60-70% of FA's=GONE

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Mar 3, 2009 8:54 pm

60-70% of Reps will be out of the business. its happening already.

You people throwing around 1mm in gross like its nothing.



denial



500k will be a huge broker



sad and scary

Mar 3, 2009 9:04 pm

Actually, the only one's left will be doing $1m+. They will inherit all the assets, then the market comes back and they double their book in a few years without much work.

Mar 3, 2009 9:10 pm

its the old 80-20 rule.  maybe its more like 80% that are gone, if you include all the trainees that are remaining.  might as well close down half of the offices too, and consolidate the office space.  if revenue is down 50% for many out there, then the old 500k is the now $250k.  And we know that the major firms dont under $300k guys to stay around.

Mar 3, 2009 9:12 pm
JayMc:

60-70% of Reps will be out of the business. its happening already.
You people throwing around 1mm in gross like its nothing.

denial

500k will be a huge broker

sad and scary

 
We had 4 at a million in 2007..none last year, the above fell to 600-750K, through 2 months they are doing 30-45K per month.  One guy told me that 350K would take a miracle for this year.  Amazing on this board how no one is effected by anything. 
 
Accounts are liquidating in droves in the past week from what I am hearing.  I have had more than my share the last 3 days say enough, and they were 1/3 in cash.
Mar 3, 2009 9:21 pm

insane not to take a check now if u can bring your clients.

260% of 2008 gross



firms are NUTS





   

Mar 3, 2009 9:41 pm

You guys need to stop complaining....

 
Just work harder and you will do the same amount of business as last year.
 
GET TO WORK!
Mar 3, 2009 9:42 pm

I've heard some early reports from FAs who left our complex that bringing over clients has not been as easy as expected.  A majority are still going, but not all of the A clients they had hoped.  However, it is still early.

 
We had three FAs in our office do over a million last year.  None expect to hit those numbers again.  The thing that amazes me is the guys who were doing 500k in 07 figure they will do the same this year without dramatically adding clients or changing their business models.
Mar 3, 2009 9:58 pm

i've workes 6 saturdays this year and my production is up over last year. brokered cds, muni uits, agencies, a few vas and ltc...anything that will stick...

 
the biz is out there, just takes extra effort.  this board can be toxic, don't get too caught up in it lest you convince yourself the biz is too hard.
Mar 3, 2009 11:00 pm
Ferris Bueller:

exactly. Adapt your business and your products. People are buying, you just have to figure out what.

 
What people? Are you referring to existing clients? Or are you bringing in new money?(Cold Calls, Seminars, Direct Mail, Failing FAs).. Let us know
Mar 3, 2009 11:23 pm

i set sat appointments with existing clients to force me to go in.  after the appt, i begin calling.  old school prospecting for about 3 hours.  i usually land at least 1 appointment for the following saturday....repeat...

 
acats, rollovers, two nickels that can be rubbed together...survival mode.
 
the despair is palpable so we should see a bounce soon, but this looks to be a multi-year mess.  munis make a lot of sense...
Mar 3, 2009 11:31 pm

Yeah, the whole industry shakeout is like a big wirehouse training program right now ... whoever is left will be stronger, with less effort. A new client walked in my office today and signed the wrap account apps an hour later. High yield munis as part of the "recovery plan" was the close. Go Ducks!

Mar 4, 2009 7:26 pm

Or you could sit on your ASS waiting for "retention" or "overtime settlement check"

Mar 4, 2009 11:10 pm

Huskies - 100% good post. yeah, this board can be toxic. I have a funny idea: after seeing us wish well for Bondking (who's leaving the biz unfortunately) - what if we all stuck together & actually offered useful ideas & good attitudes, rather than saying who sucks what?

A pipe dream probably, but wouldn't it be nice . . .
 
Thanks for the motivating post.
Mar 4, 2009 11:55 pm

I've sure had my share of liquidations (to anything other than stocks-- mainly to alternatives and various fixed income).  Some clients have HAD it.  It seems like the beginning of capitulation to me.  Maybe this is a good sign?  Breaking 741 on the S&P was the catalyst, and for good reason.  I'm thinking we go to 650, form a base and bounce around for awhile.  Once complete, we get 15 years of a tail wind in the market.  But there I go thinking again....

 
Regarding attrition, there will be lots.  Those that are strong will survive and pick up tons-o-clients.  I am already seeing that in my practice.  Referrals out of nowhere from clients that have never sent referrals before.  And these are clients that are down 30% from the high-- Egad!
 
Ironically, I believe clients are more willing now to send referrals than ever.  I'm not quite sure why, since they've lost so much money with me.  Maybe they're thinking in relative terms and not in absolute terms, but I doubt it.
 
If the original poster is right "60-70% of FA's = Gone," then so be it.  It'll be just like the fate of all those damn real estate agents and mortgage brokers.  Those of us that are left will have much less competition.
Mar 5, 2009 12:20 am
Renter:

Huskies - 100% good post. yeah, this board can be toxic. I have a funny idea: after seeing us wish well for Bondking (who's leaving the biz unfortunately) - what if we all stuck together & actually offered useful ideas & good attitudes, rather than saying who sucks what?

A pipe dream probably, but wouldn't it be nice . . .
 
Thanks for the motivating post.
 
That's what we should be doing in this time period...
Mar 5, 2009 7:55 am
go_huskies:

i set sat appointments with existing clients to force me to go in.  after the appt, i begin calling.  old school prospecting for about 3 hours.  i usually land at least 1 appointment for the following saturday....repeat...

 
acats, rollovers, two nickels that can be rubbed together...survival mode.
 
the despair is palpable so we should see a bounce soon, but this looks to be a multi-year mess.  munis make a lot of sense...
 
I've been doing the same thing: forcing myself to get in front of people by having my BOA  schedule at least four appointments per day with existing clients. If they're sitting in the lobby waiting on me, there's no way for me to aviod them.
 
I spend most of the time between appointments returning calls from irate/scared clients.
 
It'll get better.
Mar 5, 2009 3:45 pm

80% gone.



depression

Mar 5, 2009 5:35 pm

I believe that 2009 will the year I look back and say either "That was the year I was forced out of the business" or "That was the year that made my career." So far, I'm still employed, and I'm doing everything I can to be out of my office and talking to people, wherever they may be. People are starved for good news or some sign of optimism, and if you talk about those things to your prospects, they are much more likely to hear you out when you're talking finances. It ain't easy, but if you buy the crap the media sells, then your selling the same thing.



Chin up, boys and girls, these are the times that will test our mettle and enable us to truly understand what we are made of.

Mar 5, 2009 5:47 pm

Reality sucks.

Mar 5, 2009 7:09 pm

The brokers that make it through this are going to be a very wise and skeptical bunch in the future.