There are ongoing costs to use their technology/services, and there is of course a payout, so they keep some of the production. 

As far as the equity in the business, it's been shown by independent study that amp franchises are worth more than the average book, or at least they typically fetch more money when sold.  You've probably seen this in the fine print of amp ads in Financial Advisor or other industry mags.  amp likes to bring this up, of course.

[quote=Big Taco]

There are ongoing costs to use their technology/services, and there is of course a payout, so they keep some of the production.  [/quote]

But there were no upfront costs, are there are with franchises in other industries?

[quote=Big Taco]

As far as the equity in the business, it's been shown by independent study that amp franchises are worth more than the average book, or at least they typically fetch more money when sold.  You've probably seen this in the fine print of amp ads in Financial Advisor or other industry mags.  amp likes to bring this up, of course.

[/quote]

I'd love to see that study, or any study, for that matter, that covers selling a book of business.

Actually, it's just like so many other firms in our industry; you'd probably get a somewhat attractive sign-on bonus for coming over to amp. 

But for up-front costs, I don't think so, other than just business costs, like office space, buying your computers, furniture, internet/phones, etc.etc.

I don't know about this for sure.  If you really want to know the up-to-date details, you'd actually have to call amp.

As for the study, I just found the amp ad in this month's Reg Rep mag, (pg. 76).  The study was the 2003 Moss Adams Advisory Services Study, FWIW.  Says that amp financial practices sell for 15% more on avg. than other firms' practices.

Or go to ameriprise.com/makethemove for more info.

I swear I'm not a recruiter, just read this stuff now off the ad in RRep.

[quote=mikebutler222][quote=Big Taco]

There are ongoing costs to use their technology/services, and there is of course a payout, so they keep some of the production.  [/quote]

But there were no upfront costs, are there are with franchises in other industries?

[quote=Big Taco]

As far as the equity in the business, it's been shown by independent study that amp franchises are worth more than the average book, or at least they typically fetch more money when sold.  You've probably seen this in the fine print of amp ads in Financial Advisor or other industry mags.  amp likes to bring this up, of course.

[/quote]

I'd love to see that study, or any study, for that matter, that covers selling a book of business.

[/quote]

Well, Mike, I really appreciate your earnest questions, and I'm not a recruiter either.

Given the similarites to having a book at another broker dealer, I'd have to say the franchise concept is a probably a little bit of selling sizzle.

However, when I think of franchise I think of something that can run with out me. Especially as I gear up, the prospect of training juniors who are employees, not partners - who bring in new assets under management - and me being able to work on the big picture - this is more in line with the concept of working on the business instead of in the business, as mentioned in The E Myth.

Once my business runs without me, but I still own it, the value goes way up, just from a supply and demand perspective, since a potential buyer is getting a known product, we all understand the #s when we analyze the book, and there is no disruption from the clients point of view, there is consistency. If you have a whole bunch of people doing the same thing, that is a price multiplier.

The man who says AMP franchises command a premium (but I would keep that in perspective to a fully staffed RIA firm) runs the Financial Transitions business - David Grau, I believe.

With regards to growth, its fun, interesting and profitable. In this business, it's grow or be depressed, as far as I am concerned.