Frustrations...

10 replies [Last post]
BankFC's picture
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Joined: 2005-05-27

So, the ultimate goal of this business (from a revenue
perspective anyway) is, or so I have been taught, is to
build a big fee based practice where you walk in a Jan
1 and you know your going to make 200K, 300K, or
whatever whether you sell something or not. Well, my
question is, how realistic is the whole "set it and
forget it" business model?   

By the way, I can do without experts opinions like
execjock whose entire industry experience is THIS
FORUM. I'd like to here from real vets with real
experience.

Specifically, is it possible to take extended time
off...obviously you COULD, but is it really reasonable?
I mean, I take a DAY off and I have 8 messages and 2
fires to put out the next day.

Do you ever REALLY stop selling? I like consulting and
educating, but in the end, I really find myself growing
weary of selling to people who ultimately won't
remember or understand anyway. I find it very ironic
how little correlation there can be between financial
savvy and net worth! Some folks have much more money
than brains!

I guess I'm just starting to second guess myself on the
whole "dream" of what this career can offer. I meet so
many folks lately that have made TONS of money so many
different ways, and I begin to wonder if this career is
worth the headaches. Any advice?

blarmston's picture
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Joined: 2005-02-26

"I find it very ironic how little correlation there can be between financial say and net worth! Some folks have much more money than brains! "
AGREED...." guess I'm just starting to second guess myself on the whole "dream" of what this career can offer. I meet so many folks lately that have made TONS of money so many different ways, and I begin to wonder if this career is worth the headaches. Any advice? "
Everyone goes throught his at some point. If you havent, you have either been handed dream accounts, have had family/friends help, or have been the 0.5% exception who have never struggled and questioned their abiliies/desires/motivation, etc in this business...

rightway's picture
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Joined: 2004-12-02

You never stop selling.  Remember, you may work for 7 months to
get in a million dollar deal, they stay for 1 year and leave...you have
made next to nothing. 

The pressure of keeping fee based clients on the books replaces the
pressure of finding commission based transactions.  So...to answer
your question, there is never a "set it and forget it" model. 

Most clients forget what you teach them.  You have got to have a
system that consistantly reinforces the effectiveness of your work,,,so
your satisfaction should come from hitting their goals, not from
educating them. 

Taking time off is much easier when you work with a team. 
Formally or informally team up with a mate in your office, so when you
leave, things continue...both sales and service. 

You will never stop putting in the hours and working hard.  You
should not expect to make $500k per year and not really work for
it.  My advice would be find a space in this business hat you are
very passionate about and own it.  You will have to work hard and
stay educated but it will not really be work.

scrim67's picture
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Joined: 2005-04-28

BANKFC,
Above appears to be great advice.   I'm taking it to heart too.
After one year I have about 100 fee based accounts with around 6.5M AUM.
A year from now I hope to be looking at 200 accounts with 15M.
Since I'm in a bank program with a modest payout I figure I need to hit 20M to reach a "salary" of 100k guaranteed.
I like what I do so at stated by previous posters,  I do not consider this work!
scrim

moneyadvsr's picture
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Joined: 2005-12-14

Ive always been impressed at the salaries I hear about in this business.  Id like to know how many of these 200k+ salaries are from reps who have been in the business for less than 7 years.

Beagle's picture
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Joined: 2005-03-21

Money - industry stats say about 1%.  Look at the industry stats
and ignore average and look at median.  Area of the country is
also a major difference.  $100k in salary in Memphis is the same
as roughly $300k in salary in NYC or San Fran.  When someone touts
how much they make, take that into consideration.

As for taking time off, yes you can.  Set up your business
correctly and you'd be surprised.  I take 2 weeks off at the end
of April (right after tax season), 2 weeks in September and days off
for golf during the beautiful months.  Set up your business as
non-transaction oriented and you'll be surprised how few emergencies
there are.  Even on vacations I check in and can access my entire
business from my laptop and an internet connection.  If a client
tells me they need money or want service to their account, I can do
that. 

troll's picture
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Joined: 2004-11-29

moneyadvsr wrote:Ive always been impressed at the salaries I hear about in this business.  Id like to know how many of these 200k+ salaries are from reps who have been in the business for less than 7 years.
It would be advisable to remove the term "salary" from your vocablulary as it relates to your compensation.  It reflects a mindset which is not generally conducive to success in this business.
Don't worry about what others are making, don't even participate in the conversations.  Focus on the health and growth of your business and the satisfaction of your clients above all, and your revenues will take care of themselves.

moneyadvsr's picture
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Joined: 2005-12-14

Thanks joedabrkr
I understand what your saying I just get the impression that a whole lot of folks inflate their paychecks.  I know I want to make as much as possible but I'm just attempting to gauge what is average out there.  I know thats a relative term.  I have been told that only the individuals that have been in the business for 10-15 years are making that kind of money.  New comers have no chance at that income given the competition.
Your thoughts?
Best regards,

babbling looney's picture
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Joined: 2004-12-02

Do you ever REALLY stop selling? I like consulting and educating, but in the end, I really find myself growing weary of selling to people who ultimately won't remember or understand anyway. I find it very ironic how little correlation there can be between financial savvy and net worth! Some folks have much more money than brains!
We never get to quit "selling", be it investments, ideas or just plain selling our own worth to clients.  Rightway is right you have to constantly reinforce what you are telling/teaching your clients. Think of it like dog training at best and herding cats at worst. Drip drip drip all over them, calling and meeting.
Also you may have missed a previous post I had about being discouraged with clients who won't listen to our sterling advice, so I'll recap.  This has helped me through many tough spots not only as a financial advisor but in life in general........
There are 3 types of people/clients. 
People you can help. They have money to invest and are willing to take advice. They are willing to help themselves as well.
People you can't help.  They have no money to invest, no means are living at the edge of their resources. You would like to help them, they want help, but you can't
People who are too stupid to help.  They have money to invest, but refuse to take advice and make stupid decisions that ultimately are somehow your fault.  These people can sometimes be the most wealthy prospects, but they also can't be helped because they are ....too stupid.  They waste your time and sap your energy.
Help those you can, reluctantly turn from the people you would like to help but can't and run away from the too stupids.
 

troll's picture
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Joined: 2004-11-29

moneyadvsr wrote:
Thanks joedabrkr
I understand what your saying I just get the impression that a whole lot of folks inflate their paychecks.  I know I want to make as much as possible but I'm just attempting to gauge what is average out there.  I know thats a relative term.  I have been told that only the individuals that have been in the business for 10-15 years are making that kind of money.  New comers have no chance at that income given the competition.
Your thoughts?
Best regards,

I think if you get six figures on your w-2 by five years, you're doing well.  Remember, too, that you will need to reinvest $ in your business(entertainment, gifts, marketing) as it grows.

exEJIR's picture
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Joined: 2005-05-12

moneyadvsr wrote:
Thanks joedabrkr
I understand what your saying I just get the impression that a whole lot of folks inflate their paychecks.  I know I want to make as much as possible but I'm just attempting to gauge what is average out there.  I know thats a relative term.  I have been told that only the individuals that have been in the business for 10-15 years are making that kind of money.  New comers have no chance at that income given the competition.
Your thoughts?
Best regards,

 
The general rule of thumb...  most BM want you to shoot for 1% ROA while growing your biz. (thats gross dollars)  From there you can do the math.
If you are getting a 35% payout after expenses, to make $200k net you will need to be a $575k producer, and roughly have $55-60MM in assets.  But, expenses and payouts vary, so do the math from your point of view.

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