Start out in an Indy?
I recently interviewed with a major wire and it went well except for the fact that they told me that there wasn't an open position for at least 10 months and that I would be brought on as part of a team which I'm not to excited about. I read these boards all the time and everyone seems to think Indy's are the way to go. I decided to literally "cold email" an indy firm in my area with my resume attached asking just to get some information on the firm. The owner got back to me and we set up an appointment to talk. I liked everything that they were doing there and I was offered a position. I feel that he was honest with me and didn't try to build up his firm. My first year goal would be only 2.5m AUM, but I obviously will shoot for a lot higher. They are going to pay for all my licensing fees for 3 states and pay a salary to get me started. The salary doesn't last as long as with the major wire, but at least it is something. My starting commission will be 80%, but 20% will go towards office fee's such as a sales assistant and secretary, tech and all marketing materials so my net will be %60. I will have my own private office. The office is located in the nicest office building in my area and it is not cheap to office there so they must be doing some good amount of business. I feel like I would actually have a mentor instead of a boss at this firm. I was also told that if I was a good fit that he was looking to retire in the next 5 years and would like to turn the firm over to someone young and energetic like myself. I believe that this is a pretty sweet deal, but any input, questions, or concerns would be greatly appreciated.
If it is the salary plus the commission you mentioned, it is a sweet deal....
[quote=I am legend]
If it is the salary plus the commission you mentioned, it is a sweet deal....
[/quote]
It is salary plus the commission.
I'm looking at buying a small book from an advisor at my b/d. I don't like the price, but in terms of increasing the bottom line, (from your #s here) I can see it is a lot less risky than bringing on a junior advisor.
DTA, that sounds awesome.
Are you taking the position?
[quote=Stig]
Are you taking the position?
[/quote]
Yes, I took the position. I sent in my U-4 package yesterday and started my studying for licenses.
Care to share more about the final agreement you made? How does he generate business? I am guessing just referrals. How will you generate business?
p.s. sounds like a good deal so far. keep us posted how it goes.
Sounds like you got a pretty fair deal really. And you'll have a far better work environment than the wire, where you'd just be another piece of meat. I'd suggest you try to soak up like a sponge, everything the Sr. does. Try to get him to agree to at least a weekly training session, where he teaches you the things that made him great.
Oh, ask him about getting involved in networking. Networking is long term, but you may as well get started now, because it takes about 3 yrs to pan out. Important to know the right people of your community, and networking in something you really believe in, where folks with money hang out, is the way of the future.
Mark my words, in the next ten years, you'll see the increase of a lifetime in social clubs, golf clubs, etc. Partly because the last 20 yrs have seen huge declines... I'm one of a small handful of guys at my club under 45 yrs old, the rest are all old, and very rich... These old guys just love the younger guys, drinking, golfing, sports games, hanging out at dinner. I love it, best thing I did for my career. I'm just about at the point where the club is free, because production is paying the bill.
DTA - Any updates?
How did you identify indy prospects? Most of the good small shops are DBAs and don’t really advertise much. I know for RIAs you can use invesmentadvisorsearch.com but what about b/d indies?
BFP,
As far as networking, I don't see that as a problem at all. The owner of the firm is definitely part of "the good old boys" club in my city and knows all the influential and richest people. I told him that I played on my high school golf team and he told me that he was definitely going to get me out on the course and introduce me to his circle at his golf cub once the weather got better.
[quote=N.D.]DTA - Any updates?
How did you identify indy prospects? Most of the good small shops are DBAs and don’t really advertise much. I know for RIAs you can use invesmentadvisorsearch.com but what about b/d indies?[/quote]
I am currently waiting for my 4 month window to open and I have been studying for the S7. I have a ton of practice tests and studying materials at my disposal so I will be using those as well. I have taken the LSAT twice and the GRE which I know has no bearing on my success on the S7 and 66, but at least they have conditioned me to not to freeze up or be afraid of long grueling tests. I have been going over my “Employment Memorandum of Understanding” which every paragraph is completely negotiable. I have been asked to prepare a preliminary business plan that my Manager and I will fine tune together.
It might sound very rudimentary, but I went on yellowbook.com and typed in “financial advisor”. Most that came up were all from the same office, but there were a few others. I knew I wouldn’t even get a no thank you reply from one of the firms so I didn’t even bother with them. I basically went to the advisor’s website (if they had one) and emailed them stating that I would like to get some information on how they did business and attached my resume. I didn’t give them a life story or a “just give me a chance” speech. I believe my email consisted of 2 or 3 sentences. I did state that I was currently interviewing with some major wires to at least let them know I wasn’t that much of a kook. One firm got backed to me and we went from there. The interview was more of a meeting of the minds and they liked what I have to offer which is nothing more than my college degree, extensive sales experience and what seems to be a limitless amount of energy. I would call it a little bit of dumb luck since they were not actively looking to hire another broker. Everything has been up front as far as my commission, office fee’s and “get me started” salary. I would have paid for my licensing, but they are picking up the bill which makes me feel like they are investing in my future success and that I am considered a serious hire.
Still looking for input… Thanks
[quote=N.D.]Care to share more about the final agreement you made? How does he generate business? I am guessing just referrals. How will you generate business?
p.s. sounds like a good deal so far. keep us posted how it goes.[/quote]
We haven’t finalized an agreement. Once the b/d gives me the green light and opens my window, my manager and i will negotiate. I do know that my commission will be starting at 80% with 20% going to firm. As far as salary and salary length has yet to be determined.
After researching on this forum extensively, I know that cold calling will be the cornerstone of my prospecting efforts. I could be wrong, but after reading “The 500 day war”, I feel its the way to go.
Sounds great so far. Tapping into the owner's network will multiply your success.
Keep us posted!
My window opened on Friday and I am still studying. I will update as things change or come up.
[quote=iceco1d]
What does "my commission is 80% but then 20% goes to the office so it's 60%" mean? Why not just say "my payout is 60%" unless there is some trickery going on?
Also, is there a non-compete or non-solicit?
This board is losing its streak of pessimism.
[/quote]
No trickery. I figured if I put 60%, it would be assumed that it was 60% minus office expenses.
There is neither a non-compete or non-solicit from how I read the agreement. Like I previously stated, every paragraph is negotiable except for the beginning payout. I actually just got off the phone with the owner and we are finalizing the employment agreement tomorrow.
As far as the pessimism, I feel like I am being honest and people are responding to that. I am just looking for advice. I haven't tried to position myself as someone who has it all together. I understand how it must get annoying having new people come on here and act like they are going to "kill it" in this industry and just run their mouth's. The only reason I think I might have a fighting chance in this industry is because of my extensive cold calling experience and sales experience. Hung up on, cussed out, laughed at. I have experienced it all and I am basically numb to it all. I averaged around 300+ cold calls a day and I will definitely bring that type of call volume to this industry. Enough of the "why I think I can make it" garbage. I welcome all advice or criticism.
A touch off topic but I remember back when I started with Jones tons of guys telling me how they were going to be AWESOME. Knock on thousands of doors. Had rich uncles. I'm not sure any of them are still around unless they inherited a silver spoon. Those with quiet condidence are the ones still around. In all of my professional experince I've yet to see anyone keep a 300 call per day pace up unless they were on an auto dialer in a telemarketing setting. That does not count.
DTA, this job can be isolating, you might have had buddies to laugh off those a-holes - you won't get that now. Chances are you'll be the only one really calling in your office. Hope you do well. Let us know how the final agreement works out. I had an indy firm chasing me late last year and turned them down, for now. I'd love to benchmark their final offer against what you get.
True.. being all alone in the office dialing away late into the evening can really wear you down mentally. The hardest part of this job, in my opinion, is staying motivated and believing in yourself. Rejections from strangers is bs compared to rejections from your own goddamn self.
I appreciate all the input. I am very careful (or at least try to be) when it comes to career decisions. I was burned once before by an independent (not this industry), so I will make sure everything satisfies my needs before I sign the agreement. The owner seems like a very straight shooter. I like the fact that I am negotiating my agreement and its not a "take it or leave it" situation. Maybe I'm wrong. Thats why I decided to ask for some guidance. Off to the library for another day of studying...
Superman,
I will have a final agreement by the end of the day today.
[quote=DTA]
[quote=iceco1d]
What does "my commission is 80% but then 20% goes to the office so it's 60%" mean? Why not just say "my payout is 60%" unless there is some trickery going on?
Also, is there a non-compete or non-solicit?
This board is losing its streak of pessimism.
[/quote]
No trickery. I figured if I put 60%, it would be assumed that it was 60% minus office expenses.
There is neither a non-compete or non-solicit from how I read the agreement. Like I previously stated, every paragraph is negotiable except for the beginning payout. I actually just got off the phone with the owner and we are finalizing the employment agreement tomorrow.
As far as the pessimism, I feel like I am being honest and people are responding to that. I am just looking for advice. I haven't tried to position myself as someone who has it all together. I understand how it must get annoying having new people come on here and act like they are going to "kill it" in this industry and just run their mouth's. The only reason I think I might have a fighting chance in this industry is because of my extensive cold calling experience and sales experience. Hung up on, cussed out, laughed at. I have experienced it all and I am basically numb to it all. I averaged around 300+ cold calls a day and I will definitely bring that type of call volume to this industry. Enough of the "why I think I can make it" garbage. I welcome all advice or criticism.
[/quote]
An asbestos suit was recommended attire if you were posting here a few years ago as a rookie.
The people who can really help you here realize you are just getting organized.
Another reason you'll be more likely to make it will be the personalized training that you'll hopefully get from the owner. Not at all like a wire where your trainer is dealing with 30 other new recruits and is burnt out of training newbies to only see 85%+ wash out.
My test date for the s7 is Feb 17th.
[quote=DTA]
My test date for the s7 is Feb 17th.
[/quote]
PM'd you.
[quote=Stig]
[quote=DTA]
My test date for the s7 is Feb 17th.
[/quote]
PM'd you.
[/quote]
Thanks for the advice and I will definitely brush up on CMO's. I have some Dearborn study materials arriving today if the mail lady ever shows up...
I would be interested in what you said in your initial "Blind email." I am in a similar position of searching for an indy that is looking to bring someone on but prefer not to start from scratch however the salary option might allow me to do so.
I haven't heard of other indy's willing to ofer a salary for someone with no book. Is this more common than I am aware of?
[quote=KYF 13]
I would be interested in what you said in your initial "Blind email." I am in a similar position of searching for an indy that is looking to bring someone on but prefer not to start from scratch however the salary option might allow me to do so.
I haven't heard of other indy's willing to ofer a salary for someone with no book. Is this more common than I am aware of?
[/quote]
I'll have to search for that email, but I basically asked for some of their time to explain how they do business as an Indy firm. I didn't ask for a position or ask if one was available. I asked for information, not a job. People love to talk about themselves and their businesses if you give them the chance. I let them know I was interviewing with the major wires to give myself a little bit of credibility (if MSSB or Schwab is interested in this guy, maybe he is worth 20 minutes of my time) I attached my resume and my email was no more than 3 sentences.
If I was going to do it again, I would probably not email and suit up and do walk-ins at the Indy firms I was interested in learning about. Its pretty hard to say you don't have time for someone when they are face to face with you. It also exudes confidence and drive. From what I have read on these forums, I think an owner or manager of an Indy firm would be surprised if someone walked into their office and asked for 20 minutes of their time to learn about how they do business. Its safe to say that they would at least have a sit down with you. If you can line up a few interviews/appointments, that is your chance to dig a little at see what direction their firm is going and if they are expending and want to bring in more/new RR's.
As far as salary, depends on the firm. A draw would probably be an option to if you really wanted the opportunity.
Thanks ... I will see what I can drum up
On the home stretch. Taking my s7 exam on Thursday.
Good luck.
If you leave this firm, who owns the client relationships?
[quote=indy1969]
Good luck.
If you leave this firm, who owns the client relationships?
[/quote]
Thanks, I own the client relationships if I decide to leave.
I decided to postpone my test out until Saturday.
I figured I would update so I don't sound like I just ran my mouth and then disappeared.
I decided to postpone my Series 7 since I didn't feel prepared. I will be testing soon though and can't wait to get to work.
If you have a series 7 and 63 and live in NYC then we need to talk. I'm gonna add to my desk. (yes I know this is vague.. I can't go into too much detail on a forum for compliance reasons) We are one of the fastest growing firms in the country with multiple offices around the world. Please pass this around to anyone you know who qualifies. NO OPENING ACCOUNTS FOR A SENIOR!!! email resumes to [email protected]
I scheduled my s7 for Monday. I feel like I am going to be as ready as I will ever be.
I am completely burned out on studying and I still have 4 days until my test date. I think I am going to start tapering like I did for the LSAT. Good idea? Also, I have been taking all my practice tests without any charts and have been doing fairly well just using my memory. I have memorized an options chart that I will write down for the exam so I think I will do a little better than my practice tests.
don't focus on the double-breasted butterfly timed span spreads. basically, don't worry too much about the options past being able to do a t-chart.
the last 4 days that i had, i used only the kaplan q-bank and just did question after question (focusing more on the rationale). good luck!
We haven't finalized an agreement. Once the b/d gives me the green light and opens my window, my manager and i will negotiate. I do know that my commission will be starting at 80% with 20% going to firm. As far as salary and salary length has yet to be determined.
Well, I'm a loser. missed the mark by 4%. I'm upset, but I can't help think that if I had better training materials, I would have passed. I could even recognize some of the terms used in the questions. Not even, "I remember the term, but can't recall what it means." I'm completely dumbfounded (sp?). 4 friggin' percent! Now I have to talk to my manager and see what my fate will be.
Update:
Ok, after some auditing of my study material, I have come to find out that it is not the current version. I am not trying to make excuses, but that might be the reason that I had some difficulties with the s7. I have since ordered the new book and I will be taking the 4 day crash course monday through thursday and then take my exam on friday which will be Friday the 13th which is fitting for a guy like me.
Did your firm keep you on after you failed the 7?
[quote=PushForward]
Did your firm keep you on after you failed the 7?
[/quote]
They did luckily. My manager was very understanding. He told me that he has no doubt that I will do well in this profession and that the s7 has no bearing on my abilities to build a book. He said anyone can study for a test, but I have some intangibles that he likes. Very cool guy...
I passed the Series 7 and my 66 so its time to do work son!
I will start my "DTA Cold Caliing Journal 2011-2012" tomorrow.
Can't wait!
Well?
Edit: Never mind. I found it.
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