Diversification trips
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[quote=bspears]Spiffy is drunk on koolaid. He’s the real idiot. Giving up 64% to rub elbows with people who he wants to be, but those people are fakes.
You are the idiot. Saying you get an extra 64% is like saying that you get all 100% of your paycheck every month. You can say the payouts better, but really all we are trading is the trip to the post office to hand that 60% over to the local bill collectors. While you are running around paying bills, or paying someone else MORE money to do it, were letting Jones do it.[/quote]
Windy, it is clear that you don’t understand much. It is true that at real low gross production levels, you will likely make out better at Jones, all things being equal. However, my “break-even” point with Jones vs. independent is about $180K gross. In other words, as I gross more than $180K, I would make out better financially by being independent. So, as has been said many times, Jones IS a great place to start, because they are subsidizing newbies and under-performers with an office and a BOA. But once you are producing any serious amount of money, Jones takes more, understandably, for their profit. Then it starts to equalize again at high production levels, like say 850K and above, depending on what type of business you run. Most indies that produce this much typically don’t have a “solo” model - they have staff, and a big office, and maybe multiple advisors or para-planners helping them, which puts strains on their margins. At Jones your margin actually goes up as you produce at higher levels like this because of profit bonuses. I would estimate that a 850K independent producer is probably netting 50-60%, which is similar to an identical producer at Jones. But again, it depends on what type of business you run, how many clients you serve, and the complexity of the services you offer.
Windy, I would suggest you spend a little less time bragging and talking about those things that you quite clearly don’t understand, and more time learning about the business.
blah, blah…i just want to know who went to cairo this year and was it a great trip…
Ron did, but then he got a call that his drawer didn’t match up, so he had to come back.
Lmao! Dude's got a few good zingers every now and then.Ron did, but then he got a call that his drawer didn’t match up, so he had to come back.
[quote=B24] I would estimate that a 850K independent producer is probably netting 50-60%, which is similar to an identical producer at Jones. But again, it depends on what type of business you run, how many clients you serve, and the complexity of the services you offer.
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You are smoking too much KoolAid! An indy $850K producer netting 50%. So, office expenses are $425K per year (or about $35K per month). I’d love to see your math.
I agree. I work in an independent office with a team of 4. Expenses run $300k per year give or take, and we live in a pretty high cost of living area. Say you have a team of 4, with 3 salaries totaling $120,000. Rent for 3 offices is $3,500/mo., so there's $42,000. Supplies run $6,000 for the year. Ticket charges run about $1,500 per month, so $18,000 for the year. Licenses, CE credits and other minutia should be $500 per year. Technology, compliance and E&O is probably $10,000-$15,000 per year. Then some advertising and out-of-pocket expenses (meeting clients out for lunch and picking up the tab) and you can probably add another $5,000 for the year. I'm sure I'm missing something, but that just came up to a little over $200,000. I don't quite see how someone producing $850 is only netting half of that, unless the cost of living in the area is enormous, they are heavy on advertising and don't really agree with wholesaler reimbursement, or the employee salaries are higher than average. Even so, that's only an extra $25,000 or so tops that you can add to that total.[quote=B24] I would estimate that a 850K independent producer is probably netting 50-60%, which is similar to an identical producer at Jones. But again, it depends on what type of business you run, how many clients you serve, and the complexity of the services you offer.
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You are smoking too much KoolAid! An indy $850K producer netting 50%. So, office expenses are $425K per year (or about $35K per month). I’d love to see your math.
[quote=voltmoie] M … Living on a military base in germany is certainly not cultural immersion. (Have no idea if you lived on the base.) But I agree its difficult to understand a culture if you’ve never experinced it.
I know Navy guys that have been to dozens of ports and never go beyond the bar and the cheap $20 hooker.
The combat analogy does not fit at all - we’ve all driven cars at fast speeds. Its easy enough to make the leap of what it would feel to drive a performance vehicle in Germany.
Fun side note - my brother in law has a mini. It handles better than the Porche, I’ve driven that ugly ass car hard and fast down some crazy mountain roads. I’ve got an idea I’d like that div. trip ;)[/quote]
Volt- I no longer hold your advice in high regard. MINI, an ugly ass car? Pfft, the car that spawned the idea of the miniskirt? The car that has transcended cultural barriers, from rock stars and royalty to the blue collar workers and EDJ Financial Advisors?
Car of the Century
Who was the star of The Italian Job? That’s right, the minis, and in the remake, the MINIs.
What car can you purchase new, drive off the lot and be able to sell it for more than you paid?
What car actually grew sales last year? A lot.
I may give you the benefit of the doubt, though. I’m gonna guess you really love the MINI and just don’t want to admit it.
Hell, Dale Earnhardt Jr drives one. Shaq had a cabrio.
and I have large testicles. So what....
Hell, Dale Earnhardt Jr drives one. Shaq had a cabrio.
and I have large testicles. So what....[/quote] Doubtful[quote=MsBroker]
Hell, Dale Earnhardt Jr drives one. Shaq had a cabrio.
I agree. I work in an independent office with a team of 4. Expenses run $300k per year give or take, and we live in a pretty high cost of living area. Say you have a team of 4, with 3 salaries totaling $120,000. Rent for 3 offices is $3,500/mo., so there's $42,000. Supplies run $6,000 for the year. Ticket charges run about $1,500 per month, so $18,000 for the year. Licenses, CE credits and other minutia should be $500 per year. Technology, compliance and E&O is probably $10,000-$15,000 per year. Then some advertising and out-of-pocket expenses (meeting clients out for lunch and picking up the tab) and you can probably add another $5,000 for the year. I'm sure I'm missing something, but that just came up to a little over $200,000. I don't quite see how someone producing $850 is only netting half of that, unless the cost of living in the area is enormous, they are heavy on advertising and don't really agree with wholesaler reimbursement, or the employee salaries are higher than average. Even so, that's only an extra $25,000 or so tops that you can add to that total.[/quote][quote=Still@jones] [quote=B24] I would estimate that a 850K independent producer is probably netting 50-60%, which is similar to an identical producer at Jones. But again, it depends on what type of business you run, how many clients you serve, and the complexity of the services you offer.
[/quote]
You are smoking too much KoolAid! An indy $850K producer netting 50%. So, office expenses are $425K per year (or about $35K per month). I’d love to see your math.
Nice! That's better than I could have calculated.
Although, I hate to be the one to tell you, but I think some of your staff is stealing office supplies.
Dude, you don't even know what it's like to count the time to get on an airplane to PDP, SHUDDAP....
Nice! That’s better than I could have calculated.
Although, I hate to be the one to tell you, but I think some of your staff is stealing office supplies.
[quote=MsBroker] Hell, Dale Earnhardt Jr drives one. Shaq had a cabrio.
and I have large testicles. So what…[/quote]
You are so damn annoying. I thought Volt might think liking the MINI would call into question his masculinity.
And really, who gives a sh*t about testicle size?
Uh oh Ms Broker, he’s going to beat you over the head with how his numbers are so great… watch out!
Dude, you don't even know what it's like to count the time to get on an airplane to PDP, SHUDDAP...[/quote][quote=Still@jones]
Nice! That’s better than I could have calculated.
Although, I hate to be the one to tell you, but I think some of your staff is stealing office supplies.
That was random and stupid...I think it is time you put down the bottle.
Yeah, I'm probably off a bit. I was referring to someone that is a solo with a support staff, producing 850K themselves. I would assume to produce that in an indy world, you are generally going to have several staff people. I only say that based on a lot of the advisors I read about in various industry magazines. However, the point of my original post was that most indy advisors are going to net more than someone at Jones. I don't claim to know it all.[quote=B24] I would estimate that a 850K independent producer is probably netting 50-60%, which is similar to an identical producer at Jones. But again, it depends on what type of business you run, how many clients you serve, and the complexity of the services you offer.
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You are smoking too much KoolAid! An indy $850K producer netting 50%. So, office expenses are $425K per year (or about $35K per month). I’d love to see your math.
Nah, no need. People don't beleive em anyway. I'm sure Volt would like her phone number though.Uh oh Ms Broker, he’s going to beat you over the head with how his numbers are so great… watch out!
I don’t really want to debate it, because (1) I am not the expert, and (2) every situation is unique. Again, I am basing it on some of the “case studies” I see in articles in various industry magazines. I often read about indy firms with 40 or 50mm, that have 3 or 4 staff members. I am not saying that’s what you NEED, I am saying that’s what I’ve seen and heard. I can also refer back to an article/case study either in Reg Rep or some other mag a few months ago about margins at indy firms, and that they ran like 40-60% on average. Everyone on here was up in arms about it, but I am just saying, that’s what the article said.
I would highly doubt there are many solo indy firms doing 850K gross with one staff person or less. FWIW, many of the firms that are referrenced in these articles are often full-service wealth management firms, not just the solo guy running money for a few clients out of his house. So even if they don't have a ton of assets, they are running a model that requires more than just one guy.