Team vs. Solo

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Jul 28, 2006 10:01 am

What is the better environment to start your FA career, with a team or on your own?

Jul 28, 2006 10:07 am

What is an FA?

Jul 28, 2006 10:37 am

Are you kidding me?  It means Fat @$$.  Like when you're at the beach and you see a couple of whales...if you don't want people to hear you calling them names, you can just call them FA's.  I'm striving to someday become a beach whale.


It's financial advisor knucklehead.

Jul 28, 2006 11:05 am
entrylevelFA:

What is the better environment to start your FA career, with a team or on your own?



Starting in a team can be an excellent place to begin your career.  But almost no entry-level advisors can get onto a team without some major compromises.

Be sure to read your teaming agreement carefully.  Consult a lawyer too.  There are several issues that should be addressed.

Be sure you know your role going in.  Some "junior partners" end up being no more than sales assistants.  Who owns your book?  Do you get production credit?  How will your performance be reported to the firm?  Can you leave the partnership and bring your clients with you?

I know several trainee-level team members who worked for a large firm that recently trimmed "underperformers" in its training program.  A number of these brokers were surprised to discover that most of their production credit had gone to the senior team members.  They were terminated as underperformers for that reason.

It's probably better to establish yourself as in individual producer first.  Then you'll be able to enter the team as an equal partner, not a junior one.

Jul 28, 2006 11:20 am

JCadieux,


Thanks for the information.  The teaming agreement is pretty generous with regards to my credits and my rights.  Upon completion of training, I get a split of total team production.  I can't remember the percentage off hand, it is not an "even" split, but I work towards an even split/equal partner in like 4-5 years.  Should I graduate the training and decide I don't like working with a team, I get the total value of AUM I brought in for my accounts out of the group's AUM.  Basically, they'll give me family and friends, then whatever clients I got cold I might get or they might get, but if I do not get the account, they'll give me one of equal value/potential. 


Like I said, I think this agreement is pretty generous, but, I'd like your expert opinion if you do not mind.

Jul 31, 2006 10:09 pm

4-5 years...believe me they are banking you'll be long gone before being "part of the team"  In 10 years I have seen a lot of unknowing people get bent over by joining a team when they had very little industry experience.  Be careful.

Aug 1, 2006 12:50 am

teams are for pussies

Aug 1, 2006 7:13 am
brothaK:

teams are for pussies





What?  What experience have you had would lead you to this opinion?

Aug 1, 2006 8:33 am

His experience is limited to interviewing

Aug 11, 2006 11:30 pm

Like was said above....the structure is very important.



I spoke with a group and they wanted me to start the training program and

bring in my own clients while also working parts of their book. They said if I

got through the program, we would discuss the % split. I just didnt have

enough hard facts to take that jump.



I have heard from many veteran advisors, that you should have your own

book, so you can come in with equity from the beginning. Too many things

can go wrong down the road coming in empty handed

Aug 12, 2006 12:03 pm
bankrep1:

His experience is limited to interviewing




Aug 16, 2006 12:10 pm
entrylevelFA:

JCadieux,


Thanks for the information.  The teaming agreement is pretty generous with regards to my credits and my rights.  Upon completion of training, I get a split of total team production.  I can't remember the percentage off hand, it is not an "even" split, but I work towards an even split/equal partner in like 4-5 years.  Should I graduate the training and decide I don't like working with a team, I get the total value of AUM I brought in for my accounts out of the group's AUM.  Basically, they'll give me family and friends, then whatever clients I got cold I might get or they might get, but if I do not get the account, they'll give me one of equal value/potential. 


Like I said, I think this agreement is pretty generous, but, I'd like your expert opinion if you do not mind.



Sorry about the late response.  I missed this thread for some reason. 


ELFA:  I agree.  From what you've told me, the deal is generous.

They obviously have a high level of confidence and trust in your potential.  That says a lot about the team you're dealing with.

Some things to ask yourself before signing  (if you haven't already).

Is the deal balanced?  Will your contribution roughly equal your split percentage? What contribution will the team make to you?  Is there a synergy that will make the team more than the sum of its parts?  If not, then you may be better off on your own. Is the small print acceptable to you?  Do you understand it all?  If not, then get legal advice.
Would you trust all of these guys with your checkbook?  Your car keys?  Your family?  If not, then think very hard about this.

Also, keep in mind that I'm a recruiter, not a FA.  This means I've seen a LOT of brokers and done a LOT of deals.  But my experience is limited when it comes to living with a team in the long-term.

Anyway, hope this helps.
Aug 17, 2006 8:41 am

Carefull!  'Team' means different things to different people.  For a 'rookie' team means; structure, accountibility, better odds to succeed, marketing to C clients, share in the wealth, no cold calling, consistent paycheck.


For a senior advisor, bringing a rookie on the team means; slave labor typically paid by the branch, I get to keep all the assets this new person brings in once they crash and burn in the business, I have someone who will make 200 calls per day in the hope that if they strike gold I will share in those assets, if one of my C clients decides to move more money over to my team - I win with no extra effort, etc.