Just requested the book at the web site. Thank you.

Just received an offer from RBC. Giving me 75% of t-12, six year note. Includes a minimum 40% payout for about 12 months. My concern is the firm changes their grid and I am back in the same boat except with a five year loan hanging around my neck.

Also met with the Ray Jay manager. Their home office ran a pro forma for me. Looks like a 64% payout. Looks pretty good.

Delmarva,



I would stay away from any long term deals that lock you in for six years. Who is to say RBC won’t drop you below 40% a few months after you sign the deal.



You’ll be sorry…talk to anyone who is stuck in a deal on this forum.

The 40% payout is for one year but your point is well taken. Thanks.

Del, we can run a comp for independent vs wire model for you. We’re privately held and self clearing as well. If you would like to more info. you can check out our website or you can PM me.www.sterneagee.com

Smith Barney has rescinded the “penalty box” for the month of April. Losing too many brokers?

Consider RJ seriously, you can join the employee side and go independent later without changing firms. Good transition if you ask me. PM me for details if you want them.

20% payout at a wire for over 200-250k in production? Wow that is brutal.

Del,



Yeah, BofA/Merrill did the same thing. Apparently they (management) had no idea brokers with a t-12 of 350K would not be happy with a 20% payout. Lots of brokers left so they tweaked the comp.



Ron, if you are doing 250K with an LOS over 5, you are at 15%.

Del - Would you please clarify your comment about SB rescinding the penalty box for April? Haven’t heard anything along those lines from my mgr., was curious about what you’d heard.

Last year I did about $368k with LOS of 15. My payout so far this year is at 34%. Because I am annualizing around 250k as of the end of March, my payout is scheduled to drop to 20%. My manager told me (and several others in the branch), my old payout of 34% is good for the month of April. After that, who knows?