Best Indy B/D

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Mar 14, 2007 8:44 pm

Hi,


I have a question for some of you that are Indy..Just need a one or 2 word answer, no explaination is necessary.


I am about leaving my former employeer and my book of business (signed a non-compete clause) that I built up the past 2 years and go INDY..My GDC last year ($110K I think) was not huge so I can not get on with the big dogs (Commonwealth, LPL)...Therefore, whom would you suggest I use as my B/D?


I like the fee based platform, so this is a must.


Thank You!

Mar 14, 2007 9:37 pm

Go to financial-planning.com and look for their indy b/d top 50 report. It has a lot of data about production, fees, payouts, etc... That should help you eliminate a lot of choices. Good luck.

Mar 14, 2007 10:39 pm

You can also consider affilliating with an existing LPL, Commonwealth, or RJ Office.

How do you plan on making a living if you're leaving your book behind?

Mar 14, 2007 11:22 pm

Thanks Bobby and Joe for the input.


Joe in terms of making a living...Good Question...It will be tough till I build my book back up. I am going to partner with a CPA and share his clients and try to move some of my old clients over (if I can) as I try to attract new ones, but most likely I will be living off of the wife's salary for 2 years till I can make the business profitable again.


Do you think this is a good idea? I am leaving a pretty easy job where I make about 50K and they are paying for my CFP but the long term growth potential does not seem to exist.

Mar 14, 2007 11:25 pm
porter13:

Thanks Bobby and Joe for the input.


Joe in terms of making a living...Good Question...It will be tough till I build my book back up. I am going to partner with a CPA and share his clients and try to move some of my old clients over (if I can) as I try to attract new ones, but most likely I will be living off of the wife's salary for 2 years till I can make the business profitable again.


Do you think this is a good idea? I am leaving a pretty easy job where I make about 50K and they are paying for my CFP but the long term growth potential does not seem to exist.



Why wouldn't you stay until you complete your CFP?

Bust your butt to finish as quickly as you can, and also build the closest possible relationships with clients and also referrals sources.

It sounds like you're not happy, but at least knowing that you have a goal in mind will help you put up with the situation until after you get your certification.

Mar 15, 2007 8:53 am

Joe...


I have thought about waiting till after the CFP is complete...


However since I have signed the non-compete that makes it more time that I am building business for "the man" and not myself...


Plus the job can be fairly boring...I guess things could be much worse though...

Mar 15, 2007 9:11 am
porter13:

Joe...


I have thought about waiting till after the CFP is complete...


However since I have signed the non-compete that makes it more time that I am building business for "the man" and not myself...


Plus the job can be fairly boring...I guess things could be much worse though...



Why are you taking the CFP exam?

Mar 15, 2007 10:00 am
porter13:

Joe...


I have thought about waiting till after the CFP is complete...


However since I have signed the non-compete that makes it more time that I am building business for "the man" and not myself...


Plus the job can be fairly boring...I guess things could be much worse though...



Many advisors have proven over the years that non-competes are hardly worth the paper on which they are written.

Do not act based solely on my words, but having said that:  If you have a good relationship with your clients and they trust you, they will tend to follow you, at least some percentage of them.  In many cases it is not a violation of the non-compete if you use a letter or a newspaper ad to let people know how to find you if they want to talk, or if you happen to run into former clients at the local Chamber meeting or at church.

I would think it would be better to go indy with a CFP on my business card and maybe a handful of clients than to start over with nothing and no certification to boot.

If you're working under a typical bank payout, the "man" is going to get a plenty big piece of your production over the next year or two while you plan your next moves, and he'll also make a few bucks on the clients you don't take along.   And I'm assuming he has already made money with you.

Take your time to make plans and do it right.  Find a lawyer who knows about this stuff and have them review your contract.  Make sure you are ready to leap, and then go for it.

Mar 15, 2007 10:15 am

Great points from Joedabkr.  Main point...Take your time...do it right.  Plan ahead.  I investigated for a year before moving to Indy.  Well worth the wait.  It can be overwhelming if your not prepared.  Whomever you choose to affiliate with, follow their lead on how to leave and what you can or can't do.  I was totally amazed on the amount of clients who follow.  I was scared before my change, only because EDJ makes you think NO ONE will go with you..that is not the case.  Good luck, keep your production up, stay in contact with your clients. 

Mar 15, 2007 10:20 am

Good advice Joe...Thanks!

Mar 15, 2007 10:58 am

I'm sorry to rain on this parade but, man... You just don't have the nums.


None of your numbers are impressive. Two years into the business you're going to leave the "Man" who was the guy who gave you a foot in the door.


$110,000 in GDC (whatever that means, I assume it means gross something commissions) while not at all bad for a 2nd year is still not enough for you to support an office. Not only will you be living off your wife's income (which is not a point I deride) you AND your office will be living off that income! You're talking about a $1,000 ++ per month for the office alone, not to mention the capitalized costs of a phone system office furniture, computers, printers, fax machines TV etc etc etc. and then there are those variable expenses like advertising, administrative assistant, client dinners (or should I say prospect dinners?)


There is a reason that firms won't affiliate with sub 250,000 producers. It's not that they can't make money off them, it's that the producer can't sustain himself and will eventually crash and burn (and the likelihood of shenanagins with accounts happening goes up as the desperation of the fa goes up. Believe it that the compliance department of every B/D has that saying tattooed to the forehead of at least one officer in the department!)


Your $0 AUM is a num that'll wow them all that's a for sure!


Forget it, it was a nice dream and it might be something that is doable down the road WAAAAYYYY down the road.  


" I am leaving a pretty easy job where I make about 50K and they are paying for my CFP but the long term growth potential does not seem to exist." How do you think they're paying you? You are their growth potential. If they didn't think you could be making them more money in the future, they probably wouldn't have hired you in the first place (I know, I'm assuming facts not in evidence, but being a guy who has hired on some "potential" myself, I know a thing or more). 


This business is about unlimited potential, maybe if you never said this "Plus the job can be fairly boring..." I'd be more favorably disposed. Boredom is an affliction of people too lazy to find something interesting to do! How can you be in this business two years and be bored? Are you on a first name basis with Bill Gates? How about with every multimillionaire within 100 miles of your office? Well then, there's something to do besides being bored.


Independence is for big boys (and girls) who are already successful in the business, it's not an escape route for people failing out of the business or just looking for a way to make more money off the same production.

Mar 15, 2007 11:21 am

Whomitmayconcer


You make some decent points and then you state some things that you have no idea what you are talking about...You have no idea what my current shop will let me do and not do...


Plus you are kinda of an A-Hole it sounds like, nevertheless I appreciate your input...

Mar 15, 2007 12:43 pm

No, I'm a miserable P$#@k (ask anybody), you are the a-hole and I'm sure you were thrilled by my input!


You're working for just about a 45+% payout and you're unhappy. three quarters of the guys here would give up their left nut for a 45% payout. You are getting better than a 50/50 split from your employer (net after his expenses) and you're tired of "building it for the man".


You are right, I don't know what your deal is. You've posted one of those "here's the least I can say without telling you enough for you to tell me I'm a whiney little beyatch who scrapped my knees and then you'll know why I was on my knees in the first place." sort of posts. We see them all the time, they bleed out the information little bit by little bit until it becomes clear that, 'gee the reason I won't be taking any AUM with me is that I was handed the assets by the people who hired me.They are actually clients of the guys I work for. I am nothing other than an order taker, but I know I could grow a business as good as them because I made friends with a CPA!'


There are things that we know from your post that you probably don't want us to know. Mostly is that you were handed a sweet situation. For any newbie to be doing $110,000  (and getting 50M for doing so) in under two years means that you are far too busy working to be bored. Since you are not, it means this is something that landed in your lap. 


I told you I was sorry that my rain was going to g-shower your parade. I have little to no patience for people who will give the Indy channel a bad name (did I mention I am Indy?) and you are a prime example of someone who would. Nor do I have much respect for someone who has been given a gold brick and then complains that it is so heavy. These guys seem to have given you a good deal (and the CFP to boot) and you're going to repay them by leaving, then they'll have all the expense of hiring a new guy and training him and the embarassment of explaining to their clients that you turned out to be a whore, all while you are finding out you don't really know... Lookit, I keep a tin of Shinola on my desk at all times, just because it's important to remind myself of the difference!


So now I'll let you have the last word.


Mar 15, 2007 12:48 pm

Whom:  The length of your posts is alarming.  Do you think anyone really reads those?  You have entirely too much time on your hands.

Mar 15, 2007 12:52 pm

ZZZZZZZZZZZ........


Mar 15, 2007 12:56 pm
vbrainy:

Whom:  The length of your posts is alarming.  Do you think anyone really reads those?  You have entirely too much time on your hands.



alarming?  really?

Did you take typing class in high school?

Mar 15, 2007 12:59 pm
Whomitmayconcer:

ZZZZZZZZZZZ........




Ah.... much better.

Mar 15, 2007 8:17 pm

Wow....Interesting...


A few things...


1) I made 40K last year, but I am expecting to make 50K this year...


2) I was not given any clients, I built the book from scratch..


3) My payout is around 35%


4) I work in a bank that is not growing and the company does no advertising to help it grow and I can not do seminars


5) I am not whining, I am just looking for career advice from experienced brokers whom have been doing it for a while...


PM me if you need more info...

Mar 19, 2007 3:48 pm

If you can change from a 35% to an 85% cut by going independent you change the Algebra immediately. 


Yes, you'll have to pay rent and cover other elements of your overhead but this change is very postive.  I left Edward Jones 2 1/2 years ago and haven't looked back.


If your marketing plan includes working the book from the CPA, door knocking, seminars (as mine does) you'll see an immediate lift in your business.

Mar 19, 2007 7:11 pm
porter13:

Wow....Interesting...


A few things...


1) I made 40K last year, but I am expecting to make 50K this year...


2) I was not given any clients, I built the book from scratch..


3) My payout is around 35%


4) I work in a bank that is not growing and the company does no advertising to help it grow and I can not do seminars


5) I am not whining, I am just looking for career advice from experienced brokers whom have been doing it for a while...


PM me if you need more info...



I wish Bankrep1 and that other bankboy were as honest as you are.