Bank programs

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Jun 13, 2009 6:41 pm

I am interviewing for a bank program with a regional bank about 485  million in deposits 2008.  This bank is starting a new program from scratch using IPI as the B/D.  I was wondering if anyone has experience in bank programs and can give any advice on things Ineed to make sure I ask.  Also what short of Gross comissions would i need to generate to make 100k? Thanks

Jun 13, 2009 7:15 pm

About 1 million in production.  Banks suck.  Ask anybody.  Payout is 10%.  Bank programs are weak.  You need to go to Jones or a wire.  If you can get hired.

Jun 13, 2009 8:53 pm

Most bank programs will pay between 20-45% depending on your production. Often times it starts around 30% for the first 2 years and then will adjust to a grid based on previous years gross. If you did 300k your first year at a bank you would be in the ball park. Jones pays out about 35-40% with no help and more out of pocket expenses. I will take 30%, help, and no expenses any day of the week.

Jun 14, 2009 9:01 am
Ron 14:

Most bank programs will pay between 20-45% depending on your production. Often times it starts around 30% for the first 2 years and then will adjust to a grid based on previous years gross. If you did 300k your first year at a bank you would be in the ball park. Jones pays out about 35-40% with no help and more out of pocket expenses. I will take 30%, help, and no expenses any day of the week.




Of course, you would. That's why you've been exiled to a bank.

Jun 14, 2009 9:57 am

Alice Cooper,  



Stop wasting everyone's time with BS posts about how we are all inferior to you.  If you have nothing constructive to add then get lost!<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Jun 14, 2009 10:30 am
phialpha1856:

Alice Cooper,  



Stop wasting everyone's time with BS posts about how we are all inferior to you.  If you have nothing constructive to add then get lost!



Please don't confuse your laziness and lack of ambition with my being critical of you. I'm just stating the obvious.

Jun 14, 2009 2:46 pm

I think a bank program is a good way to go if you are just starting.. unless you have $20K saved(edj)... The bank has a large list of clients who already use their services so are comfortable with the name, plus (and this is huge) you can call them, great way around the DNC..



I have a friend who works at Nat City and he gets 30%, which I think is customary..



Ron14, probably knows the most about this though...



Alice is like a piss poor version of hank...

Jun 15, 2009 12:10 pm
Ron 14:

Most bank programs will pay between 20-45% depending on your production. Often times it starts around 30% for the first 2 years and then will adjust to a grid based on previous years gross. If you did 300k your first year at a bank you would be in the ball park. Jones pays out about 35-40% with no help and more out of pocket expenses. I will take 30%, help, and no expenses any day of the week.

 
Yeah, I used to feel that way also, but eventually, the greed and ignorance of my program manager and the holding company CEO overcame my inertia and I decided that I'd be happier making LESS but working for myself.  Thankfully, I got the best of both worlds...work for me and make more than I ever did in the bank program.
 
There are a few notable exceptions out there, but most bank programs will have at least some of these flaws...
 
1.  Turf protection - see how popular you are when you start taking the branch manager's jumbo CDs and large checking account balances.
2.  Ignorance - Often you are dealing with bankers who have no clue about what you do and how to maximize your business.  Most of them in trying to "help" you, actually hinder your business efforts.  My first manager was a real exception to this rule, but unfortunately, he was replaced by Hank Moody and Alice Cooper.  No, on second thought, I would have been much happier and profitable working for Hank and Alice.
3.  The ever-changing elusive grid - Ever try nailing jello?  Finding a bank program where the grid is fair and unchanging is kind of like doing that.  At the first hint of your success, Your bank keepers will be happy to temper your financial success with a "new and improved" compensation grid.
4.  Jealousy - This often manifests as one or more of the first three flaws and is usually the deep-seated reason for change adverse to your interests.  Bankers like winning.  If the senior VP if lending notices that you are driving a nicer car than he is, expect the grumbling to start...followed by turf protection and a new and improved grid.  Stock options?  Often you won't get any as they will be used to placate jealous bankers.  When you do get them, they will be as worthless as GM stock.
5.  Dumb rules/beaurocracy/stupid paperwork and/or sales meetings - This is a catch-all that includes such foolishness about not wearing light-colored lacks after Labor Day to paper reports that included such gems as a pre-sales report (how I'm going to get the sale), a sales report (how big a sale I got!) and a post-sale report (how the pitch went and how I can do better the next time).  There were pipeline reports and daily activity reports...anything to use paper, we did it.  I don't knock it for everyone...for some folks, activity reports are a good motivator.  For me, they just slowed things down and cost me money.
 
In the end, working for a bank is about control...their control over you and how they can exert more control in the future.  They are happy to see your commission numbers make their branch or program look good, but the first hint they get that you are having significant personal success...hang on to your shorts.
Jun 15, 2009 12:31 pm

I have to disagree with most of what is being said here, I started at a huge national bank and would say that most of what is said about process and jealousy is correct there, but now I am at a small community bank and I started the investment services dept from scratch.  

The president of the bank doesn't care what I do or how much I make as long as they get their cut.  They pay for my expenses (mailings, advertising, etc), and if I take CDs they are ok with that, deposits are actually up since I came here.  I work with the other officers of the bank to make decisions for the directions we are headed, so as opposed to Jones or a wire house it is no contest.  Plus all the built in prospects is great
There are some things I would like to have them do that would make my job easier ( intros from loan officers, and the board of directors accts, etc..) but it just takes time and you have to work with staff to educate and train them.  The payout is only about 30% but my contract is set up that as I produce more my payout gets higher. 
The most important thing in my opinion about being in a bank is the people that work there and establishing their trust.  Once you get that you essentially have 10-15-30 people prospecting for you and you are not paying them a dime.  Can't ask for much better than that. 
Jun 15, 2009 12:56 pm

Indyone and Sgd- I agree with both of you to a certain extent. You need to find out if the branch compensation is a driving force towards the FA or away from it. You need to look at the grid and how it has changed overtime and talk to guys who have been there for a while. You need to look at the management style and are you micro managed or left alone.

Jun 15, 2009 1:01 pm

Or...you could work for a company who's grid never changes based on production or tenure.  Where you get bonuses for profitability and trips for production.  Why would  you want to work for a bank with a bank manager staring over your shoulder or looking at what you are doing, wondering why you are converting his deposits into evil stock market investments?  Why would you want to have to worry about being micromanaged or managed at all for that matter? 




 
See, Ron, now that's smug commentary. 
Jun 15, 2009 2:14 pm
Spaceman Spiff:

Or...you could work for a company who's grid never changes based on production or tenure.  Where you get bonuses for profitability and trips for production.  Why would  you want to work for a bank with a bank manager staring over your shoulder or looking at what you are doing, wondering why you are converting his deposits into evil stock market investments?  Why would you want to have to worry about being micromanaged or managed at all for that matter? 




 
See, Ron, now that's smug commentary. 
 
You wouldnt work at a bank with a bank manager staring over your shoulder, you work at one where the investment deposits pay the branch manager more than anything else, thus putting both of you on the same side of the table. You wouldnt work at a bank in which you are managed, you work at one where you are left to yourself as long as your numbers are good.
 
Why would you work at a company that taxes you on vacations that you are paying for anyways and makes you go with 200 other families from the same company? Why would you work for a company that takes 60% to hang a sign ? Why would you work at a company that rewards brown nosing ? Why would you work at a company where you have to attend meetings every month to discuss what is working ? Why would you work for a company that has guys who inherited offices do New FA training ? Why would you work for a company that knocks on doors for business in 2009 ?
 
Jun 15, 2009 2:21 pm
Ron 14:
Spaceman Spiff:

Or...you could work for a company who's grid never changes based on production or tenure.  Where you get bonuses for profitability and trips for production.  Why would  you want to work for a bank with a bank manager staring over your shoulder or looking at what you are doing, wondering why you are converting his deposits into evil stock market investments?  Why would you want to have to worry about being micromanaged or managed at all for that matter? 




 
See, Ron, now that's smug commentary. 
 
You wouldnt work at a bank with a bank manager staring over your shoulder, you work at one where the investment deposits pay the branch manager more than anything else, thus putting both of you on the same side of the table. You wouldnt work at a bank in which you are managed, you work at one where you are left to yourself as long as your numbers are good.
 
Why would you work at a company that taxes you on vacations that you are paying for anyways and makes you go with 200 other families from the same company? Why would you work for a company that takes 60% to hang a sign ? Why would you work at a company that rewards brown nosing ? Why would you work at a company where you have to attend meetings every month to discuss what is working ? Why would you work for a company that has guys who inherited offices do New FA training ? Why would you work for a company that knocks on doors for business in 2009 ?
 
 
I don't mean to get involved, but this pisses me off too.
Jun 18, 2009 7:23 pm

Wire House shark fest is the best!

Jun 18, 2009 11:20 pm
SometimesNowhere:
Ron 14:
Spaceman Spiff:

Or...you could work for a company who's grid never changes based on production or tenure.  Where you get bonuses for profitability and trips for production.  Why would  you want to work for a bank with a bank manager staring over your shoulder or looking at what you are doing, wondering why you are converting his deposits into evil stock market investments?  Why would you want to have to worry about being micromanaged or managed at all for that matter? 




 
See, Ron, now that's smug commentary. 
 
You wouldnt work at a bank with a bank manager staring over your shoulder, you work at one where the investment deposits pay the branch manager more than anything else, thus putting both of you on the same side of the table. You wouldnt work at a bank in which you are managed, you work at one where you are left to yourself as long as your numbers are good.
 
Why would you work at a company that taxes you on vacations that you are paying for anyways and makes you go with 200 other families from the same company? Why would you work for a company that takes 60% to hang a sign ? Why would you work at a company that rewards brown nosing ? Why would you work at a company where you have to attend meetings every month to discuss what is working ? Why would you work for a company that has guys who inherited offices do New FA training ? Why would you work for a company that knocks on doors for business in 2009 ?
 
 
I don't mean to get involved, but this pisses me off too.
 
It ceases to piss you off about one year after you leave Jones.
Jun 19, 2009 7:28 am

Phialpha1856,



I've been a a bank program for about 5 years now and I'll be leaving shortly to go Indy. Indyone's post sums up the negatives about working in a large bank program and I can say that I've experienced all of them. It's true, that the bank will try and limit how much you are compensated and they will not like you raiding the deposit base. Also, the management is a revolving door, and with each new manager, you will have new "goals".



However, I think a bank can be a great place to start if you are a brand new Advisor. When I started, I received ongoing training and I've had a bank staff that I trained to provide me with referrals. If the bankers receive incentives (or if they just like you), you can build a nice book of business without having to bang phones or doors for that matter. Bank programs are unique since prospects are right in front of you all day long. You just need to have a few good bankers filtering them for you.



At some point though, you won't need the bank anymore because you will have a book of clients who do business with you and the bank just becomes a nuisance hindering your growth. The bank will try to make your job difficult with all of their "new initiatives". In time, you will need to leave in order to grow. In other words, you won't need the bank anymore.



In your case, if you decide to go to a bank program, find out if the bankers are required to refer to you. Find out what branches you would cover and how much there are in deposits. A good regional bank might be better since the large banks have all kinds of problems. I would just keep in mind that this is probably a 3-5 year program for you that will allow you to build your book before you move on to something better.



I can say that the bank program worked for me despite its flaws but it took hard work. I had to constantly train the bank staff and deal with a lot of BS. My award though is a nice client base that will reward me now that I'm moving on.



Good Luck!

Jun 19, 2009 12:23 pm

Good Luck in your new adventure Omar!

Jun 20, 2009 8:04 am

Thanks Omar I appreciate your help.   Good luck on the indy move!