AUM and Gross Commission
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[quote=Squash1] [quote=Indyone] I’m guessing that this is a common scenario given the bear market we just exited. My assets are up a bunch, but my gross is actually slighty lower. My business is very fee and trail-oriented (almost 70%) and thus, production often lags AUM. The problem is amplified in an up market since my fees and trails from earlier this year were based on lower balances. In addition, clients and prospects are still pretty gun-shy and unwilling to put new money to work given (1) recent history (2) stock market volatility and (3) low interest rates.
That being said, I just booked close to a record gross month and I will likely have my best year ever in 2010, so don't be surprised when your revenues start catching up with your AUM growth.[/quote]
My business is similar, mostly fee.. How were you able to book a record month, have you switched to non-fee or just bring in more assets?[/quote] Although I'm about 70% annuitized, I'm less than half fee business. I also annuitize with C-share funds and L-share annuities. My near record month was partially the result of pounding the table on Jackson's VA prior to them dialing down the benefits late last month. Part of it was, yes...adding significant new assets, although the fee-based part hasn't generated fees as of yet. I had some nice bond buys...there was just a little bit of everything. A $40K month isn't much for a wirehouse vet, but to a small midwest indy, it's cause to smoke 'em if you got 'em...especially considering the distraction I'm dealing with in renovating new office space. ...and no way am I down 30%. At this point, it's less than 10% and the way things are perking up, I may close that gap before year end.
…and Bond Guy, although our models are significantly different (you a specialist and me a generalist), I admire what you do. Great post.
heck, I’ve hardly worked this month and I’ll do close to 30k.It’s not tough to clear 40k when you start the month at 10-12k in fees like myself.
The other question is how’s everyone doing ytd with assets gathered? I’ve brought in about 3 mill. not good I know, but I’ve been lazy this year.
With my business it’s hard to tell where I am versus a year ago b/c I left a wirehouse team to go Indy and head up biz development for a small, growing BD/RIA, … but October will be my best month ever in this business. I’ve also landed two big clients and have a couple other good ones in the pipe. I guess it’s just been good timing and a little of past work finally coming to fruition.
^^nice! great to hear. I just brought in a big fat acct that i had to WORK FOR over the course of a year and change. whew…
Sounds like you're doing pretty good yourself. THX…and Bond Guy, although our models are significantly different (you a specialist and me a generalist), I admire what you do. Great post.