Production at Indies

or Register to post new content in the forum

29 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Apr 4, 2009 8:11 pm

Does anyone know, and care to share, the average production per FA at RJ, LPL, Commonwealth, or any of the other "more important" or "non obscure" for lack of a better way to put it, Indies? Just curions.

Also, any Indies care to post their net net as a % of Gross, after all expenses, costs, ticket charges, etc etc? If you are willing to do this, then also share, for clarification, whether your gross is above or below, say $300k? And whether you are paying someone to OSJ you or working out of your own branch?

Curiosity more than anything. (sort of)

Apr 7, 2009 10:07 am

I felt bad that your post/request had no replies in public.  Glad I could help privately.

Apr 7, 2009 10:54 am

You kind find average production numbers on any number of websites... Investment News, Financial Advisor Mag... etc..

I think it would be hard to get a group concensus on net net because every indys expenses are different.Some who do all managed money, have no tickets charges. Indys who trade stock would have more
Apr 7, 2009 11:01 am

Bob, the problem with looking at "averages" in the indy world, is that production and expenses run the gammut (sp.?).  At any particular firm (say LPL) you can have a guy doing 150K and 25mm AUM working solo out of his house, to a huge firm with 40 people doing 5mm in production and a half billion in AUM.  There is simply no way to reconcile the two, and the "average" is meaningless.  You probably have to be more specific, i.e. "for indies doing between 250-750K in revenue, that have an office and at least one assistant, what is your typical net?"  Now, this still leaves a lot of variation, but it narrows down the results a bit.

Apr 7, 2009 11:02 am

For example my annual expenses(rent,software,e/o) is $15189.

Did 320K gross(minus ticket charges) @ 80%=$256K
So $256K-$15189=$240811
But then I spent on misc $22600
$3K-lists, $1400(seminar mailing)*4=$5600, $10K(seminar dinners),$4K(misc office supplies)
So $240811-22600=$218211
Apr 7, 2009 1:19 pm

I think a big variable at lower gross levels is whether or not you have staff.

 
Squash, I assume from your numbers that you work solo?
Apr 7, 2009 1:53 pm

I share an office and assistant with another rep.  Our net with both of us doing $300K each is around 62%.  We pay our assitant well and she does an excellent job with our clients.  That beats getting a 38% payout at a wirehouse all day long.  You can net a lot more if you hire a assistant with no financial services experience or not one at all.  Just depends on the area you are in and what your clients expect from you.  Everyone is different.

Apr 7, 2009 6:38 pm
B24:

I think a big variable at lower gross levels is whether or not you have staff.

 
Squash, I assume from your numbers that you work solo?
 
Thats right.. I use to work at Jones, and I saw first hand how useless a secretary was(until you get to 300 households)... I work with about 60-70 clients and 20-30 product buyers(yes I do distinguish)..
 
So for me i would have nothing for an asst to do. Yeah I work a little later processing items an asst could but I don't have to worry about an asst or pay one.. I answer my own phones(except wholesalers get the V.M. and I actually don't get that many calls(I don't advertise, publish my number or anything like that, so if you call me it's for a reason)..
 
 
Apr 7, 2009 6:39 pm

Plus all my expenses are deductible so I think that bumps my payout a little bit back up..

Apr 7, 2009 7:03 pm

Full RIA, 76% net through my practice. NO skimping on anything. If we need it, we get it.



C

Apr 7, 2009 10:49 pm

Yes, and thank you, your information was very helpful

Apr 7, 2009 10:57 pm

This is all good information.
I can run the numbers and come up with where i think i would be, the problem i am having is getting my arms around ticket charges. I do a lot of discretionary management and i trade a lot.

Apr 7, 2009 11:52 pm

To answer your original question, average production at LPL and RayJay is about the same, around 200k annually.  What is interesting is that around 1/2 of all reps GROSS less than 100k.  All the numbers come out annually in INVESTMENT NEWS.

Apr 8, 2009 10:50 am

Anyone know of a B/D that has no minimums(gross production) requirements. A friend of mine who is was recently a registered sales asst is looking to start. I know most b/ds have anywhere from $25K-$125K minimums... anyone aware of someone who doesnt..

Apr 8, 2009 11:07 am
rankstocks:

To answer your original question, average production at LPL and RayJay is about the same, around 200k annually.  What is interesting is that around 1/2 of all reps GROSS less than 100k.  All the numbers come out annually in INVESTMENT NEWS.

 
I thought RJ's quotas are $250K...
Apr 8, 2009 11:18 am
Captain:

Full RIA, 76% net through my practice. NO skimping on anything. If we need it, we get it.



C



This is a great number!!  I have been able to get some of my clients to 70%.  Could you talk more about your practice and firm size. 

One thing I would agree with other posts is to share costs as much as possible with another advisor or advisors.  I am working with three advisors now that want to setup their own individual RIAs but share office space.  A few compliance issues to watch out for, but otherwise an easy way to get a better payout.

Good Luck.

ash
www.FAfreedom.com - The Breakaway Experts
609-945-7100 x 101

Apr 8, 2009 2:10 pm

Average at Ray Jay is over $300 gross currently.  You need $250 to get your own branch.



 
IndyEDJ
Apr 8, 2009 3:28 pm
Squash1:
rankstocks:

To answer your original question, average production at LPL and RayJay is about the same, around 200k annually.  What is interesting is that around 1/2 of all reps GROSS less than 100k.  All the numbers come out annually in INVESTMENT NEWS.

 
I thought RJ's quotas are $250K...
 
As of 01/2009
LPL:
11,770 reps
5,015 reps producing over 100K
 
RJ:
3,148 reps
2,306 reps producing over 100K
 
I was shocked to see this report and see how many B/D's have a substantial number of reps producing less than 100K.  I guess part of it is registerd assistants, CPA's/Attorneys that are registered, part-timers, para-planners that are registered, dual-registered advisors that do mostly RIA work but are registered, insurance-based advisors, etc.
Apr 8, 2009 3:32 pm

Yeah but also if you are doing $100k out of your house(i.e. no expenses) and a 80-90% payout that isn't a bad living.

Apr 8, 2009 3:58 pm

I think a big problem (i raise my hand to this) is once you come from a payout of 38% and your always scraping and scraping to get a higher gross vs 90%...I don't work as hard.  Hell, theres days I don't do much of anything except talk to clients about whatever they want to talk about.  I've streamlined my practice as far as paperwork, reviews etc..have an assistant here 8-12..she faxes all paperwork, files everything, makes sure transfers are progressing, does cost basis work, screens my calls, deposits.  She even makes sure everything is up to speed for compliance.  I pay her 10 an hour, no benefits.  She was initially trained at Jones, her and her husband have money.  She does it to get out of the house.

Its actually pretty amusing...I get do some transactional work, accts transfers, new money, have 5mil in fee based and screw off most of the day and STILL make 2x the net I was at Jones..calling and calling and calling.  This is the best kept secret in the industry. 
I don't feel pressured to sell anything..which in turn produces more income than anytime in the last 8 years.