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Dec 23, 2005 7:49 pm

Well,


I just got my good Fu$kin from BOA bank. fee beased payout droped from 36 to 31% and trails cut from 31% to 22%. They say we should make it up with the new bonus program, but these fu&$ers can't be trusted. Now what do I do? What a mistake!


Dec 23, 2005 7:55 pm

The banks will change their comp plan every year.  They dropped an insurance multiplier on my end.

Dec 23, 2005 9:15 pm
ezmoney:

Well,


I just got my good Fu$kin from BOA bank. fee beased payout droped from 36 to 31% and trails cut from 31% to 22%. They say we should make it up with the new bonus program, but these fu&$ers can't be trusted. Now what do I do? What a mistake!




Sorry to hear it EZ.......when I considered my change I looked at banks, and this was a concern of mine.


If you want some feedback on indy life, PM me and I'll answer any questions you may have.

Dec 23, 2005 11:57 pm

Build a book at a small institution.  When the institution f#cks you, you fucl them.  Thats my plan

Dec 24, 2005 8:56 am

All in the name of making sure no one gets too big.  You go in and
work your tail off building a fee based business, forgoing the up-front
commissions you may hve gotten otherwise, and BOOM...your thank you is
a pay cut. 



The banks have done this and will continue to do so, especially as more
and more people move to a fee based way of thinking (It is FREE revenue
to them!).  It really is just the price for getting all of those
juicy referrals everyone brags about.



What to do?  Its a career choice, and I have yapped my opinion on the matter too many times to count out here.

Dec 24, 2005 10:16 am

EZ,


I had a similar experience...the last four years I was there, we had four different comp plans, each one less than the last.  The last one at the beginning of 2005 was one of my final straws and I bailed...along with over 30% of the rep force.  This apparently got management's attention as I understand that they finally made a comp plan change that was positive for the reps, but along with that came a new, tougher non-compete for everyone to sign.  The poor fools that stayed fail to understand that as soon as they sign that non-compete and lock in, they'll be looking at a new, less generous comp plan next year and they'll be screwed.  All they are seeing now is dollar signs, but soon those dollars will be smaller and they'll again be miserable and more locked in than they ever were.  You are correct...bank management cannot be trusted.


It's my humble opinion that there is a tremendous amount of jealousy among bankers.  When I was first told that by another vet, I didn't believe it, but my oh my, how my eyes were eventually opened.  There's much jealousy among senior management, most of who made less than many of us, and commercial lenders (who have traditionally been the big boys in the bank).  We were never offered stock options as this was a way that commercial lenders and senior management were placated ("but YOU have stock options!").  When it was obvious that I was leaving, lo and behold, stock options and a potentially better new comp plan came out of the closet and I understand that the remaining kool-aid swilling reps now have stock options, along with their shiny new comp plan.


This may not be the case with large bank programs (although it appears to be the case at BOA now), but I faced it on a regular basis.  I don't miss the political bullsh*t at all, even though at the moment, I'm not quite making what I was at the bank, I am infinitely happier and ultimately expect to make considerably more with less effort on my part and a more manageable book size.


EZ, I don't know if you are deep enough into the program with sufficient AUM and customer loyalty to go indy, but if you are, that would be the path that I would take.  If not, look at either a firm w/o a nasty non-compete (I understand that EDJ only chases training costs in the first three years) or a firm that will eventually allow you to transition to indy (such as Raymond James).  If you are big enough to go indy, look at either Raymond James or LPL(where I went), as these are two high quality indy firms where you can avoid politics, endless mind-numbing meetings and ever-shrinking grids.  Good luck.


Merry #%+$&#!@!@*& Christmas, huh?!!!

Dec 24, 2005 5:23 pm

try moving to BOA private banking side---I have always heard good things about them.

Dec 24, 2005 5:37 pm

Who would have ever thought there was no such thing as easy money?  Well, I guess maybe someone who recommends building a business the "rightway," and all of our mothers who told us you know what about things that seem too good to be true.  The only job and income security is a satisfied client base, preferably--by a phenomenally large margin--one whom you have cultivated yourself.

Dec 24, 2005 5:43 pm

I hope I get some responses to my post. I am about to sign on the dotted line with them. Now I'm not sure. I was informed that the comp plan was going to change because fee based were a 36% payout while regular commissions were at 31%. The guys that have been part of the process with me informed me that it was being changed because govt/NASD/SEC saw that as enticement to brokers to push certain products. They did say something about the bonus being added back in.


I figure that is true,  but that being said how then  does Jones get away giving 30% payout on C shares, 35% B shares and then the big 40% for pushing A shares?


I'm strongly considering making the switch, and mainly to the bank for the good benefits, being able to have a fee based platform, a great referral base, and the substantial up front packages they are willing to give out. And I'm sick of working by myself all the time. I know I might be limiting my income on the upper end, but I've never really cared about being at those levels, would rather spend more time with the kids.


I'd like to see what people think.


Dec 24, 2005 7:34 pm

southcampus:

I hope I get some responses to my post. I am about to sign on the dotted line with them. Now I'm not sure. I was informed that the comp plan was going to change because fee based were a 36% payout while regular commissions were at 31%. The guys that have been part of the process with me informed me that it was being changed because govt/NASD/SEC saw that as enticement to brokers to push certain products.


------------------------------------------


I don't buy it. They also could have bumped-up regular commissions to 36%, to remove the "enticement".


Here's my take on the situation, but first a little background: BOA has purposefully lowered CD rates to some of the lowest in the nation. Their business plan is to avoid holding over 10% of the deposits in the country (some banking regulation). With extremely low CD rates, bank referrals to brokers become almost automatic. Example: Ms. Smith has all her accounts with BOA. Well, her $100,000 CD just matured and the new CD rate is awful. But she isn't going to close-out all her accounts just to get a higher rate somewhere else. So, she's taken over to Joe Blow (the bank broker) to try and get some better rates.


I believe BOA knows this and has lowered the pay-out expecting a sharp increase in AUM due to run-off from the low CD rates. This strategy might be considered genius, on BOA's part. Heck, you could also argue that even with the lower pay-outs, the increase in AUM will make-up for it.


Just my take on it.

Dec 24, 2005 9:04 pm

I am in a bank program and building my practice primarily thru fee based.   


I know that throughout my career there will be plenty of changes including comp plan tweaks.       It's how we react to these changes that are most important.


I hope the changes that come down the road aren't too drastic.  I would like to stay in one place for a long time as I build.


I will take a little less $$$$$  to be where I want to be.


I guess I'm more like Tom Brady than Johnny Damon.


Happy holidays all!!!!!

Dec 24, 2005 11:21 pm
thebanker:

try moving to BOA private banking side---I have always heard good things about them.


Why in the name of all that is holy would you encourage someone to move from ONE bank program where they are unhappy with declining payouts to ANOTHER bank program where they will likely face the same issues?  At both of them you are viewed as merely an empoyee and THEY OWN THE CLIENT BASE!


Think about it....

Dec 24, 2005 11:42 pm

Joe,


Not everyone wants to own a business.  There is alot of BS that goes with that.

Dec 24, 2005 11:53 pm
bankrep1:

Joe,


Not everyone wants to own a business.  There is alot of BS that goes with that.



True.  Boy, can I testify to that.  I've spent a lot of time the last week or so getting QuickBooks set up with my expenses, and taking care of issues related to my taxes and documentation for my S-corp.  Once it is done right the first time, though, it should be easy to maintain. Either way, it's worth it for me. 


But do they think moving to a large bank like BofA will help with their payout issue?


Merry Christmas and Happy Hannukah.

Dec 25, 2005 11:39 am

It's just like any other career.  There are good employers and bad.  The banks in general don't understand anything long term because there always getting bought out, buying someone etc.  So there is constant change, management turnover, etc.  This is why I chose to work at a credit union, the idea of the need of immediate profit (to boost shareholder value, meet a quarterly goal etc, does not exist.


I think if you enjoy the entrepreneural side of things going independent is the way to go, but as a former business owner I know you have to deal with alot of non-revenue generating hassles that can side track you from what you need to be doing.

Dec 26, 2005 9:51 am

southcampus,


i've been having the same thoughts about the bank platform as you have and will probably be approaching some banks in the near future about joining them.


Dec 27, 2005 8:08 am
southcampus:

I hope I get some responses to my post. I am
about to sign on the dotted line with them. Now I'm not sure. I was
informed that the comp plan was going to change because fee based were
a 36% payout while regular commissions were at 31%. The guys that have
been part of the process with me informed me that it was being changed
because govt/NASD/SEC saw that as enticement to brokers to push certain
products. They did say something about the bonus being added back in.


I figure that is true,  but that being said how then  does
Jones get away giving 30% payout on C shares, 35% B shares and then the
big 40% for pushing A shares?


I'm strongly considering making the switch, and mainly to the bank
for the good benefits, being able to have a fee based platform, a great
referral base, and the substantial up front packages they are willing
to give out. And I'm sick of working by myself all the time. I know I
might be limiting my income on the upper end, but I've never really
cared about being at those levels, would rather spend more time with
the kids.


I'd like to see what people think.






A career is a long time.  Banks breed a feeling of being happy
with being conservatve.  Everyone goes through periods of time
when their drive and direction seems challenged, but I feel it is
important to look at our own core.  If you have an entrenpenuerial
(sp?) spirit  and drive inside of there, eventually most banks
will not let that fly.  This business is tough enough, and the
thought of building one only to eventually not let the core out, is
wasteful and sad. 



Indy seems to be the ultimate in exercising this spirit, while there
are many other avenues that are less risky.  I work as the main
component of a 6 person team in an office of almost 100 people.  I
can go in our suite and turn off the world, or take an office tour and
visit to get ideas and jokes.  My creativity can run rampid, I get
to manage rookie brokers, I get an expense account, top notch tools,
and all the freedom I wish.  Be careful settling just yet.

Dec 27, 2005 2:53 pm

Hey Folks,Love the discussions. BOA comp plan ...complete joke.!!Put together from the peeps that have only banking background.NO REGARDS FOR THE FOLKS WORKING ON COMMISH. They have taken away the incentives for the banks to refer to the reps.You need to work your book .That sound you hear is the reps heading for the exits

Dec 27, 2005 4:38 pm

 With extremely low CD rates, bank referrals to brokers become almost automatic. Example: Ms. Smith has all her accounts with BOA. Well, her $100,000 CD just matured and the new CD rate is awful. But she isn't going to close-out all her accounts just to get a higher rate somewhere else. So, she's taken over to Joe Blow (the bank broker) to try and get some better rates.


----------------------------------------------------------


Doesnt happen .The bank no longer gets credit for referrals to the rep....They get credit for the #of c.d`s not the $ amount.It is conceivable to see a customer with a c.d renewing get sold a 6mos.9mos and 12 mos in place of the 1 that matured.Kill 3 birds with 1 stone.

Dec 27, 2005 6:09 pm
joedabrkr:
thebanker:

try moving to BOA private banking side---I have always heard good things about them.


Why in the name of all that is holy would you encourage someone to move from ONE bank program where they are unhappy with declining payouts to ANOTHER bank program where they will likely face the same issues?  At both of them you are viewed as merely an empoyee and THEY OWN THE CLIENT BASE!


Think about it....



Remember big banks have to answer to who....Wallstreet. My payplan changed three times this year, THREE TIMES DURING 2005. None of the changes were in my favor. The reward trips were so far out of whack we have four managers going from our area and no producers!


OK, I know I am into bank bashing right now, I am going indy next week and leaving a top ten bank. The bank trained me, got me licensed even provided a good mentor and then when I became profitable bent me little by little over the barrel. Now its to the point that they havent released next years pay plan yet, no one knows how much or how they will get paid. Dont believe the hype, banks dont know how brokers work, they hardly know they need us and they wont make bank employees refer to us. So why not just go find our own meat and truly keep what we kill.