Waddell & Reed

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Jan 12, 2010 2:11 am

I have a 7, 66, and insurance license. Waddell and Reed want me to come on board with them after looking at my resume and experience. I have no problem working to build a business as I’ve done it before (long story) plus I’m also a traditional business owner. With my wife I own a profitable burger joint, pizzeria, an established Quixtar/Amway Global MLMgroup, and partial owner of an S Corp all of which I now receive income passively from so I understand entrepreneurship. I fill out 1099s, not W-4’s. Building a big book is my next and final adventure before retirement. Our family is virtually debt free and we have enough passive income to cover what little we have and then some. I want to build a decent fee based business and hang up the gloves in about 10 years.


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Couple questions about Waddell and Reed.


-          What’s their production standards?


-          What are the minimum requirements to meet the $2000 per month for the first year?


-          Can you decline the salary and just go strictly off commission with bigger payouts instead of a beginning salary?

Jan 12, 2010 11:00 am

Everytime I hear "Amway" I think of the movie "Go".



"It's not Amway. It's Confederated Products. It's a different company. A different quality of products."

Jan 12, 2010 11:04 am

In all seriousness why go to W&R? Most people go there to get their license and then move on to one of the big wirehouses (at least that is what I have seen). But you already have all that so why not apply to someplace better?

Jan 12, 2010 1:50 pm

What's the draw to the financial world?  Why not just go open another burger joint or pick up another MLM?  Is the goal to build this book and then sell it right before you retire?  What do you consider a big book?  $20 mil, $50 mil? 

Jan 12, 2010 10:26 pm

The reason I want to spend my last ten years until retirement building a book is for a few different reasons. Whether 20,30, or 100mill I'm going to keep producing until I retire in about 9 or 10 years and include in my retirement the passive income from a primarily fee based business. I might even sell the book if the right price is provided. Either way.

I was briefly in the business a year ago but left to help with my father-in-law in transitioning his company to an S Corp. I liked the securities bizz and enjoy the challenge of building another business. I love building things from the ground up and always have. I've never held 9-5's. Only built businesses all my life.

I don't want to build anymore restaurants. I don't want to shell out that much capital so that I can deal with the headache associated with it such as crew training, finding property, building a customer base, city codes, insurance, workman's comp, etc. We have managers who run our two for us and that's enough. My presence is only there to fix problems and put out fires.

My Amway business is terrific. We have a close family friend who is an Executive Diamond in Lake Norman NC and my team has a 28 year old who's been retired since 22. Look up Paul Kopecky if you want to see what I mean. Paul and I were at Old Chicago pizza the other night and the freedom that young man has is unbelievable. He's an Entrepranuer. If a person is ignorant and/or closed minded then that's their loss. Myself and several others profit greatly from the company and I love the oppurtunity they provide. Amway is second only to Microsoft in this country for creating millionaires.

I chose Waddell and Reed because I don't care where I work to build a business. I can do it through any firm. I don't cry and moan and worry about stupid details and opinions. If I've survived building two restaurants from the ground up and developed a pretty big Amway group with no guarantee of income my whole life than I will build a book of business at Waddell and Reed.

I'm seeing three types of members to this forum.
1. The young mouthy 20 something who has nothing positive or constructive to say on this forum who thinks they'r an entrapranuer but will most likely fail because of their bad attitude and lack of correct mental programming.

2. The burnt out 3rd or 4th year rep looking to vent and contemplating leaving thier current firm and/or leaving the industry.

3. Experienced FAs who provide good advice and opinions. These people are the reason I and most others are here. The key is filtering the junk posts and negadowners.

Some FA's in this business are truly entrepranureal and are succesful because of their mentality. They would have succeeded in building any kind of business whether it's retail, restaurant, bar/club, car lot, or anything. But most FA's are employees stuck in an entrapranuer's world parading around like they are business owners but will always have the W-4 Mentality. Over 90% of FA's fail. Over 90% small bizz owners fail too.

Jan 12, 2010 11:41 pm

There may no doubt be some very successful people in the MLM business, but almost all the people I've come across that are a part of them seem to have the same "personality".  None of which I would consider going to the bar for a couple of drinks with.  All seem to look down on those who aren't "their own boss" or "answer to The Man".  'Get the chip off your shoulder, Jimmy', is usually the thought that runs through my head.

Jan 13, 2010 12:35 am

I can't speak for other groups out there but our team approaches things a little differently. We don't sell anyone into the business; we look for people who are looking for opportunity by checking interest. Most people prefer to work for a boss and feel safe and secure in a corporate environment. Most people have an employee mentality and there's nothing wrong with that so coming down on someone for choosing to work for someone else instead of for themselves is wrong.

Amway Global did 8.2 Billion in sales last year, adds an average 12,000 IBOs (Reps) daily. The company has been around since 1959, is like Amazon.com by allowing you to buy just about anything imaginable through the AG Website, and thought highly upon by many reputable people such as John C. Maxwell, Robert Kyosaki, John Sustina, and David Barton. Heck, Amway Global even owns the Orlando Magic. lol

I'm not trying to present an advertisement for the company and MLM as a whole but I think I deserve to put my two cents in since the majority of opinions on the web are unfounded, inacurate, and down-right negative. Please excuse me as I vent:

Sceptic: "So and So tried it and they quit so it must not work"
Reality: "Someone signed up, realized it's very hard after working at it, quits, and says it doesn't work. Most people fail at being an FA and the securities business. Does that mean it's a scam? I heard some guy named Bernie Madoff had a Ponzi Scheme so Wall Street must be a scam. I hope you get the sarcasm. 

Skeptic: It's a pyramid Scheme
Reality: I make more money than my upline. I don't make a penny for registering a new person. Amway Global rewards me when my downline succeeds. At a company your boss makes more when you perform, your bosse's boss also benefits, and his boss, and his boss, all the way to the top. Is corporate America a pyramid scheme? It's got to be because they make money off the people they hire. It's a pyramid I just know it.

Skeptic: There's tons of bad reports about Amway and MLM! I hear nothing but bad news about those companies.
Reality: The media and web blogs is nothing more than a cesspool of negativity, bitterness, disbelief, critism, and just overall poison for your mind and potential. We live in a country that went from capitalists with big dreams to a nation full of lazy sckeptics who let fear keep them from ever doing more with their life.

Entrapranuership is not for the lazy and weakminded. It is a mindset that consists of seeing failure as the road to success and doing what is not popular. I do not have a boss nor do I want one. I love the freedom and wouldn't work for a boss even if my income would double. Freedom is worth more than money.




Jan 13, 2010 6:10 am

I've got no problem with Amway.  However, it is a pyramid scheme.  Comparing it to corporate America is ridiculous.  People who work for corporate America get the bulk of their money based upon their salary.  Successful Amway reps get no salary.  They make their money primarily based upon what their downline sells.  I don't have an issue with pyramid schemes, but to try to argue that Amway isn't one or Corporate America is a pyramid scheme makes one have to seriously question your credibility.

Jan 13, 2010 7:43 am

And thought it was the Jones guys who were the biggest Kool-aid drinkers!

Jan 13, 2010 8:28 am

Here's my problem with Amway reps:

Amway rep to me:  You know, you look familiar.  Did you go to so and so school, or work for so and so. 

Me:  No

Amway rep to me:  What do you do for a living?

Me:  I'm a noga farmer

Amway rep to me:  Oh, I heard that's very good business.  Are you open to earning money outside of that?

Jan 13, 2010 9:52 am

Amway used to be the only MLM specifically mentioned in our compliance book.  They were OK with associates running an Amway biz, but not Pampered Chef, et al.  I have no problem with MLMs in general.  I've found that most people that start their own MLM biz just end up spending the money they make at other people's MLM parties.  Are there some successful ones?  Yep.  But those folks are sales people devoted to their trade and would most likely be successful at whatever sales job they take on. 

 
Magellan - Let me make sure I understand you correctly.  You want to get this brand new financial planning business off the ground and running like a well oiled machine in 9-10 years.  At which point you want to either kick back and relax and wait for the checks from the fees or sell it to the highest bidder who meets your auction reserve.  Really it soundsl like you'd prefer to just collect the fees for the "passive income."
 
How would you respond to this scenario:
 
Client:  So, Mr. Magellan, congrats on your retirement.  Seems like I can't ever catch up with you anymore these days between the fishing, golf, and travelling you're doing.  Boy, I can't wait to get there myself.  It'll be great. 
 
Speaking of that, I was wondering...who's taking care of my money these days?  You know, I'm paying you 1% a year and it seems like all you ever do is fish.  Now, don't get me wrong, everyone deserves to retire at some point, but I'm a little worried about this crazy market and I'm not really sure you're here enough to take care of me and my money.  What's the deal?
 
Magellan: 
Jan 13, 2010 9:57 am
Spaceman Spiff:

Amway used to be the only MLM specifically mentioned in our compliance book.  They were OK with associates running an Amway biz, but not Pampered Chef, et al.  I have no problem with MLMs in general.  I've found that most people that start their own MLM biz just end up spending the money they make at other people's MLM parties.  Are there some successful ones?  Yep.  But those folks are sales people devoted to their trade and would most likely be successful at whatever sales job they take on. 

 
Magellan - Let me make sure I understand you correctly.  You want to get this brand new financial planning business off the ground and running like a well oiled machine in 9-10 years.  At which point you want to either kick back and relax and wait for the checks from the fees or sell it to the highest bidder who meets your auction reserve.  Really it soundsl like you'd prefer to just collect the fees for the "passive income."
 
How would you respond to this scenario:
 
Client:  So, Mr. Magellan, congrats on your retirement.  Seems like I can't ever catch up with you anymore these days between the fishing, golf, and travelling you're doing.  Boy, I can't wait to get there myself.  It'll be great. 
 
Speaking of that, I was wondering...who's taking care of my money these days?  You know, I'm paying you 1% a year and it seems like all you ever do is fish.  Now, don't get me wrong, everyone deserves to retire at some point, but I'm a little worried about this crazy market and I'm not really sure you're here enough to take care of me and my money.  What's the deal?
 
Magellan: Beep.  Magellan is currently out of the office.  If you are in need of immediate assistance, please contact Christopher Columbus, Genghis Khan or Alexander the Great, also known as:  My downline.
Jan 13, 2010 10:00 am
Magellan:

I can't speak for other groups out there but our team approaches things a little differently. We don't sell anyone into the business; we look for people who are looking for opportunity by checking interest. Most people prefer to work for a boss and feel safe and secure in a corporate environment. Most people have an employee mentality and there's nothing wrong with that so coming down on someone for choosing to work for someone else instead of for themselves is wrong.

Amway Global did 8.2 Billion in sales last year, adds an average 12,000 IBOs (Reps) daily. The company has been around since 1959, is like Amazon.com by allowing you to buy just about anything imaginable through the AG Website, and thought highly upon by many reputable people such as John C. Maxwell, Robert Kyosaki, John Sustina, and David Barton. Heck, Amway Global even owns the Orlando Magic. lol

I'm not trying to present an advertisement for the company and MLM as a whole but I think I deserve to put my two cents in since the majority of opinions on the web are unfounded, inacurate, and down-right negative. Please excuse me as I vent:

Sceptic: "So and So tried it and they quit so it must not work"
Reality: "Someone signed up, realized it's very hard after working at it, quits, and says it doesn't work. Most people fail at being an FA and the securities business. Does that mean it's a scam? I heard some guy named Bernie Madoff had a Ponzi Scheme so Wall Street must be a scam. I hope you get the sarcasm. 

Skeptic: It's a pyramid Scheme
Reality: I make more money than my upline. I don't make a penny for registering a new person. Amway Global rewards me when my downline succeeds. At a company your boss makes more when you perform, your bosse's boss also benefits, and his boss, and his boss, all the way to the top. Is corporate America a pyramid scheme? It's got to be because they make money off the people they hire. It's a pyramid I just know it.

Skeptic: There's tons of bad reports about Amway and MLM! I hear nothing but bad news about those companies.
Reality: The media and web blogs is nothing more than a cesspool of negativity, bitterness, disbelief, critism, and just overall poison for your mind and potential. We live in a country that went from capitalists with big dreams to a nation full of lazy sckeptics who let fear keep them from ever doing more with their life.

Entrapranuership is not for the lazy and weakminded. It is a mindset that consists of seeing failure as the road to success and doing what is not popular. I do not have a boss nor do I want one. I love the freedom and wouldn't work for a boss even if my income would double. Freedom is worth more than money.




 
Are you Willie Ames?
Jan 13, 2010 10:21 am

I had to look it up:

Willie Aames Becomes a Financial Planner
<div> By Editorial Staff, WebCPA</div> <div><abbr>January 13, 2010</abbr></div> <div id="verticalspacer">¦</div> <div id="article-dartad-block"> <h6>Advertisement</h6>&nbsp; <no><a href="http://ad.doubleclick.net/jump/bankinvestmentconsultant.com/;abr=%21ie;pg=people_ros;sz=300x250;tile=1;ord=15272694?" target="_blank"><img src="http://adbleclick/ad/bankinvestmentconsultant/abr=%21iepg=people_rossz=300x250tile=1ord=15272694" height="250" width="300" border="0" /></a> </no> </div> <p>Actor Willie Aames has become a financial planner despite filing for personal bankruptcy twice.</p>

Aames, who starred in the TV series “Eight Is Enough” and “Charles
in Charge,” and the movies “Paradise” and “Zapped,” recently appeared
on the VH1 reality TV show “Broke and Famous: Willie Aames” to discuss
his own financial troubles.


Aames described how he was left homeless and had to sleep under
bushes and in parking garages after his wife and daughter left him.
Aames later reunited with his daughter and studied to become a
financial planner. He has passed three licensing exams and a training
program given by the Overland Park, Kan.-based financial advisory firm
Waddell & Reed.


"He’s gone through an internal training program over the span of the
last eight to 12 months," said Waddell & Reed spokesman Roger
Hoadley. "He’s passed his Series 7, he’s passed his Series 6, he’s
passed his health and life examination. He was just activated at the
beginning of this month. He is now trying to build his own financial
planning practice."


Aames will be at a kickoff event at Waddell & Reed on Jan. 20, according to a report by local station KCTV.

Hi Client, I'm your new Financial Advisor.


Jan 13, 2010 11:21 am

I'm not surprised that my openly admitting that I'm an active IBO with Amway Global is received with sarcasm, criticism, negativity, and unfounded opinions. I'm paid pretty well passively because of it; not a ton, but enough that will help supplement my retirement nicely. Amway is growing and will continue to grow whether you're on board or not. Amway will still continue to make people who work hard at it very wealthy, whether you get on board or not. Large companies are seeing the value of growing their non-retail business and the profit potential coming from direct marketing and revenue sharing. This is a growing business regardless and if most people are too closed-minded and negative to see the potential than that's their loss. I'm getting paid and so are many people. Some people are paid VERY well.

Is there anyone on here who ACTUALLY WAS an Amway IBO and can give specific reasons for their negative opinions? It's always the same stupid knee-jerk reaction response to Amway: "it's a scam!" "It doesn't work" "It's a pyramid". "I knew a guy once who...." But these people know very little about what we do. Oh well.

http://www.youtube.com/watch?v=ZZQqyVG5czQ


Spaceman: I believe the easy way to ask your question would have been "How do you plan to service your clients and receive residuals if you're retired?" I will do what many FA's do when they retire whatever that is. I'll wory about that when I get closer. Perhaps I'll hire a minion.

About Waddell and Reed hiring a bum, so be it. I think it's funny. Every B/D has it's benefits and shortcomings. If someone fails at WR it's not because they hire bums or don't have mainstream commercials.







Jan 13, 2010 11:41 am

"I'm not surprised that my openly admitting that I'm an active IBO with Amway Global is received with sarcasm, criticism, negativity, and unfounded opinions."


 
Aren't you just a tad bit defensive?  Nobody is beating up on Amway.  Some people are beating up on the typical Amway rep.   I truly want to know how you are going to argue that it isn't a pyramid.   Your problem is that you think that because someone calls it a pyramid, they are being critical.  That's not the case. 
 
A pyrimid is simply a business model.  It is neither good nor bad.  However, a pyriamid business model, by definition, is one in which people make money primarily by the sales of those who they recruit as opposed to their own sales.  Amway sure seems to fit this mold.  Am I wrong?
Jan 13, 2010 11:50 am

Honestly no one cares about your Amway experience. Is the company set up as a pyramid? Yes. Is it a pyramid scheme? No.

Again I go back to why W&R? If you already have main licenses why not go to an Indy shop or a small regional house?

Also I think you should keep in mind your future plans. To say "I'll do whatever other people do" shows arrogance and ignorance. Find out what your future options would be so you don't screw over your clients by leaving them without an advisor.

If you know you're going to retire in 9-10 years and money right now is not an issue, I suggest looking seriously at Edward Jones. There you can grow a business without having a BM watching your every move and they have some decent options when it comes time to retire. Also they don't have household minimums.

Just be sure that when you're asked how you plan to prospect, tell them about all your Amway contacts.

Jan 13, 2010 12:42 pm
Magellan:


Spaceman: I believe the easy way to ask your question would have been "How do you plan to service your clients and receive residuals if you're retired?" I will do what many FA's do when they retire whatever that is. I'll wory about that when I get closer. Perhaps I'll hire a minion.

 
Actually I figured you had already thought through that before you posted.  Evidently I was wrong.  You assume that you can continue to passively make money off of your clients after you retire.  You might want to check into what your options really are before you jump into this biz. 
 
I was really wanting to know if you had thought about what your clients would think when they found out their advisor was retiring, but still charging them a fee.  That would flat piss me off.  
 
Hiring a minion would certainly be an option.  I would assume though that the minion would be running the show while you were out of the office.  Wouldn't that minion expect to get paid like the boss?  After all, it's his work that is keeping the enterprise afloat.  It's his work that would be keeping the clients there.  And it should be his bank account that gets compensated for that.  How many minions do you think you'd lose, and how many relationships would go with them, before you just simply scrapped it all. 
 
Finally, this comment - I chose Waddell and Reed because I don't care where I work to build a business. I can do it through any firm. I don't cry and moan and worry about stupid details and opinions - shows not only a lack of understanding about how our industry works, but a severe level of egotism that will not suit you well in this business.  The stupid details and opinions are the difference between you successfully completing this mission you're on and just muddling through. 
 
Good luck.
Jan 13, 2010 1:57 pm
mlgone:

"but a severe level of egotism that will not suit you well in this business"

 
 
True.........but coming from you it sounds almost comical
 
Most things coming from you seem comical to me. 
Jan 16, 2010 1:58 pm

Please see my early January related comments on this Board titled Waddell & Reed (in several parts).  In a nutshell, I joined but left shortly after getting my licenses.