First Contract

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Feb 2, 2009 12:49 am

Assuming I pass my 66 on Thursday I will start work on Monday. I will be working for a small local boutique firm. I don't have a contract with my firm yet, but will be singing one once I pass my 66. I have a few questions.



1) How many account should I have to open before I am on my own? I was told 10 is the "standard"

2) I am going to be getting 100% commission and believe my pay-out will be 50%. Is that good or bad?

3) Are there any stipulations I should look for in my contract or request to have...



Thanks Everyone!





Feb 2, 2009 8:16 am

I can't answer one or three, but I can tell you that I will be getting about 40% payout and will have a salary for a year.  50% seems pretty low without a salary attached to it to keep you going.  I would strongly suggest that you go for some form of a salary to help you get going in that first year.

Feb 2, 2009 8:27 am

Check out what you would be agreeing to in the event you choose to quit or are fired. Specifically, if there a non-solicit or non-compete clause, and for how long? Do they claim ownership of clients or are they considered 'yours?' Would you be obligated to pay back any money such as training fees, etc. if you left in year 1, 2, 3?



Ask to see and review whatever they will want you to sign before you are asked to sign them. You want time to read and review them. It's unlikely you would be able to negotiate these points if you are a new new with no exiting book, but at least be aware of these points. This would also be the time to have an attorney review any contracts BEFORE you sign them.



And this is very important, and a very common mistake:



MAKE SURE YOU KEEP A COMPLETE COPY OF ANY AND ALL AGREEMENTS OR CONTRACTS THAT YOU SIGN. The time to get these copies is when you sign them, not later. Either make copies for yourself, or insist they give you complete copies.



Why people don't think to do keep copies is absolutely beyond me, but if you search the threads here you will see that issue come up again and again.

Feb 2, 2009 12:46 pm
schlemoc:

I can't answer one or three, but I can tell you that I will be getting about 40% payout and will have a salary for a year. 50% seems pretty low without a salary attached to it to keep you going. I would strongly suggest that you go for some form of a salary to help you get going in that first year.





Regarding my commission, this is a SMALL boutique firm with only 10 people in it. Everyone in the office has been paid commission since day one. Every-some does seem to be doing "ok" considering the market today. Asking for salary isn't going to happen unless I try to go work for a larger firm.





Morphius:

Check out what you would be agreeing to in the event you choose to quit or are fired. Specifically, if there a non-solicit or non-compete clause, and for how long? Do they claim ownership of clients or are they considered 'yours?' Would you be obligated to pay back any money such as training fees, etc. if you left in year 1, 2, 3?



Ask to see and review whatever they will want you to sign before you are asked to sign them. You want time to read and review them. It's unlikely you would be able to negotiate these points if you are a new new with no exiting book, but at least be aware of these points. This would also be the time to have an attorney review any contracts BEFORE you sign them.



And this is very important, and a very common mistake:



MAKE SURE YOU KEEP A COMPLETE COPY OF ANY AND ALL AGREEMENTS OR CONTRACTS THAT YOU SIGN. The time to get these copies is when you sign them, not later. Either make copies for yourself, or insist they give you complete copies.



Why people don't think to do keep copies is absolutely beyond me, but if you search the threads here you will see that issue come up again and again.





I will take the contract home before I sign anything and have a lawyer read it over. Assuming there isn't something that I agree with, do I have negotiating room? One of the things I am most concerned about is that if I leave(which would be because I would want to go to a larger firm if this small firm does not work for me) would I be able to take my clients. That is something that most concerns me.



I will defiantly make a copy of the contract after signed. A friend said not that I have my 7 and on thursday my 66 I am not an asset to the company which gives me negotiating room. My first didn't pay for ANY study material or anything for me when I took these test. I had to pay for everything(books, classes, ect) All they paid for was for me to take the test...



Thanks for all the help!