Wells Fargo Advisors grid

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Jun 7, 2009 11:30 pm

The grid that has been presented to me from WFA is 24% on the first 10k every month and 50% on everything after that.

 
My question to any current or fomer Wells Fargo advisors is about haircuts and other charges. In your experiences is this grid accurate or significantly less because of charges?
 
Thanks for any help.
Jun 8, 2009 6:35 am

It's less any trade with a commission under $95 = 0. If you discount at all there will be more charges.

Jun 8, 2009 10:01 pm

We also get paid less on annuities than most firms will.  I believe that Jackson Natnl L share is 3% at AGEWACHAFARGO, but 4% most other places.

Jun 9, 2009 12:13 am

So is this grid true or not....?  When does it go into effect? 


I never understand why FA's complain about small tickets.  Just don't do them!

Jun 9, 2009 1:19 am
CommonSense:

We also get paid less on annuities than most firms will.  I believe that Jackson Natnl L share is 3% at AGEWACHAFARGO, but 4% most other places.

 
Finally someone else that gets it ! I get plastered with ticket charges and haircuts because I started 20 plus years ago. The next post says just do not do that business ....well ..it ain't that easy when that is the business the client does and in the last 2 years those are the clients that have done okay.
Jun 9, 2009 9:38 am
Redpen:
CommonSense:

We also get paid less on annuities than most firms will.  I believe that Jackson Natnl L share is 3% at AGEWACHAFARGO, but 4% most other places.

 
Finally someone else that gets it ! I get plastered with ticket charges and haircuts because I started 20 plus years ago. The next post says just do not do that business ....well ..it ain't that easy when that is the business the client does and in the last 2 years those are the clients that have done okay.



If the clients' do for themselves better than YOU do for them, why should you get paid ANYthing?

Jun 9, 2009 7:08 pm

True they should go to Ameritrade where they give you just enough tools to get you turned into fodder when you think you can compete with pros. I take money from the do it yourselves on a daily basis.  I make more money from them for my clients than I would ever make on a few tickets from them.

Jun 9, 2009 9:06 pm
Whatnow:

The grid that has been presented to me from WFA is 24% on the first 10k every month and 50% on everything after that.

 
My question to any current or fomer Wells Fargo advisors is about haircuts and other charges. In your experiences is this grid accurate or significantly less because of charges?
 
Thanks for any help.
 
Depends on your business.  In my case, it seems to hold pretty true.  I am Legacy AGE - so we started on the grid back in March.  I am almost all fee based.  Since the grid my monthly average payout is around 44%.
 
If you do a lot of smaller trades, the minimum commission and ticket charges probably really pull down the percentage.
Jun 9, 2009 9:14 pm
Finally someone else that gets it ! I get plastered with ticket charges and haircuts because I started 20 plus years ago. The next post says just do not do that business ....well ..it ain't that easy when that is the business the client does and in the last 2 years those are the clients that have done okay.[/quote]
 
Why not look at transitioning your clients into the Client Directed advisory platform?  It doesn't take to many transactions for the fee based account to be more cost effective for the client. 
Jun 10, 2009 1:42 am

Cooper,most investors will do better with a professional advisor than without one, no matter what the style of compensation, fees or commisions are paid . A person left to their own defenses often uses emotion rather than a plan or logic to save and invest. This only ends in failure. The rare person that can do it all themselves does not need me , or any invest firm discount or full service.

 

Maddog, good point , and I wish each client got that , but some just can not get past the fee even when they do nothing. I show them that 1% is less than they paid me last year or years prior but they persist. 50% are on fees the rest pay per trade no discount.
Jun 11, 2009 9:34 pm
BAI?:

So is this grid true or not....?  When does it go into effect? 


I never understand why FA's complain about small tickets.  Just don't do them!



I find it tiring to hear from guys who haven't really built a book and think they are big stuff.  No offense BAI?, but too many guys in this business stand up and shout the trend of the week (Limited Partnerships are a great deal,C shares are the thing, fee based is better than commission, SMA's, Index annuities....) and repeat what they are being fed from above.  Too many guys talk with their chests puffed out about how they only have huge clients, only do fee based business, make the client do exactly what they say or fire the client, and a whole host of other ego bloating 'oh you're so wonderful big advisor man' rants.  I'm tired of it. 

We have built what most would consider an enviable book.  Most of it in middle America.  Most of it from normal, mom and pop, average people.  Good people who need help and by the way are very appreciative, loyal, and twice a profitable as huge clients.  If you gather enough $3-$500K clients, life is very very good.  We are currently losing $5-$10K per month of production on small trades and annuity hair cuts.  And yes, I am still going to do a trade for a client who needs a trade, even if I don't get paid.  "Mr Jones, I know that you have $500K w/ me, but I don't really think it is worth my time to advise you on that small position.  I'm really important and you are not."

Clients first, ADVISORS SECOND, and company last.  Isn't that the way it is supposed to be?

Jun 11, 2009 9:50 pm

Common- I don't mind you shareing your thoughts. All I was saying is I didn't understand... I will absolutly do a trade for a 3-500k client regardless of it's size. I just don't get why anyone would want to be doing this for all of there clients ( including the smaller ones). Also,if the client had 3-500k then they would either A get the trade for free from me or B be in a wrap account and allready paying for that service. There are always things to learn and that's what I loook for on these threads. We unfortunatly just beat each other up cause we all tend to be A personalitys. This I get!

Jun 12, 2009 10:50 am


Clients first, ADVISORS SECOND, and company last.  Isn't that the way it is supposed to be?
[/quote]

 
 
I would agree with you common, except isn't the company still making money on the trade and you are not?
 
Why not take the company out of the picture?
 
Then it would look like Client first rep second.