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Aug 23, 2005 10:09 pm

I have been recruited by SSB for almost a year now, they currently offered me 100% of trailing gross up front and another 20% if I move 80% of my book over, it's a 7 yr obligation, and I am seriously interested in their offer.  The question I have is I would move my office location approx 30 miles away, and I am curious if anyone has ever seen/heard of SSB giving brokers a partially book of biz (ie 30mil) when they try to recruit someone over to them?  Thanks in advance

Aug 23, 2005 10:51 pm

no

Aug 24, 2005 9:32 am

No.  But you will get a small bonus if your referral gets recruited over.  Of other note, I highly recommend you try to get that down to 5 years rather than a 7 year deal.  Seven years is a long time.   If you need other advice PM me and I can help.

Aug 24, 2005 9:38 am

most marriages don't last 7 years.  the shorter the better 

Aug 25, 2005 6:58 pm

At 100%, you want to stay at 5 years.  Now, if you could get a 7 year 140% deal...

Aug 26, 2005 8:31 am

I have not encountered a situation where they have gone away from the 7-year deal anywhere across the country.  It is pretty ironclad and would require approval from the folks in Jericho.


However, if anyone has seen this first-hand, I'd love to hear about it.

Aug 26, 2005 8:48 pm
BrokerRecruit:

I have not encountered a situation where they
have gone away from the 7-year deal anywhere across the country. 
It is pretty ironclad and would require approval from the folks in
Jericho.


However, if anyone has seen this first-hand, I'd love to hear about it.





Thanks for the info.



Just 2 or 3 years ago 5 years was standard.



Them companies are getting greedy.

Aug 29, 2005 9:50 am

I have spoken to some managers at UBS and Merrill in a few spots across the country and they have been talking about going to a 7 or even 9 year deal.  Nothing is is writing yet, so I'm taking it with a grain of salt at this point, but I wouldn't be surprised if firms went this direction.

Aug 30, 2005 6:31 am
BrokerRecruit:

I have spoken to some managers at UBS and Merrill
in a few spots across the country and they have been talking about
going to a 7 or even 9 year deal.  Nothing is is writing yet, so
I'm taking it with a grain of salt at this point, but I wouldn't be
surprised if firms went this direction.





OK.  That's the problem as the industry continues to
concentrate.  It begins to become an oligopoly and the big firms
tend to march in lock-step--at the detriment of the producers.



Today they want to pay less to recruit new producers (assuming that the
deals stay the same and the terms are longer).  Tomorrow they'll
tinker with the grid. 



Watch and see.




Aug 30, 2005 6:58 am
inquisitive:
BrokerRecruit:

I have spoken to some managers at UBS and Merrill
in a few spots across the country and they have been talking about
going to a 7 or even 9 year deal.  Nothing is is writing yet, so
I'm taking it with a grain of salt at this point, but I wouldn't be
surprised if firms went this direction.





OK.  That's the problem as the industry continues to
concentrate.  It begins to become an oligopoly and the big firms
tend to march in lock-step--at the detriment of the producers.



Today they want to pay less to recruit new producers (assuming that the
deals stay the same and the terms are longer).  Tomorrow they'll
tinker with the grid. 



Watch and see.








Firms tinker with the grid virtually every year!  This is nothing
to watch for.  They went from rewarding trading to rewarding
annuitized.  They went from rewarding retention of clients to
rewarding new client acquisition.  A 300K producer in the early
1980's would be doing over a million today with the spreads they were
working with...this changed. 



One thing is constant...if you are a good producer, serving your
clients well, you will be fine.  BTW- one of the next "Tinker"
items will DRASTICALLY reducing the 1% invisable trail most reps enjoy
at the expense of their clients.  Building a "C" share book-
beware.

Aug 30, 2005 9:39 am

Absolutely -


Look for margins to be sqeezed wherever they can. C share and Mngd money, it's just a matter of time.

Aug 30, 2005 10:40 am

The contracts will be stretched longer AND the up-front will stay the same.  I estimate that a 7-year deal will be the norm with the wires (with a few exceptions with those that want to have that "competitive edge" over the others) within the next few years.


The nice thing with structuring the deals is that many of the managers I've worked with at wires are willing to give you a "stipend" for each year of the contract - ie., for a 5-year deal, the broker will receive 20% each year for 5 years.  This will reduce the liability the broker runs across if they decide they need to pursue something else.