Starting with MSSB
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First of all those goals don’t seem that easy… $200K/week good luck with that… Second of all “Tested in the Trenches” is terrible and if you don’t believe me i will sell you mine for $10…
What was your "out of the box" business plan.. hard to believe there are any left..What did you pitch his clients? A-shares?[/quote] Service[quote=voltmoie] I agree, 10mm AUM in today’s market? That’s tough to do for a new guy, I think. Especially since MSSB has account minimums. You might want to re-think those 401k rollovers or put a good plan in place to target those. I’ve personally only seen two rollovers 150k plus so far since folks seemed to be MUCH more aggressive than needed in these plans. Lots of money in CDs and MMs though.
I am raiding the cookie jar on my local MSSB guy. This dude has about the whole town in just 1 mutual fund. C class. No diversification. Guy in the top ten list for my state in production. Guess it was easy to pitch?
Good luck … you better come out running and gunning.
Correction it is not MSSB it is CIti-Morg.
Contrary to what they say, they did not join the to firms together for the benefit of the clients, they did it because they could not manage the firms assets. <?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />
130 years
Good luck at the morg!
I agree Volt. I pitch philosophy, process and service. I have a unique process and philosophy (it’s actually not all that unique, I think I just communicate it well to prospects). In this market, you MUST project some sort of differentiating factor to prospects (even if it’s not all that unique). You can’t just be like all the other FA’s out there (gee, look at this Hypo. It lost less than the market last year…). And actually, my conservative philosphy saved a lot of people last year. I have many retired clients that are almost back to even from the high point in 2007.
FYI to those are who are unfamiliar with the MSSB productions standards, the ones he is referencing is the top tier goals to get the quarterly and year end 25k stock bonus.My goals (subject to change/modification) right now are as follows:
Year 1: $75k Production and $10MM AUM ($4MM Fee based)
Year 2: $150k Production and $20MM AUM ($8MM Fee Based)
Year 3: $225k Production and $30MM AUM ($12MM Fee Based)
I’m working on my prospecting/marketing plan now, but I’d be lying to you if I claimed I have it all figured out where I’m going to get the business from.
I want to focus on the pre-retirement/retirement market, but don’t most people? I see a lot of opportunity focusing on 401(k) rollovers. I have also though about trying to become “Baby BondGuy” He seems to be doing quite well (on the other hand, he would do well in any area).
What type of specialization has the most opportunity? I don’t want to be too broad or too narrow when I say, “I do this…” I like working with HNW professionals like doctors, but don’t necessarily want to focus just on them. Are the investment needs of a doctor significantly different than a chemical engineer? I have no clue. Maybe I’ll be able to tell you in a few years.
So do you have to hit both to get the bonus?
What percentage of people actually hit that?$10 million assets and $6 million is non-fee based, and the production goal is only $75k? You planning on putting that $6 million in cash to pay for the fees on the other $4 million or something? I'm trying to guess how $10 mil of assets will convert to that little of production. Although you are at the point still where you have no clue what pays you what.[/quote] 10MM in assets and you expect more production? Gotta remember you don't have those assets for the entire year. Assuming 1% ROA and having 10MM the entire year you're only at $100k. Considering the firm ROA is somewhere between .60-.70, I think 75k is still tough to get in the first year even with the assets. If you're running a fee based book there's no way to get the total production, that's why MSSB allows you to do two out of three (total assets, total fee based, total production).[quote=MBA2FA]My goals (subject to change/modification) right now are as follows:
Year 1: $75k Production and $10MM AUM ($4MM Fee based)
Year 2: $150k Production and $20MM AUM ($8MM Fee Based)
Year 3: $225k Production and $30MM AUM ($12MM Fee Based)
$10 million assets and $6 million is non-fee based, and the production goal is only $75k? You planning on putting that $6 million in cash to pay for the fees on the other $4 million or something? I'm trying to guess how $10 mil of assets will convert to that little of production. Although you are at the point still where you have no clue what pays you what.[/quote] 10MM in assets and you expect more production? Gotta remember you don't have those assets for the entire year. Assuming 1% ROA and having 10MM the entire year you're only at $100k. Considering the firm ROA is somewhere between .60-.70, I think 75k is still tough to get in the first year even with the assets. [/quote] That was my question. He says $10mm but only $4mm is fee based. What is the other $6mm going into? With $6mm going into something thats not fee-based, assume he's getting 2% on that money (the net pay of me assuming $3 mil goes into cash products that he gets 0% on and $3 mil going into A shares, annuities and other stuff he averages a 4% upfront hit on). If he averages 2% on $6mm thats $120,000 production, then the fee-based stuff on top of that should get him no less than $150,000. Unless the payout on products at MSSB is MUCH less than I would think.[quote=3rdyrp2][quote=MBA2FA]My goals (subject to change/modification) right now are as follows:
Year 1: $75k Production and $10MM AUM ($4MM Fee based)
Year 2: $150k Production and $20MM AUM ($8MM Fee Based)
Year 3: $225k Production and $30MM AUM ($12MM Fee Based)
A couple months ago I read a Havard Business School Case Study on Edward Jones. Among many other things it provided pay outs percentages of the brokerage houses. Edward jones was in the top two for three out of five production levels. Smith Barney-Morgan Stanley were under 35% in a one or two, and I beleive at one level it dipped below 30%. So take what you will from that. $10 million in 1 year?! Jesus I hope to get 10-15% of that my first year at Jones.
Then they were using bogus pay-out schedules. There's no production level below $250k (for vets) that isn't above the lowest number you cited.A couple months ago I read a Hazard Business School Case Study on Edward Jones. Among many other things it provided pay outs percentages of the brokerage houses. Edward jones was in the top two for three out of five production levels. Smith Barney-Morgan Stanley were under 35% in a one or two, and I beleive at one level it dipped below 30%.
[quote=svm21]A couple months ago I read a Hazard Business School Case Study on Edward Jones. Among many other things it provided pay outs percentages of the brokerage houses. Edward jones was in the top two for three out of five production levels. Smith Barney-Morgan Stanley were under 35% in a one or two, and I beleive at one level it dipped below 30%. So take what you will from that. $10 million in 1 year?! Jesus I hope to get 10-15% of that my first year at Jones.
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10-15% of that? Dude, you better find something else to do if you think that small. I’m 15% of that three months in without an office and screwing around half the day. Money is out there to be had, you just have to keep asking for it. 10k. 40k, 100k … it’s all the same to me.
If I find someone with cash and a slight interest I’m seriously like a stalking ex-girlfriend. Calling them all the time, driving by their house hoping to see the car in the drive-way so I can stop by, sending them stuff in the mail. It’s a sick obsession … I LOVE YOU MONEY!
Dude, I’m fresh out of college. I know what the Barron’s Top 100 advisor’s produce, I know what the EDJ’s reps in my region produce( top guy $200 million AUM), I knew what the NWM reps made in my office, but besides that…yea I’m pretty clueless to what amount of AUM a Edward Jones Rep is supposed to have 1st year. As for thinking small? Jesus, I can honesty say your the first person to have said to me, ever. I’ve been called everything in the book besides that. wow, just wow.
So, what should I am for my first year. $5 million, $7 million? I mean want to be above average, but I have no idea what the avg is for a 1st year guy.
[quote=svm21]Dude, I’m fresh out of college. I know what the Barron’s Top 100 advisor’s produce, I know what the EDJ’s reps in my region produce( top guy $200 million AUM), I knew what the NWM reps made in my office, but besides that…yea I’m pretty clueless to what amount of AUM a Edward Jones Rep is supposed to have 1st year. As for thinking small? Jesus, I can honesty say your the first person to have said to me, ever. I’ve been called everything in the book besides that. wow, just wow.
So, what should I am for my first year. $5 million, $7 million? I mean want to be above average, but I have no idea what the avg is for a 1st year guy.
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Don’t “wow” me, son. If you are so clueless go ask some of those reps. in your region what to expect and then set your personal goals. My personal goal is 7mm 1st year with 2mm in advisory solutions. No idea if they are low or high but some type of target is better than none, at least for me.
I think you both should clarify. First “producing” year. Or first year. There is a training period. My can sell was in the middle of October, and I only brought in $700k my first calendar year.
I think the assumption here is first producing year. $7MM is a decent goal and a good number… around $585K per month or $150K/week. If you are able to do that I would increase your advisory or use C shares in part of the other $5MM you are planning to bring in…
That’s good advice, thanks. This is a stupid question but do we still get paid 12b1 fees on C shares?
My goals are based on a rolling 12 month period that started after I got my can sell.
[quote=voltmoie]
[quote=svm21]Dude, I’m fresh out of college. I know what the Barron’s Top 100 advisor’s produce, I know what the EDJ’s reps in my region produce( top guy $200 million AUM), I knew what the NWM reps made in my office, but besides that…yea I’m pretty clueless to what amount of AUM a Edward Jones Rep is supposed to have 1st year. As for thinking small? Jesus, I can honesty say your the first person to have said to me, ever. I’ve been called everything in the book besides that. wow, just wow.
So, what should I am for my first year. $5 million, $7 million? I mean want to be above average, but I have no idea what the avg is for a 1st year guy.
[/quote]
Don’t “wow” me, son. If you are so clueless go ask some of those reps. in your region what to expect and then set your personal goals. My personal goal is 7mm 1st year with 2mm in advisory solutions. No idea if they are low or high but some type of target is better than none, at least for me.
[/quote]
LAWL!!! You’re up, at 'em, and loaded for bear this morning aren’t you?
Seriously???That’s good advice, thanks. This is a stupid question but do we still get paid 12b1 fees on C shares?
My goals are based on a rolling 12 month period that started after I got my can sell.