Selling my senior partner

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Mar 28, 2007 11:10 pm

I could use some input on my current situation:

I have been with a regional brokerage firm for two and a half years (intern in college) and just started full-time in February, sitting for the 7 March 20.  I worked my ass of as an intern and caught the eye of one of our top producers/portfolio managers who has since hired me to grow his business. Currently he has just north of $200MM AUM, with his top 150 out of 700 clients representing about $150 of that.  He has done a hell of a job making money for his clients, but they are underserviced. My questions are:

1. If I were to spend my time growing clients 151 - 300, in what ways would you recommend doing so?

2. My branch managers continue to tell me how important it is for me to go out and prospect my own clients to grow my "own book" as well. However, if I have these existing clients who already know who we are and more than likely willing to listen to what I have to say, shouldn't I be spending the majority of my time trying to build relationships with them and grow their assets?

3. If anyone has any advice on first introductions to to these existing clients, please share.

These aren't all the details, but hopefully it gives you a good idea of my situation.  Thanks for any advice.

Mar 28, 2007 11:22 pm

Focus on number 2. Follow your good instincts. Branch managers get paid for different things that what will make your success. Relationship, relationship, relations. Referrals come from that. If you can't do it your way, go somewhere else.

Mar 28, 2007 11:37 pm

By focusing on number 2 you mean building relationships with his current clients who have potential, or by focusing on my own book? 

Mar 28, 2007 11:42 pm

Here is a simple answer to a seemingly complex situation:


- tell the big producer he has one of two choices: either share a portion of the ENTIRE book production with you from day 1, or put the neglected accounts in your rep code where you agree to a certain % split over (say) 3 years.  Then they're yours'. Unless of course he is paying you a very, very large salary.


Build your own book.  Own it.  Can't tell you how many times I've seen experienced brokers chum it up with the hard working rookies.  Believe me, the motives are selfish and (almost) always the rookie gets hurt.

Mar 29, 2007 12:05 am

Bottom line, you have to try to be a good business person and go with your instincts. You never get something for nothing, and yes, ownership is everything.


But, you just started, are very young, have a lot to learn. Focus on an arrangement that pays you fairly, and you will learn the secrets.


And, if you have really, really good relationships with any focused group of clients, you will have control.


You can't generalize, you must think for yourself. If I was a Jones rep looking for ideas and came to this forum and hung around, I might make myself miserable and jump ship pretty quickly. Even though that path may not be the best (short term) career choice.


Go with the big producer if you can trust him, if you think he is a good person. If he is a scumbag or has a big ego, do your own thing. Invest in character and opportunity.

Mar 29, 2007 12:10 am

 tell the big producer he has one of two choices: either share a portion of the ENTIRE book production with you from day 1, or put the neglected accounts in your rep code where you agree to a certain % split over (say) 3 years.  Then they're yours'. Unless of course he is paying you a very, very large salary.


Keep this in mind, but don't blow the negotiation. If you feel like you might be used, you'll probably be used. If your instincts and ability to judge this potential business partner tell you to invest, don't quibble, but there can be a lot of pitfalls. For example, if this senior is passive aggressive and compulsively cheap, forget. You need to assess the opportunity, since you already have the basic skills and insights,  focus on the target, not atyourself. Let your subconscious, your intuition, help you decide. Skim Napolean Hill's " Think and Grow Rich", and think about how the various elements of success line up for your decision.

Mar 29, 2007 12:10 am

Thanks for the advice thus far...

In essense we are "sharing" a portion of his book.  Without going into details, all new assets I bring in from his current clients will be paying me (commissions, 12b-1s, fees, etc.)  On another note, all clients I aid in moving to fee-based business (an ongoing project) results in a bonus. 

I am lucky in that I was able to convince the firm to put me on salary my first year while I get my licenses.  However, it is in contract that if the business I bring in exceeds my salary, I will get paid out.

Also, I have known my partner for many years. I grew up playing sports with his son and he is the reason I have the job.  I hear your concern but you'll just have to trust me that the odds of him "chumming" me are slim to none.

Mar 29, 2007 8:26 am
The Judge:

Here is a simple answer to a seemingly complex situation:


- tell the big producer he has one of two choices: either share a portion of the ENTIRE book production with you from day 1, or put the neglected accounts in your rep code where you agree to a certain % split over (say) 3 years.  Then they're yours'. Unless of course he is paying you a very, very large salary.


Build your own book.  Own it.  Can't tell you how many times I've seen experienced brokers chum it up with the hard working rookies.  Believe me, the motives are selfish and (almost) always the rookie gets hurt.



If some kid said that crap to me, he'd be building his own book.

Mar 29, 2007 8:48 am

Amen to that!



If a rookie told me that I had two choices, I'd tell him that there's still one

more choice...get out of my office.