[quote=DTA]

You're never really "safe" at Merrill or any other wire. You will work in a perpetually charging environment and never really own your book. Great career if you can survive though...

[/quote]

Ture on all counts.

I am comparing regional and Merrill. According to On Wall Street, ML's payout grid requires 400+ production to have 40% ratio, but some regional B/D has easier payout grid for rookies. Does anyone know production required to get 40% at ML for the first 5 years? Is it 400+ for 2, 3, 4 year FAs? or they have different payout grid?

[quote=BullRunt]

My bad, I copied from excel thinking it would work:

Los Month 3 = 4k PCs, $150k NNA, 0 NNHH: Month 6 = 10k PCs, $350k NNA, 0 NNHH: Month 9 = 18k PCs, $750k NNA, 1 NNHH: Month 12 = 30k PCs, $1.25m NNA, 2 NNHH

Month 15 = 50k PCs, $1.75m NNA, 2 NNHH: Month 18 = 70k PCs, $2.25m NNA, 2 NNHH: Month 21 = 90k PCs, $2.75m NNA, 3 NNHH: Month 24 = 115K PCs, $3.25m NNA, 4 NNHH

Month 27 = 145k PCs, $4m NNA, 4 NNHH: Month 30 = 175k PCs, $4.75m NNA, 4 NNHH: Month 33 = 210k PCs, $5.6m NNA, 5 NNHH: Month 36 = $250k PCs, $6m NNA, 6 NNHH

[/quote]

The entire industry is F'd up.  If your production is less than $500K you're miserable.  Once you're $500K it's good.

Not 100% sure, but I think you get a break your first 5 years. 47% payout while in PMD (year 1-3... but remember there is a draw) and 40% from year 4-5.  After 5 years if you are not producing at a certain level (is it 400k?), you take a cut in payout percentage if your production isn't over that number.

So do they have 40% payout regardless of production in year 4-5? or do they still have minimum production requirement for rookies to get 40% payout in year 4-5?

[quote=FB 41]

Not 100% sure, but I think you get a break your first 5 years. 47% payout while in PMD (year 1-3... but remember there is a draw) and 40% from year 4-5.  After 5 years if you are not producing at a certain level (is it 400k?), you take a cut in payout percentage if your production isn't over that number.

[/quote]

The goal are pretty lofty in my opinion. Especially in a target market that has under 100 people with $2mm+ in their retirement.

With that said, I love the program and I think the goals themselves are fair. HOWEVER, I would rather take a salary cut earlier and have my goals start later in the long run. Big money generally moves slow and to be given 4 months to learn how to prospect, begin prospecting and start moving accounts is not a ton of time. For anyone with prior experience in the industry, I think the numbers are perfectly in line, but for a complete new hire in the industry, a 6 month grace period would be better for the PMDs and I think better for the company long term.

The only other gripe I would consider is that the goals don't factor in the products you're putting your clients in. In theory, you could have $1mm of managed money and fail out of the program before another PMD who does $250k in A-shares. All in all I'm very impressed with the PMD program and for that to be my only gripe...I'd say it's not a bad situation.

what is PMD>?

[quote=therightadvisor]

The goal are pretty lofty in my opinion. Especially in a target market that has under 100 people with $2mm+ in their retirement.

With that said, I love the program and I think the goals themselves are fair. HOWEVER, I would rather take a salary cut earlier and have my goals start later in the long run. Big money generally moves slow and to be given 4 months to learn how to prospect, begin prospecting and start moving accounts is not a ton of time. For anyone with prior experience in the industry, I think the numbers are perfectly in line, but for a complete new hire in the industry, a 6 month grace period would be better for the PMDs and I think better for the company long term.

The only other gripe I would consider is that the goals don't factor in the products you're putting your clients in. In theory, you could have $1mm of managed money and fail out of the program before another PMD who does $250k in A-shares. All in all I'm very impressed with the PMD program and for that to be my only gripe...I'd say it's not a bad situation.

[/quote]

I completely agree.

Starting my new FA career at ML through the PMD program and was asked to sign a "agreement to repay costs of Training" form... Anybody have any familiarity with this form?  It says if my employment ends with 36 months of getting my production number I can be forced to pay them back.  As much as $25K if we part ways in months 9-12.  I might have to go stick with one of the insurance companies....

Thanks for your input.  I was starting to see it the same way, I just wanted to believe that they were investing in me and my abilities with a mutual goal of making ME a success.  I have another offer from an insurance company, that will allow me to do AUM and pay me 85bps. That means that even if I meet the ML requirements and pass the production hurdles, why woiuld I want to do it at a company that will only pay me 40-47bps. Especially with that big payback balloon floating over my head the whole time.

[quote=theranman]

Thanks for your input.  I was starting to see it the same way, I just wanted to believe that they were investing in me and my abilities with a mutual goal of making ME a success.  I have another offer from an insurance company, that will allow me to do AUM and pay me 85bps. That means that even if I meet the ML requirements and pass the production hurdles, why woiuld I want to do it at a company that will only pay me 40-47bps. Especially with that big payback balloon floating over my head the whole time.

[/quote]

Looking with hindsight I would take the offer I had from the mutual life company that is like the one you mention. The first 6-9 months would be much harder but after that it would be better. I would take one of those intensive week long Series classes and just bear down and get it over with. 

If you are young you will find that younger people  need to talk to someone about life insurance so there is a lot of opportunity there. Selling life insurance as a stand alone sale at ML is a chore. You have to open a brokerage account and there are account fees in the second year. And, ML keeps all of the renewals on term policies for themselves. You get nothIng. 

You will find that life insurance will keep your head above water while the investment side is launching. 

I thought I was going to get access to things like IPO's at Merrill. Think again. The allotment is done on the basis of production. As a PMD you will find IPO shares hard to come by. You are not  goIng to be able to cold call for IPO shares of Facebook as an example. 

At the life company you will be a 1099 worker. You can set up all kinds of tax advantages for yourself. And, you won't have a beureaucrat watching your every movement. 

As far as the Merrill brand, it will work against you as often as it works for you. 

This company lost its way decades ago. It's not what it was. It's a rich kid's club now. 

I have been offered a position in the PMD program. I have been in public accounting for 6 years, but don’t really like accounting. I was approached by a local branch manager for ML. Everytime I talk to him, I think that I want to do this and how great it sounds, but everything I have read makes it sound like reaching the goals is near impossible. I have a few questions for anyone in the program that may want to help me out:

Did you all find that the recruiters treated you like you were going to be great and really had all the right qualities almost like you were being sold the position.

I have a pretty good network in the area I live, but do not think I would like calling friends of friends and being pushy. Not that I dont feel comfortable on the phone, but I know how I would feel if someone I knew of but did not know was blowing me up asking me to put a large chunk of money under their advisement. I have no problem whatsoever cold calling or talking and meeting people that I know, but are you required to prospect anyone and everyone you know has money.

Are you in a cubicle where all the advisors can hear you calling all day? This may sound stupid, but I would feel alot more comfortable knowing I dont have a senior advisor critiquing every phone call I make, or just getting bored and listening so he can laugh.

I have been told that if they keep my salary under 50, that my hurdles or goals do not come as fast and there is more time to meet them. Anyone else heard this?

I have asked him repeatedly about not meeting goals and being fired without warning. His response has been almost laughing at the idea and saying if it is not working, they will coach you out basically telling you to leave, but not showing up with a pink slip and telling you to clear off your desk.

How do you go about joining someone’s team or was this mentioned to any of you pre-program? I have told this this guy no and he wouldnt take no for an answer. He had me talk to one of his team meambers who was younger than I was and had many of the same concerns. I am assuming he wasnt meeting his goals, but the older guy like him and asked him to join.

Any repsonse to any of the questions would be much appreciated. I will be leaving a fairly well paying accounting job that I could not get fired from if I tried and it sounds like I may just be jumping off a bridge and hoping to get lucky and land a few big accounts. I have very limited investment or sales experience, however, I do have a good bit of experience talking with people about their finances.

I came from an public accounting firm too (PWC) and made the jump. Yes, I’m in a cubicle a lot of the day and people can hear me dial. My network hasn’t worked out because a lot of people want to keep their advisor and their accounting seperate. I am having to build it cold. The recruiters blow smoke up your butt.

Here’s how it goes meeting goals: You have 6 months, if you’re not on goal for one month you get 90 days to get back on goal or you’re fired.

You will need to prospect people you know. If you are shy about this, it’s not for you. If your salary is under 50, the hurdles are slightly less. But you will need to spend money to make money, so don’t worry about that, get the higher salary and spend it on prospect lunches and dinners. The hurdles come the same speed no matter what your salary, they are monthly now (used to be quarterly). You won’t be fired without warning, but you may get one month probation to turn it around. Maybe they will give you 3 months, but it often takes 3 months to transform a great prospect into a client, plus get the paperwork done, and then the PC’s may be spread out and you only get 25% of them this quarter. Also, not all teams are the same. Many teams are Sr FA’s looking to get a piece of the pie, they won’t send much your way. I think, judging by your post, that accounting is a better spot for you. I say with great respect: it takes a ruthless salesman to make it right now.

You will need to prospect people you know. If you are shy about this, it’s not for you. If your salary is under 50, the hurdles are slightly less. But you will need to spend money to make money, so don’t worry about that, get the higher salary and spend it on prospect lunches and dinners. The hurdles come the same speed no matter what your salary, they are monthly now (used to be quarterly). You won’t be fired without warning, but you may get one month probation to turn it around. Maybe they will give you 3 months, but it often takes 3 months to transform a great prospect into a client, plus get the paperwork done, and then the PC’s may be spread out and you only get 25% of them this quarter. Also, not all teams are the same. Many teams are Sr FA’s looking to get a piece of the pie, they won’t send much your way. I think, judging by your post, that accounting is a better spot for you. I say with great respect: it takes a ruthless salesman to make it right now.

Ditto.

[quote=Ulairi]I came from an public accounting firm too (PWC) and made the jump. Yes, I’m in a cubicle a lot of the day and people can hear me dial. My network hasn’t worked out because a lot of people want to keep their advisor and their accounting seperate. I am having to build it cold. The recruiters blow smoke up your butt.

Here’s how it goes meeting goals: You have 6 months, if you’re not on goal for one month you get 90 days to get back on goal or you’re fired.[/quote]

Yup.

[quote=newregrep]

Feebasedrep, I’m a relationship manager for a bank.  So I handle all relationship with clients with over 250k in balances with us.  I have salary in the 80s at the moment, plus annual bonus in the growth of my book as well as quarterly bonuses for the products and investments(limited) I offer to my clients.  If I stay this route, I’ll likely go into private banking…I’m also taking my CFP in march of 2011.

I wanted to get into the FA role due to my limited products I can offer and not being to provide a true solution to clients.  Plus, I do not agree at all with bank business model of shoving accounts, cards, and useless annuities down people’s throats.  Having worked at a bank, I still cannot believe they are even in business…I do all my transactions at a credit union.

My goal is to first succeed as a FA, and become indy years down the road and have equity in my business.  This cannot be achieved by staying at a bank for the rest of my life. 

[/quote]

Makes alot of sense and is well thought out. I was hoping that maybe you were in a ban program which was fairly “ope”. Some bank FAs (I think maybe Wells and smaller regionals) allow FAs to function. No relly salary, but they can offer managed programs, funds, and solutions similar to a wirehouse…won’t be pitching options, but a base hopefuly big enough that you can look yourself in the mirror knowing you were doing the right thing.

 

Anyone have any bank experience not just pitching annuities…I actually think the old BAC model let you function as a “real” FA.