The Future
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How much more obvious does it have to get that our industry has changed very dramatically recently. It seems apparent that there are now, basically, two business models. 1) Be a $1 mil.+ producer and continue in the “wirehouse” model for a @50% (don’t care to argue to the exact percentage point) total compensation package of that $1 mil. + gross, or, 2) Evolve your business to an indy/RIA/boutique platform.
Wirehouses have begun blatantly spitting on their $300k-ish producers. They have/will cut payouts to 0 on accounts that they deem “unacceptable” in size or business structure and shown proof that training programs of the past are extinct, or at least dormant. These facts write large on the wall, in big, blood-red letters.
There are a lot of $1 mil. producers out there. There are an order of magnitude more “others”. I hope that everyone can identify where they fit and react accordingly, because the wirehouse firms have already made the decision for you.
And the guys that own the small local indy firm can recruit if they have the space and get that override of about 5% (at least our company). It's a great time for those indy guys to recruit. Also, if you work at a company like this and aren't the owner, ask if you can get a piece of the production for the first year or two if you help bring someone on board. It's a good way to make some extra money.
I would also think it is a great time to start in the industry if you can get in under an indy, and start picking off accounts from the wirehouses
As long as you had enough savings to BE your income until things got ramped up.I would also think it is a great time to start in the industry if you can get in under an indy, and start picking off accounts from the wirehouses
[quote=iceco1d][quote=snaggletooth]
And the guys that own the small local indy firm can recruit if they have the space and get that override of about 5% (at least our company). It's a great time for those indy guys to recruit. Also, if you work at a company like this and aren't the owner, ask if you can get a piece of the production for the first year or two if you help bring someone on board. It's a good way to make some extra money.
[/quote] Snags, in a few years, you are going to have to get your OSJ to get registered in my state, and "supervise" me for 5 bps. Hell, just to show you my gratitude, I'll throw you 5 bps too! I'm paying 35 right now...not counting the b.s. admin haircut on my fee-based biz from my B/D. [/quote] You could come on board now under our OSJ and get 83%. You could even set up your own DBA as "Iceco1d Investments". All you need is your own office space since we're not in the same state. It's really that easy, I wonder why more people don't do it.