Help me with Ameriprise

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sickowire's picture
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Joined: 2009-03-23

i have a deal on the table which is quite good- i am a sub 300K producer, they're offering 30% upfront + 50 basis points on all the assets i have in by my first 6 months, and then 50% of my month 6 thru 18 production.  I realize they used to have warts, but after doing my due diligence I find that their platform is as good as RayJay and SF.  Oh, their payout is 50% for the first 3 years and if I hit hurdles it will be that way in year 4 and 5.  What am I missing.  Looking for guidance.

troll's picture
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Joined: 2004-11-29

What you're missing is that they suck. 

sickowire's picture
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Joined: 2009-03-23

thanks

Eyetattoo's picture
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Joined: 2008-03-29

Dont know much about the platform but I do know people still have a bad taste in their mouth from the old American Express days.

Sportsfreakbob's picture
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Joined: 2008-08-24

 Besides that they suck (dont know that for sure, but if its good enough for Blitz its good enough for me )....what you're missing is Rivesource Funds. Never saw a statement from a prospect at Ameriprise who didnt own them.

keepthefaith's picture
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Joined: 2009-03-24

The perception of Ameriprise is different, yet it is still the same.  What I mean is that they (Ameriprise) are actively pursuing experienced reps (like everybody else out there).  They no longer higher inexperienced people (or if they do, it is at a far lesser rate than before). 
It is open architecture, and to my knowledge, they do not push you to use any certain product.  They have access to virtually everything, so is there a lot of similarity to the other firms, yes, but here are the differences (the negatove ones):
 
-all dependent on your local office, they are not equipped to efficiently handle a lot of ACATS.  If you have an experienced back office person there, TAKE CARE OF THEM!! 
-the annuity platform is not up to speed yet.  if you do a lot of annuity business with multiple carriers, you will have issues.  For example, TransAmerica and Lincoln can not be held and will not go towards your AUM. 
-if you do managed money, BE SURE to have your portfolio checked, double checked, and triple checked to find out if they can carry your funds, and that particular share class.
 
In closing, it would be my guess that some of the more traditional firms would be better int hee transition phase, which is inbelievably important, but once you get thru that phase, it is a pretty level playing field to RayJay, LPL, etc..  You then add in the "bonus" money, and the very deep pockets for expenses, and a 50% or 52% payout, and it is a nice place to grow.
 
Sorry if there are any typos, I am just waking up.

Amp2Indy2006's picture
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Joined: 2008-08-13

What you need to understand is that you are a profit center.  As a P1 employee, you are looking at local mgmt who may have less time in the business than you do.  You will be encouraged to utilize products that have the highest profit margin for the company, since you represent the company.  What you also need to understand that you will deal very little with Minneapolis back office, moreover when you call in you will be getting someone from the Pacific Island country with a thick accent and an American name like Buffy or Sabrina.  Hold times on the telephone are long, especially since the technology platform, while improved over the past few years, is still difficult to be 90% functional daily.
 
You also have a scorecard that evaluates your book of business (bob) based on your length of service (LOS).  The company controls the point values assigned to the product mix, including financial plans sold.  I agree with planning having spent 12 years there (started as IDS).  But if your desire is to make the more with a select level of client base with 10% client growth by referrals, perhaps this is not for you.  As an employee, you will see that (over time) that you must be starting over on the production curve January 1 of each year.  Since you are coming into the firm with a book, you may get some degree of grace, but through your ability to gain new client acquistions, sell plans, implement them with appropriate levels of insurance (proprietary) and very little wrap business.
 
More than likely you will feel pulled into mgmt since you have experience.  What you will not realize is that as a Platform 1 employee, you are a pure profit center.  Expect that you will work extremely hard for what you think is 50% payout.  What you do not understand is that the GDC paid is not always industry standard.  When you add in the scorecard metrics and number of plans sold et al, you actual payout is still around 38-44%  So I suggest that you take extreme caution with Platform 1 unless you are about to retire in 5-7 years and need the employee retirement benefits.  As a P2 or the recruiter for the latest UFOC (franchise agreement) for the quasi-independent but still branded advisor.  Bottom line is that you must continue the treadmill of new sales and client acquisiton.  You should do this obviously, but your idea of success may not be theirs, and you will be locked in contractually to conform, or be bannished.  Be careful.  In 1993 I started there and hoped it would get better as IDS became AMEX.  By 2002, the writing was on the wall.  It took 4 years to unwind things ethically and professionally within the clients best interest.  There are pros and cons, but brand is not the panacea.  You are the brand to your client, not the name on your paycheck.  Be very, very cautious.  You can pm me if you want.  The firm works for some folks. Just do not be too wide-eyed as you may not know what you do not know.

MinimumVariance's picture
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Joined: 2008-08-20

its a life insurance company

Vin Diesel's picture
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Joined: 2007-04-18

DONT DO IT
 
Even being a sub $300 producer you'll be able to find better aternatives. That may mean less $ upfront but better long-term situation. Unless you really need the Upfront $ and other offers are significantly less, Do Not Do it!!!
 
 

Amp2Indy2006's picture
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Joined: 2008-08-13

Vin Diesel wrote:DONT DO IT
 
Even being a sub $300 producer you'll be able to find better aternatives. That may mean less $ upfront but better long-term situation. Unless you really need the Upfront $ and other offers are significantly less, Do Not Do it!!!
 
 
actually, they are an acronym usage company first, Financial planning firm second, proprietary product distribution center third. 
 
 In otherwords, just go independent.

etj4588's picture
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Joined: 2008-08-18

keepthefaith wrote:It is open architecture, and to my knowledge, they do not push you to use any certain product.  They have access to virtually everything, so is there a lot of similarity to the other firms
 
They do not push you to use any certain product, but when they give you a limited choice of carriers, as they do with annuities, isn't that the same thing?
 
Also, isn't there a problem with American Funds?

Amp2Indy2006's picture
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Joined: 2008-08-13

etj4588 wrote:keepthefaith wrote:It is open architecture, and to my knowledge, they do not push you to use any certain product.  They have access to virtually everything, so is there a lot of similarity to the other firms
 
They do not push you to use any certain product, but when they give you a limited choice of carriers, as they do with annuities, isn't that the same thing?
 
Also, isn't there a problem with American Funds?
 
AMP charged us $80 bucks for buys/sells/exchanges on any American Fund.  American Funds had been sucking up market share at the time (should have been called American Jones) J a n us Funds was dying out.  The AF mgmt said NO to the shelf space fees Ameriprise was charging.  So in typical AMP fashion, they were kept whole by placing the burden on their profit centers, the advisor.  This is just another way to dictate compensation levels where it is a win-win for the BRAND at the expense of the advisor.

burtonfinancial1's picture
Joined: 2008-09-30

Got a question-  Where else can a wirehouse guy doing $245k at LOS 7 go and get 30% + back ends?  I work with a couple FAs who got this same offer from AMP and are seriously considering it. They lack the critical mass to go indy and need benefits. They're barely below the line at RJ.  Any ideas with a better firm and equal or better offer?  AMP looks to be upgrading their FA base in P1 with an offer that nobody else is offering at least in my experience. I don't want to tell them it's a lame move, but they need some $ and are not going to be welcome at the firm much longer. 

Amp2Indy2006's picture
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Joined: 2008-08-13

If their need for health benefits does not include some pre-existing condition like cancer or diabetes, they should check out the independent route.  Expect 1,200/mo or more for health insurance privately.
 
Now if you are making 245k at 30% payout at wire, and just transfer existing accounts to Indy b/d, your payout is going up to 80 - 90%.  When I made the change, I sold 2/3 of my client base to another AMP rep.  Left all fixed and variable life in tact at AMP, brought over about 20m in AUM (wrap to wrap) and my cash flow doubled. (the 1035 exch mattered first year, 6 contracts less than 100k) but Y2 and beyond no. There is no reason you cannot improve your situation by going independent.  Independent only means the firm you hire for regulatory supervision and clearing services doesn't manufacture a product.  When there is no middleman, you get more of what you earn.  So 1/2 you clients assets move to identical product structure, cash flow will still be higher at 80-90% payout on less clients.
 
Ameriprise works for many people as a career path.  If you need the structure, and the EE type benefits, then consider them.  The corporate structure is good, they make alot of money.  If you are needing that type of arrangement, more power to them.  My personal experience may or may not be a benchmark suitable for all.  Find your niche, talk to those who were arround since 1990 at IDS, since 1995 and since 2002 and see for yourself.

Conrad Dobler's picture
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Joined: 2009-01-11

Amp2Indy2006 wrote:If their need for health benefits does not include some pre-existing condition like cancer or diabetes, they should check out the independent route.  Expect 1,200/mo or more for health insurance privately.
 
Now if you are making 245k at 30% payout at wire, and just transfer existing accounts to Indy b/d, your payout is going up to 80 - 90%.  When I made the change, I sold 2/3 of my client base to another AMP rep.  Left all fixed and variable life in tact at AMP, brought over about 20m in AUM (wrap to wrap) and my cash flow doubled. (the 1035 exch mattered first year, 6 contracts less than 100k) but Y2 and beyond no. There is no reason you cannot improve your situation by going independent.  Independent only means the firm you hire for regulatory supervision and clearing services doesn't manufacture a product.  When there is no middleman, you get more of what you earn.  So 1/2 you clients assets move to identical product structure, cash flow will still be higher at 80-90% payout on less clients.
 
Ameriprise works for many people as a career path.  If you need the structure, and the EE type benefits, then consider them.  The corporate structure is good, they make alot of money.  If you are needing that type of arrangement, more power to them.  My personal experience may or may not be a benchmark suitable for all.  Find your niche, talk to those who were arround since 1990 at IDS, since 1995 and since 2002 and see for yourself.
 
What's the big advantage of being independent with some other b/d as opposed to usign the independent channel of Ameriprise? Did you consider moving to that channel from the employee side?

GoldCaddy's picture
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Joined: 2007-02-16

After I left Jones and went independent I was contacted by Ameriprise.  I was, at the time, producing about $150k GDC.  They proposed an $80k bonus and the franchise to use their name.  By the time the actual offer came to me in writing it was a $30k bonus with perfomance objectives and another $50k spread out over three years.  That offer coupled with their adversarial relationship with American Funds caused me to lose interest.  I'm glad I did.  My B/D pays 85% net (I'm not an OSJ) and my GDC is a bit north of $300k. 
I can't see why Ameriprise would be attractive.

Amp2Indy2006's picture
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Joined: 2008-08-13

Conrad Dobler wrote:Amp2Indy2006 wrote:If their need for health benefits does not include some pre-existing condition like cancer or diabetes, they should check out the independent route.  Expect 1,200/mo or more for health insurance privately.
 
Now if you are making 245k at 30% payout at wire, and just transfer existing accounts to Indy b/d, your payout is going up to 80 - 90%.  When I made the change, I sold 2/3 of my client base to another AMP rep.  Left all fixed and variable life in tact at AMP, brought over about 20m in AUM (wrap to wrap) and my cash flow doubled. (the 1035 exch mattered first year, 6 contracts less than 100k) but Y2 and beyond no. There is no reason you cannot improve your situation by going independent.  Independent only means the firm you hire for regulatory supervision and clearing services doesn't manufacture a product.  When there is no middleman, you get more of what you earn.  So 1/2 you clients assets move to identical product structure, cash flow will still be higher at 80-90% payout on less clients.
 
Ameriprise works for many people as a career path.  If you need the structure, and the EE type benefits, then consider them.  The corporate structure is good, they make alot of money.  If you are needing that type of arrangement, more power to them.  My personal experience may or may not be a benchmark suitable for all.  Find your niche, talk to those who were arround since 1990 at IDS, since 1995 and since 2002 and see for yourself.
 
What's the big advantage of being independent with some other b/d as opposed to usign the independent channel of Ameriprise? Did you consider moving to that channel from the employee side? Well I was never an Employee (P1), I was always P2 (Independent Franchisee).  When Amex bought Securities America, P2 reps had about 11 minutes (tongue in cheek) before the Firm forbid P2 - SA jumps.  I never considered SA when I ultimately left since it was the same mindset by AMP management.  Case in point:  The Reserve Funds.  AMP branded (P1 and P2) clients were made whole.  SA clients had to turn to their reps for guidance and/or possible renumeration and restitution.  I do not know this about SA for sure, perhaps someone can say.  But if true, this is SOP for the firm. (parent AMP)

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