Production Requirements - MSSB?
Got an offer from Morgan Stanley Smith Barney a few days ago - what does $350,000 in new net flows come out to? Is it 3.5 million in total premium brought to the firm?
Rumor has it there are 3 tiers… I. $70K production/$9MM assets II. $50K production/$5.2MM in assets there is a III. $30K/$3.5MM but if you are there you get cut… second year is pretty much double.
$350,000 new net flows is my production requirement 9 months into production - trying to figure out what the equivalent is to the premium brought to the firm. The requirement goes up to $1,000,000 new net flows by 18 months.
Rumor has it there are 3 tiers… I. $70K production/$9MM assets II. $50K production/$5.2MM in assets there is a III. $30K/$3.5MM but if you are there you get cut… second year is pretty much double.
I don't get the tier structure. If you are at the min of Level III you are out after 1 year? What happens if you are at Level 1 or 2 after the first year?
You stay.[quote=chief123] Rumor has it there are 3 tiers… I. $70K production/$9MM assets II. $50K production/$5.2MM in assets there is a III. $30K/$3.5MM but if you are there you get cut… second year is pretty much double.[/quote]
I don’t get the tier structure. If you are at the min of Level III you are out after 1 year? What happens if you are at Level 1 or 2 after the first year?
exactly… The recruiter my friend spoke to in the northwest said, they are pretty strict about(their are monthly and quarterly goals also to hit… But he mentioned that timing plays a roll also, had a good guy start in beginning 2008 and after the market crash and losing 20-50% of his assets in market declines there was no way he was going to make it, so they chopped him…
[quote=chief123] exactly… The recruiter my friend spoke to in the northwest said, they are pretty strict about(their are monthly and quarterly goals also to hit… But he mentioned that timing plays a roll also, had a good guy start in beginning 2008 and after the market crash and losing 20-50% of his assets in market declines there was no way he was going to make it, so they chopped him…
[/quote]
That was dumb to chop him. Everyone was in the same boat, and you probably wasted good talent there. It seems to me they want you to be a market timer as well. If that is the case, they should pay more to manage the assets.
They are what they are… either make it or don’t, no excuses.
Net new flows means from accounts you opened yourself. This clause is put in for those who come in and inheirit part of a book and never open any new accounts. The absolute minimum is $5MM AUM after 18 months. Though its likely you BOM would have already let you go if that's all you had anyways.$350,000 new net flows is my production requirement 9 months into production - trying to figure out what the equivalent is to the premium brought to the firm. The requirement goes up to $1,000,000 new net flows by 18 months.
Its actually as follows: (first year tiers) Tier 1: $10MM AUM, $75k Gross, $4MM Fee Based. (two of the three) Tier 2: $7MM AUM, $60k Gross, $3MM Fee Based. (two of the three) Tier 3: $5MM AUM, $50k Gross, $2MMFee Based. (two of the three) Quarterly and yearly bonuses are paid for each tier, with tier 1 and 2 getting stock bonuses after each year. You aren't required to hit these, but its likely your BOM would cut you anyways if you didn't at least hit tier 3.Rumor has it there are 3 tiers… I. $70K production/$9MM assets II. $50K production/$5.2MM in assets there is a III. $30K/$3.5MM but if you are there you get cut… second year is pretty much double.
Are you not in the northwest, because my buddy got the previous goals… maybe different depending on where you are in the country
These aren't goals, just bonus tiers. They are the same for everyone in the FAA training program. The do however change every calendar year.Are you not in the northwest, because my buddy got the previous goals… maybe different depending on where you are in the country
I got a similiar yet slighly different question. Newbie question - dont scream at me... What does "trailing production" mean? As in "requires 150k - 175k trailing production. Thanks for the help!
[quote=NYMtgBanker]
I got a similiar yet slighly different question. Newbie question - dont scream at me… What does “trailing production” mean? As in "requires 150k - 175k trailing production. Thanks for the help!
[/quote]Trailing production (sometimes referred to as “T12”) is your production over the previous 12 months. For example if in 2008 your production was $100K in January 2009 your T12 is $100K. If in January 2009 you do $5K more than you did in January 2008 your T12 would now be up to $105K.
BF
Debolt,
I’m lovin the Bricktop" avatar
"Hence the saying, as hungry as a pig"
Net new flows means from accounts you opened yourself. This clause is put in for those who come in and inheirit part of a book and never open any new accounts. The absolute minimum is $5MM AUM after 18 months. Though its likely you BOM would have already let you go if that's all you had anyways.[/quote] Anybody know how team production is handled?? Say team gives you $10 million in assets as your percentage of AUM and you are responsible for financial planning, marketing client contact, etc. does that mean you fail to hit your net new flows money? Anyone join a team or have experience? Thanks!!![quote=ohbrother1]$350,000 new net flows is my production requirement 9 months into production - trying to figure out what the equivalent is to the premium brought to the firm. The requirement goes up to $1,000,000 new net flows by 18 months.
I got the impression from my interview with MSSB that I would be on my own. In a big office with other advisors, but on my own as far as dollars.
Did NOT get the impression I would be given any assets. Is this typical?[quote=Omar]Debolt,
I’m lovin the “Bricktop” avatar
“Hence the saying, as hungry as a pig”[/quote] In the quiet words of the Virgin Mary… come again?
So if I don’t get hired on a team, I don’t get any assets, still have to hit my goals, and I’m on my own?
Is the whole corporation hiring teams now, or still individuals?Sorry to break your heart big guy but they aren’t going to just hand you buckets of cash for getting past an interview. You eat what you kill
I wasn’t even aware of the team situation until after my first interview, when I found this forum. Was not expecting a team but then I read this, so I was curious as to whether or not it was sort of a company-wide thing or a branch decision.
[quote=workinhard]I wasn’t even aware of the team situation until after my first interview, when I found this forum. Was not expecting a team but then I read this, so I was curious as to whether or not it was sort of a company-wide thing or a branch decision.[/quote]
I have been hearing about teams hiring all over the place. That hiring is up to the team. If the team wants someone, they hire someone. I was hired by the branch. There are a million local factors. For instance, I work at a legacy SB branch. A bunch of people left over the past year, so they are hiring to fill the vacancies. There is a legacy MS branch down the road. They aren’t hiring. Why? Because 75% of the people who left my SB branch went to go work for the MS branch (pre-merger). We will all consolidate into one branch at some point, but for now we are operating separately.
BTW, choose wisely which branch you apply for. My BM was going to interview a guy I referred, but he found out the candidate was already rejected by another branch, so he won’t even look at him.
This is the only branch in my area (within 50 miles) so I don’t have to worry about another branch. First one I have applied to as well.
MBA2FA I thought your BM worshiped you?! He didn’t hire your referal after the killer production you’ve done so far? I’m suprised you haven’t fired the BM yet big guy.
[quote=fa09]MBA2FA I thought your BM worshiped you?! He didn’t hire your referal after the killer production you’ve done so far? I’m suprised you haven’t fired the BM yet big guy.[/quote]
I guess he doesn’t worship me enough to hire all my friends.
However… He is setting up extra training so I can sell alternative investments. In addition to hedge funds, private equity, etc… I’m taking the series 31 so I can sell managed futures.
Cool stuff.
Care to let me know what salary they offered you? You just started there recently correct? Also, were you given assets when you started?
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