[quote=scrim67]

Bank,

I'm doing pretty well on the retail side getting customers but lagging with business owners and their biz accounts.

What do you think I should focus on to increase my accounts from small business owners?

scrim

[/quote]

1) Make friends with your commecial lending department.

2) Always introduce your small business owner clients to your commercial lenders.

Figure out exactly what you have to offer them, and what NOT to offer them.

They don't need cash management, they go to branch for that.

They do need qualified plans (aka SEP, uniK, 412i, 401K if big enough).

They do need liquidity, so if they have cash that's gonna sit for the next 6 -9 months, maybe offer some 6 month corporates for their cash they need later this year (although most will opt for a CD), or maybe some 35 day auction rate preferreds (you won't make any money on these, but you'll have a HNW relationship that can give referrals, retire one day, sell property, etc)

They need insurance, both life, disability, and LTC.  Not to mention buy sell agreements, key man, exec comp...etc

Put yourself in their shoes.  If I sell lumber, and I know I can make a 20% margin on my product, while would I invest and hope to get 10%.  Sell them what they NEED.  Business owners typically have all the risk they want in running the business. 

They buy safe, they buy insured, they buy liquid, they buy convienent. 

I'm not at a bank, just curious as I have never explored that end of the business.

What I'm reading is that the optimum situation would be to be at a bank that:

Pays some sort of base salary, has a good fee rate on fee-business (3%) so that you can build an annuitized business, and has a referral program in place (formally or informally) for bank clients to the investment arm.

I think I'm also reading that if the bank has stated they are not willing to "share" their clients, it's a losing proposition even if the other 2 criteria are in place (salary and good fee rate)??  Still would have stiff goals to meet, which means it's all outside prospecting.

Whoever here was getting 3% on fee business, don't clients balk since the going rate is @1% for fee business these days??

In my program the clients don't pay the 3%.  They pay nothing to buy and nothing to sell because we are managing the assets for a flat fee annually of about 1.4%.

The 3% is simply a fee we get paid because we aren't paid any salary but we are encouraged to build part of our practice in fee based.

My company can see the forest thru the trees and is willing to take a short term hit to the bottom line for long term profitability.

scrim

 1.4% they pay you .462% pf that at 33% payout.  Paying you 3$ is really just giving you 100% the first year after that they are in for 67% every year.  Smart move on both of your behalfs.

I am waiting for some indy to chime in and say or you could get 100%. Do you want 33% of a million of 100% of 100,000?

I'm not sure I fully understand the above.

All I know is what I get upfront and then we get trails on AUM after one year.

The downside is that if the client liquidates during the first 9 months we will get a chargeback.     By doing the right thing and fully understanding needs I have had very few chargebacks.

scrim

ah, you are assuming my grid is paid at 33% I would imagine.

That's pretty close actually.

It's a good program and I usually feel i'm lucky I found it (or it found me).   

Of course I am fully aware compensation plans can and will change over time.

Bottom line is, I enjoy coming to work most days.

scrim

[quote=bankrep1]

 1.4% they pay you .462% pf that at 33% payout.  Paying you 3$ is really just giving you 100% the first year after that they are in for 67% every year.  Smart move on both of your behalfs.

I am waiting for some indy to chime in and say or you could get 100%. Do you want 33% of a million of 100% of 100,000?

[/quote]

Well in reality for the first year that's a pretty good deal.

You don't get 100% unless you go with some sort of unbundled RIA platform and that's a lot of work.

My fee based payout starts at 90% and goes up with bonuses.  My fee based assets are definitely more than 100k.

It's not merely about the payout or the $$....it's also about the freedom and being able to mold your own business.  Not for everyone, for sure, but it makes me plenty happy.

I love my 401K match, pension, health care, other insurances, nice office, sweet referrals from hot chicks and did I mention the hot chicks.

Joe I can appreciate being alone in your office and having the freedom, noone around. Joe I really get what your saying.

[quote=bankrep1]

 1.4% they pay you .462% pf that at 33% payout.  Paying you 3$ is really just giving you 100% the first year after that they are in for 67% every year.  Smart move on both of your behalfs.

I am waiting for some indy to chime in and say or you could get 100%. Do you want 33% of a million of 100% of 100,000?

[/quote]

bankrep1, why do you assume that an indy couldn't possibly land a million dollar account?

Philo,

I don't doubt this at all.  I am talking more about the volume of being in a bank vs. being indy.  The bank has alot of customers and it is a referral machine.

It is no secret that bank reps do a higher volume of business per rep.  Just talk to a wholesaler who handles both sides of the business.

[quote=bankrep1]

Philo,

I don't doubt this at all.  I am talking more about the volume of being in a bank vs. being indy.  The bank has alot of customers and it is a referral machine.

It is no secret that bank reps do a higher volume of business per rep.  Just talk to a wholesaler who handles both sides of the business.

[/quote]

Since it's not a secret, why don't you tell us about the volume that bank reps do?

Dirk any trade mag will show average production of a bank rep (around 22K) is much higher than a wirehouse rep avg (around 15K) and I cannot recall the indy # but it was much lower.

I know there are exceptions, people doing large amounts of business in their own shop.  I am talking in general.

[quote=bankrep1]

Dirk any trade mag will show average production of a bank rep (around 22K) is much higher than a wirehouse rep avg (around 15K) and I cannot recall the indy # but it was much lower.

I know there are exceptions, people doing large amounts of business in their own shop.  I am talking in general.

[/quote]

I think you're way off. Can you find a link to an article about this?

No dirk I won’t spend my time on you

[quote=bankrep1]No dirk I won't spend my time on you[/quote]

I'd say the same thing if I were a lying, piker bank broker.

[quote=bankrep1]

I love my 401K match, pension, health care, other insurances, nice office, sweet referrals from hot chicks and did I mention the hot chicks.

Joe I can appreciate being alone in your office and having the freedom, noone around. Joe I really get what your saying.

[/quote]

Like I said, different strokes for different folks.  I'm not all alone either, because I just hired someone a couple of weeks ago.

Dirk,

Just look below your screen name,you joined this board 1 year after I did, and you have more posts here than I do.  Only a piker like yourself has this much time on his hands, now get back to counting the beans, thats where you belong.

[quote=joedabrkr][quote=bankrep1]

I love my 401K match, pension, health care, other insurances, nice office, sweet referrals from hot chicks and did I mention the hot chicks.

Joe I can appreciate being alone in your office and having the freedom, noone around. Joe I really get what your saying.

[/quote]

Like I said, different strokes for different folks.  I'm not all alone either, because I just hired someone a couple of weeks ago.

[/quote]

I hope she's hot!

Read what a few of your colleagues who have made the switch have to say:

http://registeredrep.com/mag/finance_bank/index.html