ML Payout Plan Announced
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It is definitely not good news for those newer guys, especially in a market where successful and aggressive prospecting is just keeping people neutral for the year. Those guys who have just been hanging around are for all intents and purposes being shown the door.
It was very quiet in my office after the DBS. Everyone just headed out.[quote=SuperRecruiter] [quote=BrokerVulture]I’m a recruiter and regularly monitor this site too. Decent business intelligence at times. What I think is pathetic are the few numbnut recruiters who post here hoping to drag the unsuspecting out. Get on the phone and grind it out you pukes. Earn some trust, build a rep, get your name and firm recognized for quality work and guidance. You make the experienced vultures like me look bad! What’s next, posts by “Studrecruiter” or Superturborecruiter" or maybe “TopGunrecruiter”… I could go on. Anyone want my handle? It’s for sale to the next douchebag that decides to openly use this sight for recruiting! $1.00 [/quote]What a tool.
Listen up tool vulture… just because you are having a tough time grinding it out… don’t be mad… My pipeline is full right now and we have represented top end brokers for the top firms for the last 11 years…so while you’re sitting in your garage/office cold calling don’t get mad at a few highly experienced recruiters who have been around this business for over 25 years. Just because times are tough “grinding it out” doesn’t mean you need to spew your problems out on this board. Tell it to people that care.[/quote]
Hey can we start a sub forum where we can put all the recruiters and let them fight to the death? That would be awesome.
I concur with WealthManager. As an LOS3 and solo, starting from scratch, I am having a hard time understanding what the BAC-MER intent is. I am 1st and 2nd quintile in growth 3 years in a row. I chose to start my business opening every account posisble. It they breathed, and could rub 2 nickels together I opened the account. Got a 3mm client because of it, too. My struggle is that 42% of my book is below 100k. They are the ones that enabled me to hit my 15mm goal in 18months. Now, the comp plan will not pay me for anything under 100K. My struggle is that these folks trusted me to start out, and now MER wants me to tell them to go fly a kite because are not worth my time any more?
If I was on a team, my revenue just might be 400k+, but as it is, it is only 240k. I'm proud of my hard work, but it will be difficult to make ends meet with such a sharp drop in income. I want to stay, but not sure if MER wants me. Looks to me like someone moved the cheese. Is there anywhere that lists the varying wirehouse packages?[quote=los3fa]I concur with WealthManager. As an LOS3 and solo, starting from scratch, I am having a hard time understanding what the BAC-MER intent is. I am 1st and 2nd quintile in growth 3 years in a row. I chose to start my business opening every account posisble. It they breathed, and could rub 2 nickels together I opened the account. Got a 3mm client because of it, too. My struggle is that 42% of my book is below 100k. They are the ones that enabled me to hit my 15mm goal in 18months. Now, the comp plan will not pay me for anything under 100K. My struggle is that these folks trusted me to start out, and now MER wants me to tell them to go fly a kite because are not worth my time any more?
If I was on a team, my revenue just might be 400k+, but as it is, it is only 240k. I'm proud of my hard work, but it will be difficult to make ends meet with such a sharp drop in income. I want to stay, but not sure if MER wants me. Looks to me like someone moved the cheese. Is there anywhere that lists the varying wirehouse packages? [/quote] Can't you just have your C.A. household some of them together to make them each $100k? That's what we used to always do when I was there.[quote=los3fa]I concur with WealthManager. As an LOS3 and solo, starting from scratch, I am having a hard time understanding what the BAC-MER intent is. I am 1st and 2nd quintile in growth 3 years in a row. I chose to start my business opening every account posisble. It they breathed, and could rub 2 nickels together I opened the account. Got a 3mm client because of it, too. My struggle is that 42% of my book is below 100k. They are the ones that enabled me to hit my 15mm goal in 18months. Now, the comp plan will not pay me for anything under 100K. My struggle is that these folks trusted me to start out, and now MER wants me to tell them to go fly a kite because are not worth my time any more?
If I was on a team, my revenue just might be 400k+, but as it is, it is only 240k. I'm proud of my hard work, but it will be difficult to make ends meet with such a sharp drop in income. I want to stay, but not sure if MER wants me. Looks to me like someone moved the cheese. Is there anywhere that lists the varying wirehouse packages? [/quote] Your the perfect example for how screwed up this business has become. Your doing great in a crap/ sleazy time in the industry. I would not go to another wirehouse if i were you, they all seem to copy what the other place can get away with. This business is dying, can only really generate growth in profit by taking more from brokers, but have to be careful to not rock the boat too hard. I would find someway to go indepenent with another guy you know who might be in the same position. Tell you clients, or better yet mail them your new comp plan and think you will get 99.9% to come with you. This probably just the beginning, next year min acct will be 200k, than 250K, than the grid will go under 300k 20% etc etc..los3fa,
Go Indy. If you can do 240k in this market, you will be fine. I would recommend renting space in a executive suites building for starters. If you went with LPL, they would be your OSJ until you could get your 24 (I'm sure others can do that too, I just know about LPL). You should be able to get your 24 within four or five months (the first three months will be spent taking ACAT forms all over town).How does ML treat teams? Do all members receive the same payout like MS and SB?
I was on the road when the DBS was on. I listened over the phone. i could not see the screen. My understanding is that the grid is for us. I think that 36 months after getting a number the payout drops from 50% payout to the present grid. Here is what I learned after my grid dropped from 50% to 40%. My pay dropped more than 20%. MFA only only credits you 68% of the revenue, then pays out at 40% (that’s a 27.2% payout). But if the client is 50k-100k, the pay drops to 13.6% payout. And under 50k the payout is “0”. So not only does my pay drop from 40%, now everything under 100k provides no payout. Ouch.
I am wondering if I can team up with someone, if our combined pc's will provide a higher payout. I'll be asking questions tomorrow.I think a lot of questions will be asked over the next week or so. My impression walking out of a meeting with a manager was that the grid for the POA grads would be left, but the subject of 100k minimums for them was never discussed.
I have already heard discussions of guys with lower production teaming up and trying to get above the minimums. Teams do not get the payout like at UBS. Guys on teams are paid on their individual production, not on the production of the highest producing member. HH is not like it used to be, at least what I hear from the senior guys. Compliance is much tougher about it and they want direct relation. The days of just throwing people together to create a HH are over in our complex.Wow. throwing clients together to create a 100k+ HH was my strategy for tomorrow. If you are correct, it’s even worse than I thought.
I have been with BAI for a while now, and what
is really unfortunate is that this pay plan is the best we will ever
have. Each year the plan will get worse, however because of the
retention bonuses it is very hard to leave. Not only the money, but
the fact that your clients now use their on-line banking, direct
deposit, and many of their other services. Even if you can take their
brokerage accounts, they will still be tied to the bank. Just a word
of advise, if I had it to do over again, I would keep my clients as far
away from the products and services that Bank of America has to offer
as possible. That way they stay your clients and the bank is just your
platform. Most probably already know this, but I can assure you that
cross selling your clients BOA products will be a large part of your
pay very soon. Don’t fall for it.
gr8fl,
Thanks, that is good advice. I'm sure all of us newbies have no real clue of the rsks we are creating when doing "full service."[quote=los3fa]I think that 36 months after getting a number the payout drops from 50% payout to the present grid. [/quote]
I need to look into which POA program I was under. My understanding is that we had 50% payout only for the first 24-months but that some POA classes before me had 36-months and that current PDP (or whatever they are called) have something like 60-months. Can anyone confirm?
If anyone could PM me some tips on householding <100k accounts that would be greatly appreciated. I used to use the concept of household discount under MLUA to have peopel bring in other family members but the new MLPA householing rules screwed that up. In my opinion it’s a raw deal for me and for the clients since it helped me gather additional assets.
–WM
[quote=WealthManager]If anyone could PM me some tips on householding <100k accounts that would be greatly appreciated. I used to use the concept of household discount under MLUA to have peopel bring in other family members but the new MLPA householing rules screwed that up. In my opinion it’s a raw deal for me and for the clients since it helped me gather additional assets.[/quote]
If offering household discounts helps bring in new business, here is one tip on how to do that: go somewhere that does not prohibit you from doing what you believe makes good business sense. There are numerous alternatives that would allow this practice.
This is only a problem if you choose to let it be one.
POA payout remains the same for the 2007 POA year.
LOS 0-12 50% 13-24 50% 25-36 50% 37-48 40% 49+ Grid[quote=iceco1d]
You know, I don’t actually mind the recruiters being here (not that I’m “in play,” lol). But a few of you guys offer just another POV, which I think is good.
These guys aren't spamming. They are mass PMing members (to my knowledge). They share their POV, and indirectly, they are part of our industry. Hell, if I were looking for a recruiter, I would be happy to know that we have some long-term guys here that aren't just trying to "make the sale." Kind of like Bill Singer...if I ever needed a securities attorney, I know right where I'd go, assuming I could afford him. He isn't here just to advertise himself. His POV is a great one to have too. [/quote]Gee, thanks ice. Atleast SOMEONE appreciates what we do on these boards. And fust FYI, I don't ever initiate conversations through PM's with anyone this site. If someone comes to me and asks what I can do for them, then yes, by all means I will help them out. But, just to set the record straight, I am a provider of information first and a recruiter second, as far as these forums are concerned. Ask ferris, he bitched at me when I first joined. ;-)
[quote=los3fa]I concur with WealthManager. As an LOS3 and solo, starting from scratch, I am having a hard time understanding what the BAC-MER intent is. I am 1st and 2nd quintile in growth 3 years in a row. I chose to start my business opening every account posisble. It they breathed, and could rub 2 nickels together I opened the account. Got a 3mm client because of it, too. My struggle is that 42% of my book is below 100k. They are the ones that enabled me to hit my 15mm goal in 18months. Now, the comp plan will not pay me for anything under 100K. My struggle is that these folks trusted me to start out, and now MER wants me to tell them to go fly a kite because are not worth my time any more?
If I was on a team, my revenue just might be 400k+, but as it is, it is only 240k. I'm proud of my hard work, but it will be difficult to make ends meet with such a sharp drop in income. I want to stay, but not sure if MER wants me. Looks to me like someone moved the cheese. Is there anywhere that lists the varying wirehouse packages? [/quote]Are you in a major market area? With an LOS of 3 and 240k in production, I don't think you'd have a problem getting hired at another wirehouse. You're what we refer to in the recruiting biz as a "rising star" What's your AUM look like? As long as your t12 isn't too much greater than the fabled 1% rule, I think you'd have a decent chance interviewing anywhere.
Get a recruiter.
Hey ML guys do you want something to make you feel better? Take a look at the BAI grid for 2009.
<o:p></o:p>
FA I
0 - 149,000 >5 12% < 5 30%
150 - 249,999 >5 12% < 5 30%
250 - 299,000 >5 15% <5 30%
300,000 >5 18% <5 33%
FA II
350 - 399 31%
400 - 499 34%
500 - 599 36%
600 - 699 37%
700 - 849 39%
850 - 999 40%
1,000,000 > 41%
The trailer payouts for FA II have also jumped from 10% to 23% on the lower end of the scale and 31% at the top
Now do me a favor ML folks and STOP CRYING