A lot of what you’re seeing here about HRBFA is correct.  You will spend a lot of time with low income earners that is 90% of the tax office referrals you will get.  I have a buddy who went there (2 actually) and they regret it, sure they have a higher payout but they lost 25% of their book going over, plus most people you talk to WILL think you prepare taxes, WILL have very small IRA's they are talked into at the tax offices and WILL need to get the money back within the year of investing it due to the economical climate they are in.  Best bet; ask around in person, I was advised strongly NOT to go there.  Bottom line, I was told a lot of up front (as per usual) when I talked to them but when I asked around, found out your nothing but a cash register once you get there.

Also, I bet those who are the HRBFA cheerleaders are some of the recruiters for the company.

Let's take the whole "tax leads" out of it.

What you still have is a firm that offers almost everything else on the street.  PMA, WMA, equities, mutual funds, etfs, fixed income, Insurance(on your own or with Capitas) and Annuities, 1031 exchanges if that's your thing, no proprietary stuff, solid in-house research department that you can actually talk to, managed futures, trust services, third party research, technical analysis tools(dorsey wright), tax research department, a program that's sole purpose is to take feedback and suggestions from the reps to help make the firm advisor friendly and easy to do business at, BETA is trading platform, higher payout, not a number, etc....  Their also showing signs of a turnaround from the last couple quarters.  Lot's of this is due to long overdue new leadership overHRBFA. 

To join HRBFA only for the tax leads would be a mistake for a rep. It's the partnering with tax pros that are formed, not the tax leads themselves, that offer a very nice "additional" channel for a rep to prospect and build centers of influence.  You will not spend 90% of the time with low income earners if you go out and partner and tell the tax pros what you're looking for. Also, the "general" tax leads have to meet a certain criteria to even go over to HRBFA. They don't just send over every HRB client.  Bullbear is talking about the Express IRA product that isn't even a part of HRBFA, it's a product on the tax side to help lower income folks start saving.  HRBFA is simply custodian, but no reps are assigned to them and reps don't have to spend any time with them.  I think Bullbears buddies just didn't get. Lost 25% of their book? I think that speaks more about your buddies.

Again, HRBFA is not saying you have to work HRB alone.  It's your business in the end. Build your own business/marketing plan and make it work.  However, the cross servicing with HRB is a very attractive channel for anyone looking to find additional ways to build their book.  Look at the add in November's Register Rep, those guys have a woman who deals with small businesses and it's helping grow their business.  There are tons of relationships like those being formed. The great thing is you have a tax expert who cares just as much about the client as you do.  Client wins by getting solid tax & financial advice.

Lastly, this discussion has only involved HRB Tax. The firm is still young, but let's not forget about the other cross servicing opportunities out there. HRB Small Business Tax (just bought Amex's unit) and RSM McGladery.  There may not be "formal" programs yet like with tax, but there is still lot's of opportunities to build relationships with those folks if you get out and do it.

Did I mention client retention through cross servicing yet???

Oh and perhaps Bullbear is a recruiter for another firm? Me? Not a recruiter, just a cheerleader.

I would agree in general but the name of the company tells everyone you
are with H&R Block.  If you are wanting to build a client base
of high net worth clients, the H&R Block affiliation is probably
going to be a problem for you.  They generally speaking do not
have the best reputation in the tax world and that reputation will be
placed upon your services by most people.  They have good tax
preparers but 90% have only been doing it 1-3 years and don’t have much
training so I’m not sure that’s the best public relations.  If you
are looking at the company, you would be a moron not to at least
consider the ramifications of being affiliated with the “cheap” tax
prep service in town.



On the other hand it doesn’t make them a poor choice.  H&R
Block is a huge company and a lot of people are already comfortable
using their services.  Some of their tax planners handle 400+ tax
clients each year so the pool of warm prospects is HUGE. 

Dan,

It looks like you are getting some constructive information.  If I were in your shoes based on what I was reading, I would investigate the local reputation of H&R Block...ask some business owners and/or successful locals that you know, what they thing of the local HRB operation.  Also, if you have an opportunity to meet with the tax people that might be providing you leads, that could also be very enlightening...asking them what a typical client looks like income-, portfolio-, and net-worth-wise and who these clients invest with now.

As you can probably see, as with any firm, there is goo and bad.  Just because the firm doesn't hav a stellar reputation in one community doesn't mean that it is bad all over.  Once you get som questions answered aout the quality of the office you would be potentially working in, I think you'll have your answer as to whether or not the opportunity is right for you...good luck!

I have been w/HRBFA for two years. The clientele I brought to Block was middle to upper middle class. (Avg assets 100k per household) The platform is great. All kinds of products and services. No micro-management. The ability to run your business how you like, fee-based, commission, or both. Since coming over, I have brought my avg assets to 200k/household. I realize this is not affluent wealth mgmt, but you can build a good business with this size of household. The clients aren't giving me more $ because of my relationship with H&R Block, it is because of MY relationship with the client. It doesn't matter if you work for Merrill or HRBFA (for the middle class), it matters if You have a good relationship with your clients.  The tax leads are OK but seem to be getting better. It is tough to build a biz from scratch anywhere but here might be better than a wirehouse.

fwiw, there is an article about HRBFA on the front page of this week’s Investment News.

Here's an update: Thank you all who have responded. I have read each and every one of them. Thank you all so much..even the idiots!

Update

I have been dealing with HRB for a few weeks, back and forth, emailing, phone tag..the whole nine. To make a long story short, they did not make me an offer because I currently do not have any trailing revenue. Here's my situation: I'm worked at SCH for about 6 years have 7,63,9 & 10. Good experience, I feel I know my stuff..looking to get back in the business on my OWN. Here are the oppoutunities that I have been working with:

HRB: Pro's:Great Client Platform: Free to make recs,fee or commision based. Cons: Low Client Assets, and of course they shot me down. Oh well, life goes on with out them for now. I love when people tell me "no", it makes "yes" sound so much sweeter. Thank you HRB.

EDJ: looking @ EDJ as my backup. There is one in my neighborhood and a second one is getting ready to open up in a week. Is it possible for me to saturate this market? I live in a small sleepy Florida town, Population 25-30k. Also, I do not like their platform. (Loaded proprietary products. How does this benefit the average investor?) I have been hearing rumors that they are going to a fee based platform. Is there any validity to this?

BAC- They like me and I think an offer is coming: Drawback: It's a bank job. Can the tellers really help me build a book there? How do you prospect working for a bank?  It's also 9-5..can someone say POOPY? 

What would you do? My plan go with EDJ, build a book gain some more experience and who knows from there.  

Other factors to consider and my thoughts:  most important: Married, 32, 2 kids-some savings: Think I should take the risk with EDJ while I'm young before I get stuck in 9-5 gear for the rest of my life!

Well, that's the landscape... all laid out for you to chew and tear at.

Enjoy, and of course Thanks in Advance(Even the idiots) for your responses.

Danny 

In case you havn’t been to the Edward Jones recriuiting site, here you go:



http://www.jonesopportunity.com/ir/en_US/index.html



Ask yourself, regardless of platforms, where am I going to get the best training? Platforms may not make or break your success or failure in the early stages of building a business, but training sure will. Good luck.



BPD

Danboy. I have been both places. Bank platform and EDJ and now independent.  You might want to reconsider making your decision JUST on a 9-5 hour schedule.  When I was at the bank, I was free to come and go as I wished since I was a salaried and not an hourly employee.  That meant that I was actually working many more hours than just 9-5 and the bank didn't have to pay me any overtime.  As long as you produced they were happy with you no matter how many hours you worked.  We didn't have to punch a time clock.  You might ask them about that option.

The tellers can be very valuable, but you need to work to get their trust and explain to them what you do and how you do it.  They want to be sure you aren't going to take their customers and churn them into oblivion. 

One thing to consider about Jones, besides the fact that you may end up in a saturated market (which can happen in any firm) or that you may have to move to a completely new town to start is the fact that you will use up most if not all of your savings in the first year or two.  Can your family handle this stress?

BL,



What would DanBoy be spending his money on at Jones that he wouldn’t be spending his money on at the bank?

Dan,

I don't see the drawback in the BAC platform...you'll have a broader product array and be spoon-fed leads.  My guess is that the benefits package will be stronger there also.  Frankly, that sounds like a lot easier road to success than knocking on strangers' doors...

I left a bank platform to independently affiliate with a group of CPAs.  That was a step up for me as the CPA referrals are fewer, but the quality is considerably better than average.  My last three referrals from my CPAs were $200K fee-based, $1.5 million fee-based and $1.1 million in a 401(K).

Danboy,

BAC is not 9-5. I know, I work for them. You can come and go as you like and you'll build your business faster than any place else. If they're offering upfront money, take it. It's a good deal. Not perfect by any means but a good gig, and outstanding benies.

Jones will teach you how to sell, sell, sell, and ask for the order,
but you will pay thru the nose on expenses and medical benefits (brace
yourself if you have not investigated that yet). Also BIG
pressure to produce immediately. I guarantee BAC will give you
outstanding benefits and you will get leads no question about it. If
you already have a 7, 9,10, etc, you shld know how to sell already - I
wld take the bank job for sure in your community of 25k in FL it wld be
easier to get to know everyone. You have a wife and kids, make your
life eaiser and go BAC - good products and research, and you won’t have
to pay huge expenses out of your own pocket like you WILL
at Eddy and Co. (and did I mention horrible medical, etc?). You will
build a book in about a 1/3 time you wld at EDJ. Tell your spouse about
the benefits and watch the look on his/her face. Go for it and Good
luck!

What would DanBoy be spending his money on at Jones that he wouldn't be spending his money on at the bank?

Things you don't have to pay for at the bank platform: Postage, advertising, pencils, paper, business cards, letterhead, envelopes, toilet paper , office cleaning costs, affiliation fees, dues to clubs like rotary etc., 100% of the cost of medical coverage. It may have changed since I was there, but the cost of seminars and customer appreciation was 100% reimbursed by a combination of Bank and wholesalers cost sharing. Continuing education costs were also covered.

Don't hold me to this since it has been many years since I was at a bank.  Perhaps someone who is there can confirm.

BL



Postage: So are you saying that at a bank you can mail as many marketing pieces as you want and the bank pays for it all? Printing and stamps? I doubt this is the case.

Advertising: I can’t remember the last time I saw a local bank rep’s ad. There is not a company I am aware of that does a better job marketing themselves on a local level than EJ. The opportunity to co-op advertise with other local EJ IRs is huge.

Pencils: 10 for $1.00 at Office Depot.

Business Cards: at EJ first set of 1,000 cards free. Next set $26 at Jones.

Letterhead: Available right of your color printer.

Envelopes: EJ supplies.

Toilet Paper: 10 rolls about $5.00 at Costco. The good stuff too.

Office Cleaning costs: $80 a month is what I pay a service to come in four times a month. Do it yourself for free.

Affiliation fees: Not sure what you mean here.

Rotary Dues: Mine is $100 iniation fee. $50 annual dues.

Medical Coverage: EJ subsidises medical care costs for new IRs. There is a POS plan or a high deductible plan with an HSA.

Seminars: For new IRs Jones covers 75%. Normally you can get a mutual fund wholesaler to pick up the rest.



Does the bank:

Have your name on the door? No.

Provide you with your own dedicated sales assistant? No.

Provide live CE video conferences to bring in CPA and attorneys for networking opportunities? No.

Allow you to keep your services fees? Maybe.

Allow you to work just in one branch? Maybe.

Is the payout 40% at the bank? Bank grids are usually the lowest in the industry.

Are the tellers and new account people becoming series 6 licensed at the bank so they can take business away from the investment reps? Yes.

Does the bank have appless annuity orders. Probably not.



BL, come on you have got to be kidding recommending someone to go to a bank platform.

Payday,

Technically, your payout is not 40%. Net Jones payout is close to what the bank payout is after you pay all the expenses. I know, I was with Jones. Benefits are better. 10% employer contribution to 401k and pension and very good other benies. Great flexabiliy throughout the day. Yes I have my name on the door. All those msc. expense add up, and you know it.

BL, come on you have got to be kidding recommending someone to go to a bank platform.

You really must brush up on your reading skills.  I never recommended that he/she go to a bank platform. I recommended that he not make a decision based on the idea that it would be a 9-5  punch the time clock position.

You are the one who asked about costs.  And yes, I did have my name on the door and a dedicated assistant, could invite CPAs and Attorneys to network. And no, the tellers were not licensed, too expensive and too much liability for oversight.  It has been many years, about 7, since I worked in a bank, so I am going from my own experience then, but I doubt much has changed.  Each bank platform is different. Some are owned by the bank and others are subcontracted (so to speak) to independent brokerages.  Even though the payout is low, no argument here, sometimes it is offset by a guaranteed base salary.  Naturally, if the rep doesn't produce, they won't be allowed to coast on that base salary for long.   As to the medical insurance;at Jones it is subsidized for only one year.  At the bank, at least, there was no discrimination between the investment platform and the teller platform.  As EZ says, all those "little" costs add up.

Each investment platform will appeal to different people.  You will take note that I am no longer at a bank or at Jones and am now Independent and very happy. I didn't like the limitations at the Bank, and while I thought I would be running my own office at Jones, I soon found out that that wasn't the case. 

You Jones guys really need to get off of your high horse with the idea that you are the be all- end all of investment platforms.  If it works for you fine. It didn't work for me.

I can't believe what I'm seeing.  H&R Block and banks touting their firms.  Unbelievable. Let's be honest....both are chop shops.

Let's pretend you work for H&R block or for a bank.  You go to a party and find out there are a ton of brokers there.  People start introducing themselves and they let you know they are from Merrill, Smith Barney, AG Edwards, Ed Jones, or UBS.  Your turn.....are you proud to say where you work?  Probably not....that's the best litmus test there can possibly be.

I have seen two brokers leave for HRBF in the last two years.  Both had production that a monkey could match.  One of the brokers was morbidly obese and I swear he sweated grease.  He looked like a sleaze.  I even met a regional manager on a plane from HRB.  I almost fell out of my seat and laughed when he told me where he was from.  It's like the recruiting phone call I got from Allstate the other day.

HRB and bank brokers, keep looking in the mirror each morning and tell yourself you are the cream of the crop.  Maybe someday you might just believe it.

PS. We call H&R Block by its other name H&R _ock.

Youcanhatemenow,

Cream of what crop.  Are you more knowledgable?  Do you make more money?  Have a nicer office?  Does your firms reputation give you a woody?

I work for a financial institution and my smile goes ear to ear. I am making myself the cream of the crop, not relying on some firms reputation to try and do it for me.  Merril, SB, UBS all would take me in a heartbeat just based on my credentials (which don't mean jack, but I am educated and they like smart people).

Before you sound off, rookie... What makes anyone the cream of the crop.  Designations? AUM?  Production? You scream inexperience, now get back on the phone, before I ACAT what you've managed to scrape up.

Actually the bank I work for wld be an easy sell at a party. And even
if you were associated with a community bank, you can still name your
B/D (like LPL or RJFS), you’d fit right in at a party. Frankly this
sounds like something a misinformed rookie wld say.



No fool wld license a teller by the way, licensed bankers are a
different story. But this benefits the broker at most places. Also in
most instances, you do not pay for expenses (unless you are doing
something unusual - like huge mailings - then you wld prob chip in).



As with any b/d, bank or not, the success is because of the rep, not
the name. You cld make it at HRB if you stuck with it and worked hard
as well as anywhere else.