Wachovia Profit Formula
Heard today that Wachovia can no longer recruit into Profit Formula? If that’s true… ouch!
That was the one compelling model there I had some interest in. Can anyone validate that??
I haven’t heard that. The only thing I knew is there was a long back log to get into PF. My partnership converted back in the Spring of '07 right before it was “stalled”.
It is true, no more recruiting to pf. There is more to this whole story. I will let someone else break the news, but it looks like this pig is getting some lipstick real soon.
Profit formula is a great platform…it also houses a huge % of the firms million+ producers so tinkering with it would not be a good idea. In profit formula, my payout is slightly over 60%…this is so high, it makes competing offers, while good upfront, very unattractive over the long term (typically 45% vs. 60% which is about a $210,000 annual difference). My practice also has a 28% profit margin, so I assume most other practices are in the same boat…why rock it??
Doing away with profit formula would do more to incite FAs to leave than would deciding not to pay retention. There has been a ‘freeze’ on new practices for some time, opening up again in April for the first time in months. Hopefully this is just confusion about this and it will remain status quo.
All forms of recruiting and Training have been altered. If you are in PF now you are good for this year. That is all anyone knows.