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Jun 24, 2010 11:28 am

I have become friends with and am evaluating a local Indy in my area.  The indy is very interested in having me come on but they are looking at about 20-24 months before they will be ready.  I'm not in the industry today but have been following the industry, developing a good network, reading Nick Murray books and forums for the past 4 yrs.  I'm at a point where I need to make a change in what I'm currently doing but the indy is not ready. My question is what do I do.

1.  Go to work for as a bank FA start developing a client base, learning the ropes and then hope to transfer to indy?

2.  Continue to work in a sales/management role outside the industry until the indy is ready?

3.  Go to EDJ or another company and put my head down and jump feet first into the business and not worry with the Indy?

4.  Forgot about the indy all together at this point? 

I was pretty well set I would do EDJ until I learned of this.  I would walk into the Indy with a book of business, they have a very unique setup with limited prospecting (although I'm a big believer and an effective in prospecting.)  Feedback?

Jun 24, 2010 9:46 pm

You wouldn't want to start somewhere else with only a 2 year window so just wait and go to the indy.

Jun 24, 2010 10:10 pm

Spend the next two years getting to know as many people as you can that fit the type of person you would like to do business with.

Jun 25, 2010 11:57 am

Good advice above, but also spend the two years educating yourself.  Read as much about investing as you can from as many different viewpoints as possible.  The whole point of going Indy is to bring an independent perspective to your clients and not be somebody else's Shill.

Jun 25, 2010 2:34 pm

Good advice.  I've read most of Nick Murrays stuff some of it multiple times.  In addition to be helpful in your business the general sales rules also work in other business models.  What other material would you recommend?  I subscribe to the industry magazine or two, forums, ?????

Jun 25, 2010 4:35 pm

[quote=Madman]I 1.  Go to work for as a bank FA start developing a client base, learning the ropes and then hope to transfer to indy?  [/quote]

All good advice above...I will add, do not become a bank FA.  You will learn too many bad habits and that is where brokers/FC's/FA's go to die!

Jun 25, 2010 9:06 pm

If I understand correctly, you have this Indy who wants to bring you on two years from now. You have no practical experience in the industry. You would be joining this indy FA 2 years from now with no book. The indy would be giving you a book to work.

If my assumptions are correct here's what i think you need to do, if you really want to be in this business and be good at it. And I'm going to add one more assumption that you should make. Assume that in two years the deal may not be there like you think it is. Because a lot can happen in two years. The guy could find someone he likes better. He could get hit by a bus. He could change his mind and decide that he is better off without a junior FA to be responsible for. The industry could change (in fact it will, it will look a lot different in two years, that i am sure of.)

So keep that in mind, and then consider this:

1.  Get yourself hired by a wirehouse into their training program. You will get the best training available in the industry, as far as sales go. I don't know what you were selling up till now, but this i s a unique game. You will be selling air. And you will meet a lot of people who think they are smarter than you when it comes to manufacturing air. From the minute you get that job and go into production, be scared. Be scared that you will fail. Because most trainees do. And because you will be better if you are scared.

2. Make it your business to become reasonably educated about investing AND capital markets. You will learn almost none of that at a wire, they only teach you how to bring in money (which you must be good at to succeed, so i don't mean to downplay it) and they teach you to wrap the money in a pie chart managed by some obscure institutional money manager who doesnt get out of the way when a freight train is coming at them)

3. Realize that Nick Murray is a great writer, and knows a lot about prospecting, but his approach to investing, which is all equity all the time, keep buying, never sell, is suitable for a 25 year old, but not for the 55 year olds who you want as clients. If you go at them with that investment philosophy they will throw you out the door (my own personal opinion, developed as a result of 2 brutal markets in my 10 years in the biz). I am a big fan of Nick Murray and subscribe to his newsletter, but only for prospecting and client dialogue ideas, not for managing money.

4, learn at least the basics of financial planning and practice some form of it with every client you get

5. Network your ass off for the two years that you plan to be at the wirehouse. Meet as many people as possible, by phone, by networking, by seminars, whatever it takes and don't ever ever let up.

6. Make sure the clients you bring in become your friends - you want relationships that are solid, which comes from trust, so always do the right thing for them, even if at your own expense. If you do this, you will own the business. If you don't the wirehouse will own the business and they will own you.

7. Don't take anything the wirehouse tells you at face value.

8. don't buy individual stocks. Stick with ETF's and Funds. (and bonds, lots of bonds)

If you do this, then in two years you will be able to cut a real good deal with the indie, if he didnt get hit by a bus. And you will go to him with your own business that you own, not as his employee

Sorry for rambling, i wanted to be complete. Hope this helps

Jun 25, 2010 11:15 pm

Thanks Sport!