ML in Small-Mid Market

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Aug 30, 2005 2:56 pm

Does ML (or any other firms for that matter) maintain the same production requirements in smaller markets (180,000 population)? 


I am in a smaller market here and one with a largely blue collar economic base.  There are several of the wirehouses located in the area, and I was curious if anyone had any knowledge/experience on the issue of production requirements in such areas.  Will they be the same as for a person located in a wealthy suburb of a large city or will they be altered slighlty to reflect the makeup of the community?


ML came to mind because of their desired client/account types.  The HNW community here is sparse at best, although there is a solid middle class community (I'm guessing ave. salaries per family of btwn $50-85K).


Can anyone speak to issues they've dealt with while working for a wirehouse in a smaller (non-affluent) community. 


Thanks in advance for any serious contributions.




Aug 30, 2005 3:12 pm

jas - we have a ML branch as part of our complex, that is in a very rural area, with about 10 brokers. The office ROCKS!!! Believe it or not, Eddie Jones is not the only firm penetrating Ma and Pa!!!!

Aug 30, 2005 3:46 pm
moneyadvisor:

jas - we have a ML branch as part of our complex, that is in a very rural area, with about 10 brokers. The office ROCKS!!! Believe it or not, Eddie Jones is not the only firm penetrating Ma and Pa!!!!


EdJones has done a VERY good job of PENETRATING middle market clients.  In fact, many former EJ clients have told me how they felt thoroughly PENETRATED. 


Aug 30, 2005 4:34 pm

That's a good one! hahahahahah. I guess I set you up pretty good.

Sep 1, 2005 11:02 am

Getting back to ML I had a phone conversation with a recruiter and they asked me if I could raise 15mm in two years as a trainee, and my answer was of course not a problem. I was wondering if anyone was told a simular number for AUM ?

Sep 1, 2005 11:12 am

That is the Bogie. 15 million in 24 months + Best ball of 175K PC's or 10 mil of the 15 Mil has to be in annuitized biz. there are some nice bonuses along the way, and nice perks when you graduate.

Sep 1, 2005 12:01 pm

15M is the official number, but my director has told me that 30M is the ideal number, with 20M being in annuitized. When salary goes away after 24 months, you need those assets to continue producing for you. Lets say 20M at 1%, that is kicking off approximately $200K/year. That, coupled with transactional and new business should be enough to support the lost salary from your training program. And yes, if you graduate, the bonuses and stock awards are NICE !!!!! Tough numbers but possible...

Sep 1, 2005 12:29 pm

I've spoken with many who have hit $15M, if not more.  The fact is that Merrill has the highest AUM goals of any firm in the biz.  So...if a broker cannot hit the $15M mark, but is at $10-12, MWD, SSB, UBS, etc., will all welcome them.

Sep 1, 2005 3:13 pm
blarmston:

15M is the official number, but my director has told me that 30M is the ideal number, with 20M being in annuitized. When salary goes away after 24 months, you need those assets to continue producing for you. Lets say 20M at 1%, that is kicking off approximately $200K/year. That, coupled with transactional and new business should be enough to support the lost salary from your training program. And yes, if you graduate, the bonuses and stock awards are NICE !!!!! Tough numbers but possible...


What type of bonuses could one see along the way?  


Thanks-

Sep 1, 2005 3:28 pm

AUM      FEE BASED  (or)    PC's         &n bsp;         &n bsp;      Bonus         Mnth


2.5          1.8         &nb sp;          25,000                         2,000         & nbsp;  6


5.0         &nb sp; 2.8         &nb sp;          50,000                        2,250      & nbsp;      9


7.0         &nb sp;  4.0         &nb sp;         70,000                         2,500         & nbsp; 12


9.0         &nb sp;  5.5         &nb sp;          95,000                        2,750         & nbsp;15


11.0          7.0         &nb sp;          120,000        &nbsp ;         &nbsp ;  3,000         & nbsp; 18


To graduate in month 18 =   15 mill AUM & 175,000 pc's or 10mill annuitized (this can be A or c shares, manged money , annuity - anything with a trail at all).   /    $20,000 cash bonus, $50,000 in stock, 50% payout for 2 years. at 60 months $100,000 check.

Sep 1, 2005 3:57 pm

That did not come out right....


6 months - 2.5 AUM, Better of 25,000 PC's or 1.8 Fee based. $2,000 Bonus.


9 months - 5.0 AUM, Betterof 50,000 PC's or 2.8 Fee based. $2,250 Bonus.


12 months - 7.0 AUM, Better of 70,000 PC's or 4.0 Fee based. $2,500 Bonus.


15 months - 9.0 AUM, Better of 95,000 PC's or 5.5 Fee based. $2,750 Bonus.


18 months - 11.0 AUM, Betterof 120,000 PC's or 7.0 Fee based. $3,000 Bonus.


If graduate in month 18 you get, $20,000 cash bonus, 50% payout on annuitized Biz for 2 years, $50,000 in ML stock (vests in 8 years), In 60th month $100,000 check.

Sep 1, 2005 4:31 pm
moneyadvisor:

jas - we have a ML branch as part of our complex,
that is in a very rural area, with about 10 brokers. The office
ROCKS!!! Believe it or not, Eddie Jones is not the only firm
penetrating Ma and Pa!!!!





Yeah, Merrill Lynch is penetrating Ma and Pa all right...right up the a$$!



www.donttrustmerrilllynch.com






Sep 1, 2005 5:07 pm

Inquisitive - Joedabrkr already hit that one out of the park. Funny, but not true.


With millions of satisfied clients who have been with the firm for generations, and Advisors who have been here for 25 plus years,.......You are right.....we must be doing something wrong.


Jan 7, 2007 12:51 am

To speak to what moneyadvisor says..My dad has been with merrill for more than 30 years. Started in mid twenties and he is in his 60s


The funny thing is he has gone to the achievers trip every year that I have been alive (20+ years), and I used to think they let all their employees go on a nice trip, because i didnt know any better of course.