Merrill & SB 15-20m goal in 24mth

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Feb 25, 2006 5:37 pm

Hello to all,


I have been interviewing with all the major firms (GS, BS, ML, SB & UBS, independents- RJ & Woc).  Been through all the initial stages of the interviews. At this point of my career and age, not really looking to be an associate or assistant for couple of power brokers and hopefully eventually move up the ranks, after four or five years, if not longer. Looking to work my ass off, build a nice size book and eventually either build a team (hire junior brokers and pretty much train them) or join a team, with established brokers.


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Now, this question goes to all the experienced brokers (five+ yrs), who either has just finished the five-year deal or knows a junior broker who have just completed or he/she is on the track to completing the five-year program.



What is the success ratio of FA’s achieving $15-20 million within 18-24 months?


Lets say that you have completed and survived the first 24 months, what kind of financial goals will you be required to complete in the next 36 months?


Aside from training you on sales, and preparing to do seminars, what other tools and support will ML, SB, UBS provide you on obtaining your targeted financial goal within the required time frame 12-24 months?


Feb 25, 2006 6:28 pm

15-20 mil is a mighty ambitious goal starting from nothing in 18-24 months.

Too, you have not told us much that we could give you good input.

What is this 'point in your career and age' from which you want to start on your own? How old are you and what relevant experience do you have?

Feb 26, 2006 10:36 am

I dont think we enough information to answer these questions, but here goes. What have you been doing up to this point? How financially secure are you while you go through this process?


If you have never been licensed, dont underestimate how important it can be to work with a mentor, its better to get part of something than all of nothing. There is such a steep learning curve in the beginning its ridiculous. There is so much technical stuff to learn, as well as how to prospect, how to close, arrange portfolios, position insurance and find stategic third party partners.


Doing $15-20 million in your first 18-24 months will be at best difficult. You will for sure have to be a prospecting MOFO. This were being someone's junior can be useful, you can go out and prospect your ass off and set appointments and bring in the senior/lead broker to run the appoinment and hopefully close. I learned so much just watching this way. My mentor had been in the business for ten years before she worked with me, just watching what she said, did and didnt say set me up for success.

Feb 26, 2006 3:34 pm

I thought GS didnt bring in experienced brokers unless they were doing
1-2 mil. gross with more than 2 but less than 5 years of experience in
the industry.  Would you come in as an analyst.  If you were
interviewing with GS, what were you going ot be doing.  Plus, GS
says they have a 10 million client minimum, so the idea of doing 15-20
would be 2-3 clients.  Maybe I am missing something, but I dont
understand. 

Feb 26, 2006 11:07 pm

Hello to all,


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Late twenties. Have a pretty successful sales track record. Most of it is outside the financial market, with all the basic licenses and knowledge (turning prospects into clients, etc.). Also, my financial situation is decent.



“Giff74”, thanks for the impute. How long have you been in the business? You indicated that in the beginning of your career you shadowed a senior broker, which helped towards your success. Did you start in a major wire house? Which wire house?


Also, if I do partner up with a senior broker, what sort of payout should I settle for? What’s the norm in the industry?



I am getting to concluded that the ratio of a new FA’s into a major wire house (with no powerful networks or wealthy family friends) completing the required goals ($15-20m within 24months) is roughly between 1or 2% out of 100. If that were really the case, then these major firms would be losing enormous amount of money. Think about it, salary for two years, bonuses, commissions, and medical coverage (which is not cheap). Aside the expense and time of training you, something doesn’t make any sense. The success ratio must be higher, or if you don’t achieve the projected goals $15-20m, but you have been building a decent size book, lets say, $10m within your first 24months, you get to stay and the management/firm will continue to assist you in building your book.

Feb 27, 2006 6:27 am

"think about it, salary for two
years, bonuses, commissions, and medical coverage (which is not cheap).
Aside the expense and time of training you, something doesn’t make any
sense. The success ratio must be higher"



They have to meet quarterly goals, therefore it is not likely to make
it all the way to the end of the 2 years and then get fired. 
Surprisingly, success rates are determined within the first year. 
We hire people with alot of wealthy contacts etc... but they fail just
as fast as those without.  The ones that do well are the ones that
work the hardest and smartest, the advantage comes to those who have
had sales experience prior...not the contacts.

Feb 27, 2006 12:21 pm

WWWW,


It is not bad because they keep the accounts and reassign the relationships of the failed reps

Feb 27, 2006 1:07 pm
WWWW:

Hello to all,


 <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />


Late twenties. Have a pretty successful sales track record. Most of it is outside the financial market, with all the basic licenses and knowledge (turning prospects into clients, etc.). Also, my financial situation is decent.



“Giff74”, thanks for the impute. How long have you been in the business? You indicated that in the beginning of your career you shadowed a senior broker, which helped towards your success. Did you start in a major wire house? Which wire house?


Also, if I do partner up with a senior broker, what sort of payout should I settle for? What’s the norm in the industry?



I am getting to concluded that the ratio of a new FA’s into a major wire house (with no powerful networks or wealthy family friends) completing the required goals ($15-20m within 24months) is roughly between 1or 2% out of 100. If that were really the case, then these major firms would be losing enormous amount of money. Think about it, salary for two years, bonuses, commissions, and medical coverage (which is not cheap). Aside the expense and time of training you, something doesn’t make any sense. The success ratio must be higher, or if you don’t achieve the projected goals $15-20m, but you have been building a decent size book, lets say, $10m within your first 24months, you get to stay and the management/firm will continue to assist you in building your book.



I think your biggest mistake would be to underestimate the difficulty of what your trying to do.


Just about nobody coming in new without connections makes it at ML or SB in the first 2 years without some luck or help along the way.  It is next to impossible.

Feb 27, 2006 1:51 pm

WWWW,


You've interviewed w/ GS and BS?...... I say BS.  These guys recruit either directly out of MBA programs or absolute cream of the crop producers, I doubt they'd waste their time interviewing guys "off the street".  Other than that, most of the info you're looking for has been posted multiple times. 


As far a sucess rates, my understanding is that it's about 1 in 10, not 1 in 100 that make it.  Also, as bankrep pointed out, the accounts are generally retained, which I can only assume helps offset training costs (which I think are waaaaayyyy less than the $50k to $250k amounts I've seen cited).  Good luck.

Feb 27, 2006 1:54 pm
BankFC:
WWWW:

I think your biggest mistake would be to underestimate the difficulty of what your trying to do.




Amen!!!


WWWW, you may want to take a look a the thread "So you wanna be a stock broker".  It is a VERY demanding career to start.  And the emotional rollercoaster is what gets most people IMHO.  Prior sales experience is a big plus, but have you ever asked complete strangers for their life savings on something as intangible as the stock market?  My mentor told me once "If it were easy, everybody would be doing it, and we wouldn't make so much money." 


That being said, this is the hardest d*mn career you'll ever love.

Mar 1, 2006 10:53 pm
dude:

WWWW,


You've interviewed w/ GS and BS?...... I say BS.  These guys recruit either directly out of MBA programs or absolute cream of the crop producers, I doubt they'd waste their time interviewing guys "off the street".  Other than that, most of the info you're looking for has been posted multiple times. 


As far a sucess rates, my understanding is that it's about 1 in 10, not 1 in 100 that make it.  Also, as bankrep pointed out, the accounts are generally retained, which I can only assume helps offset training costs (which I think are waaaaayyyy less than the $50k to $250k amounts I've seen cited).  Good luck.



Where I'm from BS is a bucket shop - all they do is cold call on muni bonds. Average assets are probably $20mm. It tends to be where guys who couldn't get into SB go. Goldman told me personally that their minimum is $2mm (but its really $2mm) and target client is $10mm. They are looking to recruit producers in the top 1% of other firms, whatever the LOS.