduate degree offers the best prospects both in terms of employment opportunities and higher salaries. With prospects for jobs to increase by 41 percent, this is one to check out. Median annual salary: $59,979
 
Jobs to increase by 41%????  Half these firms already hire anyone who can fog a mirror.  The indy firms who are selective and/or have tough requirements to get into pretty much consist of people who previously succeeded at the firms who hired anyone who could fog a mirror. 

vbrainy's picture
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Joined: 2006-07-26

I would say around $50,000.  This is not a job to go into unless you are financially prepared. 

 
 
 

hotair1's picture
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Joined: 2009-03-12

vbrainy wrote:I would say around $50,000.  This is not a job to go into unless you are financially prepared. 

 
 
 Because it's IMPOSSIBLE to live on 50k per year

gethardgetraw's picture
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Joined: 2009-10-22

Salaries in Investment Banking (with bonus)

Job Level
Salary Range
Typical All-in Comp
Prerequisite(degree/yrs experience)

First Year Analyst
$60K - 150K
$90K
Bachelor's

Third Year Analyst
$120K - 300K
$150K
Bachelor's

First Year Associate
$150K - 250K
$170K
MBA

Third Year Associate
$250 - 450K
$300K
MBA

Vice President
$350K - 1MM
$500K
3-6 years

Director / Principal
$400K - 1.5MM
$700K
5-10 years

Managing Director / Partner
$500K - 20MM
$800K
7-10 years

Department head
$800K - 70MM
$2MM
10+ years

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