Why not become a bank rep?

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Jun 20, 2008 2:34 pm

I am weighing different options from ML, SB, EJ, and a few banks. I kind of like the options available the banks, but it seems vets bash a long term bank career. Any ideas why ?

Jun 20, 2008 3:52 pm

Ok. Well if a bank rep comes from a background in which prospecting was a must, wouldnt it be a glorious match ?

Jun 20, 2008 3:56 pm

How many promises do they make to you that never come to fruition?  100%?

Jun 20, 2008 4:01 pm

I have no clue, I didnt take the job yet. Just getting ideas. If they pay you 35% of gross for the rest of your career and that is all they give you, what is wrong with that ?

Jun 20, 2008 4:08 pm

I know you have no clue.  It was a rehetorical question. 

 
If 35% of gross is all you ever want and you have no other aspirations, then you'll be a perfect fit for the bank...go for it. 
Jun 20, 2008 4:25 pm

Isnt that the payout at Jones ?

Jun 20, 2008 4:57 pm
Joe2121:

Isnt that the payout at Jones ?

 

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Jun 20, 2008 6:48 pm

Look on the bright side, theres plenty of room for advancement in the big banks.

Also,when you tell someone your an adviser somewhere like Wachovia or BOA you automatically have credibility. 99% of people trust employees of internationally known banks.

If you were starving would you go to Earls Hamburgers and Stuff or Burger King ? You'd go with what you know.

Jun 23, 2008 6:21 pm

go to work at a bank if you want to make $ and have a high quality life. go to a wirehouse if you wanna struggle and have a big ego.

Jun 23, 2008 6:27 pm

Every fc I know who went to BAC has left because it sucked. Granted, that is only three fcs but it is still 100%. I hear WB has a better setup at the branch level.

Jun 23, 2008 7:40 pm

Do you guys have any opinion on JP Morgan Chase ?

Jun 23, 2008 7:43 pm

they might buy out WB, no clue about their brokerage.

Jun 24, 2008 12:13 pm
MoMoney:

Look on the bright side, theres plenty of room for advancement in the big banks.

Also,when you tell someone your an adviser somewhere like Wachovia or BOA you automatically have credibility. 99% of people trust employees of internationally known banks.

If you were starving would you go to Earls Hamburgers and Stuff or Burger King ? You'd go with what you know.

 
If I was starving, I'd go to Mexican restaurants and have chips and salsa and water all day long.
 
People won't just trust you because you're at a bank that is internationally known.  I've heard from countless people recently that want an independent advisor because they don't trust the Merrill guys or the UBS folks or this or that.  Credibility does not come "automatically" at all in this business.  You earn your credibility.  People aren't happy with the banks right now either.
Jun 24, 2008 12:28 pm
Joe2121:

Isnt that the payout at Jones ?

 
No, you mostly get 40% , plus proftability bonus as you become profitable.  As you get over, say 300K in production, your payout (due to bonus) will rise.  Over 1mm in production, you're looking at 55%+.
 
It is basically the same as all the other wirehouses and regionals.  Depending on production levels, we are right in the middle of the pack (though every firm has different payout structures, bonus plans, etc.).
Jun 24, 2008 2:20 pm
snaggletooth:
MoMoney:

Look on the bright side, theres plenty of room for advancement in the big banks.

Also,when you tell someone your an adviser somewhere like Wachovia or BOA you automatically have credibility. 99% of people trust employees of internationally known banks.

If you were starving would you go to Earls Hamburgers and Stuff or Burger King ? You'd go with what you know.

 
If I was starving, I'd go to Mexican restaurants and have chips and salsa and water all day long.
 
People won't just trust you because you're at a bank that is internationally known.  I've heard from countless people recently that want an independent advisor because they don't trust the Merrill guys or the UBS folks or this or that.  Credibility does not come "automatically" at all in this business.  You earn your credibility.  People aren't happy with the banks right now either.



Ive actually been to Mexico, and they do it better than American restaurants.

Notice I said "99%" of people and mentioned the big banks that are instantly recognizable.

I used the term "credibility" to illustrate the difference between someone who works at Office ABC over on 456 Street and someone who works at BOA etc. There is definitely a difference when it comes to name recognition and perception. People have a general understanding that BOA MORE THAN LIKELY has higher standards in regards to who works for them.

My point is that most people are not as well versed in what makes a good adviser etc. Alls they know is that they want to park their money with someone they can trust....another words the bank. I know business itself is not automatic, but when you have an advertising juggernaut like BOA doing most the work, the foot traffic tends to be primed.

Jun 24, 2008 2:40 pm
MoMoney:
snaggletooth:
MoMoney:

Look on the bright side, theres plenty of room for advancement in the big banks.

Also,when you tell someone your an adviser somewhere like Wachovia or BOA you automatically have credibility. 99% of people trust employees of internationally known banks.

If you were starving would you go to Earls Hamburgers and Stuff or Burger King ? You'd go with what you know.

 
If I was starving, I'd go to Mexican restaurants and have chips and salsa and water all day long.
 
People won't just trust you because you're at a bank that is internationally known.  I've heard from countless people recently that want an independent advisor because they don't trust the Merrill guys or the UBS folks or this or that.  Credibility does not come "automatically" at all in this business.  You earn your credibility.  People aren't happy with the banks right now either.



Ive actually been to Mexico, and they do it better than American restaurants.

Notice I said "99%" of people and mentioned the big banks that are instantly recognizable.

I used the term "credibility" to illustrate the difference between someone who works at Office ABC over on 456 Street and someone who works at BOA etc. There is definitely a difference when it comes to name recognition and perception. People have a general understanding that BOA MORE THAN LIKELY has higher standards in regards to who works for them.

My point is that most people are not as well versed in what makes a good adviser etc. Alls they know is that they want to park their money with someone they can trust....another words the bank. I know business itself is not automatic, but when you have an advertising juggernaut like BOA doing most the work, the foot traffic tends to be primed.

 
I work at a place like "456 Street".  People don't have a problem trusting us.  You must be drinking the kool-aid. 
 
I think you assumptions are a little off.  "People have a general understanding that BOA MORE THAN LIKELY has higher standards in regards to who works for them."  I have gone the same background checks that a BOA guy has.  What makes their standards any better compared to anyone else?
 
"My point is that most people are not as well versed in what makes a good adviser etc".  Do you know the answer to this question?  Don't you think that's a little subjective?
 
"Notice I said "99%" of people".  Did you take a poll?
Jun 24, 2008 11:56 pm

Your starting with that "Kool Aid" garbage and Im not going there.

Also if you need me to spell out the concept of "perception" then this debate is over before it even started.

Jun 25, 2008 1:30 am
Joe2121:

I am weighing different options from ML, SB, EJ, and a few banks. I kind of like the options available the banks, but it seems vets bash a long term bank career. Any ideas why ?




I read this site from time to time, but never post...unless I think I can actually help. First, as far as why vets bash banks, keep in mind that these "vets" are taking time from their day to post messages on an online forum. The vets that I know and respect probably do not know this website exists--they got to be successful and respectable by not wasting their time on this crap. What you need to realize is that it doesn't matter which of the above firms or banks you go with, your success depends more on your attitude and your situation. You can walk into a great situation (good book, good assistant, etc) at a terrible firm and make money and love life. Conversely you can end up at one of "Fortune's Top 100 Companies to Work For" but have a miserable situation--working from your house door-knocking neighborhoods in the summer heat that have been hammered by other reps in your town for years. A bank may have great investment clients and be very supportive of their FA. Or, you might be forced to compete with the Branch Manager to get money into investments and not into deposits.
That's why your attitude comes into play. There is no perfect firm or situation, so you have to determine what makes you happy and go for it. You will also have to decide how you define success. Our industry will pay you based on sales, not client satisfaction, retention, portfolio quality, diversification, or asset allocation. That's why some of the FAs that firms recognize as "successful" are just good salesman. That goes back to the vets that I look up to. They are the rare breed that care a great deal about clients and do the right thing even when they don't get paid. They put in the long hours, ask for referrals, and manage their own time and finances well. Most of the FAs I look up to happen to have started in pretty good situations--book, office, etc--and that's why they're still around. I have been with a few different firms, including banks. The main advice I would give you is to dig deep into the fine print these firms are providing, and find out the specifics of the position they are providing. Will I take over a book, or office? What's the make-up of the investments in the book (A-shares, C-shares, Managed money)? What are your expectations of me? How am I expected to gather new clients? Where can I go from here--will I have to move to get a real promotion (to St Louis or NY)?
There are tons of other questions and areas you should be concerned with in terms of going to a bank. In general, be aware that you will not make them as much money as other things they offer to their clients (loans, checking accts, credit cards, etc). As someone else mentioned, though, the likelihood of moving into salaried management is higher at a bank. Plus the benefits tend to be a little better (personal experience). I will add that in my experience at a bank your payout per transaction will almost always be lower, but you should be doing more transactions. AND your payout will be what your actually getting paid. For instance someone said the payout at Ed Jones is 40%...but then they take out national advertising (that may have changed recently), your share of office expenses (not sure of the phone/postage breakdown, I think that changed recently too), and your own expenses involved in finding customers--chamber, rotary, toastmasters, client appreciation dinners.
I would also pay close attention to the people you are interviewing with when the question of turnover comes up. Some firms reward recruiters or reps for "firm growth" so they may dance around the issue. A good friend of mine was trying to break into the industry a few years ago and the hiring Manager actually took him out to dinner with the sole purpose of convincing him he couldn't make it...he is now recognized as a leader in his office and just successfully completed his CFP (definitely one of the "rare breed").
You also need to find out as much of the specifics as you can about particular product payout and availability.
I could go on and on, but I hope I made it clear you need to do your homework before you accept a position. Remember when you sign with a firm that's a CONTRACT you're signing.

Jun 25, 2008 7:23 am

I've been a bank broker for most of my career, now I'm at BOA.  Unfortunately, the bank FAs deserve the bad rap because for many years, moving a CD into an annuity was the easiest sale out there.  That type of transactional business, especially at a larger bank, is difficult to do now. 

But as much as I dislike banks for veterans, I think it's a great place to start a career.  The primary goal of any new FA is to gather clients and assets and the banks are, without doubt, the fastest way to do it.  Yes, you have to deal with dumb bank stuff (helping branches with checking accounts) but you will NEVER need to do a seminar or send out mailers.
 

In terms of perception, it doesn't matter for veteran brokers because they have the skill and knowledge to overcome a firm's reputation (good, bad, or unknown).  However, for a rookie, it makes a difference
Jul 1, 2008 8:05 am

 There are pro's and con's with every platform.  I started at a bank ing the flow of clients and money without really prospecting.  I left after several years because they did not have the resources to handle more complex client needs.  I like my path of building at the bank and leaving once I had a business.  I went to ML and love it.