Dismissal Letter

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Aug 13, 2009 10:36 pm

So I got a letter today from my b/d saying that i was being released as of the end of the month(lack of production) and they are giving me 3 weeks to find a new b/d. I finally feel like i was starting to gain some traction in terms of increasing my production (have $6K gross hitting next week)..

 
Has anyone been through this before? I still feel I can do this as a career(I had a couple of months where I did nothing, actually nothing because I wasn't sure I would be able to do this but I have rededicated these past 3 months to making it work)..
 
Any advice?
Aug 13, 2009 10:39 pm

Find a new b/d, one that maybe caters to helping people launch there practice if there is such a place

Seems simple enough, learn from your mistakes and it is a big one to take multiple months off. And keep plugging away with your new sense of vigor
Aug 13, 2009 11:05 pm

I got let go from EJ after 3 months for poor production (really pathetic) and I'm finding it very easy to get interviews. Good Luck!


Aug 13, 2009 11:58 pm

These firms should put you guys on 100% commission and go from there. It is just plain stupidity to let you go after making the initial investment.

Aug 14, 2009 12:30 am

[email protected] where are you looking at?

 
Otane... I think so too, I have ample reserves, but given my luck(or poor judgement for stalling for those couple months) I now have 3 weeks to find somewhere else and get through their process(i have talked to a couple already), the crappy part is telling my clients. I am trying to find a place that actually offers them a benefit to what we are doing now.
Aug 14, 2009 12:52 am

I'm sorry to hear this. Good luck finding an alternative, but praise God that you have ample reserves. Looking into this business I feel like I am going to need a side job or night job to make it work due to lack of reserves.

Aug 14, 2009 9:39 am

Chickenfeed,

 
It would concern me that it was so easy for you to just turn it off for a few months.  This just might not be the business for you.  I hope to god you are not supporting a family.
Aug 14, 2009 9:49 am

Chicken,



Get a job. I agree with B24. I look at my wife and I can't imagine not putting my all into building a business. Day in and day out. The days that it sucks, the days that it doesn't.



I plan on taking a few months off, when I finally have someone to run my business like I run it - 10 years from now.

Aug 14, 2009 10:09 am
Moraen:

Chicken,

Get a job. I agree with B24. I look at my wife and I can't imagine not putting my all into building a business. Day in and day out. The days that it sucks, the days that it doesn't.

I plan on taking a few months off, when I finally have someone to run my business like I run it - 10 years from now.

 
Is putting your all into it posting on Registered Rep in the middle of the morning?
Aug 14, 2009 10:56 am
Weddle Me:
Moraen:

Chicken, Get a job. I agree with B24. I look at my wife and I can't imagine not putting my all into building a business. Day in and day out. The days that it sucks, the days that it doesn't. I plan on taking a few months off, when I finally have someone to run my business like I run it - 10 years from now.



Is putting your all into it posting on Registered Rep in the middle of the morning?





Why in fact it is WeeMee. Since my business is grown not by doorknocking but by building relationships with other brokers and advisors, this seems like a good place to be. Since you are likely neither, I don't imagine I need to build a relationship with you.



Not to mention some of us can do more than one thing at once. I can talk to a client on the phone or recruiter and post here. I can also post here while updating portfolio models. Imagine that!



And you still didn't stay at a Holiday Inn last night.



Liar.

Aug 14, 2009 11:06 am
Otane:

These firms should put you guys on 100% commission and go from there. It is just plain stupidity to let you go after making the initial investment.



I had so much time and effort invested in Jones, if it was offered, I would have taken it.
Doesn't make sense to me.

Aug 14, 2009 12:42 pm
[email protected]:
Otane:

These firms should put you guys on 100% commission and go from there. It is just plain stupidity to let you go after making the initial investment.



I had so much time and effort invested in Jones, if it was offered, I would have taken it.
Doesn't make sense to me.

 
Still... did you even try to convince them you were turning things around or were you so down trodden you just took the beating and figured to look elsewhere? Maybe it is just my region but theres an FA out here almost 3 years in production WITH an office (She took it while exceeding expectations right after PDP and the guy who opened it left Jones after year 1) and is still in seg 1 and I have heard no talks about her going anywhere!
Aug 14, 2009 1:25 pm
fa09:
[email protected]:
Otane:

These firms should put you guys on 100% commission and go from there. It is just plain stupidity to let you go after making the initial investment.



I had so much time and effort invested in Jones, if it was offered, I would have taken it.
Doesn't make sense to me.

 
Still... did you even try to convince them you were turning things around or were you so down trodden you just took the beating and figured to look elsewhere? Maybe it is just my region but theres an FA out here almost 3 years in production WITH an office (She took it while exceeding expectations right after PDP and the guy who opened it left Jones after year 1) and is still in seg 1 and I have heard no talks about her going anywhere!



Where segment are you "supposed" to be three years out?

Aug 14, 2009 1:32 pm
[email protected]:
Otane:

These firms should put you guys on 100% commission and go from there. It is just plain stupidity to let you go after making the initial investment.



I had so much time and effort invested in Jones, if it was offered, I would have taken it.
Doesn't make sense to me.

 
Not to be a jerk, but you are still costing the firm money even if they are not paying you directly via salary and providing an office. As unfortunate as it is, I am certain they made a calculated business decision and felt they had to cut their loss.
 
Not not letting you go may actually be stupidity. Classic sunk cost...
Aug 14, 2009 2:54 pm
SometimesNowhere:
[email protected]:
Otane:

These firms should put you guys on 100% commission and go from there. It is just plain stupidity to let you go after making the initial investment.



I had so much time and effort invested in Jones, if it was offered, I would have taken it.
Doesn't make sense to me.

 
Not to be a jerk, but you are still costing the firm money even if they are not paying you directly via salary and providing an office. As unfortunate as it is, I am certain they made a calculated business decision and felt they had to cut their loss.
 
Not not letting you go may actually be stupidity. Classic sunk cost...


 
I wouldn't believe the stories of $100,000+ for Jones to bring in new brokers and watch them fail.  Guys like [email protected] are a dime a dozen to Jones.  They hope they go out, scuffle along for a while opening accounts and getting the Jones name out there until they get axed, then an experienced advisor picks up the failed brokers accounts and sells the clients something new or churns them out of the A-shares the failed broker sold them because he needed the commission pop and takes the account into wrap.  Either way Jones gets their 60%. 
 
Sure it cost Jones a little money to pay a small salary and small benefits to the failed newbie but Jones took 60% of any commission he did generate and now they have a handful of new clients to generate revenue for years to come.  Jones came out ahead, guys like [email protected] lost.
Aug 14, 2009 3:09 pm

I seriously doubt they make money off guys less than a year in that wash out.  Salary, benefits, tech, and training costs add up and if you wash out your production was AWFUL so not much to offset the costs.  The only person that wins in a local Jones rep that snaps up the left overs - then again, do they really want 10k American Fund accounts and small bond orders?

Aug 14, 2009 3:33 pm

You can't expect companies to think logically anyway. That is the beauty of any business - if everyone thought logically we would all have a hard time.



Just do a better job at another place.



Aug 14, 2009 3:49 pm
voltmoie:

do they really want 10k American Fund accounts and small bond orders?

 
Yes.  I want them.  I'll sell them the insurance the Jones rep never did and churn them out of their American Funds into a multi-family asset allocation model for another couple hundred bucks. 

Aug 14, 2009 4:25 pm

This whole discussion is stupid.  Jones stands to gain much more if everyone they hired worked out great.  They could get to their magic number quicker, disband their massive training department, stop building new offices, stop paying startup salaries, travel time, etc.  Anyone that thinks Jones (or any firm) loves to churn through rookies is smoking crack.  It costs them WAAAAAY too much to want to churn throught them.  Think about the startup costs versus what Jones gets out of it.  And most of the assets retained are crap anyway.  If there were big assets, the FA either made it, or took them somewhere else.  Otherwise, you have a few bonds, a few stocks, some cash, and some A-share mutual funds.  And most likely $1mm or less in AUM.

Aug 14, 2009 4:47 pm
B24:

This whole discussion is stupid.  Jones stands to gain much more if everyone they hired worked out great.  They could get to their magic number quicker, disband their massive training department, stop building new offices, stop paying startup salaries, travel time, etc.  Anyone that thinks Jones (or any firm) loves to churn through rookies is smoking crack.  It costs them WAAAAAY too much to want to churn throught them.  Think about the startup costs versus what Jones gets out of it.  And most of the assets retained are crap anyway.  If there were big assets, the FA either made it, or took them somewhere else.  Otherwise, you have a few bonds, a few stocks, some cash, and some A-share mutual funds.  And most likely $1mm or less in AUM.



 
I'm sure Jones would love it if everyone they recruited made it, but don't believe that they take much of a financial beating when someone does not.  There's money being made there.