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Wirehousee goals vs reality

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Jul 15, 2010 6:01 pm

[quote=B24]

[quote=BullRunt]

I am ML/BofA and in my first year of production.  While my goals were a little different, annuitized business is all they care about now.  On my first day the goals were daunting but in all honesty if you put any kind of effort into cold calling you will get your $1m easily.  I started focusing on $250k + and B24 is right, eventually a large account will present itself.  I just landed a $3.5m account wrapped at 1.5% for 1st million, and 1.25% for the rest.  It's a great feeling to land those types of accounts, especially when I did so from cold calling and working my ass off.

I have recently been using Sales Genie for my call lists because my branch bought a subscription, but good old fashion research is the key if you do not have a database subscription.  Before I used Sales Genie I was looking at jigsaw.com.  It is a database where for every contact you input you get credit to download a new contact.  I also used the Polk directory at my neighborhood library and when you call smaller companies they will often have an automated directory of employees where you can dial by name so I start with A, b, C, D.... you get the pciture.  It's dirty work but it pays dividends in the near future if you stay focused.  Good Luck

[/quote]

I assume that's an SMA platform?  If not, that's pretty steep.

Nice catch...how much of that groos hits your production grid?

[/quote]

I don't think it is steep at all.  I run ETFs, and I hit my clients for 1.5% for the first half mil, and it tapers to 1.25% after that.  Remember, depending on my model, each ETF portfolio is only about 35 basis points.  I think BullRunt has a very viable way of doing business.  How do you survive off of anything less?

Jul 15, 2010 7:18 pm

[quote=squash2]

[quote=BigFirepower]

[quote=The Rook]

Big, how do you get that info?

[/quote]

Well, it means you do your homework. Public records...be creative, think... If you spent a few hours a week doing that, trust me, it would be worth more than just dialing and dialing. Two cars head off from NY to Los Angeles... one has no map, but the car goes extremely fast....the other car goes 35 mph with GPS.... Which are you?Problem with that assumption again is that your GPS works...GPS is great because it is run by satellites that can be verified, there is no way to consistently verify $250K liquid(except to call). Sure you can increase your probability but no be as accurate as gPS

If you get 25 households with 1m+, you're pretty much set. Open one of those a month, instead of 10 of those crappy accounts the Jones guys would take from me. Isn't that everyones dream?

Other suggestions to you rookies. ALWAYS call with product, bonds WORK, and be quick about it.

Mr. Jones, the REASON for my call....I have a 5% tax free bond rated AA. With bank rates at 1%, thought you might be interested? Yes=talking, No=next call

Debating a "no" is a waste of your time and theirs.  

[/quote]

[/quote]

My point would be that if you only prospect the affluent, you'll only have wealthy clients. There are tell tale signs of affluence, and there are ways of figuring that out. But, it takes a bit of work. I read a book about a guy that did just that, and his point was that the reason why he was bigtime, was because he only went after the big fish. I'd do that if I started all over again. In my case, I ONLY went after folks that had 50k in cash. I had the access to that information, so I had an edge. I've done this a long time, and at various outlets. A big key to my success was to "cheat" the system. Find a way, to skew the odds in your favor. Legally of course.  I spent my first 5-6 yrs beating my head against the wall, then some luch/fate helped out. For sure, there are no brownie points, to doing this biz the hard way.  

Jul 15, 2010 8:22 pm

I have to agree.  You have to go after the money.  And I have actually found that bigger clients can actually be easier to close than the $25K crap.  For some reason small fish seem to squeeze so tightly onto their money.  And often it's spread in 10 different places (an old $7K 401K, a few CD's, an old $12K 401K, a $4K IRA they opened at their bank, etc.) and it's too big a PIA.  However, someone retiring with a $750K nest egg is likely successful and realizes that they know far too little about finance to chance screwing up their retirement. 

I basically stopped taking accounts under 100K a few years ago.  Result?  I now seem to "find" larger accounts, and those larger clients only seem to refer other large prospects.  I don't open "10 accounts a month" like Jones likes, but my average household is WAY higher than the average Jones FA with my tenure (probably more than double).  So in the short-term I have probably made less dough (fewer ancillary products due to fewer clients, and higher breakpoints because of higher balances, and more advisory business - most of the "Jonesies" are doing A-shares on everything and getting 3.5-5% rips on everything), but in the long run I will have larger clients paying fees, versus a book of 3X as many clients and the same assets and much less income.

Jul 15, 2010 9:17 pm

guys, what the best way to qualify prospects on the phone, in one sentence or less?

Jul 15, 2010 9:30 pm

Hey pal, are you a putz or a petunia?...Really, it works in Brooklyn!

Jul 16, 2010 1:00 am

[quote=winger004]

guys, what the best way to qualify prospects on the phone, in one sentence or less?

[/quote]

"I've got two plans - one is for folks with liquid net worth above $X (you pick), one is for folks below $X.  Where do you fit?"

Jul 16, 2010 4:03 pm

I run all of my clients through PIA and 100% of the fee is splattered against my grid.  I use portfolios with ETFs, individual Stocks, and Commodities.  I refuse to use Mutual Funds (possibly market nuetral fund) because I like the transparency I can present to my clients as well as the accountability.  We focus on Risk Management and MF managers are required to stay in a certain style box which turns me off especially when that particular class is dropping like a lead weight.  I want to be nimble and be in and out of the market when I see fit, so that's why the PIA.

Jul 18, 2010 2:57 am

Hi guys, I have a few questions.

I come from an office that NEVER cold calls, ever. I want to, since it seems like all of you are doing it, and are doing well with it. I can roll about 400k a month, but it seems like a joke vs what everyone else is doing here.

I know you guys generate your own leads, but since I am new I figured I can use sales genie? DnB?

Do you guys call homes (scrubbing involved) or businesses???

Any and all feedback are welcome, positive ones at least. Thanks in advance from a rookie!

Jul 18, 2010 9:16 pm

[quote=BullRunt]

I run all of my clients through PIA and 100% of the fee is splattered against my grid.  I use portfolios with ETFs, individual Stocks, and Commodities.  I refuse to use Mutual Funds (possibly market nuetral fund) because I like the transparency I can present to my clients as well as the accountability.  We focus on Risk Management and MF managers are required to stay in a certain style box which turns me off especially when that particular class is dropping like a lead weight.  I want to be nimble and be in and out of the market when I see fit, so that's why the PIA.

[/quote]

How did you qualify for PIA within 1 year? You need an LOS > 1 year just to apply. Then it takes another 3-4 months to get Level 1.

Btw, the Merrill goals are not easy especially if you are on PIA. They are really bent on having you sell high fee based products - that is reflected in their low  requirements for NNA after 3 years. 

Jul 19, 2010 8:48 pm

I work with a Senior Partner and he is the PIA Senior Portfolio Manager.  You are right about the goals.  While the NNA is not hard to acheive, PCs can prove to be a lot of people's downfall.  While ML goals are measured on a "Meets" or "Does Not Meet" basis, everything I have done has allowed me to keep my job.  I have brought the assets in and when I meet with my BM every week, there is no denying my effort has gotten results.  NNA is my key to success.  As long as I keep on bringing in new assets and throwing them into PIA, my PCs will follow and the PC hurdles become soft hurdles rather than sink or swim.  I am sure my experience is different than many others out there, but my BM and Director have been very helpful and have allowed me the opportunity not to simply push for high up front sales loads but cultivate meaningful advisory relationships.

Jul 19, 2010 11:52 pm

I am beginning to think a team approach with a senior advisor is better. The PC goals can transform you into an insurance saleman (not that there is anything wrong with that) but it really doesn't help you to focus on trails. Only thing about partnering is that you have ot split your efforts.

Jul 21, 2010 12:00 pm

[quote=Buddy Fox]Hi guys, I have a few questions. I come from an office that NEVER cold calls, ever. I want to, since it seems like all of you are doing it, and are doing well with it. I can roll about 400k a month, but it seems like a joke vs what everyone else is doing here. I know you guys generate your own leads, but since I am new I figured I can use sales genie? DnB? Do you guys call homes (scrubbing involved) or businesses???? Any and all feedback are welcome, positive ones at least. Thanks in advance from a rookie![/quote]

Bud,

I'm a new guy at Wire myself, and cold calling is slim to none. I call it the the BEAR pen. Before I started here, I was a cold caller for a boutique and wasn't even allowed off the phone until I had some leads on the edge of my desk. I would say to you don't let that stop you. YOU should create that energy, maybe they'll follow.

One question for the pro's, If you didn'tstart production for 4 months, knowing what you know now, what would you bee doing to set yourself up to fly out the gate on day one? Going from being on the phones all day to doing computer modules is more demoralizing than getting hung up on.

Jul 23, 2010 8:05 pm

[quote=TenToesDown]

[quote=B24]

[quote=BullRunt]

I am ML/BofA and in my first year of production.  While my goals were a little different, annuitized business is all they care about now.  On my first day the goals were daunting but in all honesty if you put any kind of effort into cold calling you will get your $1m easily.  I started focusing on $250k + and B24 is right, eventually a large account will present itself.  I just landed a $3.5m account wrapped at 1.5% for 1st million, and 1.25% for the rest.  It's a great feeling to land those types of accounts, especially when I did so from cold calling and working my ass off.

I have recently been using Sales Genie for my call lists because my branch bought a subscription, but good old fashion research is the key if you do not have a database subscription.  Before I used Sales Genie I was looking at jigsaw.com.  It is a database where for every contact you input you get credit to download a new contact.  I also used the Polk directory at my neighborhood library and when you call smaller companies they will often have an automated directory of employees where you can dial by name so I start with A, b, C, D.... you get the pciture.  It's dirty work but it pays dividends in the near future if you stay focused.  Good Luck

[/quote]

I assume that's an SMA platform?  If not, that's pretty steep.

Nice catch...how much of that groos hits your production grid?

[/quote]

I don't think it is steep at all.  I run ETFs, and I hit my clients for 1.5% for the first half mil, and it tapers to 1.25% after that.  Remember, depending on my model, each ETF portfolio is only about 35 basis points.  I think BullRunt has a very viable way of doing business.  How do you survive off of anything less?

[/quote]

If you do not have to give 60% of it to some crappy wirehouse it is easy to charge less alot less!

Like 0.5%

Jul 24, 2010 1:46 am

I believe I read somewhere that the market expectations for your total ROA should be ~90bps.

Dec 29, 2011 6:51 pm

ML's new PMD program calls for:

250,000 PC's

30 million "suggested" total assets by the end of the 3 year program (50% fee based)  looking at 10 million in assets per year...

realistically how attainable are these goals vs reality starting from scratch?

Dec 29, 2011 7:13 pm

[quote=Kresge]

ML's new PMD program calls for:

250,000 PC's

30 million "suggested" total assets by the end of the 3 year program (50% fee based)  looking at 10 million in assets per year...

realistically how attainable are these goals vs reality starting from scratch?

[/quote]

$10 mil a year for someone brand new sound pretty steep.

I'm guessing that the wire's want you to bring in whatever...  Then can you after the 3 years and keep a good portion of the assets.

Never worked for a wire, so thats mearly a guess.

Amber

Dec 29, 2011 7:41 pm

It's actually not quite 10mm a year if you have any growth of your book due to market gains during that period. 

Either way, it's a stretch. Who cares though.  Keep your head down.  Work your tail off.  Build it as big as you can and if they send you packing go to another firm or go Indy.  The pretty Bull logo and the salary are better than alot of other firns offer. 

Dec 29, 2011 10:45 pm

ive watched multiple people do it.  Its not impossible.  Most of the people I see NOT doing it are people that I could have told you day 1 had no chance of doing it.  

There are only a few common themes if you haven figured it out yet:

1) bust it for 3 years and have a good chance of making it.

2) Don't bust it and hope (pray?) to inherit when someone leaves.

3) be related to a current 7 figure producer.  

If you have no relatives doing this and you don't like "chance", then start working.

I had a discussion about this with an attorney friend the other day.  He is working himself up the partner ladder rather quickly at a sizable firm.  He said "its amazing how many good things happen when you decide to do NOTHING MORE than SHOW UP."  So show up.  

Dec 30, 2011 3:09 am

[quote=Kresge]

ML's new PMD program calls for:

250,000 PC's

30 million "suggested" total assets by the end of the 3 year program (50% fee based)  looking at 10 million in assets per year...

realistically how attainable are these goals vs reality starting from scratch?

[/quote]

I started in production 4 years ago (wire) just in time for the yiled curve to invert and recession to loom on the horizon. I beat all the hurdles and was recruited hard. I moved wires 2 years in.

When I started, I decided to do it cold no natural network,etc. and have never regretted that decision. Do a little networking now, and some seminars, but I still cold call every day. Today (164 dials today, 2 prospects developed).  I brought in 9.5 million in new money/transfers this year. 

Next question?

Jan 2, 2012 4:23 pm

Takingnames,

You mentioned that you moved to a different wire 2 years in....how hard is it to move your book with companies having no contact clauses in place?