Bank Channel

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Feb 2, 2006 5:29 pm

I'm curious if anyone has experience with RJ in a bank channel.  I've heard good things about RJ, I'm sure it's the same at the bank level.


Curious what the payout structure is both on the product gross as well as the payout to the broker.


Is 350K - 400K year one with limited bank referrals doable under this type of structure?



Feb 2, 2006 5:46 pm

that's like asking can you run a 4.4 forty...it would be doable for a few, but not for most...

Feb 2, 2006 6:06 pm

It's going to be with smaller local banks that typically aren't in a position to attract the UHNW clients.  It's possible, but not probable.

Feb 2, 2006 6:36 pm

How do you define UHNW?  You can do 400K with 250K rollovers if you can get enough

Feb 2, 2006 8:08 pm

I would say in year one it's going to be tough unless you have a huge branch network.  Typically bank programs = 1 rep to 200 Million in this scenario it is unlikely anyone is going to do 400K in 1st year, unless they only sell VA's

Feb 2, 2006 10:01 pm
bankrep1:

I would say in year one it's going to be tough unless you have a huge branch network.  Typically bank programs = 1 rep to 200 Million in this scenario it is unlikely anyone is going to do 400K in 1st year, unless they only sell VA's


Well isn't that pretty much what you guys do? 

Feb 2, 2006 10:03 pm

Joe,


No. That's what your boy Dirk does.  He's independent right?



Don't make blanket statements, it makes you look stupid.

Feb 2, 2006 10:10 pm

is it possible with 100% fee-based biz?  Where I am now pays little on fee-based - 1 - 1.4%.  That's a tremendous volume to do this..


BrokerRecruit - what did you mean - "It's going to be with smaller banks"....(??)


Feb 2, 2006 10:21 pm

Don't even attempt to build your business 100% fee based unless you own the business or a frim is paying you a good salary while you build it 50K+.


Gather assets, meet your monthly goal, everything after that goal has been reached can go into fee based.

Feb 2, 2006 10:40 pm

Bank,


I got the same advice from colleagues when I started my practice 2 years ago.


I had an ethical problem with only doing fee based after meeting my monthly goal.


Why should I treat a prospect differently just because I hadn't met my goal yet?


My attitude was, if my firm has a problem with the way I'm building my practice, so be it.


I'm still here :)


scrim

Feb 2, 2006 10:46 pm

Scrim,


If your firm supports you building a fee based business and you feel it is the best fit by all means pursue it.  I believe you have mentioned your firm pays you 3% or so upfront.  At 1% you'll starve, drop out of the business and not help any clients.


Alot of advisors want to be advisors from day 1.  From day 1 your a salesman, you get to be an advisor after you sold enough sh*tt that you can now consult rather than sell.

Feb 2, 2006 10:51 pm

very salient point.


I guess I luckily found a good fit that my firm supports building a fee based business.


If I was only getting 1% on new money I would've had to negotiate a salary for a few years to get by before my practice would be viable.


scrim

Feb 2, 2006 10:55 pm

Exactly,


Most programs want the fee based biz, but are unwilling to support it, kinda funny what a circlejerk it's been in alot of prgrams.

Feb 3, 2006 1:02 am
bankrep1:

Joe,


No. That's what your boy Dirk does.  He's independent right?



Don't make blanket statements, it makes you look stupid.



Couldn't resist...it was too easy.



Geez man don't ya have a sense of humor?  Or does it hit a bit to close to the truth?

Feb 3, 2006 6:51 am

Do most bank b/d pay 3% on fee-based biz? 


And are we talking mutual fund wraps or professional money managers who manage stock and or bond positions for the clients - i.e., Allianz, Oppenheimer, Lord Abbett, Kayne Anderson, etc.


Is 350K doable year one with 3% payout given no referral program at the bank?  If you're not getting bank customers, I don't quite understand the value of being at the bank (??) - perhaps a few "walk-ins" but that would not build a viable business.

Feb 3, 2006 8:26 am

If you go to the bank have a plan to be gone in 3-5 years.

Feb 3, 2006 9:34 am
newrookie:

Do most bank b/d pay 3% on fee-based biz? 


And are we talking mutual fund wraps or professional money managers who manage stock and or bond positions for the clients - i.e., Allianz, Oppenheimer, Lord Abbett, Kayne Anderson, etc.


Is 350K doable year one with 3% payout given no referral program at the bank?  If you're not getting bank customers, I don't quite understand the value of being at the bank (??) - perhaps a few "walk-ins" but that would not build a viable business.



Exactly my thought....

Feb 3, 2006 12:43 pm

If you're at a bank and NOT getting back customers, you are an idiot.


It's called opportunity cost.  I am making much more than I did at ML not because my payout is higher (actually only slightly).  I am making more because my VOLUME is way up from the access to bank customers, both retail and commercial.


If you are at a bank and aren't getting these referrals, you need to do one of two things:


1.  Start learning how to "be one of them" and build a relationship with your co-workers, and the referrals WILL come.


2.  Leave.


#2 isn't meant to be funny, it's meant to be sincere.  Banks are THE BEST PLACE to build your book of business, especially smaller community or regional banks.  Do a great job, stay humble, make nice with EVERYONE, don't let people know about the kind of money your making (I could make as much as the President of the bank...but you just keep that to yourself).  If you do those things, you can't help but be very successful.

Feb 3, 2006 1:04 pm
BankFC:

If you're at a bank and NOT getting back customers, you are an idiot.


snippity do dah


If you are at a bank and aren't getting these referrals, you need to do one of two things:


1.  Start learning how to "be one of them" and build a relationship with your co-workers, and the referrals WILL come.


2.  Leave.


#2 isn't meant to be funny, it's meant to be sincere.  Banks are THE BEST PLACE to build your book of business, especially smaller community or regional banks.  Do a great job, stay humble, make nice with EVERYONE, don't let people know about the kind of money your making (I could make as much as the President of the bank...but you just keep that to yourself).  If you do those things, you can't help but be very successful.



Good advice.  I was a bank broker for quite a while. You need to get the rank and file and the branch managers behind you.  Besides paying for qualified referrals, one thing that worked for me was to hold some educational seminars for the tellers, loan officers etc to let them know just exactly what I did and my philosophy on investments.  They really have no idea.  The branch managers look at you at competition for assets. The more business you do, they see it as taking away from their demand deposit base. (you should learn bank terminology too) .  Show the managers how your business will contribute to their bottom line.


Once they are not afraid that you are going to ream "their" customers and burn the client to the ground, you will start getting referrals.   You might also try to make the employees of the bank your clients.  


It is all about trust.

Feb 3, 2006 1:11 pm

Bank,


I'm doing pretty well on the retail side getting customers but lagging with business owners and their biz accounts.


What do you think I should focus on to increase my accounts from small business owners?


scrim