Million Dollar Producers EJ vs. ML vs. BAC

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Nov 9, 2009 7:11 pm

I recently came over with the BAI folks in the Merrill merger. I used to be with Jones. I have to say I was very impressed with the number of million dollar producers Merrill has currently. Based on data the PMG group provided a few years ago there were 1400 plus million dollar producers out of 16000 I'm guessing. I know to be on the Top 500 list the cutoff is 1.5 mill currently. I think at Jones that puts you in the Top 5 in the firm. When I was at Jones during that same survey I know for a fact there were only around 65 FA's doing 1 million out of 9000. I think BAC had 100 or so out of 2000. It shows how different the business models must be. 1400/16000= 8.75% 65/9000=.7%.  Just thought people would find this interesting.

Nov 9, 2009 7:17 pm

You were wrong.  I think people will find this more pointless than interesting. 

Nov 9, 2009 7:27 pm

BAC had 5% million dollar producers?



What about RIA's that are million dollar producers? Their model must be awesome, 100%.

Nov 9, 2009 7:33 pm
Baldy McGrindy:

You were wrong. I think people will find this more pointless than interesting.







We know one jerk off NOT doing a mil.   



maybe if ur were not such a d*** you would do a mil.

Nov 9, 2009 8:19 pm
southcampus:

I recently came over with the BAI folks in the Merrill merger. I used to be with Jones. I have to say I was very impressed with the number of million dollar producers Merrill has currently. Based on data the PMG group provided a few years ago there were 1400 plus million dollar producers out of 16000 I'm guessing. I know to be on the Top 500 list the cutoff is 1.5 mill currently. I think at Jones that puts you in the Top 5 in the firm. When I was at Jones during that same survey I know for a fact there were only around 65 FA's doing 1 million out of 9000. I think BAC had 100 or so out of 2000. It shows how different the business models must be. 1400/16000= 8.75% 65/9000=.7%.  Just thought people would find this interesting.

 
How many of these Million Dollar Producers were the head of a team?  It's alot more impressive to have 3 $350K guys who call them self the Stooges Financial Group of ML and trumpet themselves, or the oldest guy amongst them, as a MD producer.  I know it happens at AGEWachaFargo.  I wonder how many of the Thundering Herd do it? 
Nov 9, 2009 8:53 pm
CommonSense:

[quote=southcampus]

How many of these Million Dollar Producers were the head of a team? It's alot more impressive to have 3 $350K guys who call them self the Stooges Financial Group of ML and trumpet themselves, or the oldest guy amongst them, as a MD producer. I know it happens at AGEWachaFargo. I wonder how many of the Thundering Herd do it?





great call

Nov 9, 2009 10:03 pm

Yea it really is too bad that EDJ doesn't have more million dollar producers. However their is one guy who might be nearing $1billion under management. I think he's at 600-700 million AUM

Nov 10, 2009 9:36 am
southcampus:

I recently came over with the BAI folks in the Merrill merger. I used to be with Jones. I have to say I was very impressed with the number of million dollar producers Merrill has currently. Based on data the PMG group provided a few years ago there were 1400 plus million dollar producers out of 16000 I'm guessing. I know to be on the Top 500 list the cutoff is 1.5 mill currently. I think at Jones that puts you in the Top 5 in the firm. When I was at Jones during that same survey I know for a fact there were only around 65 FA's doing 1 million out of 9000. I think BAC had 100 or so out of 2000. It shows how different the business models must be. 1400/16000= 8.75% 65/9000=.7%.  Just thought people would find this interesting.

 
Although you are generally correct, keep in mind that most of the $1m+ producers at the wirehouses are part of teams.  So there are many teams with 2-3 advisors doing 1.5mm total.  One of them is the "lead" advisor, and they may also employ several assistants.  ALL of the FA's at Jones are solo, so it is quite possible to be doing less gross, but netting more at Jones, because you aren't paying as many people.  If I were grossing 850K at Jones, and netting 425K, I would be pretty happy.
I'm not saying that Jones is even close in terms of production, but you do have to keep in perspective that all fo them are solo's.
 
Incidentally, the guy at Jones referenced above, has done 12 Goodknight plans.  Yes, he has given away assets to 12 different FA's during his tenure, and still has well over 500mm AUM.  So he basically has NO overhead (the Goodknights absorb much of it).  He also owns his own building, so although he pays the rent, he also collects the rent.  The guy's net is around 65%, plus profit sharing, GP, and LP.  He nets well north of $2mm per year.
 
Also, most Jones guys don't work in major metro areas, where most big wirehouse advisors (especially the super-prodcuers) work in NYC, Chicago, Silicon Valley, Boston, Atlanta, etc.  I can tell you, in my area, we have ALL the wirehouses.  The biggest producers (a handful) are just over $1mm, and those are guys with 25+ years in the business.
Nov 10, 2009 9:51 am

Chicago???

 
Never really thought of that as top advisor area. Always see top advisor lists and very few in Chicago, most on east coast, texas, or california. I agree Chicago is a top metro area(hence the name "2nd City") but producers there must be eating each other.
 
Is the Jones guy, the guy down in florida who has like 6 boas and a dr's office?
Nov 10, 2009 9:51 am
franklin21:

Yea it really is too bad that EDJ doesn't have more million dollar producers. However their is one guy who might be nearing $1billion under management. I think he's at 600-700 million AUM

 
Wow. That's got to be 60,000-70,000 accounts.
Nov 10, 2009 10:17 am



That may rank up there among the top 25 posts ever..
 
 
Nov 10, 2009 10:55 am
henrybar:

Chicago???

 
Never really thought of that as top advisor area. Always see top advisor lists and very few in Chicago, most on east coast, texas, or california. I agree Chicago is a top metro area(hence the name "2nd City") but producers there must be eating each other.
 
Is the Jones guy, the guy down in florida who has like 6 boas and a dr's office?
 
No, that's a different guy.  The one we are referring to is in NC.  You're talking about Wann Robinson.
Nov 10, 2009 10:58 am
SometimesNowhere:
franklin21:

Yea it really is too bad that EDJ doesn't have more million dollar producers. However their is one guy who might be nearing $1billion under management. I think he's at 600-700 million AUM

 
Wow. That's got to be 60,000-70,000 accounts.
 
About 1500 clients.  He basically just calls all day long.  He doesn't do in-person appointments.  I think his average account is well north of 300K.
Nov 10, 2009 11:18 am

Calls clients all day long? or Calls for prospects? Is he top producer in the firm now?

Nov 10, 2009 11:22 am

I thought this guy was top producer:

http://www.nwbusinessmonthly.com/nwbm%202006/sept/0906lifestyle.html
Nov 10, 2009 11:29 am

Nevermind he is 5th with $250MM in assets

Nov 10, 2009 11:44 am

The guy from NC spoke at a regional meeting when I was at Jones. He had more in MM at the time than I had in my entire book....he had 30-35M in MM.

Nov 10, 2009 12:10 pm
noggin:

The guy from NC spoke at a regional meeting when I was at Jones. He had more in MM at the time than I had in my entire book....he had 30-35M in MM.

 
I don't follow.  Do you mean he had about 10 times your book? (350mm vs. 35mm)
Nov 10, 2009 12:12 pm

I think he is referring to more in Money Market accounts. ... AND WOW!

Nov 10, 2009 12:18 pm

Ahhhh.  Got it.

As a sidenote, we had a Top Producer speak to a group of us a few years ago.  He gave us his old business plan.  In it, he listed the top 5 in the company in terms of NET INCOME that he was "competing" with (just net commissions, no GP/LP/PROFIT BONUS/PROFIT SHARING, etc.).  In order they were $691K, $654K, $639K, $625K, $577K.  The numbers were from 1998.  This guy had a way to go though.  He was at about $450K net.  The only one of those top 5 no longer with the company is Van Pearcy (he was #4).  We all know how he's doing now.