I think I am getting hosed

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Dec 1, 2009 12:45 pm

So I jumped into this industry without doing much homework at all.  I have just found this forum and the wealth of info it holds...

My question is concerning payout... Currently, this is how I am paid.

On a 100k fee based account, lets say my fee is 1%

I am currently at a 36% contract rate so I end up making $360 a year. 

Obviously as my production goes up, my contract rate goes up as well...

Is this normal for new reps? 

If not, I need to switch before I get too far into this...

Dec 1, 2009 12:47 pm

Just curious, who are you with? Is it primarily fee based business that you are attracting?

Dec 1, 2009 12:56 pm

Yes... welcome..

 
 
My guess is that he is at a wirehouse or bank, because those are the only places where your payout increases with production(EDJ stays the same regardless, indy is based on the indy payout is(and 36% isn't likely at an indy).
Dec 1, 2009 1:00 pm

Im with Transamerica Financial Advisors.

I really like the feel of the home office and the people/training at my local office, but...

Dec 1, 2009 3:37 pm

Who?

Dec 1, 2009 3:41 pm
Seufer:

Im with TransAmerica Financial Advisors.

I really like the feel of the home office and the people/training at my local office, but...



You've got some good asset allocation funds.

Dec 1, 2009 6:40 pm

You are at a broker dealer. It is like that everywhere else where your expenses are paid. You have to weigh out the benefits of the support you are getting, the training, so forth.

Are you getting salary or strictly production?

Dec 1, 2009 9:14 pm
aeromaks:

You are at a broker dealer.  It is like that
everywhere else where your expenses are paid.  You have to weigh out
the benefits of the support you are getting, the training, so forth.  

Are you getting salary or strictly production?



strictly production and what expenses are referring to?

Dec 2, 2009 2:25 am

Are you paying for....

your licensing fees, state insurance, investment advisor, and for each state you are registered in for securities.

technology software fees

telephones

copies

printing

various office expenses

postage

office expenses

sales assistants

desk space/furniture

e&O insurance

ticket charges

coffee

training

CE credits

Dec 2, 2009 2:41 am


your licensing fees, state insurance, investment advisor, and for each state you are registered in for securities.


Yes

technology software fees

No

telephones

Yes

copies

No

printing

No

various office expenses

No

postage

Yes

office expenses

No

sales assistants

Have none, but its on me if I did

desk space/furniture

No

e&O insurance

Yes

ticket charges

Yes

coffee

No

training

Sometimes for big trainings at the home office

CE credits

IDK, I just got registered

Dec 2, 2009 9:05 am

What levels do you need to hit to get an increase of that 36%?  Are the increased payments retroactive to dollar 1?

Dec 2, 2009 12:00 pm

yeah, humn, you are getting hosed. =)

If they make you pay for office supplies and such low payouts... something is wrong. esp since no salary to start.

Does insurance go through the grid as well or no?

I have honestly never heard of transamaerica advisors.

Dec 2, 2009 12:20 pm

Sorry, Maks, but just because his grid starts at 36% doesn't mean he's getting hosed.  Who knows, maybe at $50,000 GDC, it jumps to 90% and it is retroactive to dollar one.

 
That being said, you are probably correct.
Dec 2, 2009 4:18 pm

that is true... we dont know how the grid is... or if the guy was handed over a sizeable book of business.

anon, did you even hear of transamerica advisors? I just used their funds. lol.

Dec 9, 2009 2:03 am

I recently started at an insurance-based firm (New York Life) and my
investment business payout is similar to the way yours is currently
structured (although I am not fee based, simply paid on GDC). 36% of dealer gross, increasing with production, capping at
90%.

Dec 9, 2009 2:17 am
Armistice:

I recently started at an insurance-based firm (New York Life) and my investment business payout is similar to the way yours is currently structured (although I am not fee based, simply paid on GDC). 36% of dealer gross, increasing with production, capping at 90%.

 
where are you located? what office?